NEW WESTMINSTER, BC and NEW DELHI, India, Feb. 14 /CNW/ - Pebble Creek
Mining Ltd. ("the Company") is pleased to announce that following the
results of the Company's 2010 drilling program, the Company has
recalculated the Inferred mineral resource estimate for the Company's
Askot project in Uttarakhand, India by including an additional 1.2
million tonnes (over the previous estimate of 149,000 tonnes of
Inferred mineral resource).
The new estimate of the inferred mineral resource is reported in
accordance with the Canadian Securities Administrators' National
Instrument 43-101 ("NI 43-101") and has been estimated in conformity
with generally accepted CIM "Estimation of Mineral Resources and
Mineral Reserves Best Practices Guidelines." Together with the
Company's previously estimated Indicated and Inferred mineral
resources, the total mineral resources at Askot are now summarized as
Table. Mineral Resource Estimate, Askot Massive Sulfide Deposit, Uttarakhand, India
as at February 14, 2010
Cu equiv (%)
Previously reported mineral resource estimate, SRK Consulting (August 12, 2008)
Current addition to Inferred Mineral Resource, Pebble Creek Mining Ltd.
Total and weighted average of Inferred Mineral Resource
Cutoff grade is $100 of total metal recovered in concentrates per tonne
of run-of-mine material based on the following parameters: 85% of
copper (Cu), 76% of zinc (Zn), 78% of lead (Pb), and 60% of each of
silver (Ag) and gold (Au). Prices used are Cu $2.50/lb, Zn $1.00/lb, Pb
$0.90/lb, Ag $15/oz and Au $1,000/oz. Prices are based on long-term
estimates by BMO Capital Markets and other analysts, and are
considerably less than current world metals prices. Four prices have
been changed from the 2008 estimates, which used $2.00 Cu, $0.90 Zn,
$0.65 Pb and $900 Au. The same parameters are used in calculating
"copper equivalent" grades, converting all recovered metals into
dollars and equating the sum to a comparable value of copper recovered
in the concentrates.
The new Inferred mineral resource has been estimated using the area of
influence of drillhole 10AA019A, 300 metres along strike and 200 meters
vertically, with a thickness of 6.7 metres. The Company's news release
dated October 25, 2010 described a high-grade zone within this panel
and the sampling, assaying and QA/QC protocols. The new mineral
resource estimate includes low-grade mineralization in both footwall
and hanging wall of the near vertical high-grade zone. The density of
the mineralization is 3.1 tonnes per cubic meter.
The new Inferred mineral resource estimate is made by Dr. Andrew E.
Nevin, P.Eng, President and CEO of the Company, who is a Qualified
Person under NI 43-101. Dr. Nevin is responsible for directing the
work at the Askot project and is responsible for preparing, reviewing
and approving of the technical information contained in this news
The previous Indicated and Inferred mineral resource estimates for the
Askot project was prepared by SRK Consulting and first reported in the
Company's news release dated August 12, 2008 and in detail in a
technical report dated September 26, 2008, entitled, "Mineral Resource
Estimation - Askot Polymetallic Project - Uttarakhand, India".
A technical report providing details on the updated mineral resource
estimate for the Askot project will be posted on the SEDAR website at www.sedar.com and the Company's website www.pebcreek.com within 45 days of this news release.
Prior to the Company's 2010 drilling program, drilling at the Askot
project had been conducted on a segment of the deposit south of a
post-mineral "boundary" fault that apparently cut off the deposit.
Tunnelling and drilling attempts to find an offset extension of
mineralization north of the fault had been unsuccessful until the 2010
drilling program, which concentrated on the prospective extension north
of the fault. A drill station was located in a valley on the footwall
(underlying) side of the steeply dipping structure, instead of on the
high mountain on the hanging wall (overlying) side. From one location
four holes were drilled in various directions and inclined
approximately minus 60 degrees. A downhole directional motor was used
to curve the holes to a minus 30 degree inclination sufficient to
intersect the prospective target beds at a strong angle.
Hole 10AA019A intersected the extension 160 metres deeper than prior
holes south of the fault. The entire prospective northern target is
more than 340 metres along strike and more than 600 metres vertically.
Directional drilling from the footwall side of the mineralized beds will
be used in the next drilling program, which will focus on deep drilling
on both the south and the north sides of the offsetting fault.
This news release contains forward-looking statements that address
future events and conditions and are subject to various risks and
uncertainties. The Company's actual results, programs and financial
position could differ materially from those anticipated in such
forward-looking statements as a result of numerous factors, some of
which may be beyond the Company's control. These factors include: the
availability of funds; the timing and content of work programs; results
of exploration activities and development of mineral properties, the
interpretation of drilling results and other geological data, the
uncertainties of resource and reserve estimations, receipt and security
of mineral property titles; project cost overruns or unanticipated
costs and expenses, fluctuations in commodity prices; currency
fluctuations; and general market and industry conditions.
Forward-looking statements are based on the expectations and opinions of
the Company's management on the date the statements are made. The
assumptions used in the preparation of such statements, although
considered reasonable at the time of preparation, may prove to be
imprecise and, as such, undue reliance should not be placed on
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 Pebble Creek Mining Ltd.
For further information:
Gyan C. Singhai, PEng, Executive Chairman, Telephone: +1 604 529 9076
Mike Romanik, Vice President, Telephone: +1 204 724 0613