TORONTO, Nov. 28, 2018 (GLOBE NEWSWIRE) — Generation Mining Limited (CSE:GENM, the “Company”) is pleased to announce that all permits have been received for a sampling program on the Alberta Zinc property (the “Property”) near High Level, Alberta, and that work will commence next week. The program is designed to pinpoint the source of a 4,000-square-kilometre zinc in till anomaly, as manifested by the presence of sphalerite grains, discovered by the Geological Survey of Canada and the Alberta Geological Survey in 2003 (Figure 2). The discovery consisted of numerous sphalerite grains in 30 Kg till samples ranging from values of less than 30 grains in samples external to the anomalous area and grain counts of up to 1047 grains in samples within the anomalous area. Other studies have indicated the likely ice direction of the most recent glacial movement, and the program is designed to systematically sample shallow till samples moving “up ice” until the anomaly ends, thus indicating proximity to the source of sub-cropping zinc mineralization.
The Property is underlain by sedimentary sequences of the Western Canada Sedimentary basin (Figure 1). Beneath relatively shallow till cover, Cretaceous aged (80 million years) shales and sandstones are underlain by Devonian aged (370 million years) limestones and dolomites. The Devonian sequence is believed to be stratigraphically equivalent to the Pine Point district (historical production from 1964 to 1987 of 64 million tonnes with an average grade of 7.0% Zn and 3.1% Pb). Of particular importance is the existence of an oil well drilled by Chevron on the Property in 1993 which intersected 10 metres grading 3.7% zinc in Devonian dolomite at a depth of 1250 metres. Mineralization in the Chevron drill hole is believed to be similar to mineralization at Pine Point some 400 km to the northeast and may be an example of Mississippi Valley Type (“MVT”) mineralization. Both Pine Point and the Chevron drill hole are proximal to the Great Slave Lake Shear Zone (“GSLSZ”).
There is evidence at Pine Point for two regional periods of increased geothermal activity with one occurring in the Devonian and the other in the Cretaceous. The Zn mineralization in the Chevron drill hole suggests that the GSLSZ has been active in the past and may have provided a locus for mineralizing fluids to move to the surface through the overlying stratigraphy.
The working theory is that in Cretaceous time the Property area was submerged by a shallow restricted sea. It is possible that mineralizing fluids venting on the seafloor encountered waters which were anoxic, stratified and rich in hydrogen sulfide which would have provided optimal conditions for the formation of SEDEX (sedimentary exhalative) type zinc deposits. Subsequent uplift, erosion and eventual glaciation and till deposition would have distributed grains of zinc mineralization in till over a wide area.
The program is expected to take 2-3 weeks and will be followed up sample analysis and, depending upon results, geophysics and/or shallow drill holes. The Property covers 65,000 hectares and is located along the Mackenzie Highway and the Canadian National Railways line.
The Company also announces that it has granted options to purchase an aggregate of three hundred thousand common shares of the Company exercisable at a price of $0.15 cents per share for a period of two years, to consultants of the Company, in accordance with the terms of the Company’s stock option plan.
Rod Thomas, P.Geo., is a qualified person for the purposes of National Instrument 43-101, Standards of Disclosure for Mineral Properties, and the Company’s Vice-President, Exploration, and a Director. He has prepared or supervised the preparation of the information contained in this news release.
About Generation Mining Limited
Generation Mining Limited is a base metal exploration and development company with various property interests throughout Canada. Its primary business objective is to explore and further develop these properties, and to continue to increase its portfolio of base and precious metal property assets through acquisition.
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This release includes certain statements that may be deemed “forward-looking statements”. All statements in this release, other than statements of historical facts, that address future production, reserve potential, exploration drilling, exploitation activities and events or developments that the Company expects are forward-looking statements. Although the Company believes the expectations expressed in such statements are based on reasonable assumptions, such statements are not guarantees of future performance and actual results or developments may differ materially from those in the statements. There are certain factors that could cause actual results to differ materially from those in forward-looking statements. These include market prices, exploitation and exploration successes, continued availability of capital and financing, and general economic, market or business conditions. Investors are cautioned that any such statements are not guarantees of future performance and actual results or developments may differ materially from those projected in the forward-looking statements. For more information on the Company, investors are encouraged to review the Company’s public filings at www.sedar.com. 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, other than as required by law.
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