Taysan Project Resource Estimate Increases to 459 Million Tonnes in the Measured and Indicated Categories, which Now Covers All Resources for a 24-Year Mine Life
Mar 05, 2012
OTC Disclosure News Service
Vancouver, BC, Canada –
N E WS R E L E A S E
TaysanProject Resource Estimate Increases to 459 Million Tonnes in the Measured andIndicated Categories, which Now Covers All Resources for a 24-Year Mine Life
- Updated resource estimate for the Taysan Project comprises 459 million tonnes (Mt) in the Measured and Indicated categories, at a 0.1% copper cut-off grade. This revised Measured and Indicated resource now allows for a longer mine life (24 years compared to 15 years previously) based on recently updated pit optimisations.
- Based on Measured and Indicated resources, contained copper increases 7% to 2,579 Mlbs; contained gold increases 15% to 1.46 Moz ounces; contained silver increases 1% to 12.34 Moz; and contained magnetite increases by 11% to 14.89 Mt.
- Pre-feasibility study to be completed in April 2012.
- With 302 drill holes for 82,594 meters of core drilling, the Taysan Project has been sufficiently drilled for defining a compliant bankable feasibility study based on the 15 Mtpa mining operation currently planned.
Vancouver, British Columbia, February 29, 2012, Crazy Horse Resources Inc. (TSXV:CZH) (OTCQX: CRZHF) (the “Company”) is pleased to announce that an updatedresource statement prepared by Mining Associates Pty. Ltd. ofBrisbane, the Company’s geological consultant, for its 100%-held TaysanCopper-Gold Project on Luzon Island in the Philippines defines:
· a Measured resource of 156 Mtat an average copper grade of 0.31% for 1,077 Mlbs of contained copper;
· an Indicated resource of 303 Mtat an average copper grade of 0.23% for 1,502 Mlbs of contained copper; and
· an Inferred resource of 509 Mtat an average copper grade of 0.18% for 2,065 Mlbs of contained copper.
The 459 Mt contained copper resource in the Measuredand Indicated resource categories represents a significant upgrade from the 411Mt announced on October 14, 2011 and contained in a NI43-101 report dated October 10, 2011,entitled “Update of theMineral Resource Estimate and Preliminary Economic Assessment for the TaysanProject”, prepared by Mining Associates Pty. Ltd and AMEC Minproc Limited of Brisbane,which can be viewed under the Company’s profile at www.SEDAR.com.
The following table summarizes the resourceestimate at the 0.1% copper cut-off grade used, including the estimates forgold, silver and magnetite:
Mitch Alland, Chairman and CEO of Crazy Horse states: “We are excited about the resource estimate,as the near surface, high grade zones of Measured resource, together with themajor increase in magnetite recovery prospects announced last month furtherstrengthen the project in terms of increased profitability and reducedoperational risk. In addition, a revised pit optimisation has increased themine life from 15 to 24 years, with possibility of a further increase to over40 years on the basis of the extensive Inferred resource. The increase in minelife will be attractive to the local community in terms of continuing futureemployment and by potential trade buyers or joint venture partners that arelooking for a long-term source of copper concentrate. Once the pre-feasibility study is issued inApril, the Company shall embark on an aggressive campaign to pursue a tradesale or joint venture with a view to maximising the return to the shareholders”.
The Company’s drilling program,conducted during 2010-2011 at the Taysan Project, has focused on the centralportion of the ore body in order to develop confidence in a suitably largecopper resource amenable to open pit mining. With a total of 82,594 meters for 302holes, the Taysan Projecthas now been drilled sufficiently for purposes of undertaking a Bankable FeasibilityStudy, (as opposed to a Pre-Feasibility Study), based on a 15 Mtpa operation. Thecurrent updated resource estimate is based on assays of 48 additional drillholes for 15,912.9 m, completed in October 2011. The final geological anddomain wireframe models used to determine the updated resource estimates were basedon all the Taysan data to December 2011. A NI43-101 Report will be completed and submitted by Mining AssociatesPty. Ltd. within 45 days from this news announcement and will be available forviewing under the Company’s profile at www.SEDAR.com.
A comparisonof the contained metal in this new resource estimate with that of the previousestimate, indicates increases in all contained metals in the Measured and Indicatedcategories as follows: Contained copper metal has increased 169 Mlbs, gold hasincreased by 0.19 Mozs; silver has increased by 0.15 Mozs; and magnetite hasincreased by 1.49 Mt.
The following cross section (section19500N) through the resource model (Figure 1) indicates that Measured andIndicated category resources virtually fill the entire 24-year pit shell, thereby providing minimum risk in resource exploitation during the earlyyears of mining. Recent Whittle optimisation studies by IMC Mining Group ofBrisbane on the basis of the new resource estimate provide a final pit shell(excluding Inferred Resources) that carries a 24-year mine life. The Inferred resource immediately below the Measured andIndicated resources provides significant potential to increase the Measured andIndicated resources at depth, thereby offering the prospects of increasedtonnages for future mining beyond the currently defined 24 year pit to possiblygreater than 40 years of mine life.
Figure 1. Measured, Indicatedand Inferred Resource Category Outlines- Section 19500N
The following resource model cross section on line 19500N (Figure 2) displaysthe copper grades throughout the resource and highlights the high grade natureof the deposit near surface, which will enhance the profitability of the earlyyears of operation. The gold and silver grades have a similar distribution withthe higher grades also occurring near the surface, while magnetite grades are generallymore widely spread and display a more pervasive mineralising event.
Figure 2. Copper Grade Outlines- Section 19500N
Sampling Protocols for Drill Core Sampling
All drillinghas been carried out by Quest Exploration Drilling (Philippines) Inc. usingEdson 3000 and LF70 drill rigs and a triple tube diamond core drillingsystem. All holes are started in PQ (150-200m) then continued inHQ. All core is split using a diamond-bladed drill-core saw and alwayssampled from the left side of the core. The remaining half of the core issealed in plastic bags in a nitrogen atmosphere and stored in a covered,guarded core shed. Core samples are bagged in new polyethylene, UV stableplastic bags, sealed with a plastic tie, numbered outside and have a tag placedinside the bag. All samples are accompanied by Asian Arc personnel fromsite to the McPhar Laboratory under secure “Chain of Custody” procedures. Samples are crushed to 85% 2mm then 1kg is split out and pulverised in anLM2 Puck and Bowl Pulveriser to 90% 75um. Gold is assayed by FireAssay (50g charge) with AAS finish (PM6). Cu, Ag, As, Pb, Zn, Mo, Al, Ca,Fe, K and S are assayed by 3 Acid Digest (HCl / HNO3 / HClO4) Ore grade analysiswith ICP-AES finish (ICP-3). Sample rejects are returned from the McPharLaboratory under secure “Chain of Custody” procedures by Asian Arc staff andalso stored in the core shed in heat sealed plastic bags in a nitrogenatmosphere. McPhar Geoservices (Phil), Inc. is ISO 17025:2005 accredited and isa member of the International Intertek Laboratory Group.
The information in this portion of the press release and the technicalreport relating to mineral resource estimates are based on information compiledunder the direction of Ian Taylor. IanTaylor is a consultant geologist and Certified Professional (AusIMM(CP))holding a B.Sc (Hons) with specialist experience in resource evaluation inporphyry copper projects. Mr. Taylor is a Qualified Person (“QP”) asdefined in the “Canadian Institute of Mining, Metallurgy and Petroleum,CIM standards on Mineral Resources and Reserves’ and NI 43-101. Mr. Taylor andMining Associates Pty. Ltd. have reviewed this press release and consent to theinclusion in the press release of the matters based on this information in theform and context in which this information appears.
For exploration work, Brian Lueck P.Geo, theCOO and a director of the Company, is the appointed QP.
The Taysan Project contains a drill defined copper-goldporphyry deposit, and is comprised of two mining exploration permits and threemining exploration permit applications (permits: EP-IVA-005 and EP-IVA-016, andpermit applications: EPA-IVI-108, EPA-IVI-111 and EPA-IVA-081) over five contiguousclaim blocks covering a combined total area of 11,254 hectares. The Project hosts a large and only partlyexplored copper-gold porphyry deposit similar to other copper-gold porphyrydeposits previously mined in the Philippines. The Taysan Project is located in southern Luzon, Philippines in a well-developedmining province and readily accessible by road located 20km east of theprovincial capital and deep-water commercial port of Batangas City. The Companyis currently conducting a pre-feasibility study under the management of AMEC MinprocLimited.
lb = pound(s)
Mtpa = million tonnes per annum
oz = ounce(s)
tpa = tonnes per annum
ON BEHALF OF THEBOARD
President and C.E.O.
NEITHER THE TSX VENTURE EXCHANGE NOR ITS REGULATIONSERVICES PROVIDER (AS THAT TERM IS DEFINED IN THE POLICIES OF THE TSX VENTUREEXCHANGE) ACCEPTS RESPONSIBILITY FOR THE ADEQUACY OR ACCURACY OF THIS RELEASE.
This press release includes”forward-looking statements” including forecasts, estimates,expectations and objectives for future operations that are subject to a numberof assumptions, risks and uncertainties, many of which are beyond the controlof Crazy Horse Resources Inc. (the “Company”). Statements regarding thecompletion of a pre-feasibility study by April 2012 and the completion of abankable feasibility study and the accuracy thereof are subject to a number ofrisks outside of the control of the Company, including, but not limited to, theability of service providers to complete feasibility study work accurately, ontime and on budget; the Company’s ability to fund a bankable feasibility study;and changes in the economic climate that may change the bankability of theTaysan Project. Investors are cautioned that any such statements are notguarantees of future performance and that actual results or developments maydiffer materially from those projected in the forward-looking statements. Suchforward-looking information represents management’s best judgment based oninformation currently available. No forward-looking statement can be guaranteedand actual future results may vary materially. The Company does not assume theobligation to update any forward-looking statement, except as required byapplicable law.
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