ABBOTSFORD, BC, Dec. 13 /PRNewswire/ - ICS Copper Systems Ltd. (ICX:TSX.V) is pleased to announce that it has closed the non-brokered private placement announced on November 24th, 2010 by the issuance of 3,125,000 units at a price of $0.08 per unit for gross proceeds of CAD $250,000. Each unit consists of one common share and one share purchase warrant, each warrant entitling the holder to purchase one additional common share in the capital of the Company at a price of $0.10 if exercised on or before December 8, 2011 and at $0.15 per share thereafter. The warrants expire on December 8, 2012.
The warrants are subject to accelerated expiry if common shares trade at or above $0.20 in any 20 consecutive trading day periods ending after the date that is four months and a day after the closing. All securities are subject to a hold period of four months and one day expiring on April 9th 2011. No commission was paid on the private placement.
Proceeds of the private placement will be used by the Company to pay for mapping and sampling and phase 1 drill exploration costs for the Excelsior Springs Gold project and for general working capital.
Excelsior Springs Gold Exploration Update
The company is pleased to issue this progress report on its ongoing exploration program at Excelsior Springs, an advanced-stage, sediment-hosted gold project near Tonopah, Nevada. Previous exploration programs on the property by Walker Lane Gold and Evolving Gold have identified the Buster zone, an east-west-trending zone of intense hydrothermal alteration that is 10,000 feet long and up to 1,000 feet wide. Cambrian age siltstones, limestones and calcareous sediments within this zone show widespread and intense, bleaching, iron oxide-staining and decalcification.
Historic production from the underground workings on the property is reported to be approximately 18,000 tons at a grade of 1.2 oz Au/ton from strongly altered, structurally controlled zones within the calcareous rocks. Drilling by Walker Lane and Evolving discovered extensions of the structurally controlled gold zones as well as thick zones of lower-grade mineralization in the Upper Shaft zone. This zone of mineralization remains open to the northeast.
Recent geologic mapping of the project suggests there have been multiple phases of hydrothermal alteration with the decalcification phase being early, intense and widespread, while the gold-bearing phase is younger and concentrated in structural zones and favorable stratigraphic horizons. There are rhyolite and diorite dikes on the project, and the rhyolite is often strongly fractured, intensely quartz veined and weakly mineralized.
Surface sampling of outcrops has identified at least two additional areas which have multiple samples containing plus one gram gold values. One of these areas contains well developed jasperoids and jasperoid breccias assaying over 3 gm Au/ton. These jasperoids occur in the more massive gray limestones in the upper plate of a district-scale, south-dipping, thrust fault. The thrust fault caps the altered rocks of the Buster zone and may have been a factor in localizing gold mineralization. There is a large area of alteration beneath the thrust fault, and this area is considered highly prospective for additional zones of gold mineralization.
On satellite images, the main alteration zone occurs within an arcuate structural feature which can be traced through 90 degrees of arc and is 2,000 feet outboard of a much larger arcuate feature. The larger arcuate zone is about four miles in diameter, concave to the south, and can be traced through 180 degrees of arc. These arcuate features could be the result of doming by a magma body and may have served as channel ways for hydrothermal fluids.
The exploration program is continuing and will focus on the following:
- Further define the Upper Shaft zone mineralization and locate drill holes to test the northeast and southwest extensions of the mineralization.
- Complete additional mapping and sampling of the jasperoid and other mineralized areas so that drill targets can be developed.
- Conduct reconnaissance mapping and sampling of the larger arcuate feature.
- Conduct a 15 hole drilling program planned for spring 2011.
Graham Chisholm, President and CEO of ICS Copper comments: "Results from recent mapping and sampling are optimistic and have identified additional exploration potential. Our Technical committee is securing rigs for the spring drill programme."
Ken Brook, B.Sc, M.Sc, RPG. a qualified person (QP) as defined by National Instrument 43-101, supervised the preparation of the technical information in this news release.
ICS COPPER SYSTEMS LTD.
Signed "Graham Chisholm"
Graham Chisholm, President & CEO
Neither the 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. This release includes certain statements that are "forward-looking statements". All statements in this release, other than statements of historical facts that address future exploration, development and production activities, and other circumstances, events and developments that the Company expects, are forward-looking statements. Although management believes the expectations expressed in such forward-looking statements are based on reasonable assumptions, such statements are not guarantees of future performance, and actual results, events and developments may differ materially from those in the forward-looking statements. The occurrence of certain risk factors, the probability of which is unknown, may also affect actual results, events and developments expected by the Company.
SOURCE ICS Copper Systems Ltd.