VANCOUVER, May 17, 2012 /CNW/ - Northcliff Resources Ltd. ("Northcliff" or the "Company") (TSX: NCF) announces an updated mineral resource estimate for the Sisson Tungsten-Molybdenum Project, located in central New Brunswick, Canada. The estimate incorporates results from the 2011 drill program and will form the basis for Northcliff's Feasibility Study of the Sisson Project, due for completion in Q3 2012.
The new estimate is based on 64,768 m of drilling in 304 holes (with 31,893 assayed intervals) completed between 1979 and 2011, including 11,175 m of drilling in 66 holes (with 3,698 assayed intervals) drilled by Northcliff in 2010-2011. In addition to increasing the mineral resources in the measured category, recent drilling has supplied metallurgical, geomechanical, geotechnical and hydrogeological data to support feasibility work.
At a $9.00 NSR/t (Net Smelter Return) cutoff, the Sisson deposit comprises:
- 383 million tonnes of measured and indicated resources containing 25.6 million metric tonne units (mtu) of WO3 and 178.3 million lb of molybdenum, and
- 178 million tonnes of inferred resources containing 9.1 mtu of WO3 and 82.4 million lb of molybdenum.
"We have seen a substantial increase in total resources since the last mineral resource estimate for the Sisson deposit was published in 2009 primarily due to the positive and strengthening price environment for tungsten. Certainly the additional drilling and geological modeling that Northcliff has undertaken since becoming operator of the Sisson Project in 2010 have also enhanced our confidence in the resource," said Chris Zahovskis, Northcliff President and CEO.
"The augmented geological model and resource that we're working with today will provide real opportunities for Northcliff engineers working to complete the Feasibility Study to both enhance output and extend the operating life of the Sisson Project. It is clear now that the Sisson Project hosts one of the most important resources of tungsten in the world, with excellent potential for becoming a globally-important, long life, low-cost and near-term producer."
The mineral resources at various NSR/t cutoffs are summarized in the table below. A plan map and cross sections showing the NSR blocks in the Sisson deposit are posted on the Northcliff website at http://www.northcliffexploration.com/i/pdf/NCF_NR_May2012.pdf.
| WO3 EQ
|MEASURED + INDICATED|
| Note 1: Metal Prices: WO3 - US$300/metric tonne unit (mtu), Mo - US$15/lb; Assumed Recoveries: WO3 - 80%, Mo - 74%; USD$:CDN$ 0.9:1
NSR = (WO3% * NSP WO3*Recovery WO3*22.046) + (Mo%*NSP Mo Recovery Mo*22.046);
Net Smelter Price (NSP) WO3 = CDN$11.96/lb; Mo = CDN$15.37/lb. (Realization costs of US$62.78/mtu WO3 and US$1.17/lb Mo)
WO3 equivalent (EQ) = WO3% + Mo% * 1.189 (developed using the assumptions above)
Note 2: The previous resource estimate for the Sisson Project was completed in 2009. It was based on the following metal prices of US$200/mtu WO3, US$15/lb Mo, and recoveries of 70% and 85% for WO3 and Mo, respectively.
Sample preparation and analysis of drill core samples from the Sisson deposit were completed at Standard Council of Canada CAN-P-1579 and ISO/IEC 17025 accredited Actlabs in Ancaster, Ontario.
The estimate was prepared using geostatistical methods by the technical staff of Northcliff and audited by industry-leading geological and mining consultants at Roscoe Postle Associates Inc., under the direction of David W. Rennie, P. Eng., an independent Qualified Person as defined by National Instrument 43-101 (NI43-101). Mr Rennie has reviewed this release. A technical report detailing the resource estimate will be filed on www.sedar.com within 45 days.
About the Sisson Project
The Sisson property hosts a structurally-controlled deposit of tungsten and molybdenum that is genetically related to Late Devonian granite intrusions. The deposit comprises the contiguous I, II and III and Ellipse Zones, which obliquely span a north-trending, nearly vertical contact between two phases of the Howard Peak Granodiorite to the west and metavolcanic and metasedimentary rocks to the east. Tungsten and molybdenum mineralization mostly occurs in narrow, sheeted, northwest-trending quartz-sulphide veins which surround larger, north-trending shear veins. Tungsten occurs predominantly in the mineral scheelite, and locally in wolframite, with molybdenum occurring in molybdenite. The near-surface Sisson deposit is amenable to open pit mining.
The Sisson Project has excellent potential for important-scale, near-term production of tungsten and molybdenum. It is well-located near roads, rail and tidewater on the eastern seaboard of North America, which provides the project with key logistical advantages over other greenfield tungsten projects. New Brunswick is a stable jurisdiction with a long tradition of mineral and resource development, and a well-established regulatory system. By advancing Sisson, Northcliff will become one of North America's first major tungsten producers, greatly increasing supply to the large North American and European markets where demand far outstrips supply.
Northcliff is advancing feasibility-level geology, engineering and environmental studies, along with associated fieldwork and comprehensive stakeholder engagement programs, toward the completion of a Feasibility Study and Environmental Impact Assessment (EIA) for the Sisson Project in the third quarter of 2012.
Northcliff is a mineral resource company associated with Hunter Dickinson Inc. (HDI), a diversified, global mining group with a 25 year history of mineral development success. The Company is focused on advancing the feasibility stage Sisson Tungsten-Molybdenum Project to production. Northcliff has acquired a 70% interest in the Sisson Project from Geodex Minerals Ltd., subject to investing up to $17 million in exploration, feasibility and project costs. Northcliff expects to complete this investment to secure its 70% interest in early May 2012. On April 18, 2012, Northcliff and Geodex announced a transaction by which Northcliff will acquire 100% interest in the Sisson Project.
President & CEO
This release includes certain statements that may be deemed "forward-looking statements". All statements in this release, other than statements of historical facts, that address permitting, exploration drilling, exploitation activities and events or developments that the company expects, are forward-looking statements. Although the Company believes the expectations expressed in such forward-looking statements are based on reasonable assumptions, such statements are not guarantees of future performance and actual results or developments may differ materially from those in the forward-looking statements. Factors that could cause actual results to differ materially from those in forward-looking statements include market prices, exploitation and exploration successes, continuity of mineralization, potential environmental issues and liabilities associated with exploration, development and mining activities, uncertainties related to the ability to obtain necessary permits, licenses and title and delays due to third party opposition, changes in government policies regarding mining and natural resource exploration and exploitation, continued availability of capital and financing, and general economic, market or business conditions. Investors are cautioned that any such statements are not guarantees of future performance and actual results or developments may differ materially from those projected in the forward-looking statements. For more information on the Company, investors should review the Company's continuous disclosure filings that are available at www.sedar.com.
Information Concerning Estimates of Measured, Indicated and Inferred Resources
This news release uses the terms "measured resources", "indicated resources" and "inferred resources". Northcliff advises investors that although these terms are recognized and required by Canadian regulations under NI43-101, the U.S. Securities and Exchange Commission does not recognize them. Investors are cautioned not to assume that any part or all of the mineral deposits in these categories will ever be converted into reserves. In addition, "inferred resources" have a great amount of uncertainty as to their existence, and 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, estimates of Inferred Mineral Resources may not form the basis of feasibility or pre-feasibility studies, or economic studies except for Preliminary Assessment as defined under NI 43-101. Investors are cautioned not to assume that part or all of an inferred resource exists, or is economically or legally mineable.
For further information:
on Northcliff and the Sisson Project, please visit www.northcliffresources.com or contact Investor Services at (604) 684-6365 or within North America at 1-800-667-2114.