Crazy Horse Resources Inc. Files Updated Resource Estimate Moving 411 Mt Into Indicated Category
October 14 2011 - 11:25AM
Marketwired
Crazy Horse Resources Inc. (TSX VENTURE:CZH)(OTCQX:CRZHF) ("Crazy
Horse" or the "Company") announces that further to its news release
of September 8, 2011, it has completed and filed an updated
NI43-101 compliant resource report on its Taysan Copper/Gold
Project.
The report dated October 10, 2011 and entitled "Update of the
Mineral Resource Estimate and Preliminary Economic Assessment for
the Taysan Project" was authored by Mining Associates Pty. Ltd. and
AMEC Minproc Limited. The report updates the mineral resource
estimate of the Taysan copper-gold project with the addition of
silver and magnetite, and drill holes completed to date. This
mineral resource estimate is an update to the minerals resource
estimate described in the March 11, 2011 technical report by the
same authors that was based primarily on historical drilling.
Mining Associates updated mineral resource estimate defines an
indicated resource of 411 Mt at an average grade of 0.27% copper,
0.10 g/t gold, 0.92 g/t silver and 3.3% magnetite for 2,410 M lbs
of contained copper, 1.27 Moz contained gold, 12.19 Moz contained
silver and 13.4 Mt of contained magnetite; and an additional
inferred resource of 542 Mt at an average grade of 0.18% copper,
0.07 g/t gold, 0.47g/t silver and 2.8% magnetite for 2,190 M lbs of
contained copper, 1.24 Moz contained gold, 8.24 Moz contained
silver and 15.4 Mt contained magnetite. A cut-off grade of 0.1%
copper was applied to all reported resource blocks.
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Taysan August 2011 Resource Estimate - greater than 0.1% Cu
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Cu Au Ag Magnetite Cu Au Ag Magnetite
Category M t % g/t g/t % M lbs M Oz M Oz M t
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Indicated 411 0.27 0.10 0.92 3.3 2,410 1.27 12.19 13.4
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Inferred 542 0.18 0.07 0.47 2.8 2,190 1.24 8.24 15.4
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Within the defined copper resource are several associated
accessory minerals. These minerals, gold, silver and magnetite,
were not routinely determined in the historic data. The gold
estimate is an improvement on previous regression based estimates;
silver and magnetite have not been estimated previously. All
elements are estimated using ordinary kriging. The Company is
currently drilling the gold, silver and magnetite resource to
obtain sufficient data to allow the resource categories to be
consistent across all commodities.
This resource estimate is based on historic drill data and the
results from a 45 drill hole programme conducted by the Company
from October 2010 to June 2011. The first ten holes drilled by the
Company were designed to test the validity of historic drilling,
and confirmed the tenor of the historical drill data to be correct.
The balance of the drilling has also confirmed that copper grades
decrease at depth and that the deposit remains open down dip. This
recent drilling has bolstered confidence in the Taysan Project
enabling a current indicated and inferred copper resource to be
quoted.
The technical report also documents the results of a preliminary
economic assessment ("PEA") of an open pit mining operation at
Taysan. The study was managed by AMEC Minproc Limited of Australia
with technical contributions by a number of third party industry
consultants.
A complete copy of the technical report which includes the PEA
can be viewed under the Company's profile at www.SEDAR.com.
Mineral resources that are not mineral reserves do not have
demonstrated economic viability. The PEA is preliminary in nature,
and is based on inferred mineral resources that are considered too
speculative geologically to have the economic considerations
applied to them that would enable them to be categorized as mineral
reserves. There is no certainty that the PEA will be realized.
Qualified Person
The information in this portion of the press release and the
technical report relating to mineral resource estimates and the PEA
are based on information compiled under the direction of Ian Taylor
and Grahame Binks. Ian Taylor is a consultant geologist and
Certified Professional (AusIMM(CP)) holding a B.Sc (Hons) with
specialist experience in resource evaluation in porphyry copper
projects. Grahame Binks is a consultant engineer and Certified
Professional (AusIMM(CP)) holding a B.Eng (Hons) and M.Eng Sci with
specialist experience in process engineering in precious metals,
copper, lead, zinc, nickel, tin and uranium in a range of operating
environments. Mr. Taylor and Mr. Binks are both Qualified Persons
("QP") as defined in the "Canadian Institute of Mining, Metallurgy
and Petroleum, CIM standards on Mineral Resources and Reserves' and
NI 43-101. Both Mr. Taylor and Mr. Binks have reviewed this press
release and consent to the inclusion in the press release of the
matters based on his information in the form and context in which
this appears.
Quality Control and Sample Preparation
The Company has a rigorous quality control program (QCP)
inserting a minimum 5% of standards, blanks and duplicates into the
sample stream. The Company employs independently owned and managed
laboratories for all of its assay requirements. Drilling of the
Taysan Project was and continues to be carried out by Quest
Exploration Drilling (Philippines) Inc. using Edson 3000 and LF70
drill rigs and a triple tube diamond core drilling system. All
holes are started in PQ (150-200m) then continued in HQ. All core
is split using a diamond-bladed drill-core saw and always sampled
from the (true) left side of the core. The remaining half of the
core is sealed in plastic bags in a nitrogen atmosphere and stored
in a covered, guarded core shed. Core samples are bagged in new
polyethylene, UV stable plastic bags, sealed with a plastic tie,
numbered outside and have a tag placed inside the bag. All samples
are accompanied by Company personnel from site to the McPhar
Laboratory under secure "Chain of Custody" procedures. Samples are
crushed to 85% less than 2mm then 1kg is split out and pulverised
in an LM2 Puck and Bowl Pulveriser to 90% less than 75um. Gold is
assayed by Fire Assay (50g charge) with AAS finish (PM6). Cu, Ag,
As, Pb, Zn, Mo, Al, Ca, Fe, K and S are assayed by 4 Acid Digest
(HCl / HNO3 / HClO4 / HF) ore grade analysis with ICP-AES finish
(ICP-3). Sample rejects are returned from the McPhar Laboratory
under secure "Chain of Custody" procedures by Company staff and
also stored in the core shed in heat sealed plastic bags in a
nitrogen atmosphere. McPhar Geoservices (Phil), Inc. is ISO
17025:2005 accredited and is a member of the International Intertek
Laboratory Group.
Magnetite content correlates to the magnetic susceptibility of
the pulps, (R2=0.9733). Magnetite% = 0.1639 x MagSus reading +
0.8007 based on 107 Davis Tube Tests. The regression was applied to
all magnetite susceptibility readings (8239 readings of one kg pulp
bags representing 2 metre samples).
About the Taysan Project
The Taysan Project contains a drill defined copper-gold porphyry
deposit, and is comprised of two mining exploration permits and
three mining exploration permit applications (permits: EP-IVA-005
and EP-IVA-016, and permit applications: EPA-IVI-108, EPA-IVI-111
and EPA-IVA-081) over five contiguous claim blocks covering a
combined total area of 11,254 hectares. The Taysan Project hosts a
large and only partly explored copper-gold porphyry deposit similar
to other copper-gold porphyry deposits previously mined in the
Philippines. The Taysan Project is located in southern Luzon,
Philippines in a well-developed mining province and readily
accessible by road located 20km east of the provincial capital and
deep-water commercial port of Batangas City.
ON BEHALF OF THE BOARD
Mitchell Alland, President, CEO and Secretary
Neither the 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.
Contacts: KIN Communications Inc. Investor Relations
1-866-684-6730Ir@kincommunications.com