VANCOUVER, Feb. 28, 2013 /CNW/ - Blue River Resources Ltd. ( TSX.V: BXR ) ("Blue River" or "the Company") announces that it has acquired an option to earn a 100% interest in the Mazama Copper deposit, located in Okanogan County, Washington, USA.
The Mazama Copper deposit has been explored for porphyry copper mineralization since 1963. Inspiration Development acquired the property in 1970 and conducted IP and soil surveys and drilled 15 diamond drill holes.
In 1973 Quintana Minerals Corp. began the most extensive evaluation of the Mazama deposit to date, drilling 47 percussion holes and 5 diamond drill holes. Quintana calculated an historical resource of 149 million tons grading 0.36% copper and 0.01% molybdenum.
A qualified person has not done sufficient work to classify the historical estimate as current mineral resources. Blue River is not treating the historical estimate as current mineral resources.
Griffin Jones, president of Blue River Resources, states, "We are very excited about the acquisition of a near-surface copper deposit in nearby Washington State. The Mazama deposit positions the Company with a development- stage asset that is relatively close to Vancouver BC. The Mazama Project is located approximately 43 kilometres (27 miles) south of Osoyoos BC".
Under the terms of the agreement, Blue River has agreed to pay to the vendor, upon approval by the TSX Venture Exchange, $85,000 in year one and $50,000 in each of year two and three for a total of $185,000. The Company has also agreed to pay 500,000 shares every 3 months to a maximum total of 5,000,000 shares. Blue River has also agreed to grant the vendor a 3% net smelter royalty, of which 2% can be purchased by Blue River for $3.0 million. There is a minimum exploration and development commitment of $125,000 in year one, $150,000 in year 2 and $175,000 in year 3.The vendor is at arm's length to the Company. The closing of the acquisition is subject to certain conditions, including approval from the TSX Venture Exchange.
Highland North Project
The Company's Phase I diamond drill program on the Highland North Project, conducted in September 2012, totalled 1,182,56 metres of NQ drillcore over 5 holes (from 5 drill sites) and resulted in a total of 479 samples collected and submitted for assays.
Diamond drill hole BXR-12-2 intersected 39.65 meters (130 feet) grading 0.1% copper, from 30.85 meters (101.2 feet) to 70.05 meters (229.8 feet). Drill hole BXR-12-2 was the only hole to have reportable mineralization. No further exploration is planned for the Highland North Project.
Castle Copper Project
Blue River Resources Ltd. also holds a 100% interest in the 18,000 acre Castle Copper Project, located 25 km north of Copper Mountain Mining. The Castle project is directly north of Sego Resources' Miner Mountain property and directly south of Westar's Axe Copper Project, currently under joint venture with Xstrata Copper. The Company drilled 3 short reconnaissance diamond drill holes in September 2012 totaling 123 metres (407 feet) and no significant mineralization was encountered. The Company's current exploration plans for the Castle Copper project include an extensive ground IP and mag survey over the 7 km of the Nicola fault that trends through the Castle property.
The technical information contained in this news release was reviewed and approved by Paul D. Gray, P. Geo, Company Director, and a qualified person as defined under National Instrument 43-101.
Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
ON BEHALF OF THE BOARD
BLUE RIVER RESOURCES LTD.
/s/ Griffin Jones
SOURCE Blue River Resources Ltd.
You just read:
Blue River Resources Ltd. acquires Mazama Copper deposit in Washington State
Feb 28, 2013, 06:00 EST