November 26th, 2019 – Saville Resources Inc. (TSXv: SRE, FSE: S0J) (the “Company” or “Saville”) would like to update its shareholders on the fluorspar (CaF2) potential of the Mallard Prospect within its Niobium Claim Group Property (the “Property”), Quebec. Mallard is primarily a niobium prospect, with secondary tantalum and phosphate; however, a portion of the prospect also contains significant intervals of fluorite – more commonly known as fluorspar to the market.
This potential is summarized in the recent Technical Report completed on the Property (effective date May 28th, 2018), where the author states: “The encouraging intersections of fluorite mineralization discovered in 2008, in drill holes EC08-015 and 016, were further expanded in 2010, with all four holes intersecting the unit. Drill holes EC10-033 and 044 returned some of the highest-grade intercepts to date. The fluorite zones remain to be modeled and intercepts correlated; however, the data indicates a strong potential for a fluorite zone of significance to be present. Further, although intersected at depth, the mineralization has potential to extend to surface given the sizable intervals over multiple holes, and the moderate to steep dip interpreted for the unit.”
The fluorite at Mallard is purple in colour and may be pervasive to banded within its carbonatite host, which is also moderately mineralized in niobium, tantalum, and phosphate. Highlight mineralized intervals include 31.6% CaF2 over 20.8 m (EC08-016) and 26.1% CaF2 over 32.4 m (EC10-033). A summary of fluorine analysis, which directly relates to the fluorite content of the sample, for historical drill holes completed at Mallard is presented in Table 1.
A follow-up of the fluorspar potential at Mallard has not been an objective of the Company with its recent drill program targeting near-surface strike extensions of the primary niobium mineralized horizons. Further, the 2019 drill core remains to be analyzed for its fluorine content. In addition, a zone of fluorite logged in historical drill hole EC08-021, located along strike to the southeast of Mallard, has also not been analyzed for its fluorine content. The Company intends to further evaluate the fluorite potential at Mallard and incorporate such exploration initiatives within its overall exploration approach for niobium, which remains the focus.
Table 1: Summary of historical fluorite (CaF2) drill intersections at the Mallard Prospect
(1) Intervals noted are core length. True widths of intersections are not yet known
(2) CaF2 calculated from fluorine assays using conversion factor of 2.055
Fluorspar prices remain robust ($400 to $500/t), underpinned by a strong market demand and long-term fundamentals from the chemical industry. Acid-spar, accounting for roughly two-thirds of the market, is used to manufacture hydrofluoric acid (HF) and subsequent fluorochemicals, which are used in a variety of modern consumer products including an estimated half of all new medicines (Roskill, 2019). Fluorspar is also used in in the production of aluminum (AlF3) and is a key component in enhancing the operational performance of lithium-ion batteries. Fluorspar is consumed during industry use and therefore cannot be recycled, resulting in new production being required over time to meet global demand.
Similar to rare earth elements, China has historically been the largest exporter of fluorspar. However, in the last 3 years, China has become a net importer. This has caused significant price appreciation for fluorspar, and market interest in new sources.
The Mallard Prospect is the most advanced prospect on the Property, with 2,490 m over nine (9) drill holes completed historically (2008 and 2010), and 1,049 m over five (5) drill holes completed by the Company in 2019. Coupled with the strong mineralization returned historically, the Company’s recently completed Phase I drill program at Mallard will provide the foundation for advancement towards an initial mineral resource estimate. Further drilling at Mallard as well as several other high-priority targets, including Miranna, is planned as part of Phase II. The 2019 exploration of the Property is being carried out by Dahrouge Geological Consulting Ltd. and managed out of Quebec.
NI 43-101 Disclosure
Darren L. Smith, M.Sc., P.Geo., Dahrouge Geological Consulting Ltd., a Permit holder with the Ordre des Géologues du Québec and Qualified Person as defined by National Instrument 43-101, supervised the preparation of the technical information in this news release.
About Saville Resources Inc.
The Company’s principal asset is the Niobium Claim Group Property, situated within the central Labrador Trough, Quebec, and currently under Earn-In Agreement from Commerce Resources Corp. for up to a 75% interest. The Property consists of 26 contiguous mineral claims, encompassing an area of approximately 1,223 hectares, and is considered highly prospective for niobium and tantalum. The Property includes portions of the high-priority, and drill ready, Miranna Target where prior boulder sampling in the area has returned 5.9% Nb2O5 and 1,220 ppm Ta2O5, as well as the Northwest and Southeast areas (Mallard Prospect) where drilling has returned wide intercepts of mineralization, including 0.61% Nb2O5 over 12.0 m (EC08-008) and 1.36% Nb2O5 over 4.5 m, within a larger interval of 0.80% Nb2O5 over 31.5 m (EC19-174A), respectively.
On Behalf of the Board of Directors
SAVILLE RESOURCES INC.
Neither 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 release.
This news release contains forward-looking information which is subject to a variety of risks and uncertainties and other factors that could cause actual events or results to differ from those projected in the forward-looking statements. Forward looking statements in this press release include that a strong potential for a fluorite zone of significance is present; the fluorite mineralization has potential to extend to surface; the Company intends to further evaluate the fluorite potential at Mallard and incorporate such exploration initiatives within its overall exploration approach; the Company’s recently completed Phase I drill program at Mallard will provide the foundation for advancement towards an initial mineral resource estimate; and that further drilling at Mallard as well as several other high-priority targets, including Miranna, is planned. These forward-looking statements are subject to a variety of risks and uncertainties and other factors that could cause actual events or results to differ materially from those projected in the forward-looking information. Risks that could change or prevent these statements from coming to fruition include changing costs for mining and processing; increased capital costs; the timing and content of upcoming work programs; geological interpretations based on drilling that may change with more detailed information; potential process methods and mineral recoveries assumption based on limited test work and by comparison to what are considered analogous deposits that with further test work may not be comparable; the availability of labour, equipment and markets for the products produced; and despite the current expected viability of the project, conditions changing such that the minerals on our property cannot be economically mined, or that the required permits to build and operate the envisaged mine can be obtained. The forward-looking information contained herein is given as of the date hereof and the Company assumes no responsibility to update or revise such information to reflect new events or circumstances, except as required by law.