Adamera Plans 2014 Drill Program and Provides Update
Vancouver, BC, January 14, 2014 -- Adamera Minerals Corp. (TSX V: ADZ) presents a detailed progress report outlining its advancements in exploration, strategy development, corporate awareness and cost reduction for the year 2013. It is these achievements that have now put Adamera in a position to test five high-priority, high-grade gold targets in Washington State.
While a very high percentage of junior exploration companies were inactive waiting for better economic times, Adamera adopted a low-cost exploration approach which enabled the company to expand and advance its properties through detailed geological, geochemical, geophysical and drilling activities.
All Adamera projects are in established mining districts, current or historic and are within hauling distance of an operating, under-utilized mill. Throughout 2013, Adamera focused on developing drill targets with high-grade gold potential. As a result all projects are drill ready with existing proof of concept. Adamera is now positioned for discovery, with plans to drill test high-grade targets on all five projects.
-- Discover high-grade deposits within hauling distance to a mill
Adamera continued to streamline its strategy of low-cost exploration for high-grade underground mineable gold and silver resources in NE Washington State. Washington is known for hosting high- grade gold deposits such as the Buckhorn deposit which is currently being mined.
The Buckhorn mine is owned and operated by Kinross Gold Corp. Kinross hauls the Buckhorn ore to their Kettle River Mill 70 km to the southeast. The 11.3 g/t gold Buckhorn deposit is one of Kinross's lowest cost producers with reported costs of less than $500/oz. The mine has only two years of mine life remaining, at which point the Kettle River mill will require ore. Adamera's strategy is to discover a high-grade deposit within hauling distance of the Kinross Mill.
"Working in an area with a well-developed network of roads and an underutilized mill is highly advantageous for any company. While our main target is a 1M oz- 5g/t gold deposit, we have the luxury of having a minimum target of 200,000 oz at 6 g/t gold. This is essentially a unique brown field exploration opportunity for us," Says Mark Kolebaba, President and CEO of Adamera Minerals.
Adamera has significantly advanced and expanded its property holdings in Washington State. Following on the Company's land acquisition strategy, data was reviewed on hundreds of projects including dozens of site visits over the last couple of years. Five high-interest properties were acquired based on high-grade gold historic data. Combining current geological models with historic geological information has given the company opportunity to evaluate the properties in a new manner. The effectiveness of these contemporary models is evident in the dramatic advancement of these projects.
Geologically, Adamera is targeting areas within and around the Republic and Toroda Grabens in northeastern Washington. The Republic Gold District produced over 3M oz of gold averaging 20g/t and 15M ounces of silver averaging 110g/t. The company recently expanded its land position into this district through the acquisition of the Flag Hill Property.
Flag Hill Property - 12 km from Mill
The Flag hill property is located on BLM land within the largest gold producing area in Washington State, the Republic Gold District. This property was acquired in 2013. Considered a high priority property at the time of staking, the company quickly completed property wide mapping, sampling and geophysical surveying. The company is currently reviewing the Flag Hill data and will release the results of the work shortly. A Notice of Intent for drilling at Flag Hill has been filed with the Bureau of Land Management.
Oversight Property - 5 km from Mill
The Oversight property is located on BLM land along an existing haul road to the Kinross Mill. This property is near the eastern margin of the Republic Graben where over a million ounces of gold have been mined from past producers such as Lamefoot, Overlook, Key East and Key West mines.
The past producers in this area are believed to be synergetic in origin with gold occurring in a magnetite -- pyrrhotite horizon which stratigraphically underlies a limestone unit. A ground magnetic survey completed by the company has identified a strong magnetic anomaly predicted to lie at an estimated depth of 25 metres. The anomaly is likely caused by magnetite which may be associated with gold. At the surface along the projected margins of the magnetic anomaly are gently dipping 0.2 metre thick veins that contain high gold values including 16 and 69 g/t gold.
The high-grade veins are considered the primary target on this property; rather they are perhaps indications of a larger, gold bearing magnetic target that lies at a depth of approximately 25 metres.
The magnetic target is circular and approximately 250 metres in diameter. Immediate plans for this property include detailed magnetic surveying over the target area to provide best drilling locations for two to three holes. A Notice of Intent for drilling at Oversight has been filed with the Bureau of Land Management
Poland China Property - 80 km from Mill
The project is located 10 kilometres from the Buckhorn mine within similar geology. The Poland China mine was considered a vein type deposit, however, based on recent work the company believes gold at Poland China occurs within an extensive shallow dipping, 30-40 metre thick, graphitic shear zone. Zones of high-grade gold ranging from 3 g/t to 44 g/t have been identified in areas with intense silica alteration.
The company also identified two additional exploration targets 2 kilometres north of the mine. Associated with soil geochemical and magnetic anomalies is an area with quartz veins that have yielded 56 g/t as well as an area with "placer" gold in soil.
In 2014, the company is planning to drill test the extent of the mineralized zone encountered in DDH-10 that intersected the margin of an interpreted resistive anomaly yielding a highly silica enriched zone with 29 g/t over 0.4 metres within a ~4 metre zone containing ~5 g/t gold. A down dip extension predicted by structural interpretation and the gradient array data will be targeted with an initial 2 to 3 hole step-out drill program. If the high-grade zone is intersected down dip, a much more extensive drill program will be required.
Empire Creek Property - 32 km from Mill
The Empire Creek property straddles the western margin of the Republic Graben and lies along the same structure as the K2 mine located 6 kilometres to the north. The K2 mine is an epithermal gold vein system that was previously mined by Echo Bay Mines and is currently being explored by Kinross.
Until recently, mineralization at Empire Creek was assumed to be horizontal strataform replacement style mineralization. Several high-grade intersections were encountered in numerous historical drill holes, including a zone of 9 g/t gold and 154 g/t silver over 18.3 metres, however, the majority of the drill holes were vertical and demonstrating continuity of this mineralization was a challenge.
Based on work completed in 2013, the company believes the mineralization at Empire Creek is epithermal in origin rather than replacement style. High-grade gold and silver mineralization encountered at surface and in drill core is located along vertical structures that were not previously recognized. Prominent alteration/geochemical halos associated with the mineralization, regional stratigraphy, and along with the proximity to the K2 Mine and the graben margin further suggests epithermal origin.
In 2014, at least 2 to 3 angled drill holes are planned to test these vertical structures.
Golden Reward Property - 60 km from Mill
The Golden Reward property is located on the eastern side of the Toroda Graben. The property is on private land that hosts part of an epithermal gold-bearing vein system. The vein system trends across the property onto the adjoining land which was recently acquired by Kinross Gold Corp.
The company has identified favourable structures and significant gold mineralization on the property. Alteration, geochemistry and silica textures at surface suggest that the exposed part of the system is at a high level. Typically, mineralization within these systems can be wider and higher grade at depth.
This property has never been tested at depth. The company has identified at least three target locations that require drill testing at a depth of 100 to 300 metres.
As a new company exploring for high-grade gold and silver in Washington State, Adamera has initiated investor awareness in the USA as well as Canada.
Over the past year the company has exhibited at and attended specific US investor conferences. This presence introduced the company to many retail and institutional investors interested in US projects. Industry conferences have also afforded a means of establishing relationships with well-known and respected newsletter writers. Generous mentions to speaking audiences by writers such as Lawrence Roulston and John Kaiser have brought significant awareness and interest to Adamera. The company has also been working closely with popular media host Al Korelin to promote awareness in the United States. Conducting frequent interviews on the 'Korelin Economics Report' has provided exposure to a broad investor audience in the United States. Other media interviews include the 'Junior Mining Network' and the 'SNN' network. In late 2013, Adamera was published in the 'Northern Miner', and 'Resource World' publications. These publications are far reaching with regards to company and project recognition.
As a new member of the Northwest Mining Association (NWMA), Adamera was pleased to attend the Reno and Spokane conferences. Adamera had the honour of being invited to present its exploration activities at the Growth Company Panel at the 2013 NWMA conference which generated an overwhelmingly positive response both at the presentation and afterwards at our Core Shack booth.
In 2014, Adamera has been invited to display in the Core Shack at the AMEBC Round Up in Vancouver. These invitations are perhaps an indication of growing industry awareness of our activities and subsequent peer recommendations.
Measuring effective marketing is generally difficult; however, as a result of our low-cost marketing efforts, our trading volume has increased 50% from June to December. Frequent interviewing on the 'Korelin Economics Report' was highly effective, as indicated by increased volume after interviews and by the fact that the Korelin Report website is the #2 referral website to our company website.
Being located near the project area (6.5 hour drive from Vancouver Office) and having excellent road access, site visits are a low cost and effective means of project marketing. Adamera conducted numerous site visits with various geological consultants, media representatives, shareholders and potential major investors in 2013. Now with projects at a more advanced stage, site visits for the investor community will play a larger role in marketing for Adamera.
As a new company to Washington State it is also important to gain community awareness. With a very small community relations budget our approach at this stage is to have a presence in the community and increase visibility of the corporate name and activity. As a new corporate member of the community we have adopted a section of highway leading into the town of Republic, sponsor community events, hire locally whenever possible and maintain membership in the local Chamber of Commerce and other associations to increase company awareness in the community. Adamera's exploration crew live in the town and participate in many local activities.
There are many differences between working in Canada and the USA with regards to permitting and operating procedures. The company has been actively building relationships with government representatives in three counties as well as with environmental and other groups representing the Washington area. Tours of the Buckhorn mine and Kettle River Mill have been very informative in this regard. Adamera's low impact exploration philosophy has been helpful in attaining permits for exploration.
COST CUTTING AND COST ALIGNMENT
Adamera has been complimented for its effective shift from the expensive short seasons of Canada's north to Washington State where the company can operate all year at costs that are 90 % less than northern costs. Adamera has continued to advance its projects through tough economic times while many other companies have become virtually inactive.
Not knowing when the markets will improve, it is important for resource companies to align costs with economic conditions and work towards low cost discovery of mineral wealth. Significant reduction of corporate and exploration costs ensures maximum exploration value on the company's prospects. Cost cutting measures by Adamera have included staff reduction, wage cuts and streamlined in-house use of company owned or rented equipment. As a result, Adamera's geophysical, geochemical and drilling costs are a fraction of the cost for most companies working in similar regions. Most importantly, a higher percentage of cash goes into the ground.
The company continues its efforts to sell its many northern projects. The KAM and Hawk uranium properties are currently under a letter agreement to be sold. Such transactions are essentially non-dilutive financings that will be used to advance the Washington properties. In addition, the company will announce a private placement prior to starting any work programs on the properties in 2014.
A strong United States focus is essential to Adamera's exploration strategy as many believe parts of the US have been under-explored over the past 20 years, over which time deposit models have significantly evolved providing new and innovative exploration ideas. Continuous reports from the USA state the importance of domestic sources of resources to ensure a stable manufacturing industry and create jobs in economically depressed, resource-rich regions of the country. As a safe, stable, low-risk business environment, Adamera believes that the USA will be one of the next frontiers for mining and exploration.
Jim Ebisch, P.Geol is the Qualified Person as defined by National Instrument 43-101 reviewing the data in this release.
For more information on our projects, media reports and interviews, please visit our website at www.adamera.com. Also follow us on Twitter @ ADZ_adamera and on our Facebook page 'Adamera Minerals'.
Manager, Corporate Communications
Tel: (604) 689-2010
Fax: (604) 484-7143
Email: [email protected]
The TSX Venture Exchange has not reviewed and does not accept responsibility for the adequacy or accuracy of this release. Statements in this press release, other than purely historical information, including statements relating to the Company's future plans and objectives or expected results, may include forward-looking statements. Forward-looking statements are based on numerous assumptions and are subject to all of the risks and uncertainties inherent in resource exploration and development. As a result, actual results may vary materially from those described in the forward-looking statements.