Inferred resources estimated to be 29 million tonnes grading
0.91 g/t gold, 0.10% copper (0.85 million ounces gold)
TORONTO,
Aug. 6, 2014 /CNW/ - Copper
One Inc. (CUO-TSX:V) ("Copper One" or the "Company") provides
an updated mineral resource estimate for the past-producing Troilus
property, located 175 road-kilometres northwest from the town of
Chibougamau, Quebec (Canada)
(see press release dated April 8,
2014). The open pit and underground estimates were
completed by RPA Inc. (Toronto)
utilizing an updated block model and wireframes and input from
Copper One's geological personnel. Tables 1 to 4 below summarize
the resource estimate at Troilus by open pit and underground
cut-off grades. Figure 1 shows the relative position of the
mineral resources on a geologic map of the Troilus property.
Highlights
Highlights of the 2014 Troilus mineral resource
estimate are as follows:
- Total Indicated resources of 2.28 million (M) ounces of gold
and 160 M pounds (lbs) of copper (2.65 Moz gold
equivalent);
- Total Inferred resources of 0.85 Moz gold and 48.0 Mlbs of
copper (0.96 Moz gold equivalent);
- Open Pit Indicated resources of 1.79 Moz of gold and 128
Mlbs of copper (2.08 Moz gold equivalent);
- Open Pit Inferred resources of 0.44 Moz gold and 27 Mlbs of
copper (0.50 Moz gold equivalent);
- Underground Indicated resources of 0.50 Moz gold and 32 Mlbs
of copper (0.57 Moz gold equivalent);
- Underground Inferred resources of 0.41 Moz gold and 21 Mlbs
of copper (0.45 Moz gold equivalent); and
- Excellent resource expansion and new discovery
potential.
Scott Moore,
President and CEO, stated "We are extremely pleased with the
updated mineral resource at Troilus. As expected, significant and
substantial open pit and underground mineral resources still exist
at the property, as a result of factoring in current metal prices
and additional data from the historical mine. A thorough review of
all resource and production drilling has identified multiple
targets for resource growth potential and we look forward to
following up with a drill program designed to grow this resource in
the near future following completion of the acquisition of the
property from First Quantum Minerals".
2014 Mineral Resource Estimate Results
The 2014 mineral resource estimate for Troilus
defines a near-surface Whittle pit constrained open pit resource
and a higher grade underground resource. The resources remain
open to future expansion along strike, across strike and
particularly down-dip.
Open Pit Resource Estimate
The open pit resource estimate is constrained
within a Whittle open-pit shell (Table 1). The open
pit-constrained resource estimate is reported at a cut-off grade of
0.3 g/t gold. Total Indicated resources are 60.9 Mt grading
0.91 g/t gold and 0.095% copper for 2.08 Moz gold equivalent. Total
Inferred resources are 18.1 Mt grading 0.76 g/t gold and 0.068%
copper for 0.50 Moz gold equivalent. These resources are derived
from mineralization that was not extracted during previous mining
operations at Troilus (1996-2009) and are constrained by a new
Whittle pit. The maximum depth of the Whittle constrained open pit
resource is 500 metres (m) from surface, an increase in depth of
200 m compared to the actual Z87 open pit. Consequently,
substantial resources may be within range of a potential future
open pit mining operation at Troilus. More advanced studies are
planned to investigate the remaining open pit mining potential at
Troilus.
Table 1 - 2014 Troilus Open Pit Mineral
Resource Summary
Classification
|
Zone
|
Tonnage
(t)
|
Au
(g/t)
|
Cu%
|
AuEq
(g/t)
|
Contained
Gold (oz)
|
Contained
Copper (lb)
|
Contained
AuEq (oz)
|
Indicated
|
Z87
|
46,472,000
|
0.94
|
0.111
|
1.11
|
1,401,700
|
113,521,000
|
1,660,000
|
Indicated
|
J4
|
12,155,700
|
0.84
|
0.044
|
0.91
|
329,100
|
11,778,200
|
356,000
|
Indicated
|
J5
|
2,222,900
|
0.80
|
0.052
|
0.88
|
56,900
|
2,530,000
|
63,000
|
Indicated
|
TOTAL
|
60,850,500
|
0.91
|
0.095
|
1.06
|
1,787,800
|
127,829,100
|
2,079,000
|
|
Inferred
|
Z87
|
8,159,000
|
0.82
|
0.095
|
0.97
|
215,000
|
17,111,000
|
254,000
|
Inferred
|
Z87
Low
|
3,767,000
|
0.67
|
0.045
|
0.74
|
81,000
|
3,730,000
|
90,000
|
Inferred
|
J4
|
2,947,000
|
0.85
|
0.043
|
0.92
|
81,000
|
2,779,000
|
87,000
|
Inferred
|
J5
|
710,000
|
0.78
|
0.059
|
0.87
|
18,000
|
918,000
|
20,000
|
Inferred
|
J4
Low
|
249,000
|
0.56
|
0.049
|
0.63
|
4,000
|
271,000
|
51,000
|
Inferred
|
TOTAL
|
18,075,000
|
0.76
|
0.068
|
0.86
|
440,000
|
27,249,000
|
502,000
|
Notes:
- The Independent Qualified Persons for
the mineral resource estimate, as defined by NI43-101, are Luke
Evans,
P.Eng. and Tudor Ciuculescu, P.Geo. of RPA Inc. (Toronto) and the
effective date of the resource estimate is June 30,
2014
- CIM definitions were followed for
Mineral Resources
- Mineral Resources were estimated at a
cut-off grade of 0.3 g/t Au and were constrained by a Whittle pit
shell
- Mineral Resources were estimated
using long-term metal prices of US$1500 per ounce gold and US$3.50
per pound
copper; and an exchange rate of US$1.00 = C$1.1
- A recovery of 83% was used for gold
and 92% for copper
- A block size of 5 m x 5 m x 5 m was
used
- Overall gold grade capping of 10
g/t
- AuEq = gold assay + copper assay *
1.562
- Numbers may not add due to
rounding
- Mineral resources that are not
Mineral Reserves do not have demonstrated economic
viability
|
The sensitivity of Indicated and Inferred
resources within the Whittle pit shell to variations in cut-off
grade for Troilus is represented below in Table 2.
Table 2 - Sensitivity of Troilus Pit
Constrained Mineral Resource Estimate to Cut-Off Grade
Classification
|
Cut-off Au
(g/t)
|
Tonnage
|
Au
(g/t)
|
Cu%
|
AuEq
(g/t)
|
|
Indicated
|
1.00
|
19,610,000
|
1.50
|
0.143
|
1.72
|
Indicated
|
0.70
|
34,410,000
|
1.21
|
0.117
|
1.40
|
Indicated
|
0.50
|
50,260,000
|
1.02
|
0.102
|
1.18
|
Indicated
|
0.30
|
60,850,000
|
0.92
|
0.095
|
1.07
|
|
Inferred
|
1.00
|
1,310,000
|
1.39
|
0.056
|
1.48
|
Inferred
|
0.70
|
7,880,000
|
1.09
|
0.087
|
1.23
|
Inferred
|
0.50
|
12,980,000
|
0.90
|
0.076
|
1.02
|
Inferred
|
0.30
|
18,080,000
|
0.75
|
0.068
|
0.86
|
Notes:
- Tonnes and gold and copper grades
rounded to the nearest thousand
- Figures for resource tonnes and
ounces may not sum due to the rounding
- Pit optimization based on the
following parameters:
- Gold price
US$1500/oz
- Copper price
US$3.50/lb
- Recovery Gold
83%
- Recovery Copper
92%
- Exchange rate
US$1.00 = CDN$1.10
- Average mining cost
US$3.00/t
- Processing and
G&A Cost US$12.00/t
- Specific gravity 2.8
tonnes/cubic-metre
- Overall grade capping of 10
g/t
- AuEq = gold assay + copper assay *
1.562
|
Underground Resource Estimate
The underground resource estimate is reported at
a cut-off grade of 0.8 g/t gold and below the base of the Whittle
open pits (Table 3). Total Indicated resources are 11.2 Mt grading
1.37 g/t gold and 0.130% copper for 0.57 Moz gold equivalent.
Total Inferred resources are 10.9 Mt grading 1.16 g/t gold
and 0.088% copper for 0.45 Moz gold equivalent.
Table 3 - 2014 Troilus Underground Mineral Resource
Summary
Classification
|
Zone
|
Tonnage
(t)
|
Au
(g/t)
|
Cu%
|
AuEq
(g/t)
|
Contained
Gold (oz)
|
Contained
Copper
(lb)
|
Contained
AuEq (oz)
|
Indicated
|
Z87
|
11,231,100
|
1.37
|
0.130
|
1.58
|
496,000
|
32,139,900
|
569,000
|
Indicated
|
J4
|
-
|
-
|
-
|
|
-
|
-
|
|
Indicated
|
J5
|
-
|
-
|
-
|
|
-
|
-
|
|
Indicated
|
TOTAL
|
11,231,100
|
1.37
|
0.130
|
1.58
|
496,000
|
32,139,900
|
569,000
|
|
Inferred
|
Z87
|
6,179,000
|
1.17
|
0.124
|
1.36
|
232,000
|
16,922,000
|
270,000
|
Inferred
|
J4
|
4,409,000
|
1.15
|
0.040
|
1.21
|
163,000
|
3,889,000
|
172,000
|
Inferred
|
J5
|
320,000
|
0.98
|
0.045
|
1.05
|
10,000
|
318,000
|
11,000
|
Inferred
|
TOTAL
|
10,908,000
|
1.16
|
0.088
|
1.29
|
405,000
|
21,129,000
|
453,000
|
Notes:
- The Independent Qualified Persons for
the mineral resource estimate, as defined by NI43-101, are Luke
Evans, P.Eng.
and Tudor Ciuculescu, P.Geo. of RPA Inc. (Toronto) and the
effective date of the resource estimate is June 30,
2014
- CIM definitions were followed for
Mineral Resources
- Mineral Resources were estimated at a
cut-off grade of 0.8 g/t Au
- Mineral Resources were estimated
using long-term metal prices of US$1500 per ounce gold and US$3.50
per pound copper;
and an exchange rate of US$1.00 = C$1.1
- A recovery of 83% was used for gold
and 92% for copper
- A block size of 10 m by 10 m by 10 m
was used for Z87 and 5 m by 5 m by 5 m was used for J4 and
J5
- Overall gold grade capping of 10
g/t
- AuEq = gold assay + copper assay *
1.562
- Numbers may not add due to
rounding
- Mineral Resources that are not
Mineral Reserves do not have demonstrated economic
viability
|
The sensitivity of indicated and inferred resources below the
Whittle pit shell to variations in cut-off grade for Troilus is
shown below in Table 4.
Table 4 - Sensitivity of Troilus Underground Resource
Estimate to Cut-Off Grade
Classification
|
Cut-off Au
(g/t)
|
Tonnage
|
Au
(g/t)
|
Cu%
|
AuEq
(g/t)
|
|
Indicated
|
2.00
|
1,350,000
|
2.33
|
0.209
|
2.66
|
Indicated
|
1.50
|
3,890,000
|
1.93
|
0.180
|
2.21
|
Indicated
|
1.00
|
8,570,000
|
1.55
|
0.143
|
1.77
|
Indicated
|
0.80
|
10,120,000
|
1.45
|
0.135
|
1.66
|
|
Inferred
|
2.00
|
790,000
|
2.41
|
0.171
|
2.67
|
Inferred
|
1.50
|
1,780,000
|
2.02
|
0.153
|
2.25
|
Inferred
|
1.00
|
6,140,000
|
1.43
|
0.104
|
1.59
|
Inferred
|
0.80
|
9,000,000
|
1.26
|
0.089
|
1.40
|
Notes:
- Tonnes and gold and copper grades
rounded to the nearest thousand
- Figures for resource tonnes and
ounces may not sum due to the rounding
- Pit optimization based on the
following parameters:
- Gold price US$1500/oz
- Copper price
US$3.50/lb
- Recovery Gold
83%
- Recovery Copper
92%
- Exchange rate
US$1.00 = CDN$1.10
- Average mining cost
US$3.00/t
- Processing and
G&A Cost US$12.00/t
- Specific gravity 2.8
tonnes/cubic-metre
- Overall grade capping of 10
g/t
- AuEq = gold assay + copper assay *
1.562
|
Drilling Database and Estimation Approach
The drill hole databases utilized for this
resource estimate contain drill hole collar, survey, assay and
lithology data as of June 30,
2014. There have been no new holes drilled at Z87 and J4-J5
since 2006. The Z87 open pit and J4-J5 open pit and
underground database includes 645 drill holes with a total length
of 127,500 m, 70,440 assays and 39,670 three metre composites. A 5
m by 5 m by 5 m percent block model was created in Geovia GEMS 6.6.
The Z87 underground database includes 101 surface diamond holes
with a total length of 48,390 m, 16,000 assays, and 1,149 three
metre composites. A 10 m by 10 m by 10 m percent underground
block model was created in Gemcom 4.02. High grade gold
assays are capped at 10 g/t Au for the Z87 and J4-J5
zones.
For the open pit resources at Z87 and at J4-J5
and for the underground resources at J4-J5, the deeper
intersections drilled since 2003 were utilized to extend the Z87
Zone mineralization wireframes farther down dip based on a 0.3 g/t
Au cut-off grade. The J4 Zone mineralized wireframe from the 2003
resource estimate, based on a 0.3 g/t Au cut-off grade, was
expanded for the 2014 estimate to include six additional
mineralized lenses. A new mineralized wireframe based on a 0.3 g/t
Au cut-off grade was built for the J5 Zone, which had never been
modelled previously. In addition two low grade domains were created
outside the mineralized wireframes at Z87 and J4-J5. The low grade
domains capture material above cut-off grade that is not continuous
enough to wireframe. The underground resources for Z87 are based on
the 0.8 g/t Au mineralized wireframe created for the 2006 resource
estimate.
The mineral resource estimate was generated by
inverse distance squared grade interpolation. Ordinary
kriging was employed as an alternative interpolation method for
gold and copper, for comparison and validation purposes. The
mineralized blocks were classified into the Indicated or Inferred
resource category based on geological continuity, location relative
to the range of influence defined in the variography, and search
ellipse ranges. Validation of the block models involved
visual inspection and comparison on plan and section of
interpolated grades and composites, statistical comparison of
resource assays and interpolated blocks, and swath plots.
Resource Expansion and Exploration
Upside
The Z87, J4 and J5 mineralized zones remain open
to expansion, particularly at depth. In J4, gold grade
contouring suggests that the mineralization thickens down plunge,
which means that there is a good potential for discovery of higher
grade gold mineralization below 200 m vertical depth. Drilling in
1999 and 2000 confirmed that the gold mineralization extends down
plunge, where a hole intersected 24 m averaging 4.95 g/t Au from
276 m down hole, which includes 3 m grading 34.7 g/t Au.
Compilation of data for holes drilled outside the
main mineralized zones on the Troilus property indicates that
there are a number of holes with gold values greater than 0.2 g/t
over 10 m. A 500 m long gold anomaly named the Southwest Zone
(Figure 1), with similar characteristics to Z87 was discovered in
2000, 3 km south-southwest from Z87 at the southwest end of the
Troilus Diorite. One hole drilled in 2005 intersected 56 m grading
0.9 g/t Au from 130 m downhole, including 34 m grading 1.3 g/t
Au. Thick overburden prevented testing of the full extent of
the zone. Additional diamond drilling is warranted and a
major exploration program is planned to test the upside potential
of this zone and others like it on the Troilus Property.
For additional details regarding the mineral
resource estimate reported in this press release, please see the
technical report entitled "Technical Report on the Troilus
Gold-Copper Mine Mineral Resource Estimate, Quebec, Canada" dated July 25, 2014 and prepared for Copper One by RPA
Inc. (Toronto). The
technical report is filed under Copper One's profile on SEDAR
(www.sedar.com) and is available on Copper One's website.
About the Troilus Property
Troilus is a past-producing gold-copper property
operated by Inmet Mining Corporation from 1995-2010. In
total, the Troilus Mine produced 2 Moz gold and 70,000 tonnes of
copper metal plus by-product silver, primarily from the main Z87
Zone open pit and the satellite J4 Zone open pit. Copper One
announced in a press release dated April 8,
2014 that it had signed a definitive purchase agreement with
a wholly-owned subsidiary of First Quantum Minerals Ltd.
(FM-TSX) ("First Quantum") to acquire a 100% interest in the
Troilus property subject to a 2.5% NSR owed to First Quantum. The
Troilus property consists of 81 mineral claims and one surveyed
mining lease that collectively cover 6,422 hectares. All
claims and the mining lease are in good standing and 100 percent
owned by First Quantum. The acquisition also includes all
infrastructure, specifically roads, power lines, buildings,
permitted tailings pond and associated water treatment
facility. Completion of the acquisition remains subject to
the satisfaction of certain conditions precedent, including
governmental and third party consents.
Geologically, Troilus is a disseminated gold and
copper sulphide deposit located in the Frotet-Evans Greenstone Belt
of the Archean Superior Province in Quebec. The host rocks are brecciated diorite
and gabbro rocks in the margin of the Troilus Diorite Intrusion and
cross-cutting porphyritic felsic sills and dikes. The
mineralization consists of 2%-3% sulphides, mainly pyrite,
chalcopyrite, pyrrhotite and rare sphalerite, and minor quartz
veins. The sulphides form disseminations and veinlets and
seams controlled by foliation and factures. The
mineralization occurs within a zone of biotite alteration.
The mineralized quartz veins occur in high strain sericitic zones
with silicified envelopes. The Troilus deposit is best known as a
rare example of an Archean porphyry Cu-Au deposit. However,
the simplistic porphyry mineralization model is challenged by
evidence for a two-stage history of mineralization.
Qualified Persons
The mineral resource estimate reported in this
press release was prepared by Mr. Luke
Evans, P.Eng., and Mr. Tudorel
Ciuculescu, P.Geo., of RPA Inc. (Toronto) who are "Qualified Persons" as
defined in National Instrument 43-101 and independent with respect
to Copper One.
The scientific and technical information in this
new release was reviewed and approved by Dr. William Stone, P.Geo., Copper One's Chief
Consulting Geologist and a Qualified Person as defined in National
Instrument 43-101.
Completion of Shares for Debt
Settlement
Copper One has issued 2,000,000 common shares at
a deemed price per share of $0.05 in
settlement of accounts payable owing to Axemen Resource Capital
Ltd. On account of capital markets and advisory services (see the
press release issued by Copper One on July
3, 2014). The common shares issued pursuant to the
shares for the shares for debt settlement are subject to a hold
period of four months and one day expiring on November 22, 2014.
About Copper One Inc.
Copper One is focused on development of
high-value copper projects in infrastructure rich areas of safe and
secure mining jurisdictions. The Company is part of the Forbes
& Manhattan Group of Companies, which has built, operated and
sold mines in Canada and globally.
Copper One's pipeline of projects includes the Rivière Doré
copper-nickel project near Val d'Or,
Quebec, and the Queylus copper-gold project in the
Chibougamau mining district,
Quebec. On April 8, 2014, Copper One entered into a purchase
agreement to acquire from First Quantum the past-producing Troilus
property, located near Chibougamau, Quebec. Copper One is
working to satisfy the closing conditions under the purchase
agreement with First Quantum.
Cautionary Note Regarding Forward-looking
Information
This press release contains "forward‑looking
information" within the meaning of applicable Canadian securities
legislation. Forward‑looking information includes, but is not
limited to, statements regarding the estimation of mineral
resources, the completion of the Company's acquisition of the
Troilus property, and the Company's plans for the Troilus property.
Generally, forward‑looking information can be identified by the use
of forward-looking terminology such as "plans", "expects" or "does
not expect", "is expected", "budget", "scheduled", "estimates",
"forecasts", "intends", "anticipates" or "does not anticipate", or
"believes", or variations of such words and phrases or state that
certain actions, events or results "may", "could", "would", "might"
or "will be taken", "occur" or "be achieved".
Forward‑looking information is subject to known and unknown risks,
uncertainties and other factors that may cause the actual results,
level of activity, performance or achievements of the Company to be
materially different from those expressed or implied by such
forward‑looking information, including but not limited to: general
business, economic, competitive, political and social
uncertainties; the actual results of current exploration
activities; future prices of mineral prices; failure of plant,
equipment or processes to operate as anticipated; accidents, labour
disputes and shortages and other risks of the mining industry.
Although the Company has attempted to identify important factors
that could cause actual results to differ materially from those
contained in forward-looking information, there may be other
factors that cause results not to be as anticipated, estimated or
intended. There can be no assurance that such information will
prove to be accurate, as actual results and future events could
differ materially from those anticipated in such statements.
Accordingly, readers should not place undue reliance on
forward‑looking information. The Company does not undertake to
update any forward-looking information, except in accordance with
applicable securities laws.
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.
SOURCE Copper One Inc.