U.S. Markets closed

GSP Resource Corp. Announces Results of Fall 2019 Drill Program at Olivine Mountain

VANCOUVER, British Columbia , Jan. 15, 2020 (GLOBE NEWSWIRE) -- 2020: GSP Resource Corp, (GSPR.V) the “Company” or GSP) is pleased to release the preliminary drilling results on the Olivine Mountain property, located in Similkameen Mining Division, British Columbia. The Olivine Mountain property covers part of the Tulameen Ultramafic Complex, a large slab of magnesium and iron-rich rock that ascended from near the base of the earth’s crust to its current position during continental collision and the emplacement of the Cache Creek terrane in southwestern British Columbia.

Previous mapping and the 2018 GSP soil survey confirm that there is a northwest-southeasterly trending geological contact that separates mafic rocks in the northeastern part of the property from ultramafic rocks in the property’s southwestern part. The predominant economic metals present in the northeastern mafic rocks are copper, cobalt, nickel and gold. Those in the southwestern ultramafic rocks are nickel, chromium, and platinum-group metals, mostly palladium.

Mineralization of interest to GSP was concentrated in the Olivine Mountain property area during at least four separate events resulting in a diverse group of exploration targets. Original copper mineralization was concentrated in parts of the mafic rocks in the northern part of the property near the ASP 14 showing while the Tulameen Ultramafic Complex was formed near the base of the earth’s crust. Platinum-group metals, mostly palladium, were concentrated in east-west trending structures in the ultramafic rocks in the southwestern part of the property area due to deformation during ascent from the base of the crust. Porphyry copper-molybdenum mineralization and alteration occurred during granitic intrusion in the southeastern part of the property area around the HOP showings and in the central part of the property. Gold-bearing shears and quartz veins developed throughout the northeastern part of the property area.  Late shears further concentrated copper mineralization in the ASP 14 showings area in the property’s northern part.

Recent GSP Reconnaissance Drilling

The recent GSP reconnaissance drilling program comprised seven drill holes that tested targets at six locations in the northern and central parts of the Olivine Mountain property.

DDH 1 was a vertical hole with a length of 203.2m. It was collared at U.T.M.: 5,483,700 N., 655,693 E. near the eastern shore of a borrow pit locally named the frog pond. It is in the central part of the property area and the 2018 GSP soil grid. The diorite at that location is fractured and hosts numerous quartz, orthoclase and epidote veins, some of which are mineralized with bornite and chalcopyrite. Weak potassic alteration that is present at surface was confirmed by a 44.6 ppm concentration of molybdenum encountered in the  narrow mineralized section that was present in the core (see table).

DDH 2 was a vertical hole with a length of 200.25m. It was collared at U.T.M.: 5,482,861 N., 655,635 E. over an airborne magnetic anomaly in the western part of the property area and the 2018 GSP soil grid. Probably, the magnetic anomaly was generated by blebs and pods of blue-black magnetite present through altered diorite and gabbro. The hole encountered no significant mineralization.

DDH 3 was a vertical hole with a length of 206.35 m. It was collared at U.T.M.: 5,483,039 N., 656,783 E. over an airborne magnetic anomaly in the central part of the property area and the 2018 GSP soil grid.  Probably, the magnetic anomaly was generated by magnetite. Copper enrichment was encountered at the base of the weathering profile (see table). No other significant mineralization was encountered.

Drill holes 4 and 4B were drilled from two set-ups located 20m apart on a logging road where it crosses between the two ASP 14 showings in the northern part of the property area. The two showings are connected by a sub-vertical trend that strikes at about 190°.

DDH 4 was collared at U.T.M.: 5,485,882 N., 655,356 E. It was drilled southeastward (145°/-70°) for 93.2m beneath the main ASP 14 showing, an outcrop of sheared mafic rock containing copper (chalcopyrite, chalcocite, malachite, and azurite) mineralization. Previously, prospectors had reported obtaining high palladium results from samples taken from that outcrop.  DDH 4 penetrated two narrow mineralized sections (see table).

DDH 4B was collared at U.T.M.: 5,485,877 N., 655,373 E., about 20m east-northeast of DDH 4. It was drilled eastward (070°/-60°) for 93.5 m beneath the road under the ASP 14 quartz vein showing, a small outcrop of sheared mafic rock hosting quartz veins. The veins contain chalcopyrite. DDH 4B penetrated three significantly mineralized intersections (see table).

DDH 5 was a 200.25m long vertical hole, located at U.T.M.: 5,483,598 N., 657,310 E. at the eastern margin of the 2018 GSP soil grid in the central part of the property area. DDH 5 was drilled into a  road-side outcrop of variously silicified diorite and gabbro with copper mineralization on fractures and chromite blebs. Reportedly, a sample of chromite-rich rock taken previously by prospectors contained 10 gm/mt palladium. The road-side outcrop was also the location of a Cretaceous-age quartz and gold-bearing shear as defined by the 2018 GSP soil survey. DDH 5 penetrated three significantly mineralized intersections (see table).

DDH 6 was vertical hole with a length of 200.25m. It was collared at U.T.M.: 5,483,286 N., 656,538 E. over the northern part of the same airborne magnetic anomaly that was tested by DDH 3. DDH6 is located in the central part of the property area and the 2018 GSP soil grid. Sheared and altered diorite was encountered in the upper part of the hole. Its lower part was through a dense blue-black magnetite-rich rock that hosted up to 14% iron. No significant mineralization was encountered in DDH 6.

Highlights:

  • The most promising results from the recent drill program were from holes DDH 4 and DDH4B located near the apex of the ASP 14 showings area.
     
  • The HOP showings are a porphyry copper-molybdenum target, located in the southeastern part of the property area.  Scant work has been conducted on them in the past.  They may constitute the best exploration target on the property and they should be investigated.

Further Exploration

The recent drill program was conducted over targets within the boundaries of the 2018 GSP soil grid which covers the central and northwestern parts of the Olivine Mountain property. Targets in the southern and eastern parts of the property area remain untested.

The most promising results from the recent drill program were from holes DDH 4 and DDH4B located near the apex of the ASP 14 showings area. The showings are above a series of old machine trenches that extend for more than 400 m down the hill side from the logging road to Olivine Creek. The largest and most intense soil-copper anomaly in the 2018 GSP grid area extends northeastward toward the trenches. No modern exploration has been done in the area of the projected intersection of the soil anomaly and the trenches. It should be investigated.

There is an east-west trending structure that crosses the ultramafic-mafic rock boundary near the southeastern corner of the 2018 GSP soil grid. That structure hosts the largest and most intense soil-palladium anomaly in the property area. Recommended work in that area includes: extension of the soil grid, mapping, trenching, and drilling.

The HOP showings are a porphyry copper-molybdenum target, located in the southeastern part of the property area. Scant work has been conducted on them in the past. They may constitute the best exploration target on the property, and they should be investigated.

Significant Intersections        

Drill Hole Intersect
m
Length
m
Est. True
Thickness
m
Copper
%
Silver
gm/mt
Gold
gm/mt
Palladium
gm/mt
DDH 1 27-28 1   0.118+
44.6 ppm
Mo
0.071 0.003 0.014
DDH 3 4.5-5 0.5   0.117 0.47 0.005 0.017
DDH 4 30-32.5 2.5 1.6 0.126 1.20 0.035 0.110
  54.4-55.4 1 0.64 0.278 0.87 0.044 0.054
DDH 4B 60-67 7 4.6 0.224 0.65 0.048 0.002
including 60.5-61 0.5 0.33 0.486 1.78 0.078 0.003
  72-75 3 1.97 0.223 0.34 0.015 0.003
  81-88 7 4.6 0.096 0.31 0.008 0.003
DDH 5 4-5 1   0.310 1.65 0.102 0.002
  89.6-99.7 10.1   0.233 0.52 0.040 0.046
including 97.7-98.2 0.5   0.834 0.83 0.003 0.004
  129.2-137 7.8   0.274 1.24 0.171 0.003

Simon Dyakowski, President & CEO of GSP commented: “GSP is encouraged by the results of the 2018 field and 2019 drill programs. This early-stage project now has three unique areas of interest defined in the Asp 14 zone, the South Palladium-in-soil anomaly, and the untested Hop showings. The Olivine Mountain project, together with the recently announced letter of intent to acquire the Alwin Mine, provides GSP with an asset base of exploration and development projects concentrated in Southwestern, BC. We look forward to advancing both projects over the course of 2020 as we progress towards our goal of establishing GSP as a Southwestern-BC focused exploration and development company.”

Quality Assurance / Quality Control: Samples were sent to Bureau Veritas Commodities Canada Ltd., Upstream Minerals (an ISO 17025:2017 and 9001:2015 accredited laboratory) in Vancouver, B.C., which is independent of GSP and the Qualified Person.  Rock and Drill core samples were dried, crushed and pulverized to a grain size of 200 mesh. A 30 gram aliquot from the pulverized material was weighed and assayed for Au, Pt and Pd by Fire Assay/ICPES finish (FA330) and a 0.5 gram aliquot weighed and digested for multi-elements using weak aqua regia by ICP-ES/MS (AQ300/AQ250/AQ370).  Over limits of Au were further analyzed by Fire Assay/Gravimetric finish. GSP follows industry standard procedures for the work carried out on the Olivine Mountain property, with a quality assurance/quality control program. All analytical results are verified by insertions of certified reference material, blanks and analytical duplicates. GSP detected no significant QA/QC issues during review of the data. GSP is not aware of any drilling, sampling, recovery or other factors that could materially affect the accuracy or reliability of the data referred to herein.

Qualified Person: The scientific and technical information contained in this news release as it relates to the Olivine Mountain Project has been reviewed and approved by John Ostler, M.Sc., P.Geo, a “Qualified Person” as defined in National Instrument 43-101 – Standards of Disclosure for Mineral Projects. Mr. Ostler verified the data disclosed which includes a review of the analytical and test data underlying the information and opinions contained therein.

About GSP Resource Corp.: GSP Resource Corp. is a mineral exploration company focused on the acquisition, exploration and development of mineral resource properties. The Company has an option to acquire a 100% interest and title to the Olivine Mountain Property located in the Similkameen Mining Division, 25 km northwest of Princeton, British Columbia.

Contact Information - For more information, please contact:
Simon Dyakowski, Chief Executive Officer
Tel: (604) 619-7469
Email: simon@gspresource.com

Cautionary Statement Regarding “Forward-Looking” Information.
This news release includes certain statements that constitute “forward-looking information” within the meaning of applicable securities law, including without limitation, statements that address the Olivine Mountain Project, acquisition or joint venture on other potential projects including the Alwin project, comments regarding the timing and content of  work programs, and other statements relating to the technical and business prospects of the Company. Forward-looking statements address future events and conditions and are necessarily based upon a number of estimates and assumptions. These statements relate to analyses and other information that are based on forecasts of future results, estimates of amounts not yet determinable and assumptions of management. Any statements that express or involve discussions with respect to predictions, expectations, beliefs, plans, projections, objectives, assumptions or future events or performance (often, but not always, using words or phrases such as “expects” or “does not expect”, “is expected”, “estimates” or “intends”, or stating that certain actions, events or results “may”, “could”, “might” or “will” be taken, occur or be achieved), and variations of such words, and similar expressions are not statements of historical fact and may be forward-looking statements. Forward-looking statement are necessarily based upon a number of factors that, if untrue, could cause the actual results, performances or achievements of the Company to be materially different from future results, performances or achievements express or implied by such statements. Such statements and information are based on numerous assumptions regarding present and future business strategies and the environment in which the Company will operate in the future, including the price of metals, anticipated costs and the ability to achieve goals, that general business and economic conditions will not change in a material adverse manner, that financing will be available if and when needed and on reasonable terms, and that third party contractors, equipment and supplies and governmental and other approvals required to conduct the Company’s planned exploration activities will be available on reasonable terms and in a timely manner. Forward-looking statements are subject to a variety of risks and uncertainties, which could cause actual events, level of activity, performance or results to differ materially from those reflected in the forward-looking statements, including, without limitation: (i) risks related to gold, platinum, palladium, copper and other commodity price fluctuations; (ii) risks and uncertainties relating to the interpretation of exploration results; (iii) risks related to the inherent uncertainty of exploration and cost estimates and the potential for unexpected costs and expenses; (iv) that resource exploration and development is a speculative business; (v) that the Company may lose or abandon its property interests or may fail to receive necessary licences and permits;  (vi) that environmental laws and regulations may become more onerous;  (vii) that the Company may not be able to raise additional funds when necessary; (viii) the possibility that future exploration, development or mining results will not be consistent with the Company’s expectations; (ix) exploration and development risks, including risks related to accidents, equipment breakdowns, labour disputes or other unanticipated difficulties with or interruptions in exploration and development; (x) competition; (xi) the potential for delays in exploration or development activities or the completion of geologic reports or studies; (xii) risks related to environmental regulation and liability; (xiii) risks associated with failure to maintain community acceptance, agreements and permissions (generally referred to as “social licence”), including local First Nations; (xiv) risks relating to obtaining and maintaining all necessary government permits, approvals and authorizations relating to the continued exploration and development of the Company’s projects; (xv) risks related to the outcome of legal actions; (xvi) political and regulatory risks associated with mining and exploration; (xvii) and risks related to current global financial conditions. These risks, as well as others, could cause actual results and events to vary significantly. Factors that could cause actual results to differ materially from those in forward looking statements include, but are not limited to, continued availability of capital and financing and general economic, market or business conditions, the loss of key directors, employees, advisors or consultants, volatility in metals prices, adverse weather conditions, equipment failures, failure of counterparties to perform their contractual obligations and fees charged by service providers. Investors are cautioned that forward-looking statements are not guarantees of future performance or events and, accordingly are cautioned not to put undue reliance on forward-looking statements due to the inherent uncertainty of such statements. The forward-looking statements included in this news release are made as of the date hereof and the Company disclaims any intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except as expressly required by applicable securities legislation.

Neither the 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.