OZ Minerals Concludes Due Diligence on Firesteel’s ROK-Coyote Property; Moves to Next Phase of Exploration

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By peterc on March 15, 2014. No Comments

FIRESTEEL RESOURCES INC. (TSX-V: FTR) (“Firesteel” or the “Company”) today announced that based on work conducted in 2013, OZ Minerals (ASX:OZL) has concluded its due diligence on the ROK-Coyote property (the “Project”) (100% owned by Firesteel) and will continue with the exploration program as soon as weather permits access to the property in 2014.

OZ Minerals has recommended further work based on results of the 2013 exploration program, including the extension of geophysical grids and additional diamond drilling to test geophysical anomalies identified during the 2013 exploration program.

Between July and October 2013 OZ Exploration Pty Ltd (“OZ”) carried out a preliminary exploration program at the Project under an Option and Joint Venture agreement (the “Agreement”) with Firesteel. The program was designed to determine the potential of the property for economic porphyry-style copper-gold mineralization and, if positive, to commence a first stage exploration program.

The 2013 exploration program included an Archaeological Overview Assessment, 26.5 line km of 3D IP/Resistivity, 316 line km of airborne magnetics and radiometrics and geological mapping.

Based on this initial work described above, OZ proposed a 7 hole drilling program of which only three diamond HQ and NQ holes totaling 1,740m were completed. OZ plans to recommence this drill program and undertake further geophysics in mid 2014 after return of suitable weather conditions.

Airborne Magnetics and IP

The IP survey conducted during the 2013 exploration program has verified historic results in the areas of Main and West Zone. A number of chargeable and resistive anomalies have been highlighted, of which, some were tested during the 2013 drilling campaign.

The high resolution airborne magnetic data collected during the 2013 program has allowed for comprehensive structural and geological interpretations in particular with correlating surface geophysical expressions with units observed at depth in drilling.

Drill Results

Drill testing of geophysical anomalies has allowed for the features to be characterised and used to prioritise other geophysical anomalies on the Rok-Coyote claims. Drilling beneath well-developed gossans suggests that the structural complexity of the area means that expressions observed on surface may not necessarily be reflected at depth. Drilling results show that chargeable conductive zones such as Main Zone are related to highly pyritised (7-8%) volcanic rocks. While the 2013 drilling program failed to return any significant intersections a number of important targeting strategies were tested that will greatly assist future exploration efforts.

Poker Property Exploration

In late September 2013, UTM Exploration Services Ltd provided personnel to Firesteel to attempt to discover some sources of the anomalous gold boulders previously found on the Poker property, located approximately 45km west-southwest of Telegraph Creek. Past field work had resulted in the identification of three (3) types of mineralized boulders: quartz-­‐sulphide containing high gold values, massive sulphide containing gold, silver, copper, lead, and zinc, and quartz-­‐carbonate with high zinc.

To date no source has been found for the mineralization, with heavy speculation on the source being beneath the local glacier.

Qualified Person
The technical information in this news release has been reviewed by Paul Sarjeant, P.Geo., a Qualified Person under National Instrument 43-101

About the Company

Firesteel is an exploration-stage junior mining company engaged in the acquisition and exploration of prospective precious and base metal properties in Canada and stable jurisdictions around the world.

Firesteel currently has two highly prospective properties in British Colombia.

The ROK Coyote property is currently under option to OZ, a wholly owned subsidiary of OZ Minerals (ASX:OZL). OZ has the right to acquire up to 80% of the property in return for spending US$13,000,000 in exploration expenditures and payment of US$1,500,000 in cash to Firesteel.

Highlights of the ROK Coyote property include:

  • 6,900 ha of highly prospective large tonnage targets with known Cu-Au results
  • Historical drilling highlights – 38.37 m @ 1.32% Cu, 1.54 g/t Au
  • Adjacent to Red Chris Mine development owned by Imperial Metals with P&P Reserves of 302 Mt at 0.365 Cu and 0.27 g/t Au (a 28 year mine life at      30,000 tpd).

The Sheslay property is currently under option to Prosper Gold (TSX-V: PGX). Under the terms of this agreement, Prosper has the right to acquire up to 80% of the property in return for spending $5,000,000 on exploration and payment of $1,000,000 in cash and 1,000,000 Prosper Gold shares to Firesteel.

Highlights of the Sheslay property include:

  • 6,700 Ha property hosts five significant Cu-Au targets within close proximity with large tonnage, high grade potential.
  • Historical drilling highlight – 242.3 m @ 0.44% Cu & 0.32 g/t Au.
  • Largest of the targets is 1,800 m by 750 m.

The Company’s management and board of directors have extensive experience in exploration, operations, business and corporate finance.

The Company’s objective is to enhance shareholder value as a prospect generator by identifying and securing early-stage exploration opportunities and developing them to more advanced stages with the help of joint venture partners.

www.firesteeelresources.com

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