CRAZY HORSE RESOURCES INC. FILES UPDATED RESOURCE ESTIMATE MOVING 411MT INTO INDICATED CATEGORY
Oct 14, 2011
OTC Disclosure News Service
Vancouver, BC, Canada –
- 411 Mt indicated at 0.27% Cu, 0.10 g/t Au, .92 g/t Ag
- 542 Mt inferred at 0.18% Cu, 0.07 g/t Au, .47 g/t Ag
- New 43-101 Compliant Technical Report Filed
Vancouver, British Columbia, October 14, 2011 – Crazy Horse Resources Inc. (TSXV: 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 13.4Mt of contained magnetite; and an additional inferred resource of 542 Mt at anaverage 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.
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 program 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. Thereis no certainty that the PEA will be realized.
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 Taylorand 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.
QualityControl 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 drillrigs 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 ofthe 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% 2mm then 1kg is split out and pulverised in an LM2 Puck and Bowl Pulveriserto 90% 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 MagSusreading + 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-005and 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
President, CEO and Secretary
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