Dec 20 2010
Catalyst Copper Corporation today announced that Micon International Engineering of Vancouver has completed a NI 43-101 compliant independent Resource estimate of the La Verde copper project, Michoacan State, Mexico.
Using a 0.2% copper cut-off grade, the East and West Hill deposits at La Verde contain Measured and Indicated Resources of 210.5 million tonnes averaging 0.46% total copper (TCu) contains 2.1 billion pounds of copper. An Inferred Resource of 130.8 million tonnes grading 0.46% TCu contains 1.3 billion pounds of copper.
The Micon report indicates that there is potential for additional tonnage in both deposits especially at depth. Micon therefore recommends that additional delineation drilling around the perimeter of the deposits and at depth should be initiated.
The Resource has been calculated at various copper cut-off grades and is based on drill results including 596 drill-holes totalling 80,606 meters conducted by previous owners. Results from these historic holes were verified with 11 diamond drill-holes totalling 6,319 meters plus nine definition drill-holes totalling 5,957 meters completed by Catalyst Copper this year.
"We are extremely pleased with the increased size of the deposits utilizing a 0.2% Cu cut-off and the potential to further improve on the size with the 2011 drill program. These two deposits are exposed at surface and amenable to low-cost open-pit mining. This, along with the is excellent infrastructure that exists on site, should reduce future anticipated capital and operating costs for this project," says Terry Hodson, Catalyst's VP Exploration.
- It cannot be assumed that all or any part of an Inferred Mineral Resource will be upgraded to an Indicated or Measured Resource as a result of continued exploration.
- Mineral Resources are not Mineral Reserves because there is insufficient studies to demonstrate economic viability.
- Mineral Resources are global insitu totals.
- Mineral Resource numbers have been rounded.
A NI 43-101 Technical Report detailing the Mineral Resource estimate will be filed on SEDAR within the next 45 days.
Copper mineralization associated with the deposits is primarily chalcopyrite and to a lesser extent, bornite. Historically gold (Au), silver (Ag) and molybdenite (Mo) values are known to be associated with the deposits; currently the number of assays available for these elements is insufficient to interpolate Au, Ag and Mo grades into the block model.
The project is located in an area with excellent infrastructure. Power, rail and water all cross the property. Lazaro Cardenas, Mexico's third largest port on the Pacific ocean coast, is 150 km from the site. Significant upside potential remains for the two known zones of porphyry style copper, gold and molybdenum mineralisation as the 2010 drill program has shown both deposits remain open to depth and along strike.
The Resource was prepared by D. Makepeace, P.Eng., senior geologist for Micon who is an independent qualified person as defined by NI 43-101. The Mineral Resource estimate was completed using a 3D computer model. The drill hole database was based on 616 drill holes which totaled 92,881 meters. A composite interval of 5 meters was used and constrained to geological rock types. A single block model (10 x 10 x 10 meters) was created to envelope both mineralized deposits. Block grades were interpolated using the inverse distance squared technique. The estimate did not employ a high grade copper cap. A density (specific gravity) of 2.70 g/cm3 was used for the East Hill deposit (porphyry style mineralization) while the West Hill deposit (chalcopyrite vein style mineralization) used 2.75 g/cm3, based on historical density measurements. All QA/QC requirements have been followed including incorporating standards, blanks and duplicates into the assay procedures and independent check analyses by a second laboratory.
La Verde property is subject to an option agreement with a Mexican subsidiary of Teck Resources Limited (Teck) whereby Catalyst's 100% Mexican subsiderary, Minera Hill 29, may earn a 60% interest in La Verde by making US$10,000,000 in exploration expenditures (including 30,000 meters of drilling and 200 kilometers of IP) by December 31, 2012. During 2010, Catalyst drilled 12,27 6 meters and completed 150 kilometers of Induced Polarization surveys (IP). Upon Catalyst earning a 60% interest, Teck has the option to increase its interest to 60% by incurring aggregate expenditures equal to two times the amount spent by Catalyst. Should Teck fail to exercise its option to earn a 60% interest, Catalyst can acquire a 100% interest in La Verde by paying to Teck US$20 million. The property is subject to an underlying 0.5% NSR.
Catalyst Copper currently has approximately $3.5 million dollars in working capital, as a result of the addition of $1.4 million from the exercise of warrants to purchase 10 million shares at $0.14 per share. An agressive work program is planned for 2011 including commencement of environmental baseline studies, metallurgical testwork, continued definition drilling at the East and West Hill deposits, plus drill testing of various geophysical anomalies.
Source: Catalyst Copper Corporation