Shares in Canada Fluorspar (CVE:CFI) were holding steady Tuesday after the St. John-based specialty mineral resource company, engaged in the re-activation of an existing underground fluorspar mine on the southern tip of the Burin Peninsula, announced encouraging assay results from four holes on its phase 2 diamond drilling program along the southern extension of the Director Vein at its St. Lawrence fluorspar project in the province of Newfoundland. Grades came in as high as over 91 per cent fluorspar.
All four drillholes are located on the same cross-section, 1,500 metres south of the old Aluminum Company of Canada (Alcan) shaft -- historic mining operations by Alcan on the property produced in excess of 4.2 million tonnes of fluorspar during a 44 year continuous production period from 1942 to 1977 and 1986 to 1991 -- and indicate that the structure maintains a relatively uniform width with depth.
Drill hole DS-13-111 intersected the Director Vein structure returning average assay values of 91.3 per cent fluorspar over 2.42 metres from 79.80 metres to 82.22 metres measured depth.
Drillhole DS-13-136, drilled from east to west and the deepest of the four holes in the plane, returned 81.3 per cent fluorspar over 0.70 metres from 207.80 metres to 208.50 metres measured depth.
"The assays from these four holes as well as previously reported holes are encouraging in that the southern extension of the Director Vein in this area is now known to extend from surface to a projected depth that range from 75 to 150 metres and along a projected north-south strike over 320 metres with grades and widths that would categorize the mineral resources as mineable," said president and CEO Lindsay E Gorrill in a company statement released with the drilling results. Canada Fluorspar previously released 11 holes from its phase 1 and 2 drilling programs that focused on the northern and southern extensions of the Director Vein.
The company's 100 per cent owned St. Lawrence veins sit just outside of its Newspar joint venture in Newfoundland - part of the Canadian junior's two-prong strategy.
The Newspar joint venture is owned 50/50 split by Canada Fluorspar (CFI) and French chemical giant Arkema Inc. (Arkema), which has funded a total of $75 million for its half, through a direct investment in Newspar of $60 million and a $15.5 million investment in CFI at $0.75 per share.
The company's Tarefare vein - which is now part of the Arkema joint venture - along with "the middle part" of the Director Vein, were the veins mined previously by Alcan.
Canada Fluorspar's plans include the expansion of the existing mill, construction of a new tailings management facility and construction of a new deep-water marine terminal in the outer St. Lawrence Harbour for the export of fluorspar concentrate product. The project is anticipated to produce between 120,000 and 180,000 tonnes of fluorspar acidspar concentrate per year.
Shares in the company were holding steady the day of the announcement from a previous close of 19 cents.
Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours.