Kesselrun Resources Announces Start of 2016 Bluffpoint Field Program
THUNDER BAY, ON, July 19, 2016 – Kesselrun Resources Ltd. (TSXV:KES) (“Kesselrun” or the “Company”) is pleased to announce that field crews are being mobilized to the Bluffpoint Gold Project.
Kesselrun’s Bluffpoint Gold Project is located approximately 50 km northeast of, and on the same structural trend as, New Gold’s Rainy River mine which is currently under construction. First production at Rainy River is estimated for mid-2017 at a rate of 325,000 ounces per year (See New Gold’s September 14, 2015 news release). Kesselrun’s management believes Bluffpoint has all the ingredients to host a major gold deposit and continues to move the project forward.
Kesselrun recently expanded the Bluffpoint project, by staking an additional 480 hectares. The acquired claims are strategically located in areas identified as priority targets through recent remodeling of the exploration data. Field crews have been mobilized with work concentrating on three main areas and consisting of mapping, prospecting and outcrop stripping.
Recent re-interpretation of the geology on the new staked claims along the southern boundary of the main claim group has led to the development of a new bulk tonnage model. Historic grab samples by the Ontario Geological Survey from this area have shown significant potential for gold mineralization with results of up to 1.3 oz/ton gold.
Straw Lake Target
Two claims were also staked adjacent to the Straw Lake claim group further consolidating this land package. Kesselrun now holds the centre of the Straw Lake stratigraphy, host to the former producing Straw Lake Beach Mine located approximately 200 metres south of the claim group. The Straw Lake Beach Mine produced 11,568 oz gold and 1,040 oz silver form 33,662 tons of ore (0.34 oz/ton Au) from 1938 to 1941 (Ontario Ministry of Northern Development and Mines production data).
Previous prospecting results in the northern part of the property returned up to 101.8 g/t and 66.82 g/t Au in grab samples (see Kesselrun’s news release dated October 29, 2012). Follow up work to further assess these showings will be a high priority in the upcoming program.
In addition, Kesselrun is pleased to report that it has been approved under the Junior Exploration Assistance Program (the “JEAP”) sponsored by the Northern Ontario Heritage Fund Corporation and the Ontario Prospectors Association. The JEAP grant will provide Kesselrun with a rebate of up to 33.33% on approved exploration expenses at the Bluffpoint project, to a maximum of $100,000.
Michael Thompson, P. Geo., President and CEO of Kesselrun, is the Qualified Person for Kesselrun as defined by National Instrument 43-101 and has approved the technical information in this news release.
About Kesselrun Resources Ltd.
Kesselrun Resources is a Thunder Bay, Ontario-based mineral exploration company focused on growth through property acquisitions and discoveries. Kesselrun's management team possesses strong geological and exploration expertise with particular experience in Northwest Ontario. For more information about Kesselrun Resources, please visit www.kesselrunresources.com.
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 news release.
For additional information please contact:Kesselrun Resources Ltd.
Michael Thompson, P. Geo., President & CEO
Forward Looking Statements – Certain information set forth in this news release may contain forward-looking statements that involve substantial known and unknown risks and uncertainties. These forward-looking statements are subject to numerous risks and uncertainties, certain of which are beyond the control of Kesselrun including, but not limited to the impact of general economic conditions, industry conditions, volatility of commodity prices, dependence upon regulatory approvals, the availability of financing and exploration risk. Readers are cautioned that the assumptions used in the preparation of such information, although considered reasonable at the time of preparation, may prove to be imprecise and, as such, undue reliance should not be placed on forward-looking statements.