Canyon Copper Corp. completes agreement to acquire Moonlight Copper Porphyry Property

TSXV: CNC
OTCBB: CNYC

VANCOUVER, Jan. 24, 2012 /PRNewswire/ - Canyon Copper Corp. ("Canyon") (TSX-V: CNC) (OTCBB: CNYC) is pleased to announce that it has closed its assignment agreement (the "Assignment Agreement") with Metamin Enterprises Inc. (the "Assignor"), a company controlled by Benjamin Ainsworth, Canyon's President, Secretary and director, and Metamin Enterprises USA Inc. (the "Subsidiary"), a wholly owned subsidiary of the Assignor. Accordingly, the Assignor has assigned to Canyon all of its right, title and interest in and to an option agreement between the Assignor and Lester Storey (the "Optionor") to acquire the Moonlight Copper Porphyry Property.

As consideration for the assignment, Canyon paid USD $15,000 and issued 75,000 shares of Canyon to the Assignor and issued 75,000 shares of Canyon to the Optionor. In addition, Canyon will also reimburse the Assignor up to USD $100,000 in expenses incurred by the Assignor on the Moonlight Copper Porphyry Property.

About Moonlight Copper Porphyry Property

The Moonlight Copper Porphyry Property is located on the Northern end of the very productive Walker Lane Porphyry Trend that includes major past producers such as the Yerrington Mine in Nevada and properties like Canyon's New York Canyon Project, south of Hawthorne, Nevada.

A historical mineral resource is described in an NI 43 101 qualified technical report and resource estimate with title "Moonlight Copper Property, Plumas County, California", dated  April 2007 by George Cavey, P.Geo and Gary Giroux, P.Eng. This is available on SEDAR, filed by Sheffield Resources Ltd on May 14th, 2007. It is now out of date by virtue of further work and a change in the boundaries of the property since the 2007 report was written. The historical sulphide resource estimate was wholly contained by the claims now subject to this Assignment Agreement with the resource estimates described in the following grade tonnage tables:

MOONLIGHT INDICATED RESOURCE GRADE-TONNAGE TABLE

MOONLIGHT INFERRED RESOURCE GRADE-TONNAGE TABLE

The historical estimate cited above uses "indicated mineral resource" and "inferred mineral resource", which are categories set out in National Instrument 43-101.  Accordingly, Canyon considers these historical estimates reliable as well as relevant as it represents a target for future exploration work by Canyon. In order to verify this as a current estimate, the location of the resource needs to be defined as being wholly within the current claim boundary of the Moonlight Project. The further work was an airborne Dighem survey by Fugro Resources and is not likely to change the mineral resource estimate but should be reviewed.  The qualified person has not done sufficient work to classify the historical estimate as a current mineral resource and Canyon is treating these historical estimates as relevant but not current mineral resources.

In addition to the historical estimate prepared by Sheffield Resources Ltd., in 1972, American Exploration and Mining Company ("Amex"), a wholly owned subsidiary of Placer Dome, in an internal report by C.Gillette, a mining engineer employee of Amex, identified an historical oxide "resource" of 12.2 million tons of "ore" at an average grade of 0.54% Cu at a cutoff grade of 0.25% Cu, overlain by 10.8 million tons of "waste". This "waste" was so characterized because of a lack of assaying of the top 3 - 9.1 meters (10 - 30 feet) of the drill holes.  Sheffield recovered more than 0.25% copper from virtually all the near surface material when drilling adjacent to holes where Amex had drilled and reported 6m (20 feet) of overburden. The historical "ore" cited above is mentioned for historical purposes only and uses terminology not compliant with current reporting standards.  The reliability of these historical estimates is unknown but considered relevant by Canyon as it represents a significant target for future exploration work by Canyon.  The qualified person has not made any attempt to re-classify the estimates accordingly to current NI 43-101 standards of disclosure or the CIM definitions.  Canyon is not treating this estimate as current mineral resources or mineral reserves as defined in NI 43-101.  Historical "ores" are not equivalent to mineral reserves or resources as they are not supported by at least a feasibility study.

Qualified Person

Benjamin Ainsworth, P. Eng, BC, with Licence #8648 and the President of Canyon, is a Qualified Person as defined by NI 43-101 and has reviewed and approved the contents of this news release.

On behalf of the Board of Directors,

"Anthony Harvey"

CANYON COPPER CORP.

Cautionary Statement Regarding Forward Looking Information

This News Release may contain, in addition to historical information, forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and section 21E of the Securities Exchange Act of 1934, as amended. These forward-looking statements are identified by their use of terms and phases such as "believe," "expect," "plan," "anticipate" and similar expressions identifying forward-looking statements. Investors should not rely on forward-looking statements because they are subject to a variety of risks, uncertainties and other factors that could cause actual results to differ materially from Canyon's expectations, and expressly does not undertake any duty to update forward-looking statements. These factors include, but are not limited to the following, Canyon's ability to acquire the Moonlight Property and Canyon's ability to obtain additional financing, uncertainty of estimates of mineralized material and other factors which may cause the actual results, performance or achievements of Canyon to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements.

Cautionary Note to U.S. Investors Regarding Estimates of Measured, Indicated and Inferred Resources

This News Release may use the terms "measured", "indicated" and "inferred" "resources."  We advise U.S. investors that while these terms are recognized and required by Canadian regulations, the SEC does not recognize them.  "Inferred resources" have a great amount of uncertainty as to their existence, and great uncertainty as to their economic and legal feasibility.  It cannot be assumed that all or any part of an "inferred mineral resource" will ever be upgraded to a higher category.  Under Canadian rules, estates of "inferred mineral resources" may not form the basis of a feasibility study or prefeasibility studies, except in rare cases.  The SEC normally only permits issuers to report mineralization that does not constitute "reserves" as in-place tonnage and grade, without reference to unit measures.  U.S. investors are cautioned not to assume that any part or all of a measured, indicated or inferred resource exists or is economically or legally mineable.

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.

 

SOURCE Canyon Copper Corp.