Vancouver, British Columbia–(Newsfile Corp. – December 4, 2017) – Stina Resources Ltd. (CSE: SQA) (OTCQB: STNUF) (FSE: 01X) (“Stina” or the “Company”) is pleased to announce that a comprehensive drilling and exploration program will commence in early spring 2018 on the Bisoni McKay and Bisoni-Rio properties in Nevada based on the successful and extensive work program completed in 2017.
Stina holds a total of 4,115 acres at Bisoni McKay and Bisoni-Rio. The Bisoni McKay project has an NI 43-101 with Indicated Resources amounting to 11,879,590 tons at an average grade of 0.39% V2O5 and Inferred Resources estimated at 7,048,056 tons at an average grade of 0.42% V2O5. These estimates are calculated using a 0.2% V2O5 mineralized cutoff.
Stina’s motivation for developing vanadium land assets in central Nevada stems from a growing world-wide interest in vanadium. Vanadium has been primarily used for steel production but now new uses such as an electricity storage media in vanadium redox flow batteries is accelerating demand for the metal. This trend is anticipated to continue as grid-scale energy storage becomes more and more prevalent as the new technology is adopted. The US Department of Energy reports that there are currently 59 vanadium redox battery installations throughout the world.
The Vanadium Belt of Central Nevada is host to an important concentration of single-product vanadium deposits in North America. Stina’s Bisoni McKay property is a high-grade, pure play vanadium project located in the Vanadium Belt of Central Nevada. Past exploration drilling reveals the occurrence of high grade V2O5 in the primary (carbonaceous shale) mineralized material which contains the largest vanadium resource on the property. Several drill holes completed in primary mineralization suggests the deposit is open at depth in some areas. A supergene enrichment zone of up to 35 feet in width has been identified immediately below the Redox zone.
Pure play vanadium deposits of economic value are rare. Vanadium most commonly occurs in association with other metals forming complex mineral deposits such as titaniferous magnetite and uranium-vanadium deposits where vanadium is mined as a co-product. This results in vanadium extraction being dependent on the economic value of other commodities.
In June of this year, 164 new claims covering 3,361 acres (Bisoni-Rio) were registered. This consolidates ownership of the land along the Vanadium Belt between the north end of the Bisoni McKay Project and the southern boundary of the Gibellini property (Prophecy Development Corp.). The combined area under claim in Bisoni McKay and Bisoni-Rio is 4,115 acres.
“Following claim registration, the surface topography at the Bisoni McKay project was traversed to get a better representation of the topographic surface. The data collected was transmitted to Maptek of Denver, Colorado for the building of a surface model. The objective is to determine the best location from which to drill to intercept the carbonaceous shale contact and extract representative samples of high-grade vanadium material to be processed at a pilot plant. Likewise, this exercise will assist in the design of the next round of exploration drilling aimed at expanding and consolidating the measured and indicated resources,” says Tony Hammond, geologic consultant to Stina.
Selected samples of carbonaceous shale drill cuttings were sent to Hazen Research Inc.’s metallurgical laboratory in Golden, Colorado for testing to optimize the recovery of vanadium contained in the primary material. Preliminary results are expected to be announced soon.
The final activity of the summer season was reclamation of old surface disturbances requested by the Bureau of Land Management. The reclamation has been satisfactorily completed.
“Now that this preliminary work has been completed, an application for exploration permits will be submitted before the end of the year, so drilling and other work can begin as early as possible in 2018,” says Stina President, Brian Stecyk.
The disclosure of the technical information contained in this news release has been reviewed and approved by Mr. Tony Hammond, who is a geologic consultant for the company, and a qualified person as defined under NI 43-101. Mr. Hammond holds a BS Mining Engineering and Engineer of Mines — Pontificia Universidad Católica del Perú; an MS Mining Engineering — South Dakota School of Mines.
On behalf of the Board of Directors,
President & CEO
For further information please contact:
Brian Stecyk, Director, President & CEO
Neither the CSE nor its Regulation Services Provider (as that term is defined in the policies of the CSE) accepts responsibility for the adequacy or accuracy of this release.
This news release contains certain “forward-looking statements” within the meaning of Canadian securities legislation. Forward-looking statements are statements that are not historical facts which address events, results, outcomes or developments that the Company expects to occur; they are generally, but not always, identified by the words “expects”, “plans”, “anticipates”, “believes”, “intends”, “estimates”, “projects”, “aims”, “potential”, “goal”, “objective”, “prospective”, and similar expressions, or that events or conditions “will”, “would”, “may”, “can”, “could” or “should” occur. Forward-looking statements are based on the beliefs, estimates and opinions of the Company’s management on the date the statements are made and they involve a number of risks and uncertainties. Certain material assumptions regarding such forward-looking statements are discussed in this news release and the Company’s annual and quarterly management’s discussion and analysis filed at www.sedar.com. Except as required by the securities disclosure laws and regulations applicable to the Company, the Company undertakes no obligation to update these forward-looking statements if management’s beliefs, estimates or opinions, or other factors, should change.