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Cranbrook, BC; 01 June, 2010: Copper Canyon Resources Ltd. (TSX-V:CPY) (the ?Company? or ?Copper Canyon?) has received an NI 43-101 compliant report from author R.J. Morris, P.Geo. dated May 21, 2010 titled ?Resource Estimate for the Copper Canyon Gold Occurrence?. In his report, Morris reviews all existing data collected by JV partner NovaGold Canada Inc. and past operators who have worked on the property since 1956. The resource estimate is based on core holes drilled between 1990 and 2007, and is an update to the existing NI 43-101 report prepared by Hatch and others in 2005 (The ?Hatch Report?). The new study was in large part a confirmation of work completed by NovaGold geologists who have completed significant structural and geological work on the deposit, resulting in a greatly improved understanding of the geometry and mineralizing controls of the deposit.
The Copper Canyon deposit is classified as a gold-rich, copper?gold?silver alkalic porphyry style system. The deposit is open along strike and at depth and has been tested by 43 diamond drill holes for a total of 14,002 meters of drilling.
Highlights:
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At a 0.35% copper equivalent* (CuEq) cutoff, the estimated, unconstrained inferred mineral resource for the property is 152.6 millions tonnes grading 0.31% Cu, 0.515 g/t Au and 6.32 g/t Ag with an overall CuEq of 0.687% (resulting in 1.03B lbs Cu, 2.53M oz Au and 30.98M oz Ag in contained metals). This resource was estimated using ordinary kriging with copper equivalent cut off.
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Envisioning an underground block-tonnage mining method with a cut-off of 0.60% CuEq, the Inferred Resource contains 53.7 million tonnes grading 0.5% Cu, 0.729 g/t Au and 10.6 g/t Ag with an overall CuEq of 1.056% (resulting in 592M lbs Cu, 1.26 M oz Au and 18.36 M oz Ag in contained metals). This resource was estimated using a 0.6% CuEq grade shell generated in MineSight?. A wireframe was constructed based on the grade shell and resources within the potential mineable geometry are reported.
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A number of high-grade gold intercepts were intercepted in holes drilled in 2007, including DDH CC07-36, which returned high-grade gold mineralization of 9.9 g/t Au over 9.1m from 183.5 to 192.6m (including 31.9 g/t Au over 2.5 m) and 26.8g/t Au over 2.7m from 211.8m to 214.5m (true thicknesses undetermined). These intercepts underscore the potential to develop high-grade gold resources from the property.
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A $1M diamond drill program has been recommended by Morris to test new geological models and potentially increase the deposit?s tonnage. Permitting for this work is expected to be underway shortly. |
Based on the results from the proposed diamond drilling program, Copper Canyon Resources intends to update the current resource estimate, including additional modeling for a stand-alone gold deposit.
The Morris report has been filed on SEDAR and can be viewed in its entirety here
Copper Canyon management commissioned the report in order to provide an independent review of work completed in-house by NovaGold geologists. The report contains an updated inferred resource calculation from that published in 2005 by Hatch Ltd., GR Technical Services Ltd. and Giroux Consultants Ltd. Since the 2005 report was published, NovaGold completed drilling in 2005, 2006 and 2007. These additional holes resulted in a refined resource shell definition and a better understanding of geologic controls, all of which are outlined in the Morris report. Mr. Morris is a qualified person under the definitions of NI 43-101 and is independent of Copper Canyon Resources applying all of the tests in section 1.4 of NI 43-101.
The Copper Canyon Project is a 60/40 Joint Venture between NovaGold Canada Inc. and Copper Canyon Resources Ltd.
* The copper equivalent grade was calculated as follows:
CuEq = Recoverable Revenue / 2204.62 * 100 / 1.55. Where: CuEq = Copper equivalent grade; Recoverable Reserves = Revenue in US dollars for recoverable copper, recoverable gold and recoverable silver using metal prices of US$1.55/lb, US$650/oz, and US$11/oz for copper, gold, and silver, respectively; Cu Recovery = 100%
Investor Relations Announcement
Copper Canyon has retained A. Schwab and Associates Inc. (?ASA?) to perform investor relations services to the company for an initial six-month term, commencing June 1st. This appointment is intended to augment the in-house I.R. activities currently overseen by Michael Labach.
Schwab and Associates are based in Kelowna, B.C., with involvement in investor relations activities across North America and Europe. At present, Schwab has no interest, directly or indirectly in Copper Canyon or its securities.
ASA will be paid the sum of $35 per hour and will be reimbursed for pre-approved expenses. In addition, Copper Canyon will apply to the TSX-V to issue 100,000 share options to ASA, exercisable at a price of $0.40 cents per share for a five-year period. The investor relations contract is subject to regulatory approval.
About Copper Canyon
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 Plain?s projects: Copper Canyon, Severance and Abo (Harrison) Gold, were transferred into Copper Canyon on a one-for-one share basis.
The contents of this news release have been approved by R.J. Morris, P.Geo. hereby identified as the 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.
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