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Group Eleven Identifies Navan Beds Targets at Ballinalack; Verifies Historic Zone by Intersecting 10.3m of 8.9% Zinc + 1.7% Lead (10.6% combined) and 52 g/t Silver

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Vancouver, Canada, August 7, 2018 – Group Eleven Resources Corp. (TSX.V: ZNG, OTCQB: GRLVF) (“Group Eleven” or the “Company”) is pleased to provide the results from two initial drill holes from its Ballinalack zinc-lead project in Ireland (“Ballinalack” or the “Project”). Ballinalack is a joint venture between Group Eleven (60%-interest) and Shenzhen Zhongjin Lingnan Nonfemet Company Limited (“Nonfemet”, 40%-interest), one of the largest zinc producers in China. The Project is located 50 kilometres from Boliden’s substantial Navan (Tara) zinc mine.

Highlights

  • G11-1344-01 is the first ever definitive test of the Ballinalack fault directly below the historical estimate[1]on the Project; it successfully encountered the structure, significantly advancing the understanding of local geometry and helping vector towards four priority Navan Beds targets
  • G11-1344-02, drilled near the south end of the historical estimate, intersected several zones of significant zinc, lead and silver mineralization, including:
  • 10.3m of 8.9% zinc and 1.7% lead (10.6% combined) and 52 g/t silver (true width is estimated at >90%) – drilled within a shallow portion of the historic estimate (note: silver not previously assayed)
  • A second zone of 3.6m of 5.5% zinc and 0.6% lead (6.2% combined) (true width is estimated at >90%)  – drilled within another portion of the historical estimate
  • New lead-silver intercept in Navan-beds - numerous lead-silver-barite veins over a length of 29m, including 3.1m of 5.6% lead and 12 g/t silver (true width estimated at 30%); very high lead to zinc ratios suggest proximity to a feeder structure
  • New intercept of thinner zinc mineralization in the base of Navan-beds (1.1m @ 4.6% zinc and 0.8% lead, or 5.4% combined, and 12.3 g/t silver; true width estimated at 30%) – bolstering confidence on a Navan Beds target to the southeast

“We are thrilled that our bold steps to quickly and efficiently increase our understanding of the Ballinalack system via our ‘Big Think’ strategy are vectoring us towards four priority Navan Beds targets near the historical estimate” stated Bart Jaworski, CEO. “Importantly, our drilling suggests historic attempts to test hanging wall Navan Beds targets at Ballinalack were indeed drilled too far down dip – leaving these prospective areas virtually untested.”

“Additionally, our work is showing that cross-faults may have a much more significant role in controlling mineralization than has been previously recognized. This realization has shed an exciting new light on our emerging Navan Beds targets both proximally to the historical estimate and regionally on the property. Lastly, it is gratifying to see our drilling yield robust silver grades, given a large portion of historically assayed intervals were run only for zinc and lead.”

Further Details on Ballinalack Drilling

The Ballinalack project is unique in Ireland as it is underlain by not one – but two prospective horizons: the ‘Waulsortian’ limestone (hosting the Ballinalack historical estimate and most zinc deposits in Ireland) and the ‘Pale Beds’ (also referred to as ‘Navan Beds’, which hosts Boliden’s Navan zinc deposit approximately 50 kilometres to the east). Specifically, Ballinalack is the only known major zinc occurrence in Ireland that hosts significant mineralization in both horizons. The table below summarizes assay results and rock types from intercepts announced in this press release (see Exhibit 2 for drill hole locations).

Exhibit 1. Assay Results from G11-1344-02[2] from Ballinalack Zinc Project, Ireland

 
Item From To Interval Zinc Lead Zinc+Lead Silver Lithgy
  (m) (m) (m) (%) (%) (%) (g/t)  
  60.10 70.43 10.33^ 8.88 1.70 10.58 51.8 WL
including 65.00 65.70 0.70^ 20.10 3.59 23.69 170.0 WL
  80.40 84.00 3.60^ 5.54 0.61 6.16 5.7 WL
  88.90 90.87 1.97^ 4.45 0.17 4.62 3.7 WL
  284.85 287.95 3.10* 0.08 5.56 5.65 12.4 NB
including 287.60 287.95 0.35* 0.18 11.70 11.88 25.1 NB
  312.75 313.20 0.45* 0.08 22.30 22.38 48.1 NB
  345.60 346.65 1.05* 4.56 0.79 5.35 12.3 NB

Note: ^ True widths are estimated at >90% of downhole intervals; * True widths are estimated at c.30% of downhole intervals;  “Lithgy” denotes ‘lithology’. “WL” denotes ‘Waulsortian’ limestone; “NB” denotes ‘Navan Beds’ lithology.

G11-1344-01 was diamond drilled to a depth of 625.1m, with an azimuth and dip of 145° and -65°, respectively (see Exhibit 2 and Exhibit 3). Key aims were as follows:

  • To be the first hole to directly and definitively test the orientation of the Ballinalack fault directly below the historical estimate
  • To be the first hole drilled obliquely to the historic grid, to test presence of cross-faults
  • To be the first inclined and oriented hole at the historic estimate, allowing for proper collection of structural data
  • Located proximal and parallel to the only seismic line through the historical estimate in order to provide geological and structural information to augment ongoing seismic interpretation

G11-1344-02 was diamond drilled to a depth of 389.1m, with an azimuth and dip of 170° and -50°, respectively (see Exhibit 2 and Exhibit 4). Key aims were as follows:

  • To be the second inclined and oriented drill hole at Ballinalack (after G11-1344-01), allowing for proper collection of key structural information
  • To test a poorly understood area of structural complexity characterized by several intersecting faults (i.e. including the Ballinalack fault and several cross-faults)
  • To test for mineralization in the Navan Beds below the Ballinalack Fault

Emerging Navan Beds Targets at Ballinalack

The recent drilling and detailed analysis of historical data has critically aided Group Eleven’s ‘Big Think’ initiative by significantly improving the understanding of the Ballinalack property, notably from a structural framework and Navan Beds targeting perspective. Although additional work is required to fully ascertain controls on mineralization, the following can be stated thus far:

  • Exploration for Navan Beds mineralization at Ballinalack is in its infancy - only 35 holes have historically tested the Pale Beds in the vicinity of the historical estimate and 16 of them have returned compelling mineralization
  • Four key Navan Beds ‘hot spots’ are emerging in the vicinity of the historical estimate (see Exhibit 2)
  • These targets are largely defined by encouraging historic drilling, in combination with newly interpreted structural/stratigraphic setting, and bolstered by new drill results in this press release

The following is a brief description of each Navan Beds target area (see Exhibit 2):

  • Target 1 - defined by five historic holes which intersected significant mineralization (up to 4.0m of 8.4% zinc + lead) within the Navan Beds in the footwall of the Ballinalack fault. This target is open predominantly to the north-east.
  • Target 2 - also a footwall Navan Beds target, with five historic holes which intersected significant mineralization (including 2.7m of 10.1% zinc + lead). This target spans over one kilometre in strike and is very sparsely drilled. G11-1344-02 has added further compelling evidence of mineralization (see Navan Beds mineralization in Exhibit 1 and Exhibit 2). The northern end of this target was assayed historically for silver (yielding up to 1.5m of 144 g/t Ag). Strong lead/zinc ratios and the possibility of relatively enriched silver grades suggests proximity to a feeder structure. The target is open predominantly to the south-east.
  • Target 3 – defined by an interesting historic (1992) hole which intersected 4.6m of 5.2% zinc + lead in the Navan Beds. Four historic follow-up holes drilled radially 300m away provided a possible trend to mineralization oriented towards the north-west. This possible trend may align with a cross-fault adjacent to the strongest mineralization in the historical estimate. This target is also compelling as it occurs within the hanging wall of a postulated major fault recently interpreted from seismic data by Dr Alastair Beach (see Group Eleven news release dated January 18, 2018).
  • Target 4 – is located within the hanging wall of the Ballinalack fault and comprises five areas, each bounded by newly interpreted cross-faults. These targets are especially compelling given they are situated (i) directly down-throw from known mineralization (historical estimate), (ii) within very prospective stratigraphy (i.e. Pale Beds) and (iii) adjacent to the Ballinalack fault and cross-cutting structures. Areas (a) and (b) are specifically interesting as a historic (1994) hole in the vicinity intersected mineralization with visual estimates of 1.0m of 3-4% zinc and a second zone of 4.0m of 1-2% zinc - representing the strongest hanging wall Pale Bed intercepts on the property to date. Areas (c), (d) and (e) have never been drill tested.

Importantly, G11-1344-01 has pinned down the location of the Ballinalack fault and shown it to be a steep dipping structure in this area. Historically, it appears cross-faults were not taken into account and the Ballinalack fault was interpreted to be much shallower dipping. On this basis, previous operators drilled two holes, which now appear to have been located too far down dip to have directly tested the Navan Beds target. Target 4c, therefore, continues to be a very compelling area.

Also noteworthy is that the fault block immediately southwest of Target 4c is now interpreted to have been partially tested by historic hole B113 (see Exhibit 3). This southern fault block hosts the weakest-grading portion of the historical estimate. Despite this, hole B113 still returned highly anomalous mineralization (1.5m @ 0.7% zinc + lead), potentially representing the edge of a mineralized zone. Therefore, this area remains prospective.

Cross-Faults – Regional Significance

Based on drilling and recent analysis of historic data, Group Eleven believes cross-faults may be much more important in controlling mineralization at Ballinalack than previously recognized. This reflects the fact that (i) mineralization appears to be more proximal to cross-faults than the main Ballinalack fault; and (ii) the cross-faults at Ballinalack are aligned parallel to one of the important orientations of mineralizing structures in Ireland. This suggests that, within the historical estimate, drilling to test this prospective geological setting was never done. There are also significant implications for regional exploration at Ballinalack.

Outlook

Group Eleven is currently finalizing its detailed half-year work plan and budget. The key elements from this work are planned to be disclosed to the market early this Fall. The Ballinalack and Stonepark projects will continue to remain a focus for this upcoming period.

About Ballinalack

A historical estimate of 7.7 million tonnes grading 6.3% zinc + 1.0% lead (7.3% combined) was previously disclosed on the Project. Significant data compilation and verification may be required by a qualified person before this historical estimate can be classified as a current resource. A qualified person has not undertaken sufficient work to classify this historical estimate as a current resource. The Company is not treating the historical estimate as a current resource. The historical estimate is described in a report prepared by the Robertson Group plc in 1991 and is classified under the “IMM Definition of Terms for Reporting Assets” as an “Indicated Mineral Resource,” using a 4.0% zinc cut-off.

Qualified Person

EurGeol John Barry MSc., M.B.A., P.GEO, Vice President of Exploration Strategy, is the qualified person for the Ballinalack project as defined by NI 43-101. Mr. Barry has worked for extended periods on Irish-style zinc deposits for much of the last 30 years and is a professional member of the Institute of Geologists of Ireland and a member of the European Federation of Geologists. Mr. Barry has supervised the preparation of the scientific and technical information that forms the basis for this news release. Mr. Barry is responsible for all quality control and data verification and has confirmed all procedures, protocols and methodologies used.

Quality Assurance / Quality Control (QA/QC)

Diamond drill-core described in this press release had a diameter size of HQ or NQ and recoveries of approximately 90% or better. Once structural elements were measured from oriented drill-core, the core was marked-up, logged and photographed on site. The core was then sawn in half at the Company’s core storage facility with half bagged at average intervals of one-metre and sent in batches to ALS Minerals’ OMAC Laboratory in Loughrea, Ireland for analysis. Samples were fine-crushed (CRU-31) to 70% < 2mm and pulverized and riffle-split to 85% < 75 µm. Zinc, lead and silver assays were obtained by multi-acid (4-acid) digestion/ICP-AES Package (48 Elements). Analytical accuracy and precision are monitored by the submission of 3 blanks and 3 standards inserted into the sample train of 107 samples by Group Eleven personnel. No duplicate samples were sent to the lab. ALS inserted 11 standards, 6 blank and ran 10 duplicates as part of their internal QC procedures.

About Group Eleven Resources

Group Eleven Resources Corp. (TSX.V: ZNG, OTCQB: GRLVF) is focused on zinc exploration in Ireland. The Company’s large land package (99 prospecting licenses totaling 3,200 square kilometres) allows Group Eleven to leverage new geological thinking and geophysical technology to systematically rethink key aspects of the Irish zinc district. Key projects include Ballinalack (with Joint Venture partner Nonfemet), Stonepark (with Joint Venture partner Connemara Mining), Silvermines (100%) and Tralee (100%). The Company’s team includes accomplished mining professionals with direct experience in finding mines, building companies and exploring Irish zinc deposits.

For more information, please visit www.groupelevenresources.com or contact:

Spiros Cacos, MA
Vice President, Investor Relations
T: +1 604 630 8839
s.cacos@groupelevenresources.com

Bart Jaworski, P.Geo.
Chief Executive Officer & Director
T: +353-85-833-2463
b.jaworski@groupelevenresources.com

Cautionary Note Regarding Forward-Looking Information

This press release contains forward-looking statements within the meaning of applicable securities legislation. Such statements include, without limitation, statements regarding the future results of operations, performance and achievements of the Company, including the timing, content, cost and results of proposed work programs, the discovery and delineation of mineral deposits/resources/ reserves and geological interpretations. Although the Company believes that such statements are reasonable, it can give no assurance that such expectations will prove to be correct. Forward-looking statements are typically identified by words such as: believe, expect, anticipate, intend, estimate, postulate and similar expressions, or are those, which, by their nature, refer to future events. The Company cautions investors that any forward-looking statements by the Company are not guarantees of future results or performance, and that actual results may differ materially from those in forward looking statements as a result of various factors, including, but not limited to, variations in the nature, quality and quantity of any mineral deposits that may be located. All of the Company's public disclosure filings may be accessed via www.sedar.com and readers are urged to review these materials, including the technical reports filed with respect to the Company's mineral properties.

 

1 The historic estimate at Ballinalack is described in the section titled “About Ballinalack”

2 Collared 50m away from historic hole B119 (vertical), which intersected 11.11m of 7.04% Zn and 1.04% Pb and a second zone 14m downhole consisting of 9.75m @ 10.2% Zn and 1.5% Pb (no silver data for either interval; true widths estimated at 70-80%); Group Eleven estimates the main intercept in G11-1344-02 coincides with the second zone in hole B119.

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