Trading Symbol: CCY
VANCOUVER,
April 19 /PRNewswire/ - Catalyst
Copper Corp. (the "Company" or "Catalyst) today
announced the results of an independent study which developed pit
shells on the La Verde copper
porphyry located in Michoacán State, Mexico. Using the $2.50/lb copper pit as a base case, contained
Measured Resources plus Indicated Resources stand at 272.0M tonnes
grading at 0.37% Cu, plus Inferred Resources of 128.7M tonnes
grading 0.35% Cu (see Table 1).
Table 1: Mineral Resources contained within
the US$2.50/lb Pit shell
Measured |
|
|
|
|
|
Indicated |
|
|
|
|
|
Ms + Ind |
|
|
|
|
|
Copper |
|
|
Inferred |
|
|
|
|
|
Copper |
(ktonnes) |
|
|
Cu (%) |
|
|
(ktonnes) |
|
|
Cu (%) |
|
|
(ktonnes) |
|
|
Cu (%) |
|
|
(billion lbs) |
|
|
(ktonnes) |
|
|
Cu (%) |
|
|
(billion lbs) |
29,819 |
|
|
0.45 |
|
|
242,209 |
|
|
0.36 |
|
|
272,028 |
|
|
0.37 |
|
|
2.22 |
|
|
128,720 |
|
|
0.35 |
|
|
0.99 |
Catalyst contracted a mineral industry consulting firm, Micon
International Limited (Micon), to construct the pit shells using
the recently completed NI 43-101 Block Model Resource (see
December 15, 2010 news release). A
sensitivity analysis was performed on La
Verde considering total Measured, Indicated and Inferred
Resources using copper prices ranging from $0.50/lb to $4.00/lb (see Table 2; Figure
1).
Table 2: Sensitivity Analysis within pit
shells constructed using copper prices ranging from $0.50 to $4.00/lb
Cu Price |
|
|
CutOff Grade |
|
|
Measured |
|
|
|
|
|
Indicated |
|
|
|
|
|
Inferred |
|
|
|
|
|
Waste |
|
|
Pit Depth |
|
|
Strip Ratio |
(US$/lb) |
|
|
Cu% |
|
|
(kt) |
|
|
(%) |
|
|
(kt) |
|
|
(%) |
|
|
(kt) |
|
|
(%) |
|
|
(kt) |
|
|
(m) |
|
|
(t:t) |
0.50 |
|
|
0.87 |
|
|
89 |
|
|
1.78 |
|
|
375 |
|
|
1.22 |
|
|
35 |
|
|
1.07 |
|
|
735 |
|
|
190 |
|
|
1.47 |
1.00 |
|
|
0.43 |
|
|
9,358 |
|
|
0.68 |
|
|
26,198 |
|
|
0.63 |
|
|
2,160 |
|
|
0.56 |
|
|
76,559 |
|
|
340 |
|
|
2.03 |
1.50 |
|
|
0.29 |
|
|
20,069 |
|
|
0.55 |
|
|
95,691 |
|
|
0.49 |
|
|
36,709 |
|
|
0.46 |
|
|
306,072 |
|
|
570 |
|
|
2.01 |
2.00 |
|
|
0.21 |
|
|
26,317 |
|
|
0.48 |
|
|
194,111 |
|
|
0.39 |
|
|
89,840 |
|
|
0.38 |
|
|
610,778 |
|
|
670 |
|
|
1.97 |
2.50 |
|
|
0.17 |
|
|
29,819 |
|
|
0.45 |
|
|
242,209 |
|
|
0.36 |
|
|
128,720 |
|
|
0.35 |
|
|
789,463 |
|
|
740 |
|
|
1.97 |
3.00 |
|
|
0.14 |
|
|
31,914 |
|
|
0.43 |
|
|
271,717 |
|
|
0.33 |
|
|
150,549 |
|
|
0.33 |
|
|
845,767 |
|
|
760 |
|
|
1.86 |
3.50 |
|
|
0.12 |
|
|
34,552 |
|
|
0.41 |
|
|
300,767 |
|
|
0.32 |
|
|
174,482 |
|
|
0.31 |
|
|
983,186 |
|
|
780 |
|
|
1.93 |
4.00 |
|
|
0.11 |
|
|
35,956 |
|
|
0.39 |
|
|
317,650 |
|
|
0.31 |
|
|
188,042 |
|
|
0.30 |
|
|
1,066,207 |
|
|
810 |
|
|
1.97 |
The following parameters were used for the analysis (All costs
are in US dollars):
- Copper prices ranging from $0.50/lb to $4.00/lb.
- No gold, silver or molybdenum credits applied.
- Operating costs
-
- Ore mining $2.00/tonne.
- Waste mining $1.50/tonne.
- Processing + G&A $5.00/tonne.
- Ore recovery - 90%.
- Pit slope - 45°.
- No allowances for dilution or ore loses were included.
Economic parameters used in this study were based on associated
costs for comparable open pit copper operations. Recoveries are
based on historical metallurgical work carried out on La Verde mineralization in the 1970s. The pit
slope was estimated. No credit was given for potential precious or
base metal values such as gold, silver and molybdenum.
Plans and sections of the pit shells have been posted on the
Catalyst Copper website: www.catalystcopper.com
Results of the Micon study reveal:
- Probable location and size of starter pits on both the
East Hill (EH) and West Hill (WH)
deposits at $1.00/lb Cu. Initial
metallurgical test work planned for later this year will focus on
these locations.
- High priority drill targets defined by areas of Inferred
Resources fall within the pit shells. Of particular interest would
be drilling to upgrade Inferred Resource targets located near the
surface to Measured or Indicated Resources. Success here may
improve the economics of the project by reducing the strip
ratio.
- Projected mineralized extensions of the deposit lying outside
of pit shells. Highest priority targets include north and south
extensions of the WH deposit, the saddle area between the EH and WH
deposits, south extension of the EH deposit and geophysical (IP)
targets located south of La
Verde.
Figure 1: Material within Pit
Shells
http://files.newswire.ca/949/IZAapril19.pdf
All classes of resources — Measured, Indicated and Inferred —
were used in this study as its purpose was to guide further in-fill
and delineation drilling and as such one of the main targets of the
ongoing and future drilling would be Inferred Resources within the
pit shells shown.
Caution should be used in interpreting these results as the
economic parameters applied are estimates only and may not
accurately reflect current or future economic parameters. Due to
the uncertainty that may be attached to Inferred Mineral Resources,
it cannot be assumed that all or any part of an Inferred Mineral
Resource will be upgraded to an Indicated or Measured Mineral
Resource as a result of continued exploration.
The Company currently has approximately
$2.5 million dollars in working
capital. It is anticipated the 2011 work program will
complete the commitments with Teck Corporation to exercise the
Company's option to earn a 60% interest in the property (see option
summary at the end of this release).
About La
Verde
The La Verde
project is located in an area with excellent infrastructure. Power,
rail and water all occur within the property boundary. Lazero Cardenas, Mexico's third largest port
on the Pacific Ocean coast, is 160 km from the site. Significant
upside potential remains for the two known zones of porphyry style
copper, gold and molybdenum mineralization as drilling has shown
both deposits remain open to depth and along strike.
The Block Model Resource was prepared by D.
Makepeace, P.Eng., Senior Geologist for Micon who is an independent
qualified person as defined by NI 43-101 (see News Release
December 15, 2010 for more details).
The optimized pit shells were developed by J. Steedman, MAusIMM,
who is an independent qualified person as defined by NI 43-101.
Both J. Steedman and D. Makepeace have reviewed this news
release.
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 may acquire a 100% interest in La Verde by paying to Teck US$20 million. The property is subject to an
underlying 0.5% NSR.
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,
QP for the Catalyst Copper Corp.
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.
SOURCE Catalyst Copper Corp.