Trading Symbol: CCY
VANCOUVER,
Jan. 21 /PRNewswire/ - Catalyst
Copper Corporation (the "Company" or "Catalyst") today announced it
will commence 20,000 metres of diamond drilling at its La Verde copper-gold project located in
Michoacán State, México, by the end of January. A diamond drill rig
is currently on site and drilling crews are being mobilized.
The drilling will form part of Catalyst Copper's
2011 exploration and development program, which will also include:
a determination of the gold-silver-molybdenum values for the known
deposits; initial metallurgical test work; commencement of baseline
environmental studies and updating the resource model.
Following the excellent drill and geophysical
results achieved during 2010, Phase 1 of the 2011 program will
involve drilling extensions of the known deposits. This work was
recommended by Micon International Limited in the technical report
released in December 2010 which
stated "there is potential for additional tonnage in both deposits
especially at depth" and recommended that "additional delineation
drilling around the perimeter of the deposits and at depth should
be initiated". Phase 1 is budgeted at a minimum US$2 million.
Phase 2 of the 2011 exploration program will
involve the continuation of definition drilling on the known
deposits as well as testing geophysical targets identified in the
2010 program. Initial metallurgical test work will be carried out
to determine copper-gold-silver-molybdenum recoveries to a sulphide
concentrate, as well as updating the resource model with the 2011
drilling results. Phase 2 is budgeted at a minimum US$4 million and (subject to available funding)
will commence upon completion of Phase 1. Upon completion of the
2011 program a preliminary economic assessment of the La Verde deposits will be carried out.
The Company currently has approximately
$3.2 million dollars in working
capital. The 2011 work program will complete the commitments with
Teck Resource Limited (Teck) to exercise the Company's option to
earn a 60% interest in the property (see option summary at the end
of this release).
In 2010, Catalyst:
- Signed a three-year option agreement with Teck whereby
Minera Hill 29, Catalyst's wholly
owned Mexican subsidiary, can earn a 60% interest in the
La Verde porphyry copper deposit,
subject to a back-in right by Teck.
- Signed a four-year land access agreement with local land
owners.
- Completed 12,275 metres of core drilling (Table 2) and 150
kilometres of geophysical surveys.
- Published an initial NI 43-101 compliant independent resource
estimate completed by Micon International Engineering of
Vancouver (see Table 1).
Table 1
Measured Plus Indicated and Inferred Resources
Total East Hill plus West Hill
Cu% Cut-Off |
Measured+Indicated
Tonnes |
Cu% |
Inferred
Tonnes |
Cu% |
0.1 |
345,165,850 |
0.34 |
240,761,200 |
0.31 |
0.2 |
210,487,200 |
0.46 |
130,768,400 |
0.45 |
0.3 |
142,785,350 |
0.56 |
84,913,150 |
0.57 |
0.4 |
93,595,500 |
0.67 |
54,333,700 |
0.69 |
0.5 |
60,113,350 |
0.79 |
34,807,650 |
0.82 |
|
|
|
|
|
- It cannot be assumed that all or any part of an Inferred
Mineral Resource will be upgraded to an Indicated or Measured
Resource as a result of continued exploration.
- Mineral Resources are not Mineral Reserves as there are
insufficient studies to demonstrate economic viability.
- The Mineral Resource is a global in-situ total without
constraints to an economic pit.
- Mineral Resource numbers have been rounded and may not add up
in the above table
At the 0.2% copper cut-off grade, the East and
West Hill deposits' Measured and Indicated Resources of
210.5 million tonnes averaging 0.46% total copper (TCu) contain 2.1
billion pounds of copper and Inferred Resources of 130.8
million tonnes grading 0.46% TCu contain 1.3 billion pounds of
copper.
Copper mineralization associated with the
deposits is primarily chalcopyrite and to a lesser extent, bornite.
Historically gold (Au), silver (Ag) and molybdenite (Mo) values are
known to be associated with the deposits. Currently the number of
assays available for these elements is insufficient to interpolate
Au, Ag and Mo grades into the resource model (this will be
addressed by the 2011 drilling program).
About La
Verde
The La Verde
project is located in an area with excellent infrastructure. Power,
rail and water all cross the property. Lazaro Cardenas, Mexico's third largest port
on the Pacific Ocean coast is 150 km from the site. Significant
upside potential remains for the two known zones of porphyry style
copper, gold and molybdenum mineralization as the 2010 drill
program has shown both deposits remain open to depth and along
strike.
The December 2010
resource estimate was prepared by D. Makepeace, P.Eng., senior
geologist for Micon who is an independent qualified person as
defined by NI 43-101. The estimate was completed using a 3D
computer model. The drill-hole database used for the resource model
totalled 613 drill holes for 92,878 metres and includes all 12,275
metres drilled during 2010 by Catalyst Copper. A composite interval
of 5 metres was used and constrained to geological rock types. A
single block model (10 x 10 x 10 meters) was created to envelope
both mineralized deposits. Block grades were interpolated using the
inverse distance squared technique. The estimate did not employ a
high-grade copper cap. A density (specific gravity) of 2.70
g/cm3 was used for the East
Hill deposit (porphyry style mineralization) while the West
Hill deposit (chalcopyrite vein style mineralization) used 2.75
g/cm3, based on historical density measurements. All
QA/QC requirements have been followed including incorporating
standards, blanks and duplicates into the assay procedures and
independent check analyses by a second laboratory.
La Verde
property is subject to an option agreement with a Mexican
subsidiary of Teck Resources Limited (Teck) whereby Catalyst's 100%
Mexican subsidiary, Minera Hill 29,
may earn a 60% interest in La
Verde by making US$10,000,000
in exploration expenditures (including 30,000 meters of drilling
and 200 kilometers of IP) by December 31,
2012. Upon Catalyst earning a 60% interest, Teck has the
option to increase its interest to 60% by incurring aggregate
expenditures equal to two times the amount spent by Catalyst.
Should Teck fail to exercise its option to earn a 60% interest,
Catalyst can acquire a 100% interest in La Verde by paying to Teck US$20 million. The property is subject to an
underlying 0.5% NSR. David
Makepeace, M.Eng., P.Eng. is a senior geologist at Micon. He
is the author of the NI 43-101 Technical Report and as a Qualified
Person, has reviewed the technical material in this news
release.
Catalyst Copper is a Vancouver-based publicly traded mine
development company (TSX-V: CCY) that optioned the La Verde copper porphyry target from a
subsidiary of Teck Resources Limited.
ON BEHALF OF THE BOARD OF DIRECTORS OF
CATALYST COPPER CORP.
"Terence W.
Hodson, P.Geo."
TERENCE HODSON,
V.P. EXPLORATION
Certain information set forth in this news release may
contain forward-looking statements that involve substantial known
and unknown risks and uncertainties. These forward-looking
statements are subject to numerous risks and uncertainties, certain
of which are beyond the control of the Company, including, but not
limited to, risks associated with mineral exploration and mining
activities, the impact of general economic conditions, industry
conditions, dependence upon regulatory approvals, and the
uncertainty of obtaining additional financing. Readers are
cautioned that the assumptions used in the preparation of such
information, although considered reasonable at the time of
preparation, may prove to be imprecise and, as such, undue reliance
should not be placed on forward-looking statements. Neither TSX
Venture Exchange nor its Regulation 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.
Quality Assurance: The Company employs a system of quality
control for drill results which includes the use of blanks,
certified reference materials (standards) and check assaying. Core
is logged on site and split with a diamond saw. Samples are shipped
to Acme Analytical Laboratories Ltd. for geochemical analysis of
copper with all values of greater than 1.000 parts per million
copper being reanalyzed by assay methods for copper, gold and
silver.
Table 2
La Verde Property
Select Drill-hole Intercepts from 2010
|
|
|
La Verde |
|
|
|
|
|
|
|
|
|
|
|
Dhid |
Location |
|
From(m) |
To(m) |
Length(m) |
Cu% |
Au g/t |
V-12T |
East Hill |
|
13.2 |
253.0 |
239.8 |
0.50 |
0.048 |
|
|
including |
111.0 |
253.0 |
142.0 |
0.74 |
0.072 |
|
|
|
|
|
|
|
|
V-13T |
East Hill |
|
2.5 |
416.6 |
414.1 |
0.24 |
0.038 |
|
|
|
|
|
|
|
|
V-14T |
East Hill |
|
9.0 |
165.4 |
156.4 |
0.36 |
0.165 |
|
|
including |
9.0 |
53.0 |
44.0 |
0.47 |
0.362 |
|
|
|
|
|
|
|
|
V-15T |
West Hill |
|
8.7 |
536.3 |
527.6 |
0.55 |
0.005 |
|
|
including |
134.5 |
514.1 |
379.6 |
0.72 |
0.006 |
|
|
including |
195.0 |
276.0 |
81.0 |
1.08 |
0.013 |
|
|
|
|
|
|
|
|
V-17T |
West Hill |
|
85.8 |
526.7 |
440.9 |
0.48 |
0.008 |
|
|
including |
304.7 |
526.7 |
222.0 |
0.74 |
0.006 |
|
|
|
|
|
|
|
|
V-19T |
West Hill |
|
38.5 |
640.9 |
602.5 |
0.43 |
0.007 |
|
|
including |
142.6 |
350.1 |
207.4 |
0.58 |
0.014 |
|
|
including |
143.6 |
162.2 |
19.6 |
1.16 |
0.006 |
|
|
|
|
|
|
|
|
V-21T |
West Hill |
|
19.3 |
654.0 |
634.8 |
0.42 |
0.003 |
|
|
including |
209.0 |
267.0 |
58.0 |
0.63 |
0.003 |
|
|
including |
477.2 |
606.7 |
129.5 |
0.91 |
0.002 |
|
|
|
|
|
|
|
|
V-38T |
East Hill |
|
105.9 |
280.0 |
174.1 |
0.24 |
0.039 |
|
|
|
|
|
|
|
|
V-47T |
West Hill |
|
102.1 |
558.8 |
456.7 |
0.37 |
0.007 |
|
|
including |
102.1 |
230.5 |
128.4 |
0.51 |
0.007 |
|
|
|
|
|
|
|
|
V-75T |
West Hill |
|
76.3 |
469.0 |
392.7 |
0.28 |
0.003 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
V-126T |
East Hill |
|
214.4 |
497.8 |
283.4 |
0.39 |
0.152 |
|
|
including |
271.3 |
454.3 |
183.0 |
0.51 |
0.175 |
|
|
|
|
|
|
|
|
LV10-005 |
West Hill |
|
220.1 |
624.3 |
404.2 |
0.41 |
0.005 |
|
|
including |
254.2 |
498.4 |
244.2 |
0.54 |
0.006 |
|
|
including |
415.9 |
583.7 |
103.5 |
0.82 |
0.007 |
|
|
|
|
|
|
|
|
LV10-006 |
West Hill |
|
291.2 |
763.0 |
471.8 |
0.58 |
0.006 |
|
|
including |
498.8 |
728.0 |
229.2 |
0.83 |
0.009 |
|
|
including |
699.7 |
722.1 |
22.4 |
3.62 |
0.014 |
|
|
|
|
|
|
|
|
LV10-007 |
East Hill |
|
221.4 |
229.3 |
7.9 |
0.38 |
0.319 |
|
|
|
508.9 |
528.3 |
19.4 |
0.30 |
0.033 |
|
|
|
|
|
|
|
|
LV10-008 |
West Hill |
|
177.0 |
532.4 |
508.7 |
0.33 |
0.004 |
|
|
including |
206.5 |
303.6 |
95.9 |
0.46 |
0.003 |
|
|
|
608.3 |
685.7 |
77.4 |
0.55 |
0.006 |
|
|
|
|
|
|
|
|
LV10-009 |
East Hill |
|
230.1 |
246.7 |
16.6 |
0.21 |
0.111 |
|
|
|
348.0 |
372.0 |
24.0 |
0.32 |
0.056 |
|
|
|
429.0 |
443.9 |
14.9 |
0.23 |
0.065 |
|
|
|
|
|
|
|
|
LV10-010 |
West Hill |
|
383.2 |
437.4 |
54.3 |
0.36 |
0.005 |
|
|
|
488.0 |
508.1 |
20.1 |
0.23 |
0.006 |
|
|
|
566.5 |
597.4 |
30.9 |
0.33 |
0.004 |
|
|
|
|
|
|
|
|
LV10-011 |
East Hill |
|
304.5 |
640.4 |
335.4 |
0.32 |
0.054 |
|
|
including |
715.5 |
733.4 |
17.9 |
1.35 |
0.254 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
LV10-012 |
IP Target |
|
No Significant Assays |
|
|
|
|
SOURCE Catalyst Copper Corp.
Copyright . 21 PR Newswire