Oracle Mining Provides Update on Oracle Ridge Underground Drill
Program
Oracle Mining receives additional Rich Stone loan funds
VANCOUVER, BRITISH COLUMBIA--(Marketwired - Apr 16, 2014) -
Oracle Mining Corp. ("Oracle Mining" or the "Corporation")
(TSX:OMN)(FRANKFURT:OMC) is pleased to announce that its
underground drill program is progressing as planned at the Oracle
Ridge copper project ("Oracle Ridge" or "Oracle Ridge Project"),
located 24 km northeast of Tucson, AZ.
Since drilling began in March 2014, 1,448 feet of underground
drilling has been completed using the company-owned core drilling
rig. Initial assay results are expected in the next few weeks.
Drilling is presently scheduled at a single shift per day and
the need for additional shifts and supplemental drill rigs will be
assessed periodically to ensure acceptable cost and schedule.
"Our goal with the 2014 Drill Program is to convert inferred
resource into measured and indicated through infill drilling," said
Mr. Kevin Drover, Oracle Mining's CEO. "Our updated mineral
resource model and recent drilling indicates there is also
potential for the known mineralized zones to be expanded."
Current plans are to conduct the infill and expansion drill
program in mineralization zones 8, 12, 1 and 4 ("2014 Drill
Program") with the goal of adding to and, if possible, upgrading
the existing Mineral Resources to a higher Mineral Resource
category. These targets are extensions to, and are considered by
Oracle Mining to be, under-drilled areas within the current Mineral
Resource. Drilling is focused on higher grade areas with initial
drilling in Zone 8 and Zone 12. A full list of the targets and
additional detail regarding the 2014 Drill Program can be found in
the table below under Drilling Program Targets and updated
diagrams can be found on Oracle Mining's website at
http://oracleminingcorp.com/_resources/images/2014_%20Zone_12_targets.pdf
as well as the targets for the 2014 Drill Program at
http://oracleminingcorp.com/_resources/images/2014_2014_Drill_Program.pdf.
All tonnages in this news release are in imperial (short) tons.
Unless otherwise noted, all dollar amounts in this news release are
in United States dollars.
Exploration Model
The Oracle Ridge Project area is a roof pendant of Paleozoic
sedimentary rocks, predominantly bedded marbles and dolomites,
surrounded by the Leatherman Granodiorite. Oracle Ridge's copper
deposits are classified as copper-dominated skarns. Minerals
representative of both prograde and retrograde skarn development
are present, the former being represented by diopside and garnets,
the later by epidote, magnetite and chlorite.
The copper-rich skarn deposits at Oracle Ridge are found in
stratigraphically conformable lens along the contact with the
Leatherwood Granodiorite or associated with faults and shear zones
which intersect the Leatherwood. These have acted as feeders into
the reactive carbonate horizons. The later can form a "Christmas
Tree" type shape. Primary copper minerals are bornite, chalcopyrite
and chalcocite.
The geological model used for exploration is a drill-intensive
program of investigating favorable marble horizons where they are
proximal to intrusive rocks suspected of causing the mineralizing
event. A significant portion of the intrusive/sedimentary contact
within the Oracle Ridge Project can only reasonably be explored by
means of drilling and based on our exploration model, the undrilled
contact area is prospective in terms of discovering additional
copper mineralization.
Drilling Program Targets
The 2014 Drill Program is targeting between 2.5 and 3.5 million
tons of potential skarn mineralization at an average grade that may
range between 1.0 and 3.5 per cent copper. These targets are
potential extensions to known mineralization or are in
under-drilled areas along the prospective contact between the
Leatherwood Granodiorite and carbonate sedimentary rocks. The
potential quantity and grade is conceptual in nature and should not
be relied on. There has been insufficient exploration of these
targets to define a Mineral Resource in these areas and it is
uncertain if further exploration will result in the targets being
delineated as a Mineral Resource. Conceptual target ranges of tons
and grade are based upon areas and thicknesses of skarn
mineralization projected from geologic interpretation developed
from the denser-drilled areas of the Project. The table below
should be used in conjunction with the plan and cross sectional
maps accompanying this news release. Readers are cautioned not to
treat the conceptual exploration targets as a current Mineral
Resource estimate.
Zone |
Proposed Drill Holes |
|
Proposed Core Footage |
|
Sedimentary Beds |
|
Conceptual Area ft2 |
|
Conceptual Average Grade Range %CuEQ |
12 |
25 |
|
5,600 1,900 |
|
30, 41 43, 45 |
|
525,000 400,000 |
|
1.5 to 3.5 |
8 |
22 |
|
9,000 |
|
51, 53, 47/48 |
|
405,000 |
|
1.0 to 2.0 |
1 |
8 |
|
9,500 |
|
45, 47/48, 51 |
|
640,000 |
|
1.0 to 3.5 |
4 |
8 |
|
6,000 |
|
30 |
|
560,000 |
|
1.0 to 2.5 |
5 |
12 |
|
3,000 |
|
30, 43 |
|
490,000 |
|
1.0 to 2.0 |
Total |
75 Core Holes |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
- The average specific gravity for skarn mineralization is 10
ft3/ton
- %CuEQ = percentage of copper equivalent, as defined below.
The 2014 Drill Program will initially focus on the potential to
expand Zones as a result of the higher grade indications. According
to the Oracle Ridge Project's Mineral Resource estimated grades
within the Zone 12 mineralized zone are 50 per cent higher in
average grade than the overall average of 1.88 per cent copper
equivalent (CuEQ). The Mineral Resource statement by Zone at a 1.0
per cent CuEQ cut-off is in the table below. For further details,
readers are to refer to the Technical Report entitled "Independent
Technical Report for the Oracle Ridge Copper Project, Arizona,
U.S.A." by Dr. Gilles Arseneau, Ph.D., P.Geo., dated March 31, 2014
with an effective date of February 26, 2014 and filed at
www.sedar.com.
|
Measured and Indicated Mineral Resource Estimate by
Zone @ 1.0% CuEQ Cut-off |
Zone |
Tons Millions |
%Cu |
Ag oz/ton |
Au oz/ton |
%CuEQ |
B01 |
3.5 |
1.64 |
0.52 |
0.008 |
1.91 |
B03 |
0.1 |
1.35 |
0.58 |
0.001 |
1.52 |
B04 |
1.1 |
1.48 |
0.48 |
0.009 |
1.76 |
B05 |
0.2 |
1.32 |
0.32 |
0.004 |
1.48 |
B06 |
0.6 |
1.69 |
0.76 |
0.002 |
1.92 |
B08 |
0.6 |
1.43 |
0.34 |
0.007 |
1.64 |
B09 |
1.0 |
1.56 |
0.55 |
0.002 |
1.75 |
B11 |
0.01 |
0.96 |
0.41 |
0.006 |
1.17 |
B12 |
0.3 |
2.41 |
0.65 |
0.008 |
2.72 |
Total |
7.3 |
1.61 |
0.52 |
0.006 |
1.88 |
- The effective date of the Mineral Resource estimate is February
26, 2014.
- Mineral Resources are not Mineral Reserves and do not have
demonstrated economic viability. There is no certainty that all or
any part of the Mineral Resources will be converted into Mineral
Reserves.
- The base case cut-off grade of 1.0% CuEQ has been estimated to
ensure reasonable prospects of economic extraction assuming
extraction by an underground mining scenario, projected copper
price of $2.80 per pound and estimated total site operating costs
of $45 per ton.
- A selective mining unit of 15 x 15 x 10 feet has been
used.
- Mineral Resource tonnage and contained metal have been rounded
to reflect the accuracy of the estimate, and numbers may not add
due to rounding.
- Silver and gold grade estimates were based on a less
comprehensive data set than the copper grade estimates. Where
copper grade estimates exist without accompanying silver or gold
grade estimates, the drill hole was not used to estimate the silver
or gold grade.
- Copper equivalency has been estimated using metal pricing of
$2.80 per pound of copper, $20 per ounce of silver and $1,300 per
ounce of gold. Metallurgical recovery were derived from preliminary
lock cycle test results and assumed to be 81% for gold and silver.
The formula used is as follows: CuEQ = Cu% + {(Ag oz/ton * $20 *
0.81) + (Au oz/ton * $1,300 * 0.81)} / $2.80 / 2,000 * 100.
|
Measured Mineral Resource Estimate by Zone @ 1.0% CuEQ
Cut-off |
Zone |
Tons Millions |
%Cu |
Ag oz/ton |
Au oz/ton |
%CuEQ |
B01 |
0.9 |
1.62 |
0.54 |
0.008 |
1.93 |
B04 |
0.1 |
1.33 |
0.49 |
0.007 |
1.61 |
B05 |
0.02 |
1.48 |
0.34 |
0.001 |
1.60 |
B06 |
0.1 |
1.51 |
0.68 |
0.001 |
1.72 |
B08 |
0.03 |
1.47 |
0.35 |
0.005 |
1.67 |
B09 |
0.03 |
1.70 |
0.83 |
0.001 |
1.96 |
B12 |
0.01 |
1.93 |
0.44 |
0.009 |
2.23 |
Total |
1.2 |
1.59 |
0.55 |
0.007 |
1.88 |
- The effective date of the Mineral Resource estimate is February
26, 2014.
- Mineral Resources are not Mineral Reserves and do not have
demonstrated economic viability. There is no certainty that all or
any part of the Mineral Resources will be converted into Mineral
Reserves.
- The base case cut-off grade of 1.0% CuEQ has been estimated to
ensure reasonable prospects of economic extraction assuming
extraction by an underground mining scenario, projected copper
price of $2.80 per pound and estimated total site operating costs
of $45 per ton.
- A selective mining unit of 15 x 15 x 10 feet has been
used.
- Mineral Resource tonnage and contained metal have been rounded
to reflect the accuracy of the estimate, and numbers may not add
due to rounding.
- Silver and gold grade estimates were based on a less
comprehensive data set than the copper grade estimates. Where
copper grade estimates exist without accompanying silver or gold
grade estimates, the drill hole was not used to estimate the silver
or gold grade.
- Copper equivalency has been estimated using metal pricing of
$2.80 per pound of copper, $20 per ounce of silver and $1,300 per
ounce of gold. Metallurgical recovery were derived from preliminary
lock cycle test results and assumed to be 81% for gold and silver.
The formula used is as follows: CuEQ = Cu% + {(Ag oz/ton * $20 *
0.81) + (Au oz/ton * $1,300 * 0.81)} / $2.80 / 2,000 * 100.
|
Indicated Mineral Resource Estimate by Zone @ 1.0% CuEQ
Cut-off |
Zone |
Tons Millions |
%Cu |
Ag oz/ton |
Au oz/ton |
%CuEQ |
B01 |
2.6 |
1.64 |
0.51 |
0.007 |
1.93 |
B03 |
0.1 |
1.35 |
0.58 |
0.001 |
1.53 |
B04 |
0.9 |
1.49 |
0.48 |
0.009 |
1.80 |
B05 |
0.1 |
1.29 |
0.32 |
0.005 |
1.47 |
B06 |
0.5 |
1.71 |
0.77 |
0.002 |
1.96 |
B08 |
0.6 |
1.43 |
0.34 |
0.007 |
1.65 |
B09 |
1.0 |
1.55 |
0.54 |
0.002 |
1.76 |
B11 |
0.01 |
0.95 |
0.40 |
0.006 |
1.18 |
B12 |
0.3 |
2.42 |
0.65 |
0.007 |
2.75 |
Total |
6.1 |
1.61 |
0.52 |
0.006 |
1.88 |
- The effective date of the Mineral Resource estimate is February
26, 2014.
- Mineral Resources are not Mineral Reserves and do not have
demonstrated economic viability. There is no certainty that all or
any part of the Mineral Resources will be converted into Mineral
Reserves.
- The base case cut-off grade of 1.0% CuEQ has been estimated to
ensure reasonable prospects of economic extraction assuming
extraction by an underground mining scenario, projected copper
price of $2.80 per pound and estimated total site operating costs
of $45 per ton.
- A selective mining unit of 15 x 15 x 10 feet has been
used.
- Mineral Resource tonnage and contained metal have been rounded
to reflect the accuracy of the estimate, and numbers may not add
due to rounding.
- Silver and gold grade estimates were based on a less
comprehensive data set than the copper grade estimates. Where
copper grade estimates exist without accompanying silver or gold
grade estimates, the drill hole was not used to estimate the silver
or gold grade.
- Copper equivalency has been estimated using metal pricing of
$2.80 per pound of copper, $20 per ounce of silver and $1,300 per
ounce of gold. Metallurgical recovery were derived from preliminary
lock cycle test results and assumed to be 81% for gold and silver.
The formula used is as follows: CuEQ = Cu% + {(Ag oz/ton * $20 *
0.81) + (Au oz/ton * $1,300 * 0.81)} / $2.80 / 2,000 * 100.
|
Inferred Mineral Resource Estimate by Zone at 1.0% CuEQ
Cut-off |
Zone |
Tons Millions |
%Cu |
Ag oz/ton |
Au oz/ton |
%CuEQ |
B01 |
0.4 |
1.26 |
0.43 |
0.005 |
1.47 |
B03 |
0.3 |
1.39 |
0.67 |
0.000 |
1.57 |
B04 |
0.3 |
1.19 |
0.49 |
0.008 |
1.47 |
B05 |
1.0 |
1.47 |
0.47 |
0.000 |
1.60 |
B06 |
0.2 |
1.72 |
0.69 |
0.003 |
1.96 |
B08 |
0.3 |
1.40 |
0.36 |
0.006 |
1.60 |
B09 |
0.5 |
1.45 |
0.42 |
0.001 |
1.58 |
B10 |
1.4 |
1.51 |
0.39 |
0.009 |
1.77 |
B11 |
0.9 |
1.80 |
0.64 |
0.000 |
1.98 |
B12 |
0.3 |
2.24 |
0.62 |
0.007 |
2.53 |
Total |
5,6 |
1.53 |
0.49 |
0.004 |
1.75 |
- The effective date of the Mineral Resource estimate is February
26, 2014.
- Mineral Resources are not Mineral Reserves and do not have
demonstrated economic viability. There is no certainty that all or
any part of the Mineral Resources will be converted into Mineral
Reserves.
- The base case cut-off grade of 1.0% CuEQ has been estimated to
ensure reasonable prospects of economic extraction assuming
extraction by an underground mining scenario, projected copper
price of $2.80 per pound and estimated total site operating costs
of $45 per ton.
- A selective mining unit of 15 x 15 x 10 feet has been
used.
- Mineral Resource tonnage and contained metal have been rounded
to reflect the accuracy of the estimate, and numbers may not add
due to rounding.
- Silver and gold grade estimates were based on a less
comprehensive data set than the copper grade estimates. Where
copper grade estimates exist without accompanying silver or gold
grade estimates, the drill hole was not used to estimate the silver
or gold grade.
- Copper equivalency has been estimated using metal pricing of
$2.80 per pound of copper, $20 per ounce of silver and $1,300 per
ounce of gold. Metallurgical recovery were derived from preliminary
lock cycle test results and assumed to be 81% for gold and silver.
The formula used is as follows: CuEQ = Cu% + {(Ag oz/ton * $20 *
0.81) + (Au oz/ton * $1,300 * 0.81)} / $2.80 / 2,000 * 100.
- Inferred Mineral Resources have a great amount of uncertainty
as to their existence and as to whether they can be mined legally
or economically. It cannot be assumed that all or any part of the
Inferred Mineral Resources will ever be upgraded to a higher
category.
Data Verification
The Corporation maintains a rigorous QA/QC protocol on all
aspects of sampling and analytical procedure. Drill core is
checked, logged, marked for sampling and sawn in half. The sample
size varies depending on the geology and the mineralization. In
general, the samples are predominantly about 5 feet long. One-half
of each drill core is maintained for future reference and one-half
of each drill core is sent for analysis by Skyline Assayer and
Laboratories ("Skyline"), in Tucson, Arizona, an ISO/IEC 17025:2005
accredited laboratory. Skyline is contracted to complete all sample
preparation and assaying and is independent of Oracle Mining.
Samples are analyzed employing acid digestion and atomic absorption
for analyses of copper, as well as fire assaying for silver and
gold. For QA/QC purposes, Oracle Mining inserts standard reference
materials and blank samples into each sample batch submitted for
assay to monitor laboratory performance. The Corporation
periodically submits the pulps of the samples assayed by its
primary lab to ALS Chemex Labs Ltd. in Tucson, Arizona for check
analysis.
Qualified Person
The scientific and technical information contained in this news
release have been reviewed and approved by Dr. Gilles Arseneau,
Ph.D., P.Geo., who is an independent "qualified person" within the
meaning of NI 43-101. He is the Principal Geologist of ARSENEAU
Consulting Services Inc. Dr. Arseneau carried out a site visit to
the Oracle Ridge Project on November 14 and 15, 2013. During the
site visit, the surface and underground geology was examined. The
mineralization was observed in drill core and in the underground
workings. The core logging, sample handling procedures and were
also examined and the assay database was verified and
validated.
Financing Update
The 2014 Drill Program is planned to consist of approximately
35,000 feet of underground drilling and is expected to cost
approximately $3.0 million. The Corporation evaluates the Project
development plans on an ongoing basis and may adjust the parameters
of the Drill Program as necessary. This may lead to an
increase/decrease in both drilling footage and drilling costs. The
Corporation is currently contemplating additional financing to
support operations and finance the later phase of the 2014 Drill
Program. While Oracle Mining has been successful in raising capital
in the past, there is no assurance that it will be successful in
obtaining financing in the future.
Since the closing of the Rich Stone Mining Investment (Hong
Kong) Limited ("Rich Stone") Loan Agreement in November 2013, Rich
Stone has advanced an aggregate principal of C$7,400,000 under the
Loan Agreement and Oracle Mining has paid fees of C$390,000. Rich
Stone is required to advance the balance of the loan commitment
(approximately C$2.6 million less applicable fees and prepayment of
interest in the amount of C$1.41 million) on or before March 31,
2014.
Rich Stone previously advised Oracle Mining that the remaining
funds would be received on or about April 11, 2014. As of today, a
total of C$1.19 million (net of fees and pre-payment of interest)
remain outstanding. Rich Stone has advised that the remaining funds
will be received in the next several weeks. All of the conditions
precedent for the second advance funding commitment under the Loan
Agreement have been satisfied.
About Oracle Mining Corp.
Oracle Mining Corp. (TSX:OMN)(FRANKFURT:OMC) is a Vancouver,
Canada-based corporation that is the sole owner and operator of
Oracle Ridge Mining, LLC and the Oracle Ridge copper project
located 24 km northeast of Tucson, Arizona. Oracle Mining is
managed by an experienced team of mining professionals with
extensive operating and financial experience.
Cautionary Note Regarding Forward-Looking Information
Information and statements contained in this news release
that are not historical facts are "forward-looking information"
within the meaning of Canadian securities legislation that involves
risks and uncertainties. Forward-looking information included
herein is made as of the date of this news release and Oracle
Mining does not intend, and does not assume any obligation, to
update forward-looking information unless required by applicable
securities laws. Forward-looking information relates to future
events or future performance and reflects management of the
Corporation's expectations or beliefs regarding future events. In
certain cases, forward-looking information can be identified by the
use of words such as "plans", "intends", "targets", "expects" or
"does not expect", "is expected", "scheduled", "estimates",
"anticipates" or "does not anticipate", "goal" or "believes", or
variations of such words and phrases or statements that certain
actions, events or results "may", "could", "would", "might" or
"will be taken", "occur" or "be achieved" or the negative of these
terms or comparable terminology. Examples of forward-looking
information in this news release include, but are not limited to,
statements with respect to: the updated Mineral Resource estimate
for the Oracle Ridge Project, the estimate of cut-off grade and the
factors underlying including projected copper, silver and gold
prices and estimated total operating costs; expected selectivity of
mining units, plans and expectations for the Oracle Ridge Project
including the timing, plans and budget of our proposed 2014 Drill
Program (defined below) and plans concerning further exploration
and development of the Oracle Ridge Project; the goal to expand the
Mineral Resource estimate and upgrade Mineral Resources, if
possible, to a higher Mineral Resource category; the exploration
target conceptual tonnage and grade of skarn mineralization; the
potential to expand high-grade mineralized Zones and the timing for
receipt of the balance of the final tranche of the Rich Stone loan.
This forward-looking information is based, in part, on assumptions
and factors that may change or prove to be incorrect, thus causing
actual results, performance or achievements to be materially
different from those expressed or implied by forward-looking
information.
Such factors and assumptions include, but are not limited
to: risk that the 2014 Drill Program will be unable to meet its
objectives and exploration targets are inaccurate; assumptions
regarding copper, base metal and precious metal prices; accuracy of
updated Mineral Resource estimate and Mineral Resource modelling;
accuracy of cut-off grade and assumptions underlying thereto,
including projected copper, silver and gold prices and estimates of
total operating costs; dilution allowance assumptions; success of
future drilling programs; reliability of drilling, sampling and
assay data, including the historical drill database;
representativeness of mineralization; accuracy of metallurgical
testwork and preliminary design work; sufficiency of surface and
water rights; ability to comply with current and future
environmental, safety and other regulatory requirements and to
obtain and maintain timely receipt of regulatory approvals; and our
ability to obtain financing to continue our operations and advance
Project plans on acceptable terms or at all; and our ability to
enforce our rights and perform our obligations under the Loan
Agreement with Rich Stone.
By its very nature, forward-looking information involves
known and unknown risks, uncertainties and other factors which may
cause the actual results, performance or achievements of the
Corporation to be materially different from any future results,
performance or achievements expressed or implied by forward-looking
information. Such factors include, but are not limited to: dilution
to shareholders from any equity or equity-linked financings; the
availability of capital on acceptable terms, or at all; Oracle
Mining's ability to repay existing indebtedness and other risks
concerning its indebtedness in the Loan Agreement with Rich Stone;
increased indebtedness and events of default thereunder; lack of
revenue and commercial production; influence of significant
shareholders; risk that we are unable to enforce our legal rights
under existing agreements, permits or licences or are subject to
litigation or arbitration that has an adverse outcome; risk there
are changes in project parameters as plans continue to be refined;
risks related to the actual results of exploration and development
activities; our historical experience with development-stage mining
operations; changes in commodity prices, and particularly copper
prices; risks relating to our estimates of Mineral Resources and
cut-off grade and factors underlying, proving to be inaccurate; our
dependence on the Oracle Ridge copper project; receipt of necessary
permits and licences; regulatory changes; risks related to the
uncertainty of timing of events including delays in obtaining
governmental approvals or financing or in the completion of project
development studies; we are affected by environmental, safety and
regulatory risks, including increased regulatory burdens or delays,
accidents, labour disputes and other risks inherent in the mining
industry; availability of materials and equipment; competition for
properties, capital, skilled personnel and resources; uninsured
risks; defects in title; foreign operations; adequate
infrastructure in the jurisdictions in which we operate; opposition
to mining activities; fluctuations in currency exchange rate, as
well as those factors discussed in the Corporation's annual
information form dated March 31, 2014, for the year ended December
31, 2013, filed and available for review on SEDAR at
www.sedar.com. Although the Corporation has attempted to
identify important factors that could cause actual actions, events
or results to differ materially from forward-looking information,
there may be other factors that cause actions, events or results
not to be as anticipated, estimated or intended. There can be no
assurance that forward-looking information will prove to be
accurate, as actual results and future events could differ
materially from those anticipated by such forward-looking
information. Accordingly, readers should not place undue reliance
on forward-looking information.
Oracle Mining Corp.Investor Relations604-689-9282Toll-free:
+1-855-689-9282info@oracleminingcorp.comwww.oracleminingcorp.comOracle
Mining Corp.Mr. Jason MercierSenior VP Corporate
Secretary604-689-9261