Highland Copper Company reports high grade copper, locally elevated silver grades at the Keweenaw copper project, Michigan
LONGUEUIL, QUEBEC–(Marketwire – Nov. 27, 2012) – Highland Copper Company Inc. (TSX VENTURE:HI) ("Highland" or the "Company") is pleased to announce results from 18 additional diamond drill holes at the historical 543S chalcocite deposit of the Keweenaw project in the Upper Peninsula of Michigan, U.S.A. Some of the longer and higher grade intersections from holes for which all assays have been received and checked include:
- CEN382: 13.5 meters of 3.23% Cu, 21.5 g/t Ag including:
- 4.5 meters of 5.39% Cu, 1.3 g/t Ag, and
- 3.4 meters of 3.41% Cu, 69.5 g/t Ag
- CEN337: 23.87 meters of 2.31% Cu, 3.6 g/t Ag including:
- 4.08 meters of 5.27% Cu, 9.2 g/t Ag
Also: 10.16 meters of 2.86% Cu, 2.8 g/t Ag
- 4.08 meters of 5.27% Cu, 9.2 g/t Ag
- CEN339: 24.6 meters of 2.37% Cu, 5.4 g/t Ag
- CEN320: 23.0 meters of 0.72% Cu, 1.3 g/tm Ag
In addition to high grade copper zones in holes CEN382, CEN337, and CEN339 elevated silver grades were also intersected. Considerable lengths of 0.20 – 0.75% Cu mineralization continue to occur as lower grade envelopes next to the higher grade zones and as separate zones as in CEN 320. Mineralization containing less than 0.75% Cu was not included in the historic resource estimate of the 543S deposit, although these lower grade intersections could provide additional upside for the deposit at current copper prices. Assay results are summarized in Table 1and drill hole locations are on Figure 1. Complete assay results to date are available on Highland's website. Cross sections on lines 200E and 1200E (Figures 2 and 3) illustrate the continuity of mineralized zones at a 0.20% Cu cut-off. Table 1 and all figures are at the end of this news release.
Although assays have been reported for only 60 percent of the holes drilled, grade-thickness contours for drill intersections at a 0.20% Cu cutoff illustrate the continuity of the mineralization in horizontal plan (see Figure 4). The values on Figure 4 are projected vertically to the surface and for 40 degree north-dipping lenses of mineralization this results in a 25% foreshortening of the full north-south down-dip dimension of the mineralization. The higher values are surrounded by a large zone of lower values.
"The internal continuity of high grade assay intersections in individual drill holes continues to be notable," said Dr. Ross R. Grunwald, Vice president – Exploration for Highland. In addition, grade-thickness contours demonstrate considerable continuity between adjacent drill holes and may identify areas for further drilling. Upon completion of the planned program to fill in the historic drill grid to a 30 meter or less drill spacing at 543S, drills will be moved to several of the numerous additional chalcocite prospects in this area. Drilling is planned through the winter with two or three machines. "
The 2012 drill holes are within an area of 101 historic diamond drill holes called the 543S sulphide deposit, a zone of chalcocite mineralization that was explored from 1973-1977 and briefly in the mid-nineties. The 543S deposit contains a historic resource estimate of 4.5 million short tons averaging 2.27% Cu at a 0.75% Cu cut-off grade as described in a Technical Report by Behre Dolbear & Company, Ltd. titled "Centennial and Kingston Native Copper, 543S, and Other Copper Sulfide Properties, Houghton and Keweenaw Counties, Michigan, USA" dated September 29, 2011. The Company has not completed the work necessary to classify the historical estimate mentioned above as current mineral resources. The Company is not treating the historical estimate as current mineral resources as defined in NI 43-101 and the historical estimate should not be relied upon. The historical resource estimate is contained in six separate lenses averaging 5.0 meters (16.5 ft.) true thickness that dip about 40° to the north.
Highland's objective is to verify the non-compliant historic drill results with compliant assay data by reducing the historic drill hole spacing and twinning selected historic holes to establish a resource estimate compliant with Canadian National Instrument 43-101 ("NI 43-101"). Resource modeling is expected to begin in early 2013.
TABLE 1. Composite assay intersections from 543S diamond drilling
(0.20% Cu cut-off)
|CEN317||21.0 – 28.0||7.0||1.37||1.8|
|CEN318||80.5 – 86.5||6.0||1.54||2.1|
|CEN319||88.3 – 91.8||3.5||0.27||0.5|
|116.3 – 120.1||3.8||0.39||0.9|
|139.5 – 142.5||3.0||0.56||0.5|
|161.4 – 167.4||6.0||0.60||1.5|
|CEN320||152.5 – 175.5||23.0||0.72||1.3|
|CEN330||79.1 – 83.6||4.5||1.24||5.0|
|96.6 – 98.7||2.1||3.52||2.0|
|CEN336||49.35 – 54.2||4.85||0.62||2.2|
|66.5 – 71.5||5.0||2.06||1.8|
|Including||69.0 – 71.0||2.0||4.23||3.5|
|76.7 – 82.7||6.0||3.80||1.6|
|Including||79.7 – 82.2||2.5||8.22||3.1|
|CEN337||83.63 – 107.5||23.87||2.31||3.6|
|Including||84.25 – 88.33||4.08||5.27||9.2|
|Including||97.55 – 100.0||2.45||4.88||2.4|
|119.65 – 129.81||10.16||2.86||2.8|
|Including||125.15 – 128.81||3.66||4.84||4.8|
|CEN339||64.2 – 88.8||24.6||2.37||5.4|
|Including||65.7 – 68.7||3.0||4.49||4.5|
|Including||77.3 – 81.3||4.0||6.26||5.9|
|CEN342||No significant assays|
|CEN343||51.5 – 54.7||3.2||4.34||4.2|
|60.5 – 67.5||7.0||0.32||1.2|
|81.0 – 84.26||3.26||0.34||0.5|
|CEN349||59.0 – 61.0||2.0||1.84||1.4|
|CEN351||24.0 – 31.7||7.7||0.47||0.9|
|59.0 – 61.5||2.5||1.83||1.1|
|CEN355||119.5 – 124.5||5.0||3.08||14.3|
|172.5 – 181.0||8.5||0.36||0.9|
|183.0 – 185.5||2.5||1.89||3.0|
|CEN358||No significant assays|
|CEN361||50.9 – 54.4||3.5||0.48||1.7|
|94.5 – 97.5||3.0||0.50||1.2|
|110.2 – 115.25||5.05||0.28||2.7|
|CEN363||159.1 – 161.1||2.0||1.72||4.8|
|166.6 – 168.6:||2.0||0.65||1.8|
|218.5 – 221.0||2.5||2.12||35.4|
|CEN382||43.5 – 57.0||13.5||3.23||21.5|
|Including||44.0 – 48.5||4.5||5.39||1.3|
|Including||53.6 – 57.0||3.4||3.41||69.5|
|CEN386||No significant assays|
Lens-like zones of mineralization, largely in brecciated tops of amygdaloidal Precambrian basalt lava flows, consist mostly of primary chalcocite accompanied by small amounts of native copper and native silver. Silver in the copper-bearing zones varies mostly from 1-15 g/tonne Ag. Traces of other sulfide minerals are also present. Mineralization comes to the bedrock surface and is covered by 3 to 30 meters of glacial deposits. The 543S deposit is in the western portion of a 20-mile long belt of chalcocite prospects that extends east from a belt of large native copper mines, centered near the town of Calumet, Michigan, that were mined for about 130 years before closing in 1968 due to low copper prices.
Drilling, Sampling, Assaying and QAQC
The 2012 drill holes are mostly on cross sections spaced at 30 meter intervals between the historic 60 meter grid lines at the 543S deposit. All holes reported on Table 1 are inclined to the south along section lines shown on Figure 1. Hole inclinations are selected to approximate a true width intersection of the mineralized lenses based on regional information on the dips of the lava flows. Holes reported as unmineralized contain less than 3 continuous meters averaging at least 0.20% Cu and are mostly confined to edges of the 543S deposit.
All technical information for the 543S exploration program is collected under a formal quality assurance and quality control (QAQC) program that has been reviewed by two independent qualified persons as defined in NI 43-101. Samples are taken under the direction of qualified geologists and stored in sealed bags. Samples are then placed in sealed containers and delivered via courier or common carrier to Accurassay Labs and ActLabs, both certified analytical facilities in Thunder Bay, Ontario, Canada for analysis. Copper and silver contents are determined at both labs using a four acid digestion procedure.
The technical information contained in this news release has been reviewed and approved by Ross R. Grunwald, PhD., Vice president – Exploration for the Company. Dr. Grunwald is a qualified person as defined in NI 43-101.
Keweenaw Copper Project
The Keweenaw Copper Project covers about 13,000 acres of mineral rights and is being explored under a Mining Venture Agreement between Highland and BRP LLC. The agreement allows Highland to earn a 65 percent interest by spending US$11.5 million in expenditures on the project and providing a feasibility study by October 26, 2015. More information about the Keweenaw Copper Project is available in Behre Dolbear's NI 43-101 Technical Report, available on the Company's website at www.highlandcopper.com and on SEDAR at www.sedar.com.
Certain statements contained in this press release constitute forward looking information under the provisions of Canadian provincial securities laws. Such statements include without limitation: the Company's exploration plans and objectives to complete a mineral resource estimate and resource modeling; and other statements and information regarding anticipated results regarding the Company's operations and exploration. Such statements reflect the Company's views as at the date of this press release and are subject to certain risks, uncertainties and assumptions, and undue reliance should not be placed on such statements. Actual results may be materially different from those currently anticipated. Many factors, known and unknown, could cause the actual results to be materially different from those expressed or implied by such forward looking statements. Such risks include, but are not limited to: the volatility of copper price; the uncertainty of exploration results, capital expenditure requirements and other costs; the uncertainties related to the Company's ability to acquire a 65% interest in the Keweenaw project; the uncertainties related to the Company's ability to confirm the historical drill results and resources; currency fluctuations; the availability of financing for additional capital requirements, cost of exploration and development programs; mining risks; risks associated with governmental and environmental regulation and obtaining all the necessary permits for the development of the project; and risks associated with global economic growth. The Company does not intend, and does not assume any obligation, to update these forward-looking statements and information, except as required by law. Accordingly, readers are advised not to place undue reliance on forward-looking statements.
United States investors are cautioned not to assume that all or any part of a mineral resource, if confirmed, will ever be converted into mineral reserves. Mineral resources have a great amount of uncertainty as to their existence, and as to their economic and legal feasibility.
Highland Copper Company Inc. is a Canadian exploration company focused on exploring and developing copper projects on the Keweenaw Peninsula within the Upper Peninsula of Michigan, U.S.A. through its 100%-held subsidiary, Keweenaw Copper Co. The Company is well funded having completed a $16.5 million private placement in May 2012. The common shares of Highland trade on the TSX Venture Exchange under the symbol 'HI'. Additional information about the Company is available on the Company's website and on SEDAR.
Figures 1 to 4 are available at the following address: http://media3.marketwire.com/docs/Highland_figures_1127.pdf
Neither the 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.