Dec 23 2010
Crazy Horse Resources Inc. (TSX VENTURE:CZH), a Philippines based mineral exploration company, provides an update on the acquisition of the Kayapa Copper-Gold Porphyry project in the Philippines.
As previously announced, the Company has completed initial due diligence on the Kayapa Project which consists of two exploration permit applications. Whilst the Company has satisfactorily completed its due diligence on the technical merits of this project, the Company continues to await official confirmation from the Philippine Ministry of Mining to the grant of the permits and legal opinions on the good standing and assignability before proceeding with acquisition of a 100% legal and beneficial interest in the permit applications. As a result of this continued delay, the Company and the owner of the Kayapa Project, Asian Arc Mining Corporation, have entered into a replacement Letter of Intent dated December 22, 2010 granting the Company continued exclusivity to acquire the permit applications at any time up to June 30, 2011.
Summary of the Kayapa Copper Project
The following is a brief summary of the Kayapa Copper-Gold Porphyry Project (the "Project"). Further quantitative information concerning the Project will be disclosed following completion of a "qualifying report" in accordance with National Instrument 43-101.
The Kayapa Project is comprised of two mining exploration permit applications (EXPA-II-00074 and EXPA-II-00077) over two contiguous claim blocks covering a combined total area of 8,545.5 hectares hosting a large and only partly explored copper-gold porphyry deposit similar to other copper-gold porphyry deposits previously mined in the Philippines. The Kayapa Project is located in north-central Luzon, Philippines in a well-developed mining province and readily accessible by road located 15km north-east of the commercial centre Bambang and 145km from a deep water port at Poro Point, San Fernando, La Union.
The copper-gold porphyry mineralization at the Kayapa Project is hosted by and related to the quartz diorite porphyry stock which is roughly 3.5km x 2.0km in dimension. Alteration at the Kayapa Project is predominantly phyllic with silica flooding in the mineralized zone. The mineralized zone defined by historical drilling and adits is approximately 450 meters by 1600 meters in length, and is open at depth and also open on strike to the north and south. The total extent of the mineralization is unknown at this time, with known historical mineralization in drill logs and assays to a depth of over 500 meters.
An economically significant aspect of the explored portion of the Kayapa Project is the potential to quickly define a viable copper oxide deposit. Historical work completed by Philex Mining Corp. between 1966 and 1979 included the drilling of 39 drill holes totalling 9307 meters and 1580m of adits, tunnels and crosscuts. All drill holes intersected copper mineralization, including one hole which bottomed in copper mineralization greater than 0.55% at a depth of 533 meters and one hole which averaged 0.78% copper and 0.48g/t Au over its entire length of 166 meters. Information from drill logs show an oxide cap extending to a depth of up to 60 meters. Based on the work completed by Philex, the copper oxide zone remains open but is defined to be at least 1,500 meters by 400 meters.
If an average depth of oxide mineralization between 20 to 60 meters is assumed (based on oxidation levels reported by Philex Mining Corp. in their drill logs) for the entire area of the known drilled deposit, the copper oxide zone would generate between 32 and 96 m/t of oxide resource at an average grade of >0.6% Cu (based on 1580m of channel sampling in tunnels within the deposit).
All above assays and drill intersections are historical, and any resource alluded to or mentioned is non-NI 43-101 compliant. A qualified person has not done sufficient work to classify the historical estimate as current mineral resource or mineral reserves. The Company is not treating the historical estimate as current mineral resources or mineral reserves as defined in NI 43-101. The Company cautions the reader that the historical estimates disclosed in this news release should not be relied upon.
Further, the above estimates of potential quantity and grade of potential mineralization are conceptual in nature as there has been insufficient exploration to define a mineral resource and it is uncertain if further exploration will result in any part of the Project being delineated as a mineral resource.
A proposed initial work program consisting of approximately 16,000 meters of RC and diamond drilling is proposed to establish an NI 43-101 compliant copper oxide resource and confirm some of the historical drilling at depth.
Brian Lueck, Chairman of the Company, is the qualified person who has reviewed the geological data summarized in this news release on behalf of the Company.
Source: Crazy Horse Resources Inc.