Trading Symbol: CCY
VANCOUVER, April 19 /PRNewswire/ - Catalyst Copper Corp. (the "Company" or "Catalyst) today announced the results of an independent study which developed pit shells on the La Verde copper porphyry located in Michoacán State, Mexico. Using the $2.50/lb copper pit as a base case, contained Measured Resources plus Indicated Resources stand at 272.0M tonnes grading at 0.37% Cu, plus Inferred Resources of 128.7M tonnes grading 0.35% Cu (see Table 1).
Table 1: Mineral Resources contained within the US$2.50/lb Pit shell
|Measured||Indicated||Ms + Ind||Copper||Inferred||Copper|
|(ktonnes)||Cu (%)||(ktonnes)||Cu (%)||(ktonnes)||Cu (%)||(billion lbs)||(ktonnes)||Cu (%)||(billion lbs)|
Catalyst contracted a mineral industry consulting firm, Micon International Limited (Micon), to construct the pit shells using the recently completed NI 43-101 Block Model Resource (see December 15, 2010 news release). A sensitivity analysis was performed on La Verde considering total Measured, Indicated and Inferred Resources using copper prices ranging from $0.50/lb to $4.00/lb (see Table 2; Figure 1).
Table 2: Sensitivity Analysis within pit shells constructed using copper prices ranging from $0.50 to $4.00/lb
|Cu Price||CutOff Grade||Measured||Indicated||Inferred||Waste||Pit Depth||Strip Ratio|
The following parameters were used for the analysis (All costs are in US dollars):
- Copper prices ranging from $0.50/lb to $4.00/lb.
- No gold, silver or molybdenum credits applied.
- Operating costs
- Ore mining $2.00/tonne.
- Waste mining $1.50/tonne.
- Processing + G&A $5.00/tonne.
- Ore recovery - 90%.
- Pit slope - 45°.
- No allowances for dilution or ore loses were included.
Economic parameters used in this study were based on associated costs for comparable open pit copper operations. Recoveries are based on historical metallurgical work carried out on La Verde mineralization in the 1970s. The pit slope was estimated. No credit was given for potential precious or base metal values such as gold, silver and molybdenum.
Plans and sections of the pit shells have been posted on the Catalyst Copper website: www.catalystcopper.com
Results of the Micon study reveal:
- Probable location and size of starter pits on both the East Hill (EH) and West Hill (WH) deposits at $1.00/lb Cu. Initial metallurgical test work planned for later this year will focus on these locations.
- High priority drill targets defined by areas of Inferred Resources fall within the pit shells. Of particular interest would be drilling to upgrade Inferred Resource targets located near the surface to Measured or Indicated Resources. Success here may improve the economics of the project by reducing the strip ratio.
- Projected mineralized extensions of the deposit lying outside of pit shells. Highest priority targets include north and south extensions of the WH deposit, the saddle area between the EH and WH deposits, south extension of the EH deposit and geophysical (IP) targets located south of La Verde.
Figure 1: Material within Pit Shells
All classes of resources — Measured, Indicated and Inferred — were used in this study as its purpose was to guide further in-fill and delineation drilling and as such one of the main targets of the ongoing and future drilling would be Inferred Resources within the pit shells shown.
Caution should be used in interpreting these results as the economic parameters applied are estimates only and may not accurately reflect current or future economic parameters. Due to the uncertainty that may be attached to Inferred Mineral Resources, it cannot be assumed that all or any part of an Inferred Mineral Resource will be upgraded to an Indicated or Measured Mineral Resource as a result of continued exploration.
The Company currently has approximately $2.5 million dollars in working capital. It is anticipated the 2011 work program will complete the commitments with Teck Corporation to exercise the Company's option to earn a 60% interest in the property (see option summary at the end of this release).
About La Verde
The La Verde project is located in an area with excellent infrastructure. Power, rail and water all occur within the property boundary. Lazero Cardenas, Mexico's third largest port on the Pacific Ocean coast, is 160 km from the site. Significant upside potential remains for the two known zones of porphyry style copper, gold and molybdenum mineralization as drilling has shown both deposits remain open to depth and along strike.
The Block Model Resource was prepared by D. Makepeace, P.Eng., Senior Geologist for Micon who is an independent qualified person as defined by NI 43-101 (see News Release December 15, 2010 for more details). The optimized pit shells were developed by J. Steedman, MAusIMM, who is an independent qualified person as defined by NI 43-101. Both J. Steedman and D. Makepeace have reviewed this news release.
La Verde property is subject to an option agreement with a Mexican subsidiary of Teck Resources Limited (Teck) whereby Catalyst's 100% Mexican subsidiary, 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. 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 may 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 is a Vancouver-based publicly traded mine development company (TSX-V: CCY) that optioned the La Verde copper porphyry target from a subsidiary of Teck Resources Limited.
ON BEHALF OF THE BOARD OF DIRECTORS OF
CATALYST COPPER CORP.
"Terence W. Hodson, P.Geo."
TERENCE HODSON, V.P. EXPLORATION,
QP for the Catalyst Copper Corp.
Certain information set forth in this news release may contain forward-looking statements that involve substantial known and unknown risks and uncertainties. These forward-looking statements are subject to numerous risks and uncertainties, certain of which are beyond the control of the Company, including, but not limited to, risks associated with mineral exploration and mining activities, the impact of general economic conditions, industry conditions, dependence upon regulatory approvals, and the uncertainty of obtaining additional financing. Readers are cautioned that the assumptions used in the preparation of such information, although considered reasonable at the time of preparation, may prove to be imprecise and, as such, undue reliance should not be placed on forward-looking statements. 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.
Quality Assurance: The Company employs a system of quality control for drill results which includes the use of blanks, certified reference materials (standards) and check assaying. Core is logged on site and split with a diamond saw. Samples are shipped to Acme Analytical Laboratories Ltd. for geochemical analysis of copper with all values of greater than 1.000 parts per million copper being reanalyzed by assay methods for copper, gold and silver.
SOURCE Catalyst Copper Corp.