Zephyr Minerals drills 9.6 m of 4.0 g/t gold including 2.0 m of 14.0 g/t gold

Trading Symbol: TSX-V: ZFR
Shares Outstanding: 33,395,961

HALIFAX, Oct. 18, 2016 /CNW/ - Zephyr Minerals Ltd. ("Zephyr" or the "Company") (TSX-V: ZFR) is pleased to report assay results for the last three diamond drill holes of the summer drilling program on the Dawson Gold Project ("Dawson") in Colorado, USA. Highlights include drill hole WG-16-35 with a 2.0 m section grading 14.0 g/t gold. This hole expands the high grade gold zone on the west side of Windy Gulch.

Windy Gulch Zone

*Drill hole WG-16-34 was abandoned at 14.9 m due to hole conditions. Hole WG-16-34A replaced WG-16-34.

Hole WG-16-34A drilled into old mine workings from 15.8 to 17.4 m. The gold mineralized drill intercept started from the footwall of the cavity at 17.4 m and was still in the gold mineralized zone at 35.0 m when the drill hole was lost due to mechanical failure. Based on nearby drill hole WG-16-27 which intercepted 21.8 m grading 4.0 g/t gold including 4.5 m grading 15.2 g/t gold, it is estimated that WG-16-34A could have penetrated a further 9 to 12 m of the gold mineralized zone, representing almost half of the zone had the hole not been lost. This hole may be re-drilled with a larger, HQ core in a future drill program to ensure full penetration of the gold zone and maximize core recovery.

Drill hole WG-16-36 was located 100 m west of Windy Gulch at the Last Show prospect. This hole was drilled under a surface trench that assayed 107.6 g/t gold over a 2.4 m interval including 208.5 g/t gold over 1.2 m. Old mine workings were intersected from 17.0 to 18.6 m which may represent the extracted high grade gold zone trenched at surface with the remainder of the hole intercepting only minor gold mineralization not exceeding 1.7 g/t gold over 0.6 m..  

A new road cut established to support the drill program exposed a new, approximately 8 meter wide (estimated true width) shear structure (North Shear), located approximately 20 m north of and parallel to the main shear structure (Main Shear). The North Shear is characterized by rock types typical of the Main Shear and initial sampling shows anomalous gold mineralization including 1.6 g/t over 0.9 m and 1.5 g/t over 0.9 m.

Loren Komperdo, President and CEO, stated "We are very pleased with the results of from this drill program which demonstrated not only consistent high grade gold mineralization but continuity throughout the gold zone. Given the deposit model type – intrusion related shear hosted gold deposit – we believe there is substantial exploration potential on the property, such as the discovery of the new North Shear zone".

* Note: Easting and Northing in UTM NAD 83 Colorado State Plane in feet.

The Windy Gulch section is being targeted for a potential open pit in the mine plan at Dawson which is primarily a high grade underground project centered on the Dawson Main zone.

Zephyr Minerals Core Handling Protocols

Standard sampling procedures were followed whereby NQ core was sampled and cut using a diamond saw. One-half of the core was placed in plastic sample bags and half were left in the core box for reference. The sample weight delivered to the laboratory varied from 0.6 to 1.4 kg. Analytical standards, duplicates, and blanks were inserted at approximately every five sample intervals. The core samples were shipped by Fedex Ltd., Canon City, Colorado to Bureau Veritas Commodities Canada Ltd. ("BVCC") in Vancouver, BC for sample preparation and gold analysis.

All samples were assayed using fire assay with Screen Fire Assay Method (Screen Metallics Gold, Double Minus) for all samples over 1 ppm as well as additional selected samples were completed at BVCC in Vancouver.

About Zephyr Minerals Ltd.

Zephyr Minerals Ltd. is a gold exploration and development company focused on advancing its flagship intrusion related shear hosted high grade Dawson Gold Project in Colorado, USA. Zephyr has commenced engineering and development studies along with additional exploration with a goal of completing a PEA as part of its efforts to advance the Dawson Project with the ultimate goal of production.

To be included in the Zephyr email database for Company updates please contact info@zephyrminerals.com. You can also visit our website, www.zephyrminerals.com, or find us on Facebook for more information.

Mr. Mark Graves, P.Geo. registered with the Association of Professional Geoscientists of Nova Scotia (APGNS), has prepared the scientific and technical information in this news release.

CAUTIONARY STATEMENT:

Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release. This press release contains forward-looking statements. More particularly, this press release contains statements concerning the use of funds from the private placement.

The forward-looking statements contained in this document are based on certain key expectations and assumptions made by the Company, including, with respect to the use of funds from the private placement, expectations and assumptions concerning timing of receipt of required regulatory approvals and third party consents and the satisfaction of other conditions to the completion of the exploration work on the Dawson Gold Property.

The forward-looking statements contained in this document are made as of the date hereof and the Company undertakes no obligation to update publicly or revise any forward-looking statements or information, whether as a result of new information, future events or otherwise, unless so required by applicable securities laws.

SOURCE Zephyr Minerals Ltd.