July 20, 2012 - Vancouver, British
Columbia. Huakan
International Mining Inc. (TSX-V: HK) (the "Company")
announces Main Zone drill results from the remaining holes
DDH12-23 through DDH12-45 from the 2012 underground diamond
drill program at its J&L precious and polymetallic
(gold-silver-lead-zinc) project, located near Revelstoke,
British Columbia. The drilling program consisted of 45
holes in 9,725 metres aimed at increasing the indicated
resource category for the Main Zone deposit. The program
was successful in intersecting similar grade and thickness
of mineralization as previous nearby holes. An updated
resource will be completed once the deposit has been
re-modeled.
Holes DDH12-01 through DDH12-22 were reported in news
releases dated June 4th, June 6th and June 25, 2012 and are
repeated here for summary purposes and context of the full
program. The entire program tested 6 target areas, A
through F, which are identified on a longitudinal section
on the Company's website. Hole density or spacing in this
campaign averaged 60 metre centres.
Area A
Eleven holes in Area A covered a 200 metre long by
130 metre down dip area of the Main Zone. Intercepts ranged
between 0.56 metres and 8.48 metres of typical Main Zone
mineralization. The length weighted average gold grade for
all intercepts in this area is 5.55 g/t Au (Table 1).
Multiple zones were encountered in some drill holes.
Table 1: 2012 Intercepts in Area A
Hole ID
|
From (m)
|
To (m)
|
Length (m)
|
Au (g/t)
|
Ag (g/t)
|
Pb (%)
|
Zn (%)
|
|
|
171.75
|
174.74
|
2.99
|
2.88
|
73.29
|
3.63
|
9.35
|
|
DDH12-09*
|
192.38
|
193.61
|
1.23
|
4.13
|
71.88
|
3.03
|
2.68
|
|
DDH12-09*
|
206.55
|
208.11
|
1.56
|
1.94
|
20.94
|
0.21
|
0.06
|
|
DDH12-10*
|
207.70
|
216.18
|
8.48
|
9.41
|
101.39
|
2.17
|
4.31
|
|
DDH12-11*
|
207.58
|
211.85
|
4.27
|
3.61
|
89.77
|
2.00
|
1.66
|
|
DDH12-26
|
212.35
|
214.27
|
1.92
|
7.36
|
191.31
|
6.58
|
3.97
|
|
DDH12-27
|
225.54
|
226.34
|
0.80
|
4.44
|
72.16
|
2.77
|
5.32
|
|
DDH12-27
|
227.75
|
228.31
|
0.56
|
2.18
|
24.30
|
1.19
|
8.06
|
|
DDH12-27
|
238.90
|
239.57
|
0.67
|
3.01
|
22.10
|
1.25
|
0.42
|
|
DDH12-29
|
221.52
|
222.49
|
0.97
|
4.64
|
93.32
|
2.91
|
8.81
|
|
DDH12-29
|
225.80
|
227.37
|
1.57
|
8.32
|
90.61
|
2.82
|
5.89
|
|
DDH12-32
|
232.08
|
233.96
|
1.88
|
1.47
|
26.28
|
1.06
|
3.47
|
|
DDH12-32
|
246.31
|
248.11
|
1.80
|
2.93
|
35.74
|
0.38
|
1.12
|
|
DDH12-32
|
250.39
|
251.52
|
1.13
|
1.48
|
92.88
|
1.73
|
3.89
|
|
DDH12-35
|
222.29
|
224.70
|
2.41
|
8.51
|
54.02
|
2.12
|
2.69
|
|
DDH12-39
|
240.67
|
242.60
|
1.93
|
7.03
|
70.92
|
3.32
|
6.32
|
|
DDH12-43
|
262.10
|
265.42
|
3.32
|
7.88
|
65.20
|
2.17
|
2.84
|
|
DDH12-43
|
273.40
|
274.00
|
0.60
|
4.98
|
113.00
|
2.56
|
2.88
|
|
|
|
|
|
|
*previously reported
Area B
Eleven holes in Area B covered a 250 metre long by
120 metre down dip area of the Main Zone. In this area, we
are often seeing one or two Main Zone intercepts per hole
with intercept widths between 0.50 metres and 2.69 metres
of typical Main Zone mineralization (Table 2). The length
weighted average gold grade for all intercepts in this area
is 5.66 g/t Au.
Table 2: 2012 Intercepts in Area B
Hole ID
|
From (m)
|
To (m)
|
Length (m)
|
Au (g/t)
|
Ag (g/t)
|
Pb (%)
|
Zn (%)
|
DDH12-17*
|
199.04
|
200.53
|
1.49
|
2.12
|
65.19
|
3.78
|
7.19
|
DDH12-18*
|
184.83
|
187.39
|
2.56
|
4.74
|
42.98
|
1.53
|
2.18
|
DDH12-18*
|
196.15
|
197.82
|
1.67
|
28.20**
|
27.15
|
0.43
|
0.36
|
DDH12-19*
|
226.27
|
226.77
|
0.50
|
0.96
|
122.00
|
5.04
|
3.69
|
DDH12-20*
|
180.22
|
181.93
|
1.71
|
3.28
|
26.39
|
0.99
|
1.85
|
DDH12-21*
|
194.48
|
195.65
|
1.17
|
3.26
|
18.16
|
0.61
|
1.29
|
DDH12-21*
|
199.01
|
199.62
|
0.61
|
3.63
|
6.80
|
0.03
|
0.03
|
DDH12-22*
|
235.74
|
237.96
|
2.22
|
1.13
|
22.20
|
0.81
|
2.41
|
DDH12-22*
|
244.95
|
245.64
|
0.69
|
11.30
|
71.30
|
1.38
|
1.13
|
DDH12-23
|
204.20
|
206.89
|
2.69
|
7.66
|
82.58
|
3.44
|
6.30
|
DDH12-24
|
211.44
|
213.55
|
2.11
|
9.79
|
22.96
|
0.78
|
1.81
|
DDH12-24
|
217.83
|
218.70
|
0.87
|
6.25
|
41.68
|
0.87
|
0.39
|
DDH12-25
|
218.69
|
220.68
|
1.99
|
6.84
|
36.46
|
1.51
|
2.20
|
DDH12-28
|
245.06
|
247.65
|
2.59
|
2.45
|
16.79
|
0.63
|
1.20
|
DDH12-28
|
256.45
|
258.44
|
1.99
|
4.32
|
9.08
|
0.32
|
0.10
|
DDH12-30
|
253.33
|
255.20
|
1.87
|
3.47
|
51.00
|
0.64
|
3.66
|
*previously reported; ** re-stated from subsequent
screen metallic assays
Area C
Ten holes were completed in Area C covering an area
150 metres long by 250 metres down dip on the Main Zone, in
the far southeast end of the deposit. The Main Zone
continues throughout this area. Main Zone intercepts ranged
from 0.42 metres to 5.82 metres of typical Main Zone
mineralization. The length weighted average gold grade for
all intercepts (excluding DDH12-14) is 4.67 g/t Au (Table
3).
Table 3: 2012 Intercepts in Area C
Hole ID
|
From (m)
|
To (m)
|
Length (m)
|
Au (g/t)
|
Ag (g/t)
|
Pb (%)
|
Zn (%)
|
DDH12-12*
|
107.27
|
108.72
|
1.45
|
7.32
|
21.88
|
0.51
|
0.48
|
DDH12-13*
|
102.07
|
102.77
|
0.70
|
3.58
|
11.00
|
0.24
|
0.05
|
DDH12-14*
|
161.67
|
162.31
|
0.64
|
1.24
|
1.60
|
0.02
|
0.01
|
DDH12-15*
|
103.3
|
109.12
|
5.82
|
4.20
|
14.15
|
0.31
|
0.51
|
DDH12-16*
|
136.1
|
137.4
|
1.30
|
3.86
|
10.52
|
0.41
|
0.67
|
DDH12-16*
|
141.93
|
142.95
|
1.02
|
4.34
|
13.44
|
0.11
|
0.05
|
DDH12-36
|
176.12
|
176.91
|
0.79
|
15.60
|
51.60
|
1.65
|
2.44
|
DDH12-37
|
104.96
|
105.38
|
0.42
|
6.13
|
156.00
|
3.97
|
4.05
|
DDH12-40
|
98.57
|
100.19
|
1.62
|
6.50
|
30.48
|
0.71
|
1.48
|
DDH12-41
|
129.24
|
133.30
|
4.06
|
2.88
|
36.79
|
1.56
|
1.40
|
*previously reported
Area D
Three holes were completed in Area D covering an area
80 metres long by 100 metres down dip on the Main Zone.
Intercept widths ranged from 1.39m to 1.41m of typical Main
Zone mineralization. The length weighted average gold grade
for all intercepts is 4.69 g/t Au (Table 4).
Table 4: 2012 Intercepts in Area D
Hole ID
|
From (m)
|
To (m)
|
Length (m)
|
Au (g/t)
|
Ag (g/t)
|
Pb (%)
|
Zn (%)
|
DDH12-31
|
121.57
|
122.96
|
1.39
|
8.52
|
78.02
|
2.89
|
3.01
|
DDH12-33
|
125.88
|
127.29
|
1.41
|
3.65
|
41.91
|
2.59
|
2.53
|
DDH12-34
|
180.15
|
181.55
|
1.40
|
1.92
|
16.63
|
0.61
|
1.00
|
Area E
Three holes were completed in Area E covering an area
100 metres long by 80 metres down dip on the Main Zone.
This area fills in the gap between Area F and the area of
the previous resource estimate. The length weighted average
gold grade for all intercepts in this area is 5.78 g/t Au
(Table 5).
Table 5: 2012 Intercepts in Area E
Hole ID
|
From (m)
|
To (m)
|
Length (m)
|
Au (g/t)
|
Ag (g/t)
|
Pb (%)
|
Zn (%)
|
|
DDH12-42
|
237.13
|
240.33
|
3.20
|
6.00
|
26.24
|
1.12
|
8.00
|
|
DDH12-44
|
260.87
|
262.48
|
1.61
|
6.17
|
14.68
|
1.04
|
4.86
|
|
DDH12-45
|
222.63
|
223.03
|
0.40
|
2.00
|
51.80
|
0.25
|
0.68
|
|
DDH12-45
|
233.99
|
234.35
|
0.36
|
7.26
|
35.70
|
0.30
|
0.07
|
|
DDH12-45
|
238.66
|
239.15
|
0.49
|
0.34
|
23.80
|
1.68
|
10.65
|
|
DDH12-45
|
242.98
|
245.08
|
2.10
|
3.68
|
31.40
|
1.74
|
2.31
|
|
DDH12-45
|
254.25
|
255.17
|
0.92
|
8.29
|
31.49
|
1.56
|
0.46
|
|
DDH12-45
|
262.36
|
262.63
|
0.27
|
28.90
|
80.10
|
2.34
|
2.50
|
|
DDH12-45
|
271.17
|
271.94
|
0.77
|
3.34
|
26.90
|
0.56
|
0.22
|
Area F
Seven holes were completed in Area F covering an area
180 metres long by 180 metres downdip on the Main Zone.
Main Zone intercept widths ranged from 0.93 metres to 6.65
metres of typical Main Zone mineralization. The length
weighted average gold grade for all intercepts in this area
is 5.59 g/t Au (Table 6).
Table 6: 2012 Intercepts in Area F (Main Zone)
|
Hole ID
|
From (m)
|
To (m)
|
Length (m)
|
Au (g/t)
|
Ag (g/t)
|
Pb (%)
|
Zn (%)
|
DDH12-01*
|
149.58
|
151.22
|
1.64
|
2.94
|
28.3
|
1.46
|
1.94
|
DDH12-02*
|
182.57
|
183.95
|
1.38
|
2.69
|
41.7
|
1.84
|
1.82
|
DDH12-03*
|
75.56
|
76.89
|
1.30
|
6.17
|
23.6
|
1.20
|
3.08
|
DDH12-04*
|
139.90
|
146.55
|
6.65
|
5.23
|
34.6
|
0.90
|
2.18
|
DDH12-05*
|
187.49
|
189.62
|
2.13
|
11.73
|
85.6
|
2.87
|
2.92
|
DDH12-06*
|
198.68
|
199.61
|
0.93
|
5.28
|
62.1
|
3.08
|
2.77
|
DDH12-07*
|
246.25
|
247.95
|
1.70
|
3.90
|
23.4
|
1.23
|
3.27
|
*previously reported
These same seven holes intercepted multiple
Yellowjacket (silver-lead-zinc) zones further up in the
holes with intercept widths ranging from 1.04 metres to
3.25 metres (Table 7).
Table 7: 2012 Intercepts in Area F (Yellowjacket
Zone)
|
Hole ID
|
From (m)
|
To
(m)
|
Length (m)
|
Ag
(g/t)
|
Pb
(%)
|
Zn
(%)
|
DDH12-01*
|
103.81
|
105.50
|
1.69
|
92.0
|
3.40
|
13.50
|
DDH12-01*
|
115.86
|
117.46
|
1.60
|
98.0
|
4.90
|
8.80
|
DDH12-02*
|
116.41
|
117.5
|
1.09
|
52.2
|
3.07
|
16.91
|
DDH12-02*
|
129.16
|
132.28
|
3.12
|
99.4
|
4.75
|
14.51
|
DDH12-03*
|
93.68
|
95.19
|
1.51
|
51.7
|
1.88
|
13.79
|
DDH12-03*
|
103.89
|
105.92
|
2.03
|
75.9
|
3.91
|
14.53
|
DDH12-04*
|
120.83
|
121.92
|
1.09
|
59.9
|
3.28
|
4.66
|
DDH12-05*
|
97.83
|
100.43
|
2.60
|
58.0
|
2.20
|
3.50
|
DDH12-05*
|
131.94
|
134.28
|
2.34
|
31.3
|
1.20
|
10.44
|
DDH12-06*
|
103.91
|
105.93
|
2.02
|
106.7
|
2.90
|
10.57
|
DDH12-06*
|
130.16
|
133.62
|
3.46
|
33
|
1.80
|
4.80
|
DDH12-06*
|
143.35
|
146.4
|
3.05
|
43.3
|
2.75
|
9.40
|
DDH12-06*
|
158.05
|
159.09
|
1.04
|
78.3
|
3.05
|
3.29
|
DDH12-07*
|
179.78
|
181.05
|
1.27
|
119.0
|
7.90
|
7.70
|
DDH12-07*
|
197.2
|
200.45
|
3.25
|
100.0
|
5.50
|
2.60
|
*previously reported
The 2012 diamond drill program was under the
supervision of Paul Cowley, P.Geo., the Company's Qualified
Person and VP Exploration. BQTW-sized core samples have
been cut in half and sent to ALS Laboratory Group in
Kamloops, BC. Samples are assayed for gold by fire assay
(50 gram charge) as well as assayed for silver, lead and
zinc. The Company inserted standards, blanks and duplicate
samples throughout the sample sequence as quality control
checks.
Paul Cowley, P.Geo. and VP Exploration,
states "We are very pleased with the success of the
program. It has increased the strikelength of the Main Zone
deposit from 800 metres to 1150 metres and added an
additional 120 metres locally to the downdip extent of the
Main Zone. Modeling is underway in preparation of an
updated resource estimate for early this fall."
For further information please contact:
Wilson Jin, President at (604) 694-2344
About Huakan International Mining Inc.
Huakan's flagship property is the J&L, which it owns
100% with no underlying royalties. The property has a
current resource at a $110/tonne in-situ NSR
cut-off value of:
Main Zone
|
Classification
|
Tonnes
|
Au
(g/t)
|
Au
(ozs)
|
Ag
(g/t)
|
Ag
(ozs)
|
Pb
(%)
|
Zn
(%)
|
Measured
|
1,202,000
|
6.71
|
259,200
|
69.0
|
2,664,600
|
2.40
|
4.46
|
Indicated
|
1,165,700
|
6.92
|
259,200
|
64.9
|
2,432,100
|
2.01
|
3.86
|
Measured & Indicated
|
2,367,700
|
6.81
|
518,400
|
66.95
|
5,096,700
|
2.21
|
4.16
|
|
|
|
|
|
|
|
|
Inferred
|
4,538,100
|
5.19
|
757,500
|
67.8
|
9,887,800
|
2.16
|
2.99
|
Footwall Zone
|
Classification
|
Tonnes
|
Au
(g/t)
|
Au
(ozs)
|
Ag
(g/t)
|
Ag
(ozs)
|
Pb
(%)
|
Zn
(%)
|
Inferred
|
292,800
|
4.54
|
42,700
|
49
|
461,900
|
0.91
|
0.73
|
1) Mineral resources which are not
mineral reserves do not have demonstrated economic
viability. The estimate of mineral resources may be
materially affected by environmental, permitting, legal,
title, taxation, socio-political, marketing, or other
relevant issues.
2) Confidence in the estimate of
Inferred Mineral Resources is insufficient to allow the
meaningful application of technical and economic
parameters. There is no guarantee that all or any part of a
mineral resource can or will be converted into a mineral
reserve.
3) The mineral resources in this
estimate were calculated using the Canadian Institute of
Mining, Metallurgy and Petroleum (CIM), CIM Standards on
Mineral Resources and Reserves, Definitions and Guidelines
prepared by the CIM Standing Committee on Reserve
Definitions and adopted by CIM Council.
4) The following parameters were
used to derive the NSR block model values:
-April 30/11 US$ two year trailing av'g. metal prices
of Au $1,183/oz, Ag $21/oz, Pb $0.99/lb, Zn $0.95/lb;
Exchange rate of US$0.95US = $1.00CDN -Process
recoveries of Au 92%, Ag 88%, Pb 80%, Zn 72%; Smelter
payables of Au 96%, Ag 91%, Pb 95%, Zn 85% -Refining
charges of Au US$15/oz, Ag US$0.50/oz; Concentrate freight
charges of C$65/t and Smelter treatment charge of
US185/t -Mass pull of 5% and 8% concentrate moisture
content.
5) The NSR cut-off of CDN$110 per
tonne was derived from $75/t mining, $25/t processing and
$10/t G&A
Paul Cowley, P.Geo., Vice President Exploration for
the Company, is the Qualified Person as defined in National
Instrument 43-101, who has reviewed and approved the
technical content of this news release.
Neither the TSX Venture Exchange nor its Regulations
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.
CAUTIONARY STATEMENTS REGARDING FORWARD LOOKING
INFORMATION
Certain of the statements made and information
contained herein may contain forward-looking statements or
forward-looking information within the meaning of
applicable securities laws. Such forward-looking
statements or forward-looking information include, but are
not limited to statements concerning the J&L underground
drill program. Forward-looking statements or information
include statements regarding the expectations and beliefs
of management. Often, but not always, forward-looking
statements and forward-looking information can be
identified by the use of words such as "plans", "expects",
"is expected", "budget", "scheduled", "estimates",
"forecasts", "intends", "anticipates", or "believes" or the
negatives thereof or variations of such words and phrases
or statements that certain actions, events or results
"may", "could", "would", "might" or "will" be taken, occur
or be achieved. Forward-looking statements or
information include, but are not limited to, statements or
information with respect to known or unknown risks,
uncertainties and other factors which may cause the actual
results, performance or achievements of the Company, or
industry results, to be materially different from any
future results, performance or achievements expressed or
implied by such forward-looking statements or
information.
Forward-looking statements or information are subject
to a variety of risks and uncertainties which could cause
actual events or results to differ from those reflected in
the forward-looking statements or information, including,
without limitation, risks and uncertainties relating to:
completion of announced transactions, history of losses;
requirements for additional capital; dilution; loss of its
material properties; interest rates increase; global
economy; limited history of production; speculative nature
of exploration activities; periodic interruptions to
exploration, development and mining activities;
environmental hazards and liability; industrial accidents;
failure of processing and mining equipment; labour
disputes; supply problems; commodity price fluctuations;
uncertainty of production and cost estimates; the
interpretation of drill results and the estimation of
mineral resources and reserves; legal and regulatory
proceedings and community actions; title matters;
regulatory restrictions; permitting and licensing;
volatility of the market price of common shares; insurance;
competition; hedging activities; currency fluctuations; and
loss of key employees. Should one or more of these
risks and uncertainties materialize, or should underlying
assumptions prove incorrect, actual results may vary
materially from those described in forward-looking
statements or information. Accordingly, readers are advised
not to place undue reliance on forward-looking statements
or information. The Company disclaims any intent or
obligation to update forward-looking statements or
information except as required by law, and you are referred
to the full discussion of the Company's business contained
in the Company's reports filed with the securities
regulatory authorities in Canada.
Recommend:
