VANCOUVER, BC, May 3, 2010 - Canyon Copper Corp. (the "Company") (OTCBB:CNYC) is pleased to announce that a Canadian National Instrument 43-101 report has been completed in which Giroux Consultants Ltd. estimated indicated and inferred resources on the Longshot Ridge copper skarn deposit at the New York Canyon Project. The New York Canyon Project is located in the Santa Fe Mining District, Mineral County, Nevada.
Highlights
Highlights of the mineral estimate include:
- Indicated resources of 16,250,000 tons at an average grade of 0.43% Cu hosting 139,750,000 pounds of Cu, based on a Cu cut-off grade of 0.20%.
- Inferred resources of 2,900,000 tons at an average grade of 0.31% Cu hosting 18,210,000 pounds of Cu, based on a Cu cut-off grade of 0.20%.
Anthony Harvey, CEO and President of the Company, comments "We are extremely pleased to complete this mineral resource estimate on the Longshot Ridge copper skarn deposit. In order to continue moving forward on the New York Canyon Project, we will focus on upgrading and expanding our resources and re-analyzing samples from our 2006 drill program on Longshot Ridge."
Mineral Resource Estimate
The mineral resource estimate is based on 58 historical drill holes and 38 drill holes completed by the Company during the period from 2004 to 2005. This data was complemented with samples from 34 surface trenches and road cuts obtained from Longshot Ridge by previous exploration operators. The mineral resource estimate did not incorporate a further 33 drill holes (7 HQ diamond drill holes and 26 reverse circular holes) completed by the Company in 2006. The Company's consulting geologists have recommended that the 2006 drilling program be re-assayed prior to being incorporated into a mineral resource estimate.
The total mineral resource estimate at various cut-off grades is tabulated
below.
Total Mineral Resource Estimate for Longshot Ridge Deposit - Indicated
|
Cu Cutoff |
Tonnes> Cutoff |
Grade > Cutoff |
Contained |
|
(%) |
(tons) |
Cu (%) |
Cu (lbs) |
|
0.20 |
16,250,000 |
0.43 |
139,750,000 |
|
0.25 |
14,160,000 |
0.46 |
130,270,000 |
|
0.30 |
11,660,000 |
0.50 |
116,600,000 |
|
0.35 |
9,420,000 |
0.54 |
102,110,000 |
|
0.40 |
7,220,000 |
0.59 |
85,630,000 |
|
0.45 |
5,620,000 |
0.64 |
72,160,000 |
|
0.50 |
4,420,000 |
0.69 |
60,730,000 |
|
0.55 |
3,390,000 |
0.74 |
49,970,000 |
|
0.60 |
2,590,000 |
0.79 |
40,770,000 |
|
0.65 |
1,950,000 |
0.84 |
32,760,000 |
|
0.70 |
1,550,000 |
0.88 |
27,370,000 |
|
0.75 |
1,170,000 |
0.94 |
21,930,000 |
Total Mineral Resource Estimate for Longshot Ridge Deposit -- Inferred
|
Cu Cutoff |
Tonnes> Cutoff |
Grade > Cutoff |
Contained |
|
(%) |
(tons) |
Cu (%) |
Cu (lbs) |
|
0.20 |
2,900,000 |
0.31 |
18,210,000 |
|
0.25 |
1,870,000 |
0.36 |
13,580,000 |
|
0.30 |
1,220,000 |
0.41 |
10,000,000 |
|
0.35 |
790,000 |
0.46 |
7,220,000 |
|
0.40 |
530,000 |
0.50 |
5,250,000 |
|
0.45 |
350,000 |
0.53 |
3,720,000 |
|
0.50 |
240,000 |
0.56 |
2,670,000 |
|
0.55 |
110,000 |
0.60 |
1,320,000 |
|
0.60 |
50,000 |
0.64 |
640,000 |
|
0.65 |
20,000 |
0.73 |
290,000 |
|
0.70 |
20,000 |
0.73 |
290,000 |
|
0.75 |
10,000 |
0.76 |
150,000 |
The resource estimate was completed by Gary Giroux, P. Eng., of Giroux Consultants Ltd., using industry standard methods that conform with Canadian Institute of Mining, Metallurgy and Petroleum ("CIM") Definition Standards on Mineral Resources and Mineral Reserves referred to in National Instrument 43-101 - Standards of Disclosure for Mineral Projects.
Resource Estimation Process
The data and methodology utilized for the resource estimate is as follows:
- Mineral resources were estimated using industry standards that conform with CIM Definition Standards on Mineral Resources and Mineral Reserves referred to in National Instrument 43-101 - Standards of Disclosure for Mineral Projects.
- The mineral resource estimate database contains 58 historic drill holes totalling 18,469 feet, 38 drill holes (10 HQ diamond drill holes and 28 reverse circular drill holes) totalling 14,585 feet completed by the Company during the period from 2004 to 2005 and various surface and trench samples obtained from Longshot Ridge.
- Outlier high copper assays were capped at 4% Cu within the mineralized solid and at 1.3% Cu if outside the solid.
- Uniform 20 ft. composites were produced both inside and outside the mineralized solid from capped Cu values.
- Semivariograms were produced for Cu inside and outside the mineralized solid and used both to estimate and classify the resource.
- A three-dimensional geological and block model was generated using GemCom and Techbase software. A block model with blocks of 50 x 50 x 40 feet in dimensions was placed over the mineralized solid with the percentage below topography and inside the mineralized solid recorded in each block.
- Density of 2.94 for the mineralized zone and 2.70 outside the mineralized zone.
- Copper grades were interpolated into all blocks by using an ordinary kriging estimation method.
- Blocks were classified as either indicated or inferred based on grade continuity quantified by the semivariogram.
The Company has filed its updated National Instrument 43-101 Technical Report on SEDAR concurrent with the issuance of this news release. The Technical Report can be accessed at www.sedar.com.
Qualified Person
This news release was reviewed and approved by Chris Broili, C.P. Geo., and L.P. Geo., and Mel Klohn, L.P. Geo, both of BK Exploration Associates, and Gary Giroux, P. Eng., of Giroux Consultants Ltd. Mr. Broili, Mr. Klohn and Mr. Giroux are independent Qualified Persons as defined by National Instrument 43-101 and are the authors of the updated National Instrument 43-101 Technical Report.
Mr. Ainsworth, P. Eng, the President of the Company, has reviewed and approved the contents of this news release and is a Qualified Person as defined by National Instrument 43-101.
About Canyon Copper
The Company's New York Canyon Property is located in the New York Canyon area of the Santa Fe Mining District, Mineral County, Nevada. The project hosts zones oxide and sulphide copper bearing mineralization outlined by historical operators. Conoco Oil Company, one of these historical operators, noted an historical "drilled indicated reserves" (not compliant with National Instrument 43-101) with 13.2 million tons (11.0 million tonnes) grading 0.55% copper for the Longshot Ridge Zone and 142 million tons (129 million tonnes) grading 0.35% copper and 0.015% molybdenum for the Copper Queen Zone in an internal report dated September 21, 1979. NOTE: The "drilled indicated reserve" cited above are mentioned for historical purposes only. These are historical resource estimates prepared prior to the implementation of NI 43-101 and use terminology not compliant with current reporting standards. The authors of this Technical Report, Chris Broili, C.P. Geo., and L.P. Geo., and Mel Klohn, L.P. Geo, both of BK Exploration Associates, and Gary Giroux, P. Eng., of Giroux Consultants Ltd., have not audited these historical estimates nor made any attempt to re-classify the estimates according to current NI 43-101 Standards of Disclosure or the CIM standards. The Company is not treating this estimate as current mineral resources or mineral reserves as defined in NI 43-101. These historical estimates should not be relied upon.
The most advanced of these zones is the Longshot Ridge copper oxide deposit. This zone has not been completely outlined and remains open. The Copper Queen mineralized zone is located approximately three kilometres west of Longshot Ridge and hosts copper and molybdenum sulphide mineralization. Several additional mineralized areas identified throughout the New York Canyon property have yet to be explored.
On behalf of the Board of Directors,
"Anthony Harvey"
CANYON COPPER CORP.
Anthony Harvey, CEO and 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 the Company's expectations. These factors include, but are not limited to the following, the Company's ability to complete its proposed exploration program to re-analyze samples obtained from its 2006 drill program on Longshot Ridge, the Company will obtain additional financing to implement its proposed exploration program, geological or physical difficulties affecting the Company's planned geological work programs, uncertainty of estimates of mineralized material and other factors which may cause the actual results, performance or achievements of the Company 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 uses the terms "measured", "indicated" and "inferred" "resource" in accordance with National Instrument 43-101 -- Standards of Disclosure for Mineral Projects, as required by Canadian securities regulatory authorities. 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, estimates 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 measurements. The term "contained copper pounds" used in this News Release is not permitted under the rules of the SEC. U.S. investors are cautioned not to assume that any part or all of a measured, indicated or inferred resource exists or its economically or legally mineable.
Contact:
Canyon Copper Corp.
Investor Relations
(604) 331-9326
(604) 684-9365 (FAX)