Catalyst Copper launches 2011 Exploration Program at La Verde, Mexico

Trading Symbol: CCY

VANCOUVER, Jan. 21 /CNW/ - Catalyst Copper Corporation (the "Company" or "Catalyst") today announced it will commence 20,000 metres of diamond drilling at its La Verde copper-gold project located in Michoacán State, México, by the end of January. A diamond drill rig is currently on site and drilling crews are being mobilized.

The drilling will form part of Catalyst Copper's 2011 exploration and development program, which will also include: a determination of the gold-silver-molybdenum values for the known deposits; initial metallurgical test work; commencement of baseline environmental studies and updating the resource model.

Following the excellent drill and geophysical results achieved during 2010, Phase 1 of the 2011 program will involve drilling extensions of the known deposits. This work was recommended by Micon International Limited in the technical report released in December 2010 which stated "there is potential for additional tonnage in both deposits especially at depth" and recommended that "additional delineation drilling around the perimeter of the deposits and at depth should be initiated". Phase 1 is budgeted at a minimum US$2 million.

Phase 2 of the 2011 exploration program will involve the continuation of definition drilling on the known deposits as well as testing geophysical targets identified in the 2010 program. Initial metallurgical test work will be carried out to determine copper-gold-silver-molybdenum recoveries to a sulphide concentrate, as well as updating the resource model with the 2011 drilling results. Phase 2 is budgeted at a minimum US$4 million and (subject to available funding) will commence upon completion of Phase 1. Upon completion of the 2011 program a preliminary economic assessment of the La Verde deposits will be carried out.

The Company currently has approximately $3.2 million dollars in working capital. The 2011 work program will complete the commitments with Teck Resource Limited (Teck) to exercise the Company's option to earn a 60% interest in the property (see option summary at the end of this release).

In 2010, Catalyst:

  • Signed a three-year option agreement with Teck whereby Minera Hill 29, Catalyst's wholly owned Mexican subsidiary, can earn a 60% interest in the La Verde porphyry copper deposit, subject to a back-in right by Teck.
  • Signed a four-year land access agreement with local land owners.
  • Completed 12,275 metres of core drilling (Table 2) and 150 kilometres of geophysical surveys.
  • Published an initial NI 43-101 compliant independent resource estimate completed by Micon International Engineering of Vancouver (see Table 1).

Table 1
Measured Plus Indicated and Inferred Resources
Total East Hill plus West Hill

Cu% Cut-Off Measured+Indicated
Cu% Inferred
0.1 345,165,850 0.34 240,761,200 0.31
0.2 210,487,200 0.46 130,768,400 0.45
0.3 142,785,350 0.56 84,913,150 0.57
0.4 93,595,500 0.67 54,333,700 0.69
0.5 60,113,350 0.79 34,807,650 0.82
  1. It cannot be assumed that all or any part of an Inferred Mineral Resource will be upgraded to an Indicated or Measured Resource as a result of continued exploration.
  2. Mineral Resources are not Mineral Reserves as there are insufficient studies to demonstrate economic viability.
  3. The Mineral Resource is a global in-situ total without constraints to an economic pit.
  4. Mineral Resource numbers have been rounded and may not add up in the above table

At the 0.2% copper cut-off grade, the East and West Hill deposits' Measured and Indicated Resources of 210.5 million tonnes averaging 0.46% total copper (TCu) contain 2.1 billion pounds of copper and Inferred Resources of 130.8 million tonnes grading 0.46% TCu contain 1.3 billion pounds of copper.

Copper mineralization associated with the deposits is primarily chalcopyrite and to a lesser extent, bornite. Historically gold (Au), silver (Ag) and molybdenite (Mo) values are known to be associated with the deposits. Currently the number of assays available for these elements is insufficient to interpolate Au, Ag and Mo grades into the resource model (this will be addressed by the 2011 drilling program).

About La Verde

The La Verde project is located in an area with excellent infrastructure. Power, rail and water all cross the property. Lazaro Cardenas, Mexico's third largest port on the Pacific Ocean coast is 150 km from the site. Significant upside potential remains for the two known zones of porphyry style copper, gold and molybdenum mineralization as the 2010 drill program has shown both deposits remain open to depth and along strike.

The December 2010 resource estimate was prepared by D. Makepeace, P.Eng., senior geologist for Micon who is an independent qualified person as defined by NI 43-101. The estimate was completed using a 3D computer model. The drill-hole database used for the resource model totalled 613 drill holes for 92,878 metres and includes all 12,275 metres drilled during 2010 by Catalyst Copper. A composite interval of 5 metres was used and constrained to geological rock types. A single block model (10 x 10 x 10 meters) was created to envelope both mineralized deposits. Block grades were interpolated using the inverse distance squared technique. The estimate did not employ a high-grade copper cap. A density (specific gravity) of 2.70 g/cm3 was used for the East Hill deposit (porphyry style mineralization) while the West Hill deposit (chalcopyrite vein style mineralization) used 2.75 g/cm3, based on historical density measurements. All QA/QC requirements have been followed including incorporating standards, blanks and duplicates into the assay procedures and independent check analyses by a second laboratory.

La Verde property is subject to an option agreement with a Mexican subsidiary of Teck Resources Limited (Teck) whereby Catalyst's 100% Mexican subsidiary, Minera Hill 29, may earn a 60% interest in La Verde by making US$10,000,000 in exploration expenditures (including 30,000 meters of drilling and 200 kilometers of IP) by December 31, 2012. Upon Catalyst earning a 60% interest, Teck has the option to increase its interest to 60% by incurring aggregate expenditures equal to two times the amount spent by Catalyst. Should Teck fail to exercise its option to earn a 60% interest, Catalyst can acquire a 100% interest in La Verde by paying to Teck US$20 million. The property is subject to an underlying 0.5% NSR. David Makepeace, M.Eng., P.Eng. is a senior geologist at Micon. He is the author of the NI 43-101 Technical Report and as a Qualified Person, has reviewed the technical material in this news release.

Catalyst Copper is a Vancouver-based publicly traded mine development company (TSX-V: CCY) that optioned the La Verde copper porphyry target from a subsidiary of Teck Resources Limited.


"Terence W. Hodson, P.Geo."


Certain information set forth in this news release may contain forward-looking statements that involve substantial known and unknown risks and uncertainties. These forward-looking statements are subject to numerous risks and uncertainties, certain of which are beyond the control of the Company, including, but not limited to, risks associated with mineral exploration and mining activities, the impact of general economic conditions, industry conditions, dependence upon regulatory approvals, and the uncertainty of obtaining additional financing. Readers are cautioned that the assumptions used in the preparation of such information, although considered reasonable at the time of preparation, may prove to be imprecise and, as such, undue reliance should not be placed on forward-looking statements. 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.

Quality Assurance: The Company employs a system of quality control for drill results which includes the use of blanks, certified reference materials (standards) and check assaying. Core is logged on site and split with a diamond saw. Samples are shipped to Acme Analytical Laboratories Ltd. for geochemical analysis of copper with all values of greater than 1.000 parts per million copper being reanalyzed by assay methods for copper, gold and silver.

Table 2
La Verde Property
Select Drill-hole Intercepts from 2010

      La Verde      
Dhid Location   From(m) To(m) Length(m) Cu% Au g/t
V-12T East Hill   13.2 253.0 239.8 0.50 0.048
    including 111.0 253.0 142.0 0.74 0.072
V-13T East Hill   2.5 416.6 414.1 0.24 0.038
V-14T East Hill   9.0 165.4 156.4 0.36 0.165
    including 9.0 53.0 44.0 0.47 0.362
V-15T West Hill   8.7 536.3 527.6 0.55 0.005
    including 134.5 514.1 379.6 0.72 0.006
    including 195.0 276.0 81.0 1.08 0.013
V-17T West Hill   85.8 526.7 440.9 0.48 0.008
    including 304.7 526.7 222.0 0.74 0.006
V-19T West Hill   38.5 640.9 602.5 0.43 0.007
    including 142.6 350.1 207.4 0.58 0.014
    including 143.6 162.2 19.6 1.16 0.006
V-21T West Hill   19.3 654.0 634.8 0.42 0.003
    including 209.0 267.0 58.0 0.63 0.003
    including 477.2 606.7 129.5 0.91 0.002
V-38T East Hill   105.9 280.0 174.1 0.24 0.039
V-47T West Hill   102.1 558.8 456.7 0.37 0.007
    including 102.1 230.5 128.4 0.51 0.007
V-75T West Hill   76.3 469.0 392.7 0.28 0.003
V-126T East Hill   214.4 497.8 283.4 0.39 0.152
    including 271.3 454.3 183.0 0.51 0.175
LV10-005 West Hill   220.1 624.3 404.2 0.41 0.005
    including 254.2 498.4 244.2 0.54 0.006
    including 415.9 583.7 103.5 0.82 0.007
LV10-006 West Hill   291.2 763.0 471.8 0.58 0.006
    including 498.8 728.0 229.2 0.83 0.009
    including 699.7 722.1 22.4 3.62 0.014
LV10-007 East Hill   221.4 229.3 7.9 0.38 0.319
      508.9 528.3 19.4 0.30 0.033
LV10-008 West Hill   177.0 532.4 508.7 0.33 0.004
    including 206.5 303.6 95.9 0.46 0.003
      608.3 685.7 77.4 0.55 0.006
LV10-009 East Hill   230.1 246.7 16.6 0.21 0.111
      348.0 372.0 24.0 0.32 0.056
      429.0 443.9 14.9 0.23 0.065
LV10-010 West Hill   383.2 437.4 54.3 0.36 0.005
      488.0 508.1 20.1 0.23 0.006
      566.5 597.4 30.9 0.33 0.004
LV10-011 East Hill   304.5 640.4 335.4 0.32 0.054
    including 715.5 733.4 17.9 1.35 0.254
LV10-012 IP Target   No Significant  Assays        

SOURCE Catalyst Copper Corp.

For further information:

Corporate Communications Officer: Denby Greenslade, (604) 638-5900

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