Reservoir Reports Exploration Progress with Freeport-McMoRan Exploration Corporation on the Timok Project in Serbia
VANCOUVER, BRITISH COLUMBIA -- (Marketwire) -- 06/23/11 -- Reservoir Capital Corp. ('Reservoir' or the 'Company') (TSX VENTURE: REO)(FRANKFURT: ROC)(BERLIN: ROC) is pleased to provide a progress report on the work being carried out with Freeport-McMoRan Exploration Corporation ('Freeport') on the Company's Timok Project in east Serbia.
Reservoir and Freeport geologists and consultants have completed further detailed mapping and surface sampling along with an extensive program of induced polarization, magnetic and CSAMT (controlled-source audio-magneto-telluric) geophysical surveys, targeting copper mineralization. In addition to this on-going surface work, Freeport has commenced drilling to test some of the targets generated from the surveys, with the initial program of 1,775 metres already well advanced on the OK-Target (Ogasu Kucajna) within the southern Brestovac-Metovnica Permit.
'This is an extensive and highly prospective property package, where only limited work was conducted historically for deeper copper targets,' commented Miles Thompson, Chairman of the Company. 'We are very fortunate to be working with Freeport, which has the technical and financial resources to explore and develop such projects.'
The 18,279-hectare Timok Project comprises two exploration permits, Brestovac-Metovnica and Jasikovo-Durlan Potok that lie adjacent to the Bor-Majdanpek Mining Licenses and which cover northern and southern extensions of the host structures and geology of the Bor copper deposits. In March 2010, the Company entered into an agreement whereby Freeport may earn up to a 75% interest in the Timok Project (see Company NR of June 21, 2010 for details). Freeport may earn an initial 55% interest in the project by investing US$3 million in exploration by March 2014.
The Bor-Majdanpek district is a world class copper-gold mining district with reported historical production of approximately 6 million tonnes of copper and 300 tonnes of gold (BRGM publication BRGM/RC-51448-FR). The current combined resources and reserves at the RTB Bor mining complex are stated on their website (www.rtbbor.com) to be 2.5 billion tonnes in a number of different deposits, with total copper and gold metal content of 10.5 million tonnes and 11.7 million ounces respectively. The RTB Bor resources and reserves were calculated according to the Serbian system for reporting Resources and Reserves, which are not compliant with National Instrument 43-101 guidelines and should not be relied on, but the Company considers that they are relevant to the assessment of the Timok Project.
Quality Control:
The Company and Freeport follow industry standard quality assurance and quality control procedures for all samples. The QA/QC program includes the insertion of blanks, duplicates and certified standards into the sample stream. Core is photographed on site and subsequently sawn in half, with one half sent for analysis and the other half stored for future reference and assay verification.
Dr. Duncan Large, Chartered Engineer (UK) and Eur. Geol., a Qualified Person as defined by National Instrument 43-101 and consultant to the Company, is responsible for the preparation of the technical information in this release.
About Reservoir
Reservoir is a renewable energy company that is engaged in the development of a 58.4 MW hydroelectric project at Brodarevo in southwest Serbia. Reservoir holds four geothermal exploration licenses in Serbia and has applied for three hydroelectric licenses on the Cehotina River in Bosnia (17.75 MW) and one to develop a 32 MW project from an existing reservoir dam at Vrutci in Serbia. The Company also holds 8 precious and base metal exploration properties in Serbia that, subject to approvals, are to be spun-out into a separately listed company via dividend (see March 25, 2011 Press Release 'Reservoir Capital Announces Spin-Out of Mineral Exploration Assets'). Reservoir's common shares trade on the TSX Venture Exchange (symbol 'REO') and on the Frankfurt and Berlin Exchanges (symbol 'ROC').
Neither the TSX Venture Exchange nor the Investment Industry Regulatory Organization of Canada accepts responsibility for the adequacy or accuracy of this release.
Contacts:
Reservoir Capital Corp.
Chris MacIntyre
VP Corporate Development
381 (11) 397 8453 or 1 416 703 0010
www.reservoircapital.ca