Vancouver, British Columbia – June 6, 2018 - War Eagle Mining Company Inc. (TSXV - WAR) (“War Eagle” or the “Company”) is pleased to announce the preliminary Phase I drill results from the ongoing exploration work program announced on March 28th, 2018, on the Company’s 100% owned 33 km2 Goodfish Kirana Project, located in the Kirkland Lake gold district of Northern Ontario. The exploration program included ground and airborne geophysical surveys Magnetic & Very Low Frequency (“VLF”), induced polarization (“IP”), and a five-hole (610m) diamond-drilling campaign. These results will be used to further understand the structural geology in order to plan future drill targets.
“The preliminary results of the Phase One drilling and geophysical surveys on the Goodfish Kirana Property have provided us with valuable geological information” said Danièle Spethmann, President and CEO of War Eagle. “The assay results, the structural information and the geophysical data are fundamental to guiding the project and provide us with the technical foundation needed to make decisions going forward and in particular our summer program which is now being planned.
Phase I Drill Program
The structurally orientated drilling program was designed to test three of the four structural zones identified by previous work (NI43-101, Tom Setterfield, PhD, P.Geo. January 2, 2018). These holes were designed to verify and interpret the structure, lithology and pathfinder elements of the following gold-bearing zones on the Goodfish property (Figure 1) in this press release:
Kirana Deformation Zone (DDHs GK18-001 & -002),
Goodfish A Zone (DDHs GK18-003) and,
Goodfish B Zone (DDHs GK18-004 & -005).
Highlights from Phase 1 Exploration diamond drilling include:
All holes intersected mineralization which is, in general, structurally associated with the contacts of Quartz Feldspar Porphyry dykes that are sheared. For the most part, the mineralization is associated with pyrite which is indicated by IP anomalies.
The Goodfish ‘A’ Zone/ Goodfish 1934 Mine returned the most interesting values of 1.20 g/t Au over 10.53 m in a halo of 0.87 g/t Au over 16.0 m (Figure 2) in the press release.
Results from the recently completed ground geophysical programs conducted over the Patents area of the Goodfish Kirana block have been interpreted by Bill Doerner of SourceOne Geophysical and are summarized in this press release (Figure 3).
Results from the magnetic ground survey over the patents show a strong north-south orientation with high amplitude magnetic features, that correspond to the prevalent strike direction of the mapped mafic rock units (Figure 3). The north-south magnetic lineaments are disrupted by a series of NW-SE striking offsets that are interpreted to be important structural features.
Multiple ground VLF conductive anomalies, also having a north-south orientation, were identified and show good correlation to areas of anomalous IP response and to areas of historic mining activity in the vicinity of the Goodfish #4 and #5 shafts. The VLF results may be indicating the extension of structures associated with mineralized zones.
The IP survey results have identified five high chargeability anomalous zones interpreted to represent a response from mineralization in areas of known sulfide occurrences and several new locations. The high chargeability IP locations appear related to the NW-SE striking structural offsets present in the magnetic survey results, indicating that the structures may contain mineralization.
An area of high chargeability has been identified on the west end of Line 39100N. The IP high is coincident with historic shallow-drilling of mineralization which will be further tested by War Eagle.
A high IP response occurs coincident with the Goodfish #5 shaft and extends south to the Goodfish #4 shaft. The IP response indicates that a zone of sulfide mineralization may extend for at least 300 m in a north-south orientation.
The highest IP chargeability anomaly is present in the south-east section of the Patents block. The anomaly lies on the NW-SE structural break that connects to the Goodfish’s #5-shaft anomalous IP zone. This IP anomaly suggests that the source is approximately 100 m deep and is open at depth and to the east. This target has not been drilled tested.
The review of the ground geophysical program recently completed on the Patents has indicated the presence of important structural features and several anomalous areas of high IP chargeability that represent ideal drill targets. Inversion of the historical IP data is underway in an effort to more accurately direct future drilling efforts.
The results of the recently completed 942 km airborne magnetic and VLF surveys (Figure 4) have been delivered and will be incorporated into the geophysical interpretation.
War Eagle is also pleased to announce the hiring of Ms. Joanne Jobin, Principal and Founder of Investor Relations Services Inc. (“IR.INC”) as Investor Relations Consultant to the Company. Ms. Jobin is a seasoned Investor Relations and Corporate Development professional with over 25 years of global investor relations, public relations, corporate affairs, corporate development and communications experience in the natural resource sector. IR.INC, is an established international Investor Relations Company consulting to junior, mid-tier and blue-chip mining, and oil and gas clients. Ms. Jobin, has strong, key relationships in the financial and mining industry sectors and will assist War Eagle’s management in building and developing its profile as well as develop an IR plan and assist management with its practical Investor Relations duties. Under the terms of an investor relations consulting agreement between War Eagle and IR.INC effective May 16, 2018, War Eagle will pay IR.INC a monthly fee of $6,000 for strategic investor relations services for a one year period, terminable by either party at any time after six months, upon providing 60 days written notice.
Tom Neelands, P. Geo., Chief Geologist of War Eagle, is a “qualified person” within the meaning of National Instrument 43-101 and has reviewed and approved the technical information in this news release.
War Eagle Mining uses a quality-control program that includes insertion of blanks and commercial standards in order to ensure best practice in sampling and analysis.
HQ size drill core is sawn in half with a diamond saw. Samples are selected for analysis in standard intervals according to geological characteristics such as lithology and hydrothermal alteration.
Most of the diamond drill core was sampled at 1.5 m intervals. The smallest sample interval was 0.55 m. A standard/blank was inserted every 25 samples. The samples were analyzed by AR (aqua regia) digestion; any samples over 500 ppb were re-analyzed using the fire assay method. In addition, multielement analysis by XRF and ICP were completed. The ICP showed good correlation of gold (Au) with the following elements: Ag, As, Ce, Cu, Hg, Mo, Pb, Sb, and Te.
About War Eagle Mining Company
War Eagle is a TSX Venture Exchange listed company focused on the exploration of mineral resource properties in northern Ontario, Canada, with a focus on gold deposits. The Company’s Goodfish Kirana Project is a 10 km long by 3 km wide land package with numerous historical gold showings and significant structural breaks that has been under-explored with modern technology, providing an exciting and unique discovery opportunity. The Goodfish Patents are located within the significant land position held by the Company located in the Kirkland Lake Gold Camp five kilometers from the center of the Town of Kirkland Lake, Ontario, Canada.
For additional information please contact:
Danièle Spethmann, P.Geo,
President & CEO,
War Eagle Mining Company Inc.
This news release was prepared by management of War Eagle, which takes full responsibility for its contents as it relates to War Eagle.
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.
Forward-Looking Statements: This press release contains forward-looking statements. Forward-looking statements are frequently characterized by words such as "plan", "expect", "project", "intend", "believe", “anticipate", "estimate", "may", "will", "would", "potential", "proposed" and other similar words, or statements that certain events or conditions "may" or "will" occur. The forward-looking statements are based on certain key expectations and assumptions made by the Company. Although War Eagle believes that the expectations and assumptions on which the forward-looking statements are based are reasonable, undue reliance should not be placed on the forward-looking statements because War Eagle can give no assurance that they will prove to be correct. Since forward-looking statements address future events and conditions, by their very nature they involve inherent risks and uncertainties. Actual results could differ materially from those currently anticipated due to a number of factors and risks. In addition to other risks that may affect the forward-looking statements in this press release are those set out in the Company’s management discussion and analysis of the financial condition and results of operations for the year ended March 31, 2017 and the third quarter ended December 31, 2017, which are available at www.sedar.com. The forward-looking statements contained in this press release are made as of the date hereof and War Eagle undertakes no obligation to update publicly or revise any forward-looking statements or information, whether as a result of new information, future events or otherwise, unless so required by applicable securities laws.