VANCOUVER, BC, Dec. 16, 2021 /CNW/ - Newport Exploration Ltd
("Newport" or "the Company") is pleased to report on the summary
results of an updated NI43-101 Technical Report (the "Report") and
an updated mineral resource estimate for the Chu Chua massive
sulphide deposit ("Chu Chua"), located near Barriere, BC, as estimated by APEX Geoscience
Ltd. ("APEX") of Vancouver,
BC. Newport has a 100 percent (%) interest in Chu Chua which
is subject to two separate 1% Net Smelter Return ("NSR")
royalties.
An updated pit constrained mineral resource estimate for Chu
Chua completed by Mr. Nicholls of APEX comprises an inferred
mineral resource of 2.29 million tonnes averaging 2.11% copper,
0.3% zinc, 9.99g/t silver and 0.5g/t gold, at a copper block
cut-off grade of 1.0%.
The report has been prepared for Newport for the purpose of a valuation for Chu
Chua and for planning future technical work on the project in 2022.
This news release summarizes the highlights of the Report titled:
Technical Report on the Chu Chua Property, Kamloops Mining
Division, British Columbia, which
is available under Newport's
Issuer Profile on SEDAR (www.sedar.com).
NI 43-101 Technical Report
During 2021, APEX was retained by Newport to complete an updated NI 43-101
report and update the mineral resource estimate for Chu Chua. The
authors of the report, Mr. Kristopher Raffle, B.Sc., P. Geo., Mr.
Steve Nichols, BA.Sc (Geology) MAIG,
and Mr. Alfonso Rodriguez, M.Sc., P.
Geo., of APEX are all independent qualified persons as defined by
the Canadian Securities Administration (CSA) National
Instrument43-101. Specifically, Mr. Raffle supervised the 2011
re-sampling of historic core and data verification and conducted
property visits during 2008 and 2012, Mr. Rodriguez conducted the
most recent property visit in July
2021, and the mineral resource estimation of the Chu Chua
mineralized zone was completed by Mr. Nichols.
The Report has been written in accordance with the requirements
of the NI43-101 Standards of Disclosure for Mineral Projects, and
is a technical summary of the available geological, geophysical,
and geochemical data relevant to the Project. Mr. Raffle P.Geo., of
APEX Geoscience Ltd. is the Qualified Person who has reviewed and
verified the technical information contained in this new
release.
The Chu Chua Property
Chu Chua consists of two active mineral claims totaling 282.5
hectares (ha); located 24 km northeast of Barriere, BC. The property is host to
the Chu Chua deposit; a Cyprus-type volcanogenic massive sulphide body
first discovered in 1978. Chu Chua comprises several mineralized
lenses oriented along a north-south trend and dipping from vertical
to very steeply to the west.
A total of 99 diamond drill holes, totaling 19,707m were completed to delineate the Chu Chua
deposit between 1978 and 1982 by Craigmont Mines Ltd. ("Craigmont")
and between 1988 and 1991 by Minnova Inc. ("Minnova").
Within the current boundaries of Chu Chua, 89 drill holes
totalling 17,782.51m have been
drilled for mineral exploration. The drilling defined two areas of
relatively thick, high grade sulphide mineralization occurring
within 100 m of the surface.
Additional drilling to test the grade, thickness, lateral and
depth extent, and continuity of the deposit was completed by
Minnova Inc. (Minnova) between 1988 and 1991. Minnova drilled
a total of 46 holes (8,887 m) during
the period. Selected significant drilling at Chu Chua included
intercepts[1] of:
- Drill hole CCF-37 which yielded 10.04% copper, 46.3 g/t silver,
and 3.44g/t gold over 1 m.
- Drill hole CCF-33 which yielded 10.37% copper, 27.1g/t silver
and 1.23g/t gold over 3.4 m.
- Drill hole CC-17 which yielded 14.54% copper, 9.3g/t silver and
1.03g/t gold over 4.2 m.
- Drill hole CC-31 which yielded 8.62% copper, 62.0g/t silver and
0.69g/t gold over 1.6 m.
- Drill hole CCF-19 which yielded 4.53% copper, 13.9g/t silver
and 0.36g/t gold over 25.0 m.
- Drill hole CCF-22 which yielded 3.89% copper, 16.35 g/t silver
and 1.2 g/t gold over 28.5 m.
Updated Mineral Resource Estimate
The mineral resource modelling and estimation was carried out
using a 3-dimensional block model, using commercial mine planning
software Micromine. The mineral resource estimate comprises an
inferred mineral resource of 2.3 million tonnes averaging 2.11 %
copper, 0.30 % zinc, 9.99 g/t silver, 0.50 g/t gold at a copper
block cut-off grade of 1.0% (Table 1).
Mineral resources were classified in accordance with guidelines
established by the Canadian Institute of Mining, Metallurgy and
Petroleum ("CIM") Council in "Estimation of Mineral Resources and
Mineral Reserves Best Practice Guidelines" dated November 29, 2019, and "Definition Standards for
Mineral Resources and Mineral Reserves" dated May 10th, 2014, and prescribed by the Canadian
Securities Administrators' NI 43-101 and Form 43-101F1, Standards
of Disclosure for Mineral Projects. Mineral Resources that are not
Mineral Reserves do not have demonstrated economic viability. It is
reasonably expected that the majority of the inferred mineral
resources could be upgraded to indicated mineral resources with
continued exploration. There is no guarantee that any part of the
mineral resources discussed herein will be converted into a mineral
reserve in the future.
Table 1. Mineral Resource
Estimate (August 1, 2021,
effective date) for the Chu Chua Deposit (reported at 1.0 % Cu
lower cut off and reported within a Lerchs-Grossman (LG) optimized
pit shell using USD $4/lb Copper, USD
$1.2/lbs Zinc, USD $1,700/oz Gold and USD $25/oz Silver prices.)
Classification
|
Tonnes*
|
Cu
%
|
Zn
%
|
Ag
g/t
|
Au
g/t
|
Inferred
|
2,289,000
|
2.11
|
0.30
|
9.99
|
0.50
|
*Tonnes have been
rounded to nearest 1,000
|
________________________________
|
1 True thickness is interpreted to be
approximately 60-70% of drilled width.
|
The mineral resource modelling and estimation was carried out
using a 3-dimensional block model, using commercial mine planning
software Micromine (version 12.05.03
and version 21.0.5.49 for pit optimization). The Chu Chua
mineralized zone block model utilized a parent block size of
2 m (X) x 25
m (Y) x 10 m (Z) with sub
blocking down to 0.5 (X) m x 2.5 m
(Y) x 1 m (Z). The resource
modelling utilized 55 historic core holes completed between 1978
and 1990, of which 50 were used in the resource estimation. Drill
line spacing varies from 10 m to
45 m, with an average of
approximately 20 m between drill
lines. A total of 251 composites of 5m length, capped at 5.9% copper, 0.86% zinc,
32g/t silver and 1.4g/t gold, were used for the estimation. The
mineral resource was estimated using ordinary kriging with a
three-dimensional mineralization envelope, defined by similar
geological characteristics in terms of alteration and mineralogy,
using a 0.5% copper cut-off grade. The search ellipsoids were used
for grade interpolation into 2 m (X)
x 25 m (Y) x 10 m (Z) parent blocks. All blocks were
classified as being in the inferred category. A total of 464 bulk
density measurements were used to calculate the average for each of
three modeled massive sulphide lenses. The average density of each
of the three lenses varied from 4.33 to 4.73 g/cm3.
The mineral resources are sensitive to the selection of the
reporting cut-off grade as demonstrated in Table 2. The reader is
cautioned that the figures provided in Table 2 should not be
interpreted as a statement of mineral resources. Quantities and
estimated grades for different cut-off grades are presented for the
sole purpose of demonstrating the sensitivity of the resource model
to the choice of a specific cut-off grade.
Table 2. Reported Resource with various cut-off
grades
Cu % Block Cut
Off
|
Tonnes
|
Cu
%
|
Zn
%
|
Ag
g/t
|
Au
g/t
|
0.2
|
2,643,700
|
1.91
|
0.30
|
9.36
|
0.48
|
0.4
|
2,623,900
|
1.91
|
0.30
|
9.37
|
0.48
|
0.6
|
2,570,700
|
1.95
|
0.30
|
9.47
|
0.48
|
0.8
|
2,472,900
|
2.00
|
0.30
|
9.65
|
0.49
|
1.0
|
2,289,200
|
2.11
|
0.30
|
9.99
|
0.50
|
1.2
|
2,083,600
|
2.21
|
0.31
|
10.35
|
0.51
|
1.4
|
1,818,300
|
2.33
|
0.31
|
10.75
|
0.53
|
1.6
|
1,525,200
|
2.49
|
0.32
|
11.12
|
0.54
|
1.8
|
1,193,800
|
2.72
|
0.33
|
11.42
|
0.56
|
2.0
|
900,200
|
2.98
|
0.35
|
11.77
|
0.59
|
2.2
|
749,100
|
3.21
|
0.36
|
12.11
|
0.61
|
2.4
|
615,500
|
3.40
|
0.37
|
12.52
|
0.62
|
2.6
|
522,700
|
3.58
|
0.38
|
12.94
|
0.63
|
2.8
|
436,900
|
3.78
|
0.40
|
13.36
|
0.63
|
3.0
|
360,900
|
3.98
|
0.41
|
13.93
|
0.65
|
*Tonnes have been
rounded to nearest 1,000
|
Mining and Processing Parameters used for the LG Pit
Optimization
To demonstrate that the Chu Chua deposit has reasonable
prospects for future economic extraction the unconstrained resource
block model was constrained using the Lerchs-Grossman ("LG") pit
optimization algorithm implemented in Micromine v2021 with the
following mining costs and mineral processing parameters as shown
in Table 4, which are considered reasonable for a Copper, Zinc,
Gold, and Silver deposit.
Table 4. Mining and Processing Parameters for LG Pit
Parameter
|
Unit
|
Cost
|
Mining Costs and
Parameters
|
Ore Mining
Cost
|
USD $/Tonne
Ore
|
2.00
|
Waste Mining
Cost
|
USD $/Tonne
Waste
|
2.00
|
G&A
Cost
|
USD $/Tonne
Ore
|
10.00
|
Pit Wall
Angle
|
degrees
|
50
|
Density
|
t/m3
|
4.3
|
Total Processing
Cost
|
USD $ /
Tonne
|
20.0
|
Copper Processing
Parameters
|
Copper Sale
Price
|
USD $ /
lbs
|
4
|
Copper
Recovery
|
%
|
85
|
Copper Cut-off
Grade
|
% Mass
|
5
|
Zinc Processing
Parameters
|
Zinc Sale
Price
|
USD $ /
lbs
|
1.2
|
Zinc
Recovery
|
%
|
75
|
Zinc Cut-off
Grade
|
% Mass
|
5
|
Gold Processing
Parameters
|
Gold Sale
Price
|
USD $ / oz
|
1700
|
Gold
Recovery
|
%
|
50
|
Gold Cut-off
Grade
|
g/t
|
0.1
|
Silver Processing
Parameters
|
Silver Sale
Price
|
USD $ / oz
|
25
|
Silver
Recovery
|
%
|
50
|
Silver Cut-off
Grade
|
g/t
|
1.0
|
Risks and Uncertainties
Factors that may affect the mineral resource estimates include:
metal price assumptions, changes in interpretations of
mineralization geometry, continuity of mineralization zones,
changes to kriging assumptions, metallurgical recovery assumptions,
operating cost assumptions, confidence in the modifying factors,
including assumptions that surface rights to allow mining
infrastructure to be constructed will be forthcoming, delays or
other issues in reaching agreements with regulatory authorities and
stakeholders, and changes in land tenure requirements or in
permitting requirements.
There is no guarantee that diamond drilling will result in the
discovery of additional mineralization, or an economic mineral
deposit. However, there are no significant risks or uncertainties
that could reasonably be expected to affect the reliability or
confidence in the currently available exploration information with
respect to the Chu Chua Property.
Metallurgy
Past metallurgical flotation tests achieved copper recoveries to
a maximum of 92.2%; with gold and silver recoveries of 35.5% and
61.3% respectively. A single preliminary cleaner flotation test
produced a 22.4% copper concentrate.
Further Exploration Drilling
To date, mineralization has been modeled over a 450M strike length and to a depth of 180M from surface. Additional drilling is
warranted to define the extent of near surface mineralization at
the north end of the deposit at depth within and beneath the
currently modelled Main Lens, and to the south of the property
where limited deep drilling encountered sulphide intercepts.
Drilling will be aimed at converting some of the resource into an
indicated category and to test the lateral and depth extent of
known sulphide mineralization.
At this time a total of twelve holes are recommended for a total
of 3,000m, with an estimated cost of
approximately Cdn$1,050,000.
Other Considerations
The Chu Chua project has a favorable location for access, power,
water, a labor force, and other assumptions derived from deposits
of similar type and scale, as well as projects currently being
operated in the area. Accordingly, APEX considers Chu Chua to
be prospective for development.
"Some of the drill intercepts at Chu Chua have yielded
spectacular copper and silver grades, and with current metal
prices, as well as its location and infrastructure, it is worth
exploring Chu Chua's enormous potential, and we could do this
ourselves or by way of joint venture
opportunities", stated Ian
Rozier, President and CEO of Newport.
Qualified Person
The scientific and technical information contained in this news
release as it relates to the Chu Chua Property has been reviewed
and approved by Kristopher J. Raffle, P.Geo. (BC) Principal and
Consultant of APEX Geoscience Ltd. of Edmonton, AB, and a "Qualified Person" as
defined in National Instrument 43-101 – Standards of Disclosure for
Mineral Projects. Mr. Raffle verified the data disclosed which
includes a review of the analytical and test data underlying the
information and opinions contained therein.
About Newport
As well as its 100% ownership of Chu Chua, Newport owns a 2.5% Gross Overriding Royalty
("GOR") over oil and gas producing permits in the Cooper
Basin, Australia, operated by
Beach Energy Ltd. There is no time limit or expiry date on the GOR
assets, and no cost to the Company to retain them. The Company pays
quarterly dividends commensurate with the royalty payments
received.
The Company currently has 105,579,874 common shares issued and
outstanding and $3.9 million in the
treasury (comprised of cash, cash equivalents and short term
investments), and no debt.
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 accuracy or
adequacy of this news release.
Cautionary Statement on Forward-Looking Information
This news release is intended to provide readers with a
reasonable basis for assessing the future performance of the
Company. The words "believe", "should", "could", "expect",
"anticipate", "contemplate", "target", "plan", "intends",
"continue", "budget", "estimate", "may", "will", "schedule" and
similar expressions identify forward-looking statements.
Forward-looking statements may pertain to assumptions regarding
Beach's drilling plans, future dividends, the price of oil and
fluctuations in currency markets (specifically the Australian
dollar). Forward-looking statements are based upon a number of
estimates and assumptions that, which are considered reasonable by
the Company, are inherently subject to business, economic and
competitive uncertainties and contingencies. Factors include, but
are not limited to, the risk of fluctuations in the assumed prices
of oil, the risk of changes in government legislation including the
risk of obtaining necessary licences and permits, taxation,
controls, regulations and political or economic developments in
Canada, Australia or other countries in which the
Company carries or may carry on business in the future, risks
associated with developmental activities, the speculative nature of
exploration and development, and assumed quantities or grades of
reserves. Readers are cautioned that forward-looking statements are
not guarantees of future performance. There can be no assurance
that such statements will prove to be accurate and actual results
and future events could differ materially from those acknowledged
in such statements.
The Company disclaims any intention or obligation to update or
revise any forward-looking statements whether as a result of new
information, future events or otherwise, except to the extent
required by applicable laws.
© 2021 Newport Exploration Ltd.
SOURCE Newport Exploration Ltd.