Intercepts from seven holes include 1.25% Cu over 17.8m, 2.02% Cu over 10m and 1.19% Cu over 49m
Trading Symbol: CCY
VANCOUVER, June 14, 2012 /CNW/ - Catalyst Copper Corp. ("Catalyst" or "the Company") today released the results of the final seven holes (6,771 meters) of its 2012 diamond drill program at the La Verde copper porphyry project in Michoacán state, Mexico.
The 2012 drill program was focused on expanding the known mineralization associated with the two potential open pit copper deposits, East Hill and West Hill. Results from the latest drill holes are shown in Table 1 below. Highlights include:
- LV12-043 with 0.69% Cu, 0.006 g/t Au, 2.2 g/t Ag over 27.0 meters;
- LV12-044 with 0.53% Cu, 0.014 g/t Au, 6.6 g/t Ag over 89.5 meters;
- LV12-045 with 1.25% Cu, 0.019 g/t Au, 4.6 g/t Ag over 17.8 meters; plus 1.68% Cu, 0.007 g/t Au, 4.0 g/t Ag over 26.0 meters; plus 2.04% Cu, 0.010 g/t Au, 6.4 g/t Ag over 14.3 meters;
- LV12-046 with 1.19% Cu, 0.039 g/t Au, 10.4 g/t Ag over 49.1 meters; and,
- LV12-048 with 2.02% Cu, 0.003 g/t Au, 2.5 g/t Ag over 10.1 meters.
The Company has now drilled a total of 34,968 metres under its option agreement with Teck Resources Limited's Mexican subsidiary, taking the total drilling on the property (including historic drilling) to 108,800 meters in 649 drill holes.
A Preliminary Economic Assessment (PEA) is currently being prepared by AMC Mining Consultants Limited, and is expected to be published later this month. None of the 2012 drilling program results have been used in the PEA.
Catalyst has requested Tetra Tech, Inc. to submit a proposal to update its NI 43-101-compliant Technical Report and Resource Estimate of La Verde dated January 19, 2012 and to incorporate all work conducted by the Company under the Option agreement with Teck. Catalyst is targeting to have the updated report; including a revised resource calculation, available in the third quarter of 2012. A summary of the current NI 43-101 compliant resource is set out in Table 2.
TABLE 1. La Verde 2012 Assay Results
|Drill Hole||From||To||Length||Cu%||Au g/t||Ag g/t||Mo%||Location|
Table 2. La Verde Measured, Indicated and Inferred Resources (January, 2012)
|Class||Cu% COG||Tonnes||Cu%||Au g/t||Ag g/t||Cu lbs (Billions)||Au (ozs)||Ag ozs (Millions)|
- Mineral Resources are not Mineral Reserves as there is insufficient studies to demonstrate economic viability.
- 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.
- The Mineral Resource is a global insitu total without constraints to an economic pit.
T.W. Hodson, P.Geo. is the qualified person, as defined by National Instrument 43-101, and has reviewed the technical disclosure contained herein and accepts responsibility for such disclosure.
About La Verde
La Verde 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 coast is 180 km from the site. Significant upside potential remains for the two known zones of porphyry style copper, gold and molybdenum mineralization as the drilling program to date shows both deposits remain open to depth and along strike.
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 Teck US$20 million. The property is subject to an underlying 0.5% NSR.
ON BEHALF OF THE BOARD OF DIRECTORS OF
CATALYST COPPER CORP.
"Terence W. Hodson, P.Geo."
TERENCE HODSON, V.P. EXPLORATION
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 analysis. All elements with the exception of gold are analyzed by Aqua Regia digestion and ICP-ES analysis. Gold is analyzed by fire assay method.
For further information:
Corporate Communications Officer: Denby Greenslade (604) 638-5900.