BENZF - Benz Mining: Drilling EM Conductors at NW Zone Returns Visible Gold

March, 04 2021 07:30 AM Benz Mining

HIGHLIGHTS

10 holes +4,000m of drilling completed since the beginning of 2021
Targeting FLEM and DHEM conductors identified in 2020 EM campaign
Drilling confirmed the presence of a mineralized horizon below A Zone with strong visual mineralization intersected approximately 150m below the existing resource
This target is approximately 2km along strike from D Zone that previously intersected Nisto Trend (3.8m at 8.5g/t gold discovery hole)
Strong off-hole DHEM conductors to be further tested represents a new exciting growth opportunity
Drilling EM conductors at NW Zone returned strong mineralization with multiple visible gold grains over 3.0m
Confirms presence of additional new discoveries 600m north of the current resource
Heterogeneity test on coarse gold underway with systematic sampling of core, historical and current, under supervision from world expert
+4,000 samples being shipped to Australia for systematic re-analysis by PhotonAssay^TM as technology not yet commercially available in North America
FLEM loops G & H extending the mineralized trend 3km to the ESE completed awaiting processing and modelling
Second drill rig and crew mobilizing to site this month to accelerate 50,000m drill program in 2021

Toronto, Ontario--(Newsfile Corp. - March 4, 2021) - Benz Mining Corp. (TSXV: BZ) (ASX: BNZ) (the Company or Benz) is pleased to release an exploration update from its drilling and EM programs at its Eastmain Gold Project (Project).

Figure 1. Visible gold circled in red from core drilled at NW Zone (hole EM21-146) 600m NW of the existing resource

To view an enhanced version of Figure 1, please visit:
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10 holes have been drilled to date, targeting EM conductors defined during the FLEM and DHEM campaigns of 2020. Drilling has been focussed on untested conductors at NW Zone and Hillhouse as well as testing the extent of the newly discovered mineralized horizon below A Zone.

All holes drilled in 2021 encountered the expected geology and identified mineralization in positions compatible with the modelled conductors. 9 holes have been probed with DHEM awaiting processing and modelling.

CEO, Xavier Braud, commented:

"The adoption of new technology and techniques at the Eastmain Gold Project continues in 2021 where it left off in 2020. Electromagnetics is proving to be an extremely effective direct targeting tool with all holes drilled to date returning visual mineralization with quartz, carbonate, pyrrhotite, chalcopyrite and, in some instances, visible gold grains.

We have now confirmed the presence of a mineralized horizon below A Zone, some 2km from where the Nisto Trend was first intersected at D Zone. DHEM and further drilling will help define the lateral extent of this mineralization.

All samples from mineralized intervals submitted for analysis this year are being assayed using 1,000gr metal screen fire assays to try and minimize the influence of nugget effect. We have also embarked on an ambitious heterogeneity test which will characterize the amount and influence of coarse gold in the system and will ultimately help with optimization of assay method and might even provide material for an upgrade of the current resource estimate."

The reader is warned the presence of visible gold and other indicators in core does not assure high assay results when processed at a laboratory.

Figure 2: January drilling over simplified geology, VTEM, FLEM and DHEM conductors

To view an enhanced version of Figure 2, please visit:
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Figure 3: Quartz-sulphide mineralization drillhole EM21-146 - NW Zone (for reference, core diameter 47.3mm)

To view an enhanced version of Figure 3, please visit:
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Figure 4: Visible gold in quartz-pyrrhotite-pyrite-sphalerite veins EM21-146 - NW Zone (for reference, core diameter 47.3mm)

To view an enhanced version of Figure 4, please visit:
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Figure 5: Visible gold in Quartz carbonate pyrrhotite pyrite sphalerite vein EM21-146 - NW Zone (for reference, core diameter 47.3mm)

To view an enhanced version of Figure 5, please visit:
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Continued success of the exploration methodology confirmed by ongoing drilling

Benz identified the potential to target gold mineralization at Eastmain via EM. This technique is not commonly used to directly target gold mineralization, however, the high pyrrhotite content of the mineralization at Eastmain enables the team to directly target mineralization by using a combination of ground and DHEM surveys (techniques that have been successfully used by ASX listed explorer Bellevue Gold Limited at its namesake gold project) in combination with the historical database.

To date, EM surveys have led to three new greenfield discoveries and two brownfield discoveries:

Nisto Trend

The Nisto Trend is a sub-parallel mineralized trend approximately 150-200m deeper than the existing mine trend identified in the D Zone that could also be the equivalent of the mineralized horizon below A Zone. The Nisto Trend was first intersected in D Zone (3.8m at 8.5g/t gold). At A Zone, situated approximately 2km from D Zone, the mineralization has been intersected by holes EM21-143 and 151 at about 200m deeper than the mine horizon. Both holes hit sulphide rich mineralization (pyrrhotite and chalcopyrite) as veins and stringers in an altered ultramafic at the contact with a conglomerate. DHEM showed strong in-hole and off-hole conductors at EM21-143 and strong off-hole conductors at EM21-151. The strength of the in-hole EM response in hole EM21-143 masked the potential extent of mineralization and needs further drilling to determine its strike extent.

Kotak Trend

The Kotak Trend is a second new trend 800m due east of the Eastmain mine characterized with quartz, carbonate, sulphide veins in a strongly altered carbonate, quartz and tourmaline zone with an intersect of 5.0m at 8.3g/t gold from 529.8m including 3.0m at 13.7g/t gold from 531.8m.

Continuous mineralization at NW Zone

FLEM AND DHEM conductors pointed to an undrilled area located between historical drillholes approximately 600m along strike of the current resource. 2021 drilling found continuity of mineralization between drillholes. 4 shallow holes were drilled in the area. EM21-146 encountered a pyrrhotite-sphalerite-pyrite rich stringer zone, with visible gold associated with pyrrhotite sphalerite and quartz veins. EM21-145 encountered a similar stringer zone, but no visible gold was observed. EM21-147 and 148 tested DHEM plates for up-dip potential and hit the margins of this system with quartz-sulphide stringers intersected.

Resource Extensions Down Dip

Down plunge extensions of the known mineralization at A Zone (in current resource) and D Zone (not in current resource) have been identified. EM21-152 was drilled to test DHEM modelled plates in the extension of A Zone mineralization. The hole hit two sulphide rich horizons, one representing the "Mine Trend" and the other, a deeper sulphide rich intercept that may correlate with the Nisto Trend. Drilling in 2021 will also target down plunge extensions to B and C Zones using DHEM modelled conductive plates resulting from Benz's surveying of historical holes in this area.

Mine Trend Extensions

A new mineralized zone 1.8km along strike of the known resource on the Mine Trend with 5.4m at 3.2g/t gold from 139.6m including 1.4m at 7.2g/t gold from 139.6m and including 1.0m at 4.3g/t gold from 143.0m (EM20-142).

All drillholes are systematically surveyed by DHEM, refining the location of the strongly mineralized shoots within the system.

Heterogeneity Test - Coarse Gold Mineralization Influence

Benz has approached world class specialist consultants to work with Dr Marat Abzalov on designing and implementing a heterogeneity test. The test will identify the repartition of various gold grains sizes in the system and the consequences of the presence of coarse nuggetty gold on assay results. The study will use newly drilled core as well as historical drill core from the Eastmain Project.

Results of the study will include:

characterization of gold grains fractions and repartition
effect of comminution on coarse gold grains
optimization of assay method to be used for future analysis
potential improvements in the controls on grade repartition within the existing resource

The results will assist Benz in identifying the optimal assay technique to most accurately identify gold grade as well as quantifying the influence of coarse gold on the mineralization and its effect on the existing resource model.

Coarse Gold Treatment - PhotonAssays - Screen Fire Assays

For the duration of the drill program, mineralized samples submitted to the Actlab Laboratory in Ste-Germaine-Boule, Quebec, will be analysed by metal sieves (also known as screen fire assays) in order to offset as much as possible the effect of nuggetty gold on the assay values.

Pending the results of the heterogeneity study, the Company is of the view that screen fire assays will provide the most accurate assay methodology currently available to it.

Benz is also in the process of sending all of the laboratory rejects (crushed half core unused for analysis) to Australia for assay using PhotonAssayTM. Photon is a high energy X-Ray fluorescence assay method. This technology has been proven to excel at processing samples with nuggetty gold and is being extensively used by major gold companies in Australia. However, the technology is not yet available commercially in Canada and, until so, Benz will ship rejects on a regular basis to duplicate fire and screen fire assays results with this method.

Surface EM generating additional targets

Loops G and H have been recently surveyed via FLEM. Those loops extend the EM surveys along strike from the three mineralized trends all the way to the Project's south-eastern boundary, approximately 3km from existing identified mineralization. Benz is currently waiting for processing and modelling of the data prior to follow up programs.

Figure 6: FLEM Loops G and H location plan with regards to the Eastmain Project

To view an enhanced version of Figure 6, please visit:
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Eastmain Gold Deposit

The Eastmain Gold Project, situated on the Upper Eastmain Greenstone Belt in Quebec, Canada, currently hosts a NI 43-101 and JORC (2012) compliant resource of 376,000oz at 7.9gpt gold (Indicated: 236,500oz at 8.2gtp gold, Inferred: 139,300oz at 7.5gtp gold). The existing gold mineralization is associated with 15-20% semi-massive to massive pyrrhotite, pyrite and chalcopyrite in highly deformed and altered rocks making it amenable to detection using electromagnetic techniques. Multiple gold occurrences have been identified by previous explorers over a 10km long zone along strike from the Eastmain Mine with very limited but highly encouraging testing outside the existing resource area.

This press release was prepared under supervision and approved by Dr. Danielle Giovenazzo, P.Geo, acting as Benz's qualified person under National Instrument 43-101.

Unless otherwise specified, all of the intervals reported are in core length. Although our core angles are good, it is not possible to give accurate true thickness for these intercepts at the moment.

Because of the presence of visible gold, BENZ will be using a 1000gr metal sieve (code1A4-1000) for mineralized samples.

About Benz Mining Corp.

Benz Mining Corp. brings together an experienced team of geoscientists and finance professionals with a focused strategy to acquire and develop mineral projects with an emphasis on safe, low risk jurisdictions favourable to mining development. Benz is earning a 100% interest in the former producing high grade Eastmain gold mine, Ruby Hill West and Ruby Hill East projects in Quebec.

The Eastmain Gold Project is situated within the Upper Eastmain Greenstone Belt in Quebec, Canada and currently hosts a NI 43-101 and JORC (2012) compliant resource of 376,000oz at 7.9gpt gold. The existing gold mineralization is associated with 15-20% semi-massive to massive pyrrhotite, pyrite and chalcopyrite making it amenable to detection by electromagnetics. Several gold mineralization occurrences have been identified by previous explorers over a 10km long zone along strike from the Eastmain Mine with very limited testing outside the existing resource area.

On behalf of the Board of Directors of Benz Mining Corp.
Xavier Braud, CEO

For more information please contact:

Paul Fowler
Head of Corporate Development (Canada)
Benz Mining Corp.
Telephone: +1 416 356 8165
Email: info@benzmining.com

Xavier Braud
CEO, Head of Corporate Development (Aus)
Benz Mining Corp.
Telephone +61 423 237 659
Email: info@benzmining.com

Forward-Looking Information: Certain statements contained in this news release may constitute "forward-looking information" as such term is used in applicable Canadian securities laws. Forward-looking information is based on plans, expectations and estimates of management at the date the information is provided and is subject to certain factors and assumptions, including, that the Company's financial condition and development plans do not change as a result of unforeseen events and that the Company obtains regulatory approval. Forward-looking information is subject to a variety of risks and uncertainties and other factors that could cause plans, estimates and actual results to vary materially from those projected in such forward-looking information. Factors that could cause the forward-looking information in this news release to change or to be inaccurate include, but are not limited to, the risk that any of the assumptions referred to prove not to be valid or reliable, that occurrences such as those referred to above are realized and result in delays, or cessation in planned work, that the Company's financial condition and development plans change, and delays in regulatory approval, as well as the other risks and uncertainties applicable to the Company as set forth in the Company's continuous disclosure filings filed under the Company's profile at www.sedar.com. The Company undertakes no obligation to update these forward-looking statements, other than as required by applicable law.

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 ACCURACY OR ADEQUACY OF THIS RELEASE.

Competent Person's Statements: The information in this report that relates to Exploration Results is based on and fairly represents information and supporting information compiled by Mr Xavier Braud, who is a member of the Australian Institute of Geoscientists (AIG membership ID:6963). Mr Braud is a consultant to the Company and has sufficient experience in the style of mineralization and type of deposits under consideration and qualifies as a Competent Person as defined in the 2012 edition of the "Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves" (JORC Code). Mr Braud holds securities in Benz Mining Corp and consents to the inclusion of all technical statements based on his information in the form and context in which they appear.

The information in this announcement that relates to the Inferred Mineral Resource was first reported under the JORC Code by the Company in its prospectus released to the ASX on 21 December 2020. The information in this announcement that relates to exploration results was first reported to the ASX on 13 January and 11 February 2021. The Company confirms that it is not aware of any new information or data that materially affects the information included in the original market announcements and confirms that all material assumptions and technical parameters underpinning the Resource estimate continue to apply and have not materially changed. The Company confirms that the form and context in which the Competent Person's findings are presented have not been materially modified from the original market announcements.

Appendix 1: JORC Tables

Section 1 Sampling Techniques and Data

(Criteria in this section apply to all succeeding sections.)

Criteria
JORC Code explanation
Commentary
Mineral tenement and land tenure status
Type, reference name/number, location and ownership including agreements or material issues with third parties such as joint ventures, partnerships, overriding royalties, native title interests, historical sites, wilderness or national park and environmental settings. The security of the tenure held at the time of reporting along with any known impediments to obtaining a licence to operate in the area.
The Eastmain Mine Project comprises 152 contiguous mining claims each with an area of approximately 52.7 ha covering a total of 8,014.36 ha plus one industrial lease permit that are owned by Eastmain Mines Inc., a wholly owned subsidiary of Fury Gold Mines. The claims are numbered 1133433 to 1133583 consecutively plus claim 104458 (Figure 4.2). All of the claims are located within NTS sheet 33A 08. The former Mine Lease BM 817 was issued on January 10, 1995 and expired in 2015 after a 20-year term. This former Mine Lease was converted to Industrial Lease 00184710000 on September 1, 2015 and contains all normal surface rights. The former mineral rights for BM 817 are now included in the expanded Claims 1133523, 1133524, 1133525, 1133505, 1133506 and 1133507. The claims are 100% held by Fury Gold Mines subject to certain net smelter royalties ("NSR"). On August 9, 2019, Benz Mining Corp. announced that it has entered into an option agreement with Eastmain Resources Inc. (now Fury Gold Mines) to acquire a 100% interest in the former producing Eastmain Gold Project located in James Bay District, Quebec, for CAD $5,000,000. Eastmain Resources would retain a 2% Net Smelter Return royalty in respect of the Project. Benz may, at any time, purchase one half of the NSR Royalty, thereby reducing the NSR Royalty to a 1% net smelter returns royalty, for $1,500,000. The Eastmain Mine, as defined by the perimeter of a historic mining lease, is subject to a production royalty net smelter return ("NSR") of 2.3% through production of the next 250,000 oz produced and 2% thereafter. A package of claims surrounding the mine precinct is subject to a production royalty (NSR) of 2% in favour of Goldcorp as a result of their succession to Placer Dome in an agreement dated December 30, 1988 between Placer Dome, MSV Resources Inc. and Northgate Exploration Limited. The 152 claims that form the Eastmain Mine Property are all in good standing with an active status.
Exploration done by other parties
Acknowledgment and appraisal of exploration by other parties.
1930s & 1940s - Prospecting of gossans 1950s & 1960s - Riocanex - Exploration of the Upper Eastmain Greenstone Belt Mid 1960s - Fort George - Diamond drilling of a gossan zone 1696 - Canex Aerial Exploration Ltd & Placer Dvelopment Ltd - Airborne magnetic and EM surveys with ground geophysics follow up. 1970 - Placer Development Ltd - Seven holes testing an EM anomaly. Discovery of A Zone with 1.5m @ 13.71g/t Au 1974 - Nordore - Aerodat airborne AEM survey and Ground geophysics. 3 holes returned anomalous gold values adjacent to B Zone 1974 - Inco Uranerz - Airborne geophysical survey over the whole greenstone belt. 1981 & 1982 - Placer - Airborne and ground EM, ground magnetics. Drilling of EM anomalies discovered B zone and C zone. 1983 to 1985 - Placer - Airborne and ground EM, downhole PEM, 91 holes over A B and C zones. 1986 - Placer - 25 holes into A B and C zones 1987 &1988 - Placer Dome / MSV JV - Drilling of A, B and C zones 1988 to 1994 - MSV Resources - Drilling, surface sampling, trenching, regional exploration, Seismic refraction over ABC Zones, 1994 & 1995 - MSV Resources - Mining of 118,356t at 10.58g/t Au and 0.3%Cu, processed at Copper Rand plant in Chibougamau, 40,000oz recovered 1997 - MSV Resources- Exploration, mapping, prospecting, trenching. 2004 - Campbell Resources - M&I resource calculation for Eastmain Mine. 2005-2007 - Eastmain Resources - Purchase of the project from Campbell Resources, VTEM, Prospecting, regional exploration. 2007-2019 - Eastmain Resources - Sporadic drilling, regional exploration, mapping, sampling, trenching. Surface geochemistry (soils)
Geology
Deposit type, geological setting and style of mineralisation.
In the Eastmain Gold Deposit, gold mineralization occurs in quartz veins with associated massive to semi-massive sulphide lenses/ veins and silicified zones associated with a deformation corridor. The mineralized zones are 3 m to 10 m thick and contained in a strongly deformed and altered assemblage (Mine series) consisting of felsic, mafic and ultramafic rocks. Mineralized quartz veins and lenses show a variable thickness between 10 cm and 13 m, and sulphide contents average 15% to 20% in the mineralized quartz veins and sulphide lenses. In order of decreasing abundance, sulphides consist of pyrrhotite, pyrite, and chalcopyrite, with minor sphalerite, magnetite and molybdenite. Visible gold occurs in the mineralized quartz veins as small (<1 mm) grains associated with quartz and (or) sulphides in the A, B and C Zones.
Drill hole Information
A summary of all information material to the understanding of the exploration results including a tabulation of the following information for all Material drill holes: easting and northing of the drill hole collar elevation or RL (Reduced Level - elevation above sea level in metres) of the drill hole collar dip and azimuth of the hole down hole length and interception depth hole length. If the exclusion of this information is justified on the basis that the information is not Material and this exclusion does not detract from the understanding of the report, the Competent Person should clearly explain why this is the case.
See tables in Annexure 1
Data aggregation methods
In reporting Exploration Results, weighting averaging techniques, maximum and/or minimum grade truncations (eg cutting of high grades) and cut-off grades are usually Material and should be stated. Where aggregate intercepts incorporate short lengths of high grade results and longer lengths of low grade results, the procedure used for such aggregation should be stated and some typical examples of such aggregations should be shown in detail. The assumptions used for any reporting of metal equivalent values should be clearly stated.
Length weighting averages were produced using a 0.2g/t cut off and allowing for 1m internal dilution. No top cuts applied.
Relationship between mineralisation widths and intercept lengths
These relationships are particularly important in the reporting of Exploration Results. If the geometry of the mineralisation with respect to the drill hole angle is known, its nature should be reported. If it is not known and only the down hole lengths are reported, there should be a clear statement to this effect (eg 'down hole length, true width not known').
The exact geometry of the system is still not completely known. Drillhole orientation and known structural setting suggest that drillholes intersected mineralisation close to perpendicularly meaning that downhole intervals are believed to be close to true width/thickness
Diagrams
Appropriate maps and sections (with scales) and tabulations of intercepts should be included for any significant discovery being reported These should include, but not be limited to a plan view of drill hole collar locations and appropriate sectional views.
See figures in the body of text
Balanced reporting
Where comprehensive reporting of all Exploration Results is not practicable, representative reporting of both low and high grades and/or widths should be practiced to avoid misleading reporting of Exploration Results.
All half core assays results available to the company have been released.
Other substantive exploration data
Other exploration data, if meaningful and material, should be reported including (but not limited to): geological observations; geophysical survey results; geochemical survey results; bulk samples - size and method of treatment; metallurgical test results; bulk density, groundwater, geotechnical and rock characteristics; potential deleterious or contaminating substances.
Abitibi Geophysics conducted a 109 line km Fixed Loop Time-Domain Electromagnetics survey on the Eastmain Property. The FLEM (TDEM) survey identified 12 first order conductors modelled as thin plates through Maxwell modelling. Benz conducted systematic BHEM of each hole drilled as well as BHEM surveying of historical holes. BHEM identified numerous in-hole and off-hole conductors coincident or not with drilled mineralization.
Further work
The nature and scale of planned further work (eg tests for lateral extensions or depth extensions or large-scale step-out drilling). Diagrams clearly highlighting the areas of possible extensions, including the main geological interpretations and future drilling areas, provided this information is not commercially sensitive.
Benz Mining is currently conducting a 50,000m drilling campaign which started in January 2021 This drilling is conducted alongside regional FLEM surveys (TMC Geophysics) All new holes will be surveyed by BHEM as well as a selection of historical holes.

Appendix 2: Drilling data

Table 1: Drillhole collar

Hole ID

UTMx_East (m)

UTMy_North (m)

Elevation (m)

Total Depth (m)

Azimuth (°)

Dip (°)*

EM21-146

698280

5799265

490

297

215

-60

*Down dip is negative

To view the source version of this press release, please visit https://www.newsfilecorp.com/release/76044

Company Name:	Benz Mining
Stock Symbol:	BENZF
Market:	OTC
Website:	benzmining.com

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