Opawica Explorations Inc. announces filing of Atikwa Lake project preliminary scoping study

VANCOUVER, Aug. 24 /PRNewswire-FirstCall/ - Opawica Explorations Inc. (TSX.V: OPW / OTC: OPWEF / Frankfurt: OE5A) ("Opawica" / the "Company") announces that it has completed and filed on SEDAR a Preliminary Scoping Study (the "Study") regarding the Company's Atikwa Lake gold and copper project located near Kenora, Ontario.

The Study has been limited to a model of 1000 tpd projected to be mined from a 2,974,200 tonne surface and higher grade portion of the current NI 43-101 compliant 7,366,000 tonne Indicated resource of the Maybrun open pit Main Zone of 0.64 g/t Au and 0.41% Cu. The head grade for the above 2,974,200 tonnes of open pit material is 0.911 g/t Au and 0.574% Cu for a gold equivalent of 1.896 g/t Au. An open pit stripping ratio of 1.5 to 1 has been used to a depth of 40m that would commence from an existing open pit bench cut of the Maybrun Main Zone.

The preliminary economic analysis from the Study indicates positive preliminary economic considerations for an initial 1000 tpd operation consisting of Capital Costs of $9,850,000, sustaining capital of $6,000,000, overall pre-tax cash flow of $26,592,000, all over a minimum of an eight year period. A preliminary Internal Rate of Return (IRR) of 30% is evident over the initial eight year period put forth in the Study.

The Study has utilized a contract mining scenario that would include using existing tailings ponds, new surface infrastructure and some refurbished mill components used in past production (1973) on site. A flow sheet consistent with past milling consisting of two ball mills, floatation circuit and concentrator has been proposed. Overall recoveries of 92.6% has been used for gold and an 85% recovery in concentrate has been used for copper.

The Preliminary Scoping Study and economic analysis has been purposefully limited to 1000 tpd. The objective is to determine if the past footprint and related infrastructure of the former producing Maybrun Mine can be used, at least in part, to re-instate production on the property on a shorter timeline and at significantly lower capital costs than may be otherwise possible under a larger scale mining operation that would include all resources presently outlined on the property. If positive cash flow can be attained from the initially proposed 1000 tpd operation, it may be possible to expend some cash flow on the entire Atikwa Lake property for further exploration and development.

The resources at the Atikwa Lake property as outlined in the August 31, 2009 NI 43-101 report, filed on SEDAR, are as follows:

    August, 2009 Mineral Resource Estimate (NI 43-101 Compliant) Atikwa Lake
    Property
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    Classifi- Cut-off
     cation    Grade
               Au Eq  Mineral            Au   Cu   Au Eq    Au        Cu
               (g/t)   Zone     Tonnes (g/t)  (%)  (g/t)   (oz)      (lb)
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
    Indicated  0.40  Maybrun  7,366,000 0.64 0.41  1.34  151,000  66,466,000
                      Main
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               0.40  Maybrun  1,738,000 1.15 0.30  1.66   64,000  11,622,000
                      Main
              ---------------------------------------------------------------
    Inferred   0.40  Maybrun  5,400,000 0.94 0.18  1.25  163,000  21,696,000
                     Footwall
              ---------------------------------------------------------------
               0.40  Maybrun  3,454,000 0.67 0.25  1.10   74,000  18,921,000
                      North
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
    AuEq (Au Equivalent) calculated using US $800 per oz for Au and $2.00 per
    lb for Cu.

The above resources, as to tonnes, pounds and ounces are rounded to the nearest 1,000. The AuEq calculations in this release represent head grades and does not include metallurgical recoveries or net smelter returns for gold and copper. Mineral resources that are not mineral reserves do not have demonstrated economic viability.

Based on the results of the Preliminary Scoping Study a Feasibility Study and further drilling has been recommended on the Atikwa Lake property.

Current drilling on the Atikwa Lake property is ongoing. A deep hole (AT-10-05) of about 650m has been completed into the Footwall Zone with assays pending. One further deep hole of 650m, on Section 844N, will be drilled into the Footwall Zone approximately 300m below the above open pit resources detailed in the August 31, 2009 NI 43-101 report and about 200m down dip from hole AT-10-01 which returned the following assay results announced on April 23, 2010:

                                     From     To    Width   Au          AuEQ
    Hole # Section  Zone            (m)     (m)    (m)    g/t   Cu %   g/t
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    AT-10-01  844 N  May-
                      brun
                      Main            74.80 125.00  50.20  0.30  0.300  0.81
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                           Including  77.00  92.00  15.00  0.64  0.421  1.36
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                           Including  77.00  78.00   1.00  3.07  0.308  3.60
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                              And     84.00  92.00   8.00  0.78  0.644  1.88
    -------------------------------------------------------------------------
                     May-
                      brun
                      FW             158.00 172.00  14.00  0.07  0.057  0.17
    -------------------------------------------------------------------------
                                     185.60 214.60  29.00  0.20  0.157  0.47
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                           Including 207.00 214.60   7.60  0.41  0.251  0.84
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                                     235.00 271.00  36.00  0.74  0.113  0.93
    -------------------------------------------------------------------------
                           Including 256.00 271.00  15.00  1.41  0.165  1.69
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                           Including 268.00 271.00   3.00  3.04  0.246  3.46
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                             Also    256.00 260.00   4.00  2.60  0.236  3.00
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                           Including 256.00 258.00   2.00  3.79  0.096  3.95
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                                     339.00 341.00   2.00  5.21  0.162  5.49
    -------------------------------------------------------------------------
                           Including 339.00 340.00   1.00  8.94  0.212  9.30
    -------------------------------------------------------------------------
    Note: Intervals are approximate true widths.

In addition, 6 shallow infill drill holes of up to 90m each have been drilled within the open pit Maybrun Main Zone. Assay results are pending. A further 6 shallow holes of up to 90m each are scheduled to be drilled in the open pit Maybrun Main Zone under the current drill program.

The Preliminary Scoping Study was completed by Independent Qualified Persons, Robert Laakso, P.Eng. and Michael O'Flaherty, P.Eng. and they have reviewed the contents of this release.

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. The forgoing information may contain forward-looking statements relating to the future performance of the Company. Forward looking statements, specifically those concerning future performance, are subject to certain risks and uncertainties, and actual results may differ materially. These risks and uncertainties are detailed from time to time in the Company's filings with the appropriate regulatory authorities. We seek safe harbour.

SOURCE Opawica Explorations Inc.