Retraction And Correction To News Release Dated October 25, 2018
October 26, 2018
Vancouver, B.C. - Sun Metals Corp., (“Sun Metals” or the “Company”) (TSXV:SUNM) At the request of the Investment Industry Regulatory Organization of Canada, the Company hereby retracts and corrects certain statements made in its news release dated October 25, 2018.
The Company specifically retracts disclosure in Tables 1 an 2 made regarding estimated extrapolations of dollars per tonne as it constitutes restricted disclosure per National Instrument 43-101, section 2.3(1)(c). The Company also retracts disclosure in Tables 1 and 2 of the grade times length in the announced drill results from Hole DDH18-DS-421, DDS18-SD-412 and DDH18-SD-417, and hereby provides a corrected table setting out such drill results.
As true widths of the drill hole intersections are not known disclosure of grade times intersected length will overstate this calculation and this calculation may be material.
Table 1 . Tabulated results from DDH18-SD-421
| Hole | From (m) | To (m) | Length (m) |
Copper (%) |
Gold (g/t) |
Silver (g/t) |
Zinc (%) |
Copper Equivalent (%)(1) |
|---|---|---|---|---|---|---|---|---|
| DDH18-SD-421 | 539.80 | 576.30 | 36.50 | 3.89 | 4.47 | 84.6 | 1.06 | 7.80 |
| Incl. | 540.65 | 546.20 | 5.55 | 6.28 | 7.01 | 202.1 | 5.09 | 14.42 |
| Incl. | 558.80 | 565.60 | 6.80 | 8.52 | 11.17 | 162.0 | 1.39 | 17.36 |
(1) Assumptions used in USD for the copper equivalent calculation were metal prices of $2.80/lb Cu, $1,200/oz Au, $15/oz Ag, $1.20/lb Zn and recovery is assumed to be 100% as no metallurgical data is available. The following equation was used to calculate copper equivalence:
Copper Equivalent = Cu (%) + (Au (g/t) x 0.6252) + (Ag (g/t) x 0.007815) + (Zn (%) x 0.4286).
Table 2. Select significant results, 2018 Stardust drill program
| Hole | From | To | Interval | Copper (%) | Gold (g/t) | Silver (g/t) | Zinc (%) | Lead (%) | Copper Equivalent (1) | Zone |
|---|---|---|---|---|---|---|---|---|---|---|
| DDH18-SD-411 | 174.70 | 189.10 | 14.40 | 1.32 | 1.03 | 22.9 | 2.12 | - | 3.05% | Canyon Creek Skarn |
| Incl | 178.20 | 183.90 | 5.70 | 1.57 | 1.38 | 33.1 | 5.20 | - | 4.92% | Canyon Creek Skarn |
| DDH18-SD-411 | 226.75 | 228.90 | 2.15 | 3.81 | 0.75 | 498.4 | 23.31 | 3.71 | 19.35% | Canyon Creek Skarn |
| DDH18-SD-412 | 42.75 | 50.40 | 7.65 | 0.03 | 1.31 | 62.3 | 0.78 | 0.45 | 1.81% | GD/Anom-C |
| DDH18-SD-417 | 50.50 | 57.80 | 7.30 | 0.04 | 0.48 | 7.7 | 7.42 | 0.06 | 3.61% | GD Zone |
(1) Assumptions used in USD for the copper equivalent calculation were metal prices of $2.80/lb Cu, $1,200/oz Au, $15/oz Ag, $1.20/lb Zn and recovery is assumed to be 100% as no metallurgical data is available. The following equation was used to calculate copper equivalence:
Copper Equivalent = Cu (%) + (Au (g/t) x 0.6252) + (Ag (g/t) x 0.007815) + (Zn (%) x 0.4286).
The Company further retract the following disclosure:
“…announces that drilling into a new extension of the Canyon Creek Skarn zone at its Stardust project in north-central British Columbia has returned the thickest and richest mineralization ever intersected at the project.”
and:
“DDH18-SD-421 has intersected significantly longer and higher-grade intervals of mineralization than has ever been observed in the 406 drill holes (approx. 80,000 metres) of historic Stardust drilling. The average length of intercepts comprising Stardust’s NI 43-101 resource is 4.3 metres.”
The Qualified Person who prepared, supervised the preparation or approved the scientific and technical disclosure in the October 25, 2018 was Ian Neill, P Geo. Mr. Neill is the Vice President, Exploration of the Company and accordingly is not independent of the Company.
For more information, please contact Steve Robertson at (604) 697-4952 or [email protected].
On Behalf of the Board of Directors of
SUN METALS CORP.
Steve Robertson
Chief Executive Officer
Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
Statements included in this announcement, including statements concerning our plans, intentions and expectations, which are not historical in nature are intended to be, and are hereby identified as, “forward‐looking statements”. Forward‐looking statements may be identified by words including “anticipates”, “believes”, “intends”, “estimates”, “expects” and similar expressions. The Company cautions readers that forward‐looking statements, including without limitation those relating to the Company’s future operations and business prospects, are subject to certain risks and uncertainties that could cause actual results to differ materially from those indicated in the forward‐looking statements.
About Sun Metals
Sun Metals is advancing its flagship Stardust project located in northcentral British Columbia, Canada. Stardust is a polymetallic Carbonate Replacement Deposit with a rich history. Pursuant to an option agreement (the “Option Agreement”) between Sun Metals and Lorraine Copper Corp. (“Lorraine Copper”), an Exchange listed issuer, Sun Metals has an option (the “Option”) to earn a 100% interest in the Stardust Project (the “Project”), located in central British Columbia. Sun Metals believes B.C. is a reliable jurisdiction with excellent exposure to capital markets, a deep pool of exploration professionals, a wealth of supporting services, and exceptional infrastructure with direct access to Pacific markets
Please see the corporate presentation available on Sun Metal’s website at www.SunMetals.ca.