Copper One announces indicated resources of 2.23 million ounces of gold (2.65 million ounces of gold equivalent) for Troilus Property, Quebec
06.08.2014 | CNW
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 - 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 | Cu% | AuEq (g/t) | Contained | Contained | Contained |
| 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:
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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:
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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 | Contained | Contained | Contained |
| 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:
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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:
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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 Corp. 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.
Contact
For more information about Copper One, please visit www.copperone.com or contact: G Scott Moore, Chairman, President and CEO, smoore@forbesmanhattan.com