VANCOUVER, May 16, 2012 /CNW/ - Canyon Copper Corp. ("Canyon" "Company") (TSX-V: CNC) (OTCBB: CNYC) is pleased to announce that it has commissioned a visit to the Moonlight and New York Canyon Properties both located on the famous Walker Lane mineral belt. A team of Canyon's senior geologists with an independent consultant will be looking in some detail at the properties with particular emphasis on the potential to expand the copper oxide potential of the Longshot Ridge and Moonlight systems. It allows an opportunity to review the immediate exploration plans for each property. The independent consultant visit is important for the continuing development of the Moonlight project as it is planned to update the earlier NI 43-101 report completed for Sheffield Resources Limited in 2006.
Upcoming programs for Canyon Copper:
Canyon is focusing on the copper oxide deposits at the start of the exploration and development of both the New York Canyon and the Moonlight Copper properties for the following reasons:
- Both have the potential to be brought into production in a shorter time frame than the much larger operational size that is represented by the sulphide bodies associated with the oxide bodies.
- The capital and operating expense for a copper leach operation would be expected to be much less than that of a larger sulphide recovery plant. This could allow senior financing of the project with a combination of an off-take agreement to buy premium grade copper cathodes, contracted bank loans and equity financing.
- The oxide deposits can produce high quality cathode copper that is typically sold promptly at a premium to the traditional refined metal prices for copper.
- Sulphide concentrates are sold to a smelter and are subject to variable treatment and refining charges (TC/RC), currently at about $80/tonne of 90% of the contained copper in the concentrate, and higher freight costs since the sulphide concentrate generally has less than 30% by weight of copper metal in it. This results in additional freight costs for the 70% waste and moisture in the copper sulphide concentrate. Payment may take months to complete through times of varying metal prices and foreign exchange rates.
Proposed Drill Program on Moonlight Property
Canyon has announced that it has started permitting for a shallow reverse circulation drill program at the Moonlight copper oxide deposit in order to establish a resource estimate of the oxide mineralization. The drill program is planned for early summer 2012 and will be greatly facilitated by the network of new logging roads in the area. In support of this work, the old drill core, in storage in nearby Crescent Mills, will be re-logged to confirm the limits of the oxide mineralization and the bornite chalcocite sulphide mineralization.
As previously disclosed, the Moonlight copper oxide deposit represents a significant target for Canyon's exploration and in a 1972 internal report for American Exploration and Mining Company ("Amex"), a wholly owned subsidiary of Placer Dome, C. Gillette, a mining engineer employee of Amex, reported a historical oxide "resource" of 12.2 million tons of "ore" at an average grade of 0.54% Cu at a cutoff grade of 0.25% Cu, overlain by 10.8 million tons of "waste". This "waste" was so characterized because of a lack of assaying of the top 3 - 9.1 meters (10 - 30 feet) of the drill holes. Sheffield recovered more than 0.25% copper from virtually all the near surface material when drilling adjacent to holes where Amex had drilled and reported 6m (20 feet) of overburden. This suggests a target size for the oxide resource could be larger than the preliminary Amex estimate. The historical "ore" cited above is mentioned for historical purposes only and uses terminology not compliant with current reporting standards. The reliability of these historical estimates is unknown but considered relevant by Canyon as it represents a significant target for future exploration work by Canyon. The qualified person has not made any attempt to re-classify the estimates accordingly to current NI 43-101 standards of disclosure or the CIM definitions. Canyon is not treating this estimate as current mineral resources or mineral reserves as defined in NI 43-101. Historical "ores" are not equivalent to mineral reserves or resources as they are not supported by at least a feasibility study.
Proposed Drill Program on Longshot Ridge
In 2012, Canyon plans to drill test oxide mineralization that was identified to the north and northeast of the Longshot Ridge deposit. Two other areas of oxide copper occur in the north central part of the claims, the Buffington Springs and the Powerline Showings. These have yet to be assessed but have potential as additional sources of oxide copper. Historically, high grade oxide copper was hand mined from these two areas for direct shipment.
Benjamin Ainsworth, P. Eng, BC, with Licence #8648 and the President of Canyon, is a Qualified Person as defined by NI 43-101 and has reviewed and approved the contents of this news release.
On behalf of the Board of Directors,
CANYON COPPER CORP.
Benjamin Ainsworth, President
Cautionary Statement Regarding Forward Looking Information
This News Release may contain, in addition to historical information, forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and section 21E of the Securities Exchange Act of 1934, as amended. These forward-looking statements are identified by their use of terms and phases such as "believe," "expect," "plan," "anticipate" and similar expressions identifying forward-looking statements. Investors should not rely on forward-looking statements because they are subject to a variety of risks, uncertainties and other factors that could cause actual results to differ materially from Canyon's expectations, and expressly does not undertake any duty to update forward-looking statements. These factors include, but are not limited to the following, Canyon's ability to implement its proposed drill programs on the Moonlight Property and the New York Canyon Project, Canyon's ability to obtain additional financing, uncertainty of estimates of mineralized material and other factors which may cause the actual results, performance or achievements of Canyon to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements.
Cautionary Note to U.S. Investors Regarding Estimates of Measured, Indicated and Inferred Resources
This News Release may use the terms "measured", "indicated" and "inferred" "resources." We advise U.S. investors that while these terms are recognized and required by Canadian regulations, the SEC does not recognize them. "Inferred resources" have a great amount of uncertainty as to their existence, and great uncertainty as to their economic and legal feasibility. It cannot be assumed that all or any part of an "inferred mineral resource" will ever be upgraded to a higher category. Under Canadian rules, estates of "inferred mineral resources" may not form the basis of a feasibility study or prefeasibility studies, except in rare cases. The SEC normally only permits issuers to report mineralization that does not constitute "reserves" as in-place tonnage and grade, without reference to unit measures. U.S. investors are cautioned not to assume that any part or all of a measured, indicated or inferred resource exists or is economically or legally mineable.
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For further information:
Canyon Copper Corp.
(604) 684-9365 (FAX)