Reservoir Minerals announces further drilling results from Timok Cu-Au project including 100 meters grading 4.31% CuEq and 204 meters grading 1.63% CuEq
VANCOUVER, BRITISH COLUMBIA–(Marketwire – Dec. 10, 2012) – Reservoir Minerals Inc. (“RMC” or the “Company“) (TSX VENTURE:RMC)(PINKSHEETS:RVRLF)(BERLIN:9RE) is pleased to provide an update on the diamond drilling program currently underway on the Chukaru Peki target in the Company’s Timok Project, eastern Serbia. The project is a joint venture with Freeport-McMoRan Exploration Corporation (“Freeport”). New drill results include 100 metres with an average grade of 4.31% copper equivalent (“CuEq”, average 3.17% copper and 1.91 grams per tonne (“g/t”) gold) from 584.0 to 684.0 metres in drill hole FMTC 1217 and 204 metres with an average grade of 1.63% CuEq (average 1.49% copper and 0.24 g/t gold) from 1082.0 to 1286.0 metres in FMTC 1214.
Dr. Simon Ingram, President and CEO of Reservoir Minerals Inc. commented: “Reservoir believes that the results from the wide-spaced drill holes continue to provide confirmation of the project’s potential as a significant copper-gold epithermal and porphyry system, the Timok Project is a very exciting project.”
Summary results, including those previously reported (“•”), are presented in the table below and as a graphical strip-log on the Company website (www.reservoirminerals.com).
|FMTC 1210||598.0||864.0||266.0||1.06||0.28||1.23||• Reported to depth of 1183 m in Company News Release July 16, 2012;|
|1026.0||1248.0||222.0||0.23||0.11||0.30||Andesite breccia, strongly silicified with disseminations and veinlets of pyrite, covellite and enargite.|
|1469.0||1864.0||395.0||0.30||0.09||0.35||Disseminated pyrite, chalcopyrite and local molybdenite mineralization|
|FMTC 1211||802.0||823.0||21.0||0.69||0.15||0.78||Covellite and enargite mineralization in altered andesite|
|FMTC 1212||828.0||867.6||39.6||0.37||0.23||0.51||Covellite mineralization within pervasive quartz-sericite-pyrite altered and mineralized andesite breccia from 666.0 to 1008.0 m|
|FMTC 1213||461.0||621.0||160.0||6.92||5.40||10.16||• Reported in Company News Release September 4, 2012|
|FMTC 1214||838.0||942.0||104.0||0.83||0.19||0.94||Disseminated pyrite with covellite and rare enargite veinlets in altered andesite breccia|
|1082.0||1286.0||204.0||1.49||0.24||1.63||Covellite and chalcopyrite veinlets and disseminations in brecciated andesite.|
|FMTC 1217||584.0||684.0||100.0||3.17||1.91||4.31||Massive, veinlets and disseminated pyrite, covellite and rare enargite in quartz-pyrite-alunite altered andesite breccia|
|718.0||781.0||63.0||0.63||0.44||0.90||Covellite, rare enargite, sphalerite veinlets in quartz-alunite-kaolinite altered andesite|
|827.0||857.5||30.5||1.09||0.01||1.10||Covellite and pyrite in veinlets and disseminations in quartz-kaolin altered andesite|
|* Analysis by ICP-AES using 0.5 g aliquot for samples containing less than 1% copper, by AAS for samples containing 1 – 11% copper, and by ICP-AES using 0.1 g aliquot for samples containing >11% copper.|
|** Analysis by fire assay with AAS finish for samples containing less than 3 g/t gold and, for FMTC 1213 and 1217 only, by fire assay with gravimetric finish for samples containing greater than 3 g/t gold.|
|*** The copper equivalent (CuEq%) is calculated from the formula (Copper % + 0.6 x g/t of gold).|
The Timok Project:
The Timok Project comprises the Jasikovo-Durlan Potok, Brestovac-Metovnica and Leskovo Exploration Permits that are held by Rakita d.o.o., a 100%-owned Serbian subsidiary of RMC in which Freeport has earned a 55% ownership interest. The Exploration Permits cover an area of 245 square kilometres in the highly prospective Timok Magmatic Complex, eastern Serbia, which includes the world-class Bor-Majdanpek mining and smelting complex with reported historical production of 6 million tonnes of copper and 300 tonnes of gold (9.65 million ounces gold) (BRGM publication BRGM/RC-51448-FR, 2002).
Drill Hole Results:
The collars of the four holes (FMTC 1210, 1213, 1214 and 1217) that have intercepted significant mineralization in the Chukaru Peki target are spaced at approximately 200 to 250 metres apart, as shown on the map on the Company website (www.reservoirminerals.com, Timok Project). The extent of the high-grade copper-gold mineralization remains open, and drilling is continuing in order to define the limits to the mineralized system.
Drilling reported to date has returned mineralogy and alteration typical of epithermal high sulphidation systems, with the exception of the lower 500 metres in drill hole FMTC 1210 where chalcopyrite is the dominant copper sulphide mineral, and is associated with minor molybdenite. At this early stage of exploration for a deep high-sulphidation epithermal and porphyry copper mineralized system typical of the Timok magmatic complex, it is not possible to determine the orientation of the mineralized zones, or to estimate their true thickness.
The results reported for drill hole FMTC 1210 pertain to the analyses received for the section 1,183.0 to 1,947.0 metres. Company News Release July 16, 2012, reported 266.0 metres (from 598 to 864 metres) grading 1.23% CuEq (1.07% copper and 0.28 g/t gold). At a depth of 1476 metres there is a marked change to lower grade chalcopyrite-dominated mineralization, with local molybdenite and specular hematite reported, hosted by a silicified andesite breccia with anhydrite-gypsum veins.
Drill hole FMTC 1211 intersected several zones of lower grade copper (covellite) mineralization in altered andesite and andesite breccia from 663.4 to 1074.0 metres. The best intercept is reported in Table 1.
Drill hole FMTC 1212 intersected several zones of weak to moderate copper mineralization (covellite and enargite) in andesite breccia.
Drill hole FMTC 1214 was collared approximately 300 metres ENE of FMTC 1210, and drilled with an inclination of -80º and azimuth 250º. The target was to test extensions from the copper gold mineralization previously reported in FMTC 1210. An interval of 480.6 metres (838.0 to 1308.6 metres, end of hole) included several zones of moderate to strong copper mineralization, the best of which are reported in Table 1. The copper sulphide (covellite, chalcopyrite, rare enargite and bornite) mineralization is hosted by strongly altered (quartz-sericite-pyrite) and brecciated andesite. The entire interval was mineralized yielding values ranging up to 6.99% copper over 1 metre, and a single 1 metre interval of massive sulphide that yielded 17.96% copper and 0.58 g/t gold. The longest section in this interval yielding an average 0.1% copper or less is 11 metres (1071.0 to 1082.0 metres; 0.10% Cu, 0.06 g/t gold). The grade and thickness are slightly greater than, and the style is similar to, the mineralization encountered from 598.0 to 864.0 metres in FMTC 1210. Core recovery was generally excellent, and recorded as 90 to 100% with the exception of eleven isolated 1 to 2 metre intervals in intensely tectonized sections, where the recovery decreased to a minimum of 45%.
Drill hole FMTC 1217 was collared approximately 200 metres WSW of FMTC 1213, and drilled with an inclination of -80º and azimuth 070º. The target was to test extensions from the high grade copper gold mineralization previously reported in FMTC 1213. The hole penetrated the base of the Miocene sediments at 223.8 metres, and then cut Upper Cretaceous marls before intersecting the target andesites at 525.0 metres. The altered pyritic andesite breccia is continuously mineralised from 584 – 684 metres (values in 1 metre sample lengths ranging from 0.37 to 12.24% copper and 0.18 to 13.70 g/t gold; 0.98 to 18.60% CuEq) by veinlets, stringers and disseminations of covellite and minor enargite. Sections with high-grade copper-gold mineralization (e.g. 587 – 599 metres) consist of massive pyrite together with covellite and enargite. Core recovery was generally excellent, and recorded as 90 to 100% with the exception of two isolated 1 metre intervals, where the recovery decreased to a minimum of 84%.
Note on Analytic procedures
Copper was routinely analyzed by inductively coupled plasma – atomic emission spectroscopy (ICP-AES) using 0.5 gram aliquots. Due to the exceptionally high grade of copper in some samples, repeat analyses were undertaken using atomic absorption spectroscopy (AAS) for samples containing 1 – 11% copper, and ICP-AES with longer sample digestion times and smaller aliquot of 0.1 gram for samples containing greater than 11% copper. The copper values in Table 1 of this news release are from the repeat analytical procedures as available, and otherwise by the routine procedure for the samples yielding less than 1% copper. Slight variations between the copper results for FMTC 1210 and 1213 reported in earlier News Releases are due to new analyses for high grade copper.
Gold was analyzed by fire assay (30 gram samples) with an AAS finish, and with a gravimetric finish for samples containing greater than 3 g/t gold. The results for gold reported in this news release are from fire assays with a gravimetric finish as available, and otherwise by fire assay with AAS finish for the samples yielding less than 3 g/t gold.
Note on Measurement of Bulk Density
Bulk density has been measured on 86 core samples from FMTC drill holes 1210 and 1213. The samples were representative of all rock types and different styles and grades of sulphide mineralization. The bulk density was measured at a commercial laboratory using the standard procedure to measure the dry bulk density by the water-displacement method on pieces of whole core that are sealed by hot wax to take account of vugs and cavities. A facility for systematically measuring the bulk density of drill cores is being established at the core logging and storage complex in Bor, eastern Serbia.
Status of Drilling
The status of drilling in the Miocene Basin area of the Brestovac – Metovnica Exploration Permit is shown in Table 2. The drill hole collar locations are shown on the map on the Company website (www.reservoirminerals.com, Timok Project). Pending analytical results will be released as they are received and evaluated.
|FMTC 1210||0||-90||1947.0||Completed. Results to 1183 m reported Company News Release July 16, 2012. Remaining results reported in this News Release|
|FMTC 1211||0||-90||1167.4||Completed. Results reported in this News Release|
|FMTC 1212||0||-90||1008.8||Completed. Results reported in this News Release|
|FMTC 1213||0||-90||798.1||Completed. Reported in Company News Release September 4, 2012|
|FMTC 1214||250||-80||1308.6||Completed. Results reported in this News Release|
|FMTC 1215||0||-90||950.8||Completed, logging and sampling in progress|
|FMTC 1216||250||-70||921.0||Completed, logging and sampling in progress|
|FMTC 1217||070||-80||1006.7||Completed. Results reported in this News Release|
|FMTC 1218||0||-90||In progress|
|FMTC 1219||0||-90||In progress|
|FMTC 1220||0||-90||1079.5||Completed, logging and sampling in progress|
|FMTC 1221||0||-90||1004,5||Completed, logging and sampling in progress|
|FMTC 1223||0||-90||In progress|
|Table 2: Status of drill holes in the Miocene Cover area (Chukaru Peki target) on November 21, 2012|
The drill holes are located approximately 7.5 kilometers from the Bor cluster of copper-gold deposits including high sulphidation epithermal mineralization (now mined out, e.g. the Tilva Ros Deposit) that extends down plunge into the Borska Reka porphyry deposit, which has been drill tested to at least 1,500 metres (see the Company website for relevant maps and sections).
Freeport has given notice to the Company that it has exercised the Earn-In Option to acquire a 55% equity interest in the Timok Project in Serbia. RMC and Freeport are forming a Joint Venture to continue exploration of the Project and Freeport will become the operator. Freeport has also given notice to the Company that it has elected to continue to sole fund expenditures on or for the benefit of the Project until the completion and delivery to the Company of a feasibility study, or such earlier time as it elects to cease such funding. The feasibility study must be in such form as is normally required by substantial, internationally recognized financial institutions for the purpose of deciding whether or not to loan funds for the development of mineral deposits. If Freeport completes the feasibility study, Freeport will indirectly own 75% and the Company will own 25% of the Timok Project.
Quality Assurance and Control (“QAQC”):
Drill hole orientations were surveyed at approximately 50 metre intervals. Company personnel monitored the drilling, with cores delivered daily to the Company’s core storage facility in the town of Bor, where it was logged, cut and sampled. Core recovery is recorded as 100% in most intervals, with the exception of the more intensely tectonized sections. The samples were collected in accordance with the Company’s protocols that are compatible with accepted industry procedures and best practice standards. Most samples through the mineralized intervals were 1 metre in length, up to a maximum 2 metres in sections of poorly mineralized or unmineralized core. The samples were submitted to Eurotest Control EAD Laboratory (ISO 9001:2008 and ISO 17025 accredited) in Sofia, Bulgaria, for sample preparation and analysis. In addition to the laboratory’s internal QAQC procedures, the Company conducted its own QAQC with the systematic inclusion of certified reference materials, blank samples and field duplicate samples. The analytical results from the Company’s quality control samples have been evaluated, and demonstrated to conform to best practice standards.
Dr. Duncan Large, Chartered Engineer (UK) and Eur. Geol., a Qualified Person under National Instrument 43-101 Standards of Disclosure for Mineral Projects of the Canadian Securities Administrators and a consultant to the Company, approved the technical disclosure in this release and has verified the data disclosed.
About the Company:
Reservoir Minerals Inc. is an international mineral exploration and development company run by a experienced technical and management team, with a portfolio of precious and base metal exploration properties in Serbia and West Africa.
For further information on Reservoir Minerals Inc., please consult our website www.reservoirminerals.com.
This news release includes certain “forward-looking statements” under applicable Canadian securities legislation. Such forward-looking statements or information, including but not limited to those with respect to exploration results, involve known and unknown risks, uncertainties, and other factors which may cause the actual results, performance or achievements of Reservoir Minerals Inc. to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements or information. Such factors include, among others, the actual prices of commodities, the factual results of current exploration, development and mining activities, changes in project parameters as plans continue to be evaluated, as well as those factors disclosed in documents filed from time to time with the securities regulators in the applicable Provinces of British Columbia and Alberta.
Neither TSX Venture Exchange nor the Investment Industry Regulatory Organization of Canada accepts responsibility for the adequacy or accuracy of this release.