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Cranbrook, B.C.,
13 June, 2007: Copper
Canyon Resources Ltd. (TSX-V:CPY) has received notice
from option partner NovaGold Resources Inc. (AMEX,
TSX:NG) that Diamond drilling activity will commence
within 2 weeks on the Copper Canyon property, located adjacent
NovaGold’s Galore Creek Project in northwestern British
Columbia.
NovaGold will be funding the work, and plans 12 holes
for a total of 4250m. The project will have multiple
objectives, including resource expansion and the testing of
additional geochemical and geophysical targets on the
property. Additional prospecting and mapping activity will
also be conducted in order to guide future
exploration.
On June 5th, NovaGold
announced that it had received the necessary federal and
provincial authorizations and permits to allow NovaGold's
board of directors to approve the start of construction for
the Galore Creek copper-gold deposit.
On
May 25th, NovaGold and Teck Cominco jointly announced that the
companies had formed a partnership that will
invest $2-billion (U.S.) to build the
Galore Creek mine. On closing of the transaction, NovaGold and
Teck Cominco will each hold a 50-per-cent interest in the
partnership. The Copper Canyon Option Agreement held by
NovaGold will be subject to this joint-venture
arrangement.
An inferred category
resource estimate completed by independent engineering firm
Hatch Ltd. of Vancouver, B.C., Canada, shows that the
Copper Canyon target at the Galore Creek project in
Northwestern British Columbia contains over 2.86 million
ounces of gold, 37.9 million ounces of silver and 1.16 billion
pounds of copper at a 0.35% copper equivalent cut-off
grade (CuEq)(1) (See Table 1 below). Copper Equivalent grades
are based both on long-term average metal prices and estimated
recoveries based on extensive metallurgical data from the
adjacent Galore Creek Central/SW deposit. The estimate
utilized a geologic model developed from the previously
announced drilling at Copper Canyon during 2004 by NovaGold and
historic results which had encountered significant widths of
gold, silver and copper
mineralization.
|
Table 1 : COPPER CANYON
TARGET - INFERRED RESOURCE |
|
Cutoff |
Size |
Grade |
Million
lbs. |
Million
Ozs |
Million
Ozs |
|
CuEq(%)(1) |
M
Tonnes |
Cu
(%) |
Au
(g/t) |
Ag
(g/t) |
Contained
Cu |
Contained
Au |
Contained
Ag |
|
0.35 |
164.8 |
0.35 |
0.54 |
7.15 |
1,160 |
2.86 |
37.91 |
|
0.50 |
116.1 |
0.41 |
0.64 |
8.30 |
950 |
2.39 |
30.98 |
|
0.70 |
63.0 |
0.50 |
0.86 |
10.21 |
625 |
1.73 |
20.68 |
|
1.00 |
29.2 |
0.65 |
1.14 |
13.03 |
381 |
1.07 |
12.23 |
|
1.30 |
15.6 |
0.83 |
1.32 |
15.70 |
258 |
0.66 |
7.87 |
Note: (1)Cutoff
grades based on copper equivalent calculations use metal
prices of US$375/oz for gold, US$5.50/oz for silver and
US$0.90/lb for copper. Copper equivalent calculations (CuEq%)
reflect gross metal content that have been adjusted for
metallurgical recoveries based on the following criteria:
Copper Recovery = (%Cu-0.06)/%Cu with a minimum of 50% and
Maximum of 95%; Gold Recovery = (Au g/t – 0.14)/Au g/t with a
minimum of 30% and Maximum of 80%; and Silver Recovery =
80%.
Results from drill
programs carried out on the property have defined a broad area
of precious metal rich mineralization at least 700 meters by
400 meters which is open to expansion. The
mineralization begins at surface continuing to as much as 300
meters depth and occurs as a roughly 100+ meter thick zone of
disseminated chalcopyrite and pyrite hosted within an
intrusive porphyry complex. The area covered by the
existing drill holes represents less than 0.5% of the entire
property area.
High-grade mineralization was discovered in Hole
CC05-030, drilled in late 2005 which intersected 7.9m
grading 17.2 g/tonne Au and 25.6 g/tonne Ag (including 2.5m
grading 50.6 g/t Au (1.5 oz/ton)). This hole has yet
to see follow-up. Other notable intercepts include Hole
1990-02 (drilled in 1990), which intersected 270.8m
(898’) grading 1.92 g/tonne Au, 22.28 g/tonne Ag and 1.05%
Cu.
A single exploration
drill hole (489m) was completed on the property in 2006 and
returned 0.46 g/tonne Au over 56.2m, including 0.91 g/tonne Au
over 20.7m.
A compilation map
outlining relative drillhole locations can be found at:
http://www.copcanyon.com/projects/coppercanyon/documents/cpycompilationmap.pdf
NovaGold may earn a
60% interest in the
Copper Canyon project from CPY by
completing C$3 million in exploration expenditures, issuing a
total of 296,000 shares of NovaGold and making property
payments totaling C$250,000. NovaGold may earn an additional
20% interest in the project for a total of 80% by paying
Copper Canyon C$1 million and completing a feasibility study
by September 2011.
Copper Canyon management considers the
Copper Canyon property
to be an important component of the Galore Creek project,
providing a potential source of high-grade ore. In addition,
documents filed by NovaGold with the B.C. Government indicate
that NovaGold intends to construct a water retention facility
and diversion structure related to the Galore Creek mine on
surface lands within the Copper Canyon property
area.
Copper Canyon Resources was
created by way of a Plan of Arrangement on June 9,
2006.
Shareholders of Eagle Plains Resources Ltd. approved the plan
to reorganize the Company's mineral
property assets in an effort to maximize shareholder
value. Under the terms of the arrangement, three of
Eagle Plains’ projects; Copper
Canyon,
Severance and
Abo (Harrison) Gold, were transferred into
Copper
Canyon one a
one-for-one share basis.
This news release has
been reviewed and approved by Tim J. Termuende, P.Geo., hereby designated as a
“Qualified Person” under National Instrument
43-101.
On behalf of the Board of Directors
Signed
“Tim J. Termuende”
President and CEO
For
further information, please contact Mike Labach at 1 866 HUNT
ORE (486 8673)
Email:
mgl@copcanyon.com or visit our
website at http://www.copcanyon.com
The TSX Venture
Exchange has not reviewed and does not accept responsibility
for the adequacy or accuracy of this release. This news
release may contain forward-looking statements including but
not limited to comments regarding the timing and content of
upcoming work programs, geological interpretations, receipt of
property titles, potential mineral recovery processes, etc.
Forward-looking statements address future events and
conditions and therefore, involve inherent risks and
uncertainties. Actual results may differ materially from those
currently anticipated in such statements. |