VANCOUVER, BC, July 22, 2011 -- Canyon Copper Corp. (the "Company") (TSX-V: CNC) (OTCBB: CNYC)
As a result of a review by the British Columbia Securities Commission, we are issuing the following news release to clarify our disclosure. The information contained in this news release is intended to provide clarification to prior disclosure contained in a stockwatch eBlast dated July 21, 2011 (the "eBlast") and disclosure on the Company's website (the "Website").
We are issuing this news release to clarify the following disclosure:
1. Non-Compliant Disclosure of Mineral Resources
The eBlast and Website disclosed a mineral resource estimate for the Longshot Ridge target at the New York Canyon Project contrary to National Instrument 43-101 -- Standards of Disclosure for Mineral Projects ("NI 43-101"). This mineral resource estimate disclosure is non-compliant with NI 43-101 for the following reasons: (i) inferred mineral resources cannot be added to other categories of mineral resources; (ii) fails to provide written disclosure applicable to mineral resource estimates; and (iii) fails to state the mineral resource estimate in tonnes and grades. Accordingly, we advise that such mineral resource disclosure is retracted and has been removed from the Website.
Instead, the Company's mineral resource estimate on the Longshot Ridge target should have been disclosed as an indicated mineral resource estimate, at a cut-off grade of 0.2% copper, of 16,250,000 tons at an average grade of 0.43% Cu, and an inferred mineral resource estimate, at cut-off grade of 0.2% copper, of 2,900,000 tons at an average grade of 0.31% Cu (see NI 43-101 Technical Report filed on SEDAR on May 6, 2010 and news release dated May 3, 2010).
2. Non-Compliant Disclosure of Historical Estimates
The eBlast and Website also disclosed a historical estimate prepared by Conoco Oil Company that is contrary to NI 43-101. This historical estimate is non-compliant with NI 43-101 for the following reasons: (i) fails to identify the source and date of the historical estimate; (ii) does not comment on the relevance and reliability of the historical estimate; (iii) fails to provide key assumptions, parameters, and methods use to prepare historical estimates, if known; (iv) does not state whether the historical estimate uses categories other than those set out in NI 43-101; and (v) does not state that the qualified person has not done sufficient work to classify the historical estimate as a current mineral resource and that the Company is not treating the historical estimate as current. Accordingly, we advise that such historical estimate disclosure is retracted and has been removed from the Website.
Instead, the historical estimate should have disclosed that Conoco Oil Company, completed a significant drilling program and outlined a historical "drill indicated reserve" at Copper Queen. In an internal report dated September 21, 1979, Conoco Oil Company outlined a historical "drilled indicated reserve" of 142,000,000 tons grading 0.35% copper and 0.015% molybdenum for Copper Queen. The historical "drilled indicated reserve" cited above is mentioned for historical purposes only and uses terminology not compliant with current reporting standards. The reliability of these historical estimates is unknown but considered relevant by the Company as it represents a target for future exploration work by the Company. The qualified person has not made any attempt to re-classify the estimates accordingly to current NI 43-101 standards of disclosure or the CIM definitions. The Company is not treating this estimate as current mineral resources or mineral reserves as defined in NI 43-101. Historical reserves are not equivalent to mineral reserves as they are not supported by at least a preliminary feasibility study.
3. Failure to Name Qualified Person
The eBlast and Website failed to identify a qualified person who prepared or supervised the preparation of the information in the eBlast and the Website. This is contrary to NI 43-101 which requires that all written disclosure, containing scientific or technical information on a mineral project, must disclose the name of the qualified person who prepare or supervised the preparation of the information that forms the basis for the written disclosure, or approved the written disclosure. As a result, the Company has now disclosed on its website that Benjamin Ainsworth, P.Eng, BC, the President of the Company, is a Qualified Person as defined by NI 43-101 and has approved the written disclosure of the New York Canyon Project contained on the Company's Website.
Mr. Ainsworth, P. Eng, BC, with Licence #8648 and the President of the Company, is a Qualified Person as defined by NI 43-101 and has reviewed and approved the contents of this news release.
On behalf of the Board of Directors,
CANYON COPPER CORP.
Anthony Harvey, CEO and President
Canyon Copper Corp.
(604) 684-9365 (FAX)
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, and expressly does not undertake any duty to update forward-looking statements. These factors include, but are not limited to the following, the Company's ability to obtain additional financing, the Company's ability to complete the planned exploration program on the New York Canyon Project, 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 "measurer", "indicated" and "inferred" "resources." 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, estates 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 measurers. 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.