Coniagas Applies for Permits to Expand on Current 28.9 m of 2.28 % CuEq in MHY Zone

Rhea-AI Summary

Coniagas Battery Metals Inc. (TSXV: COS) has announced updates on its exploration activities at the Graal property near Saguenay-Lac St. Jean, Quebec. The company has achieved promising results from the MHY and Gravi zones, with significant drill intercepts such as 28.9 m of 2.28% CuEq and 33.6 m of 1.32% CuEq, respectively. These zones show potential for high copper equivalent values, with notable amounts of nickel, cobalt, platinum, and palladium. Coniagas is applying for permits to expand its near-surface mineral resources, aiming to enhance the project's economic viability. The Graal property benefits from year-round accessibility, proximity to infrastructure, and a skilled workforce in the nearby industrial hub of Lac-St. Jean.

Positive

• Achieved significant drill intercepts: 28.9 m of 2.28% CuEq and 33.6 m of 1.32% CuEq.
• High copper equivalent values indicate potential for valuable nickel, copper, and cobalt mineralization.
• Additional byproduct streams identified, such as platinum and palladium.
• Strategically located near Saguenay-Lac St. Jean, offering logistical advantages.
• Year-round accessibility and proximity to Chute-de-Passe power station ensure reliable and cost-effective energy.
• Lac-St. Jean provides a skilled workforce and port access to the St. Lawrence River.

Negative

• No consideration for recovery and/or metallurgical losses in CuEq values.
• Permitting processes may pose delays or regulatory hurdles.
• Previous drill results are historical and need further validation.

Vancouver, British Columbia--(Newsfile Corp. - June 12, 2024) - Coniagas Battery Metals Inc. (TSXV: COS) ("Coniagas" or the "Company"), is pleased to provide an update on the ongoing exploration activities at the Graal property, highlighting the potential of this strategically located asset near Saguenay-Lac St. Jean, Quebec.

Matt Halliday, P.Geo., member of the Ordre des Géologues du Québec, stated, "The prospect of finding zones with high copper equivalent values at Graal is encouraging. There have been numerous drill holes over the last program. We will continue to add to these results within known mineralized zones."

Historical Exploration Highlights:

The Company is excited to begin to add to the reported excellent drilling results from the MHY and Gravi zones, confirming shallow, near-surface mineralization. Significant drill intercepts include PGM values added to the equivalents:

MHY Zone: Holes GRL-22-60 and GRL-22-61

• GRL-22-60 returned:

  • 28.90 m of 2.28% CuEq, includes 0.73% Nickel (Ni), 0.41% Copper (Cu), 0.09% Cobalt (Co), 0.04 g/t Platinum (Pt), 0.05 g/t Palladium (Pd)

• GRL-22-61 returned:

  • 15.90m of 1.98 % CuEq, includes 0.53% Ni, 0.56% Cu, 0.08% Co, 0.03 g/t Pt, 0.05 g/t Pd

DDH	From (m)	To (m)	Length (m)	Ni (%)	Cu (%)	Co (%)	Cu Eq (%)	Cu Eq + PGM (%)
GRL-22-60	51.50	80.40	28.90	0.73	0.41	0.09	2.00	2.28
Including	61.00	74.80	13.80	1.01	0.57	0.12
Including	51.50	54.00	2.50	1.13	0.57	0.13
Including	56.30	59.10	2.80	1.13	0.27	0.13
GRL-22-61	62.10	78.00	15.90	0.53	0.56	0.08	1.75	1.98
Including	71.40	78.00	6.60	0.94	0.83	0.11
Including	71.40	75.00	3.60	1.12	0.31	0.13
Including	75.00	76.80	1.80	0.77	1.99	0.09

 

Gravi Zone: Holes NRC-22-24 and GRL-22-57

• NRC-22-57 returned:

  • 8.40 m of 2.82 % CuEq includes 0.67% Ni, 0.55% Cu, 0.08% Co, 0.08 g/t Pt, 0.035 g/t Pd

• NRC-22-24 returned:

  • 33.60 m of 1.32 % CuEq includes 0.32% Ni, 0.46% Cu, 0.04% Co, 0.03 g/t Pt, 0.02 g/t Pd

DDH	From (m)	To (m)	Length (m)	Ni (%)	Cu (%)	Co (%)	Cu Eq (%)	Cu Eq + PGM (%)
GRL-22-57	94.10	102.50	8.40	0.67	0.55	0.08	2.40	2.82
Including	96.60	99.90	3.30	1.03	0.68	0.13
NRC-22-24	121.50	155.10	33.60	0.32	0.46	0.04	1.16	1.32
Including	121.50	124.70	3.20	0.95	0.54	0.13
Including	125.50	129.20	3.70	0.25	0.22	0.03
Including	142.80	152.10	9.30	0.64	1.06	0.08
Including	149.40	152.10	2.70	1.07	1.34	0.14
*For equivalents the prices were taken 2024-06-11: Cu $9,779.12/mt, Ni $17,833.5/mt, Co $27,997/mt, Pt $30.61/g, Pd $28.1/g. Note that the CuEq is for total metal content without consideration for recovery and/or metallurgical losses.

 

These results reinforce the significant potential of the Graal property to host valuable nickel, copper, and cobalt mineralization. Notably, some intercepts also contain platinum and palladium, suggesting a potential for byproduct streams. In the 2022 drilling, we observed up to 1.365 gpt platinum (Pt), indicating that PGM mineralization at the Graal could be a desirable byproduct.

Next Steps:

The Company is actively applying for permits to expand the near-surface mineral resources at Graal. This expansion aims to further delineate the resource potential and enhance the economic viability of the project.

Strategic Location:

The Graal property boasts an excellent location north of Saguenay-Lac St. Jean, offering several logistical advantages:

• Year-Round Accessibility: The site is road-accessible and drill-ready throughout the year.

• Proximity to Infrastructure: The nearby Chute-de-Passe power station provides reliable and cost-effective energy.

• Local Industrial Hub: The town of Lac-St. Jean, an industrial hub, offers a skilled workforce and port access to the St. Lawrence River.

Frank Basa, P.Eng. Ontario, President and CEO of Coniagas, stated, "The recent results at the MHY and Gravi zones underscore the significant potential of the Graal property. Our strategic location and robust infrastructure further enhance the project's attractiveness. We are committed to advancing our exploration efforts and expanding our near-surface mineral resources."

Qualified Person

The technical information in this news release was reviewed and approved by Matthew Halliday, P.Geo., member of the Ordre des Géologues du Québec, who is a Qualified Person in accordance with National Instrument 43-101.

Quality Control and Reporting Protocols

The assay results are from OnSite Laboratories in Cobalt, Ontario. The material is crushed to 75% passing -2 mm (10 mesh), a 250 g split of this material is pulverized to 85% passing 75 microns (200 mesh) and analyzed by Aqua Regia with an Atomic Absorption Spectrometry (AAS) finish. All samples were run in replicate, and CRMs were included for Cu and Co.

About Coniagas Battery Metals Inc.

Coniagas Battery Metals Inc. is a Canadian junior mining company focused on nickel, copper and cobalt and platinum group metals in Québec. Coniagas' strategy is to create value for shareholders through the development of its mineral properties, with the intention to develop Coniagas into a critical metals supplier to the electric vehicle (EV) market.

At its 100% owned Graal project near Saguenay, Quebec, Coniagas has conducted successful exploration involving geophysics as well as shallow drilling that hit mineralization in almost every hole. It has confirmed an open-pit deposit model at Graal along a 6 km strike length of high-grade nickel and copper with cobalt, platinum and palladium byproducts. The Company plans in the near-term to conduct additional drilling leading to the production of a Ni 43-101 resource report, metallurgical testing and consultations with First Nations. The Graal project and immediate work plan are outlined in detail in the "NI 43-101 Technical Report Graal Nickel & Copper Project, Saguenay-Lac-St-Jean, Quebec, Canada" dated January 17, 2024. The report is available along with other information at the Company's website https://coniagas.com/.

Based only on the historical drill hole information, the mineralized strike length drilled in the past highlights a potential target of near-surface tonnage of 30 to 60 million tonnes at a grade range of 0.60% to 0.80% Nickel and 0.30% to 0.50% Copper with 0.10% to 0.15% Cobalt for the MHY sector (see map below). This calculation excludes the newly discovered mineralization (NRC-21-03) (see Company Press Release November 24, 2021), the northern Lac Suzanne portion, and the south portion of Nourricier sector. This estimation does not take into account any potential at depth which is currently being explored.

Please note that the quantity and grade of this potential target calculation is conceptual in nature, and there has been insufficient exploration to define a mineral resource. It is uncertain if further exploration will result in the target being delineated as a mineral resource. The potential target primary evaluation is a calculation of the length multiplied by the thickness of intersection by the density of 3.3 to 4.0 t/m3 multiplied by the depth extension of 150 to 250m based on historical drill holes.

"Frank J. Basa"
Frank J. Basa, P. Eng. Member of Professional Engineers Ontario
Chief Executive Officer

For further information, contact:
Frank J. Basa, P. Eng. Ontario
Chief Executive Officer
416-625-2342
or:
Wayne Cheveldayoff, Corporate Communications
P: 416-710-2410 E: waynecheveldayoff@gmail.com

You can follow Coniagas on Social Media:
LinkedIn: https://www.linkedin.com/company/coniagas-battery-metals/
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Facebook: https://www.facebook.com/coniagas/

Neither the TSX Venture Exchange nor its Regulation Service Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

Caution Regarding Forward-Looking Statements

This news release may contain forward-looking statements regarding Coniagas Battery Metals Inc. ("Coniagas" or the "Company") which include, but are not limited to, comments that involve future events and conditions, which are subject to various risks and uncertainties. Except for statements of historical facts, comments that address the Coniagas trading on the TSX Venture Exchange, resource potential, upcoming work programs, geological interpretations, receipt and security of mineral property titles, availability of funds, and others are forward-looking. No assurance can be given that any of the foregoing will be achieved. Forward-looking statements are not guarantees of future performance and actual results may vary materially from those statements. General business conditions are factors that could cause actual results to vary materially from forward-looking statements. The Company does not undertake to update any forward-looking information in this news release or other communications unless required by law.

To view the source version of this press release, please visit https://www.newsfilecorp.com/release/212633

FAQ

What recent exploration results did Coniagas report at the Graal property?

Coniagas reported significant drill intercepts, including 28.9 m of 2.28% CuEq in the MHY zone and 33.6 m of 1.32% CuEq in the Gravi zone.

What minerals has Coniagas found at the Graal property?

Coniagas found significant amounts of nickel, copper, cobalt, platinum, and palladium.

Why is the location of the Graal property advantageous?

The Graal property benefits from year-round road accessibility, proximity to the Chute-de-Passe power station, and a skilled workforce in the nearby industrial hub of Lac-St. Jean.

What are the next steps for Coniagas at the Graal property?

Coniagas is applying for permits to expand its near-surface mineral resources and further delineate the resource potential.

What is the significance of the CuEq values reported by Coniagas?

The high CuEq values indicate the potential for valuable mineralization of nickel, copper, and cobalt at the Graal property.