Generation Mining Commences Passive Seismic Survey at Sally Area

TORONTO, July 25, 2019 (GLOBE NEWSWIRE) -- Generation Mining Limited (CSE:GENM) (“Gen Mining” or the “Company”) is pleased to announce that it has commenced a passive seismic survey on the Sally area of the Company’s Marathon Platinum Group Metals (“PGM”) property in Northwestern Ontario. The Sally area is situated 20 km from the Town of Marathon and 15 km northwest along strike from the main Marathon PGM-Cu Deposit along the highly prospective margin of the Coldwell Complex. The survey is designed to identify the potential for higher grade PGM deposits at depth.

The 200-sensor passive seismic survey commenced on July 19^th, 2019. Results are expected by mid September 2019. The survey covers an area of 3 km by 4 km and will have a depth resolution of 2 km. The survey is designed to resolve mafic – ultramafic magma conduits (feeder zones) which have episodically mineralized thick intervals of disseminated PGM-Cu mineralization at Sally and which have the potential to host massive sulfide mineralization.

The use of passive seismic in mineral exploration is a relatively new exploration technique, however both active and passive seismic surveys have been used extensively in the oil and gas industry. Passive seismic, which detects the earth’s natural low frequency signals, differs from active seismic in that it requires no strong source to induce seismic waves and therefore is both environmentally benign and cost effective. Survey data is collected using paint-can sized sensors which are laid out in a grid pattern and left in place for 30 days. Once the sensors are collected at the end of the survey the data is downloaded and processed. Results are typically available within 4 to 5 weeks. A large (1019 sensors) passive seismic survey was previously completed over the main Marathon PGM-Cu deposit and its presumed extensions at depth. Results correlate well with known geology and structure. Most importantly passive seismic has been able to identify high velocity zones prospective for PGM mineralization at depths greater than 500 m to 2000 m which exceeds the target resolution capabilities of most conventional geophysical techniques.

The Sally project area has been the focus of exploration efforts since the early 2000s with the completion of 72 drill holes from 2005 to 2017. In aggregate, 14,943 meters of core drilling has been done with the longest hole being 465 meters. Additionally, 23 trenches were completed between 2006 to 2016 and contain more than 2000 channel assays. Mineralization at Sally extends over a 1.2 km interval. Mineralization occurs over intervals of between 5 m and 56 m and dips 40° south. Favorable geology and mineralization have been mapped over a 3 km strike.

Drilling highlights from 2013 are presented in Table 2. All drilling results from 2013 were submitted for assessment and are publicly available. Drilling highlights from 2017 are presented in Table 3. Results from the 2017 drilling have yet to be filed for assessment credit and have not been previously publicly released.

In 2014 the discovery of extremely high-grade sulfide mineralization was discovered at surface within ultramafic intrusions near the Archean basement. The results from three fist sized surface grab samples are presented in Table 1 immediately below.

Table 1. Grab Sample Results

Sample K008054 are C375603 are separate samples from the same trench location and sample C375601 is from the same trench 50 m to the east. The aforementioned grab sample results along with the results from DDH SL-17 58 which intersected a narrow interval of net textured sulfides (principally pyrrhotite and chalcopyrite) from 12.1 – 12.88 m with massive sulfides from 12.3 m -12.6 m (Sample V240049, from 12 m to 13 m assayed 1.27 g/t total platinum group metals, 0.667% Cu and 0.247% Ni) suggest the potential for massive sulfide accumulation in the magma conduits (feeder zones) which have episodically mineralized the thick intervals of disseminated mineralization at Sally. 

Table 2 – Highlights from 2013 Historical Drilling at Sally Main Zone: (Filed in 2013 Assessment Report)

Table 3 - 2017 Step Out Exploration Drilling: (Not filed for assessment and not previously publicly released)

*Note: Hole SL-17-72 was drilled down dip to test extension of mineralization at depth. Topography and poor access required drilling parallel to dip.

Sally is the only area on the large 167 sq. km property where massive sulfide mineralization has been encountered and therefore the Sally area is a top priority for Gen Mining to explore for higher grade PGM-Cu deposits at depth.

Click here for Sally Drill hole map :https://genmining.com/site/assets/files/3658/sally_drill_hole_map.jpg
Click here for Marathon Property Map : https://genmining.com/site/assets/files/3658/property_map_-marathon.jpg

QA/QC Procedures

The QA/QC (“quality assurance and quality control”) assay protocol for drilling in 2013 involved the rotated inclusion of one duplicate, blank, low grade standard and high-grade standard for every 15 samples assayed. All controls were checked to be within two standard deviations.

Each trench included one blank midway through each individual trench sample sequence and a standard at the end. A similar protocol was used for prospecting (grab) samples.

For the high-grade sample K008054 the pulp and coarse rejects from K008054 were collected separately and sent to a second laboratory for re-analysis and returned similar results. Sample C375603 was taken at the same location as K008054 and was also sent for analysis including sample C375601. A blank and standard were included in all three batches of samples.

Qualified Person

Rod Thomas, P.Geo., is a qualified person for the purposes of National Instrument 43-101, Standards of Disclosure for Mineral Projects, and the Company's Vice-President, Exploration, and a Director. He has prepared or reviewed and approved the scientific and technical 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.

For further information please contact:

Jamie Levy
President and Chief Executive Officer
(416) 640-2934
(416) 567-2440
jlevy@genmining.com

Forward-Looking Information

This news release includes certain information that may be deemed “forward-looking information” under applicable securities laws. All statements in this release, other than statements of historical facts, that address future exploration or development, reserve potential, exploration activities and events or developments that the Company expects is forward-looking information. 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 the forward-looking information. These include the results of the Company’s due diligence investigations, market prices, 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 information. 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 information, whether as a result of new information, future events or otherwise, other than as required by law.