July 23rd, 2020 – Saville Resources Inc. (TSXv: SRE, FSE: S0J) (the “Company” or “Saville”) is pleased to provide an update on the data review and interpretation of the fluorspar (CaF2) potential in the Mallard area of the Company’s Niobium Claim Group Property (the “Property”), Quebec. The Mallard Prospect is characterized by numerous drill intersections of high-grade niobium, along with variably associated high grades of tantalum, phosphate, and fluorspar.
The fluorspar potential at the Mallard Prospect was first highlighted in news release dated November 26th, 2019, where several historical drill holes intersected strong mineralization. This includes drill holes EC08-016, EC10-033, and EC11-040 with 31.6% CaF2 over 20.8 m, 26.1% CaF2 over 32.4 m, and 39.8% CaF2 over 6.6 m, respectively. The Company is pleased to report that further review of the historical drill logs, coupled with the findings from the recent 2019 drilling, has outlined a mineralized fluorspar trend, within the primary niobium trend, which is broader and more extensive than previously understood.
The fluorspar trend extends northwest from a 2008 drill hole fence, located approximately 425 m southeast of EC19-174A, and continues through the Mallard Prospect (see Figure 1). The fluorspar trend extends for at least 600 m and is open to the northwest, southeast, downdip, and is interpreted to continue to surface where it is obscured by a shallow veneer of overburden. Fluorspar mineralization is readily observable to the naked eye as the fluorspar present is purple in colour and relatively abundant where grades are of interest.
As a next step, the Company is compiling the available sample assay pulps for the 2008 and 2019 drill core for the intervals of interest, which will be sent to Activation laboratories in Ancaster, ON for fluorine analysis. Drill holes included in this assay batch are EC08-014, 016, 018, 021, 024, EC19-172, 173, and 171A.
Potential for high-grade niobium intervals with fluorspar mineralization
The fluorspar at Mallard is purple in colour and may be pervasive to banded within its carbonatite host. Textures of the fluorspar horizons indicate crystallization from late stage hydrothermal fluids, which either replaced the host rock (i.e. altered) or was emplaced as veins and breccia infill. The replacement style is interpreted to have a stronger potential for fluorite enrichment (i.e. higher grades). Based on the assays to date, the fluorspar is found to be associated with moderate grades of niobium, tantalum, and phosphate, each considered to be a potentially recoverable commodity in this geological setting. Further, the fluorine analytical data also indicates there is no grade correlation with niobium. This finding suggests that high-grade niobium zones have the potential to overlap with high-grade fluorspar zones and highlights a key style of mineralization to target within these two overlapping trends.
Figure 1: Interpreted fluorite mineralized trend within the wider niobium trend
Fluorspar is an essential raw material to the steel, aluminum, and chemical industries and is consumed during use and therefore cannot be recycled, resulting in new production being required over time to meet global demand. China is the world’s largest producer and consumer of fluorspar and in the last few years has become a net importer of the commodity. This has driven significant price appreciation for fluorspar, and market interest from industry in new sources.
Acid-spar (> 97% CaF2), accounting for roughly two-thirds of the market, is primarily 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). Acid-spar is also used in the production of aluminum metal, to reduce process temperatures and energy consumption, and is also a key raw ingredient of materials used in enhancing the operational performance of lithium-ion batteries.
Met-spar (> 60% CaF2), accounting for roughly one-third of the global fluorspar market, is primarily used as a flux in the steel making process to lower the melting temperature, as well as to reduce slag viscosity and remove impurities. Met-spar is also used as a flux in the cement industry to speed up the calcination process.
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 each of niobium, tantalum, and phosphate are potentially recoverable commodities on the property, that high-grade niobium zones have the potential to overlap with high-grade fluorspar zones, the sale of the fluorspar would reduce the footprint of the Project’s tailings management facility as well as provide another revenue stream while also serving as a source of secure supply for the market; and that additional infill drilling may be considered ahead of a resource update, anticipated in 2020. 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 and reports produced on work done; 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; testing of our process may not prove successful and even it tests are successful, the economic and other outcomes may not be as expected; 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.