|VANCOUVER, BC, June 20, 2014 - Canyon Copper Corp. (the "Company") (TSX-V: CNC)|
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 disclosure on the Company's website (the "Website") and disclosure contained in the following investor materials contained on the Website (the "Investor Materials"): (i) a corporate presentation titled "Highly Advanced Copper Resource Projects in Western USA" dated March 2012 (the "Corporate Presentation"), (ii) the Bottom Line Report dated April 5, 2012 (the "Bottom Line Report"), and (iii) an April 2012 Article by M. Schwartz from Resource World Magazine (the "Resource World Magazine").
We are issuing this news release to clarify the following disclosure:
In addition, the Company retracts all disclosure of near-term mine production of oxide copper at the New York Canyon and Moonlight Properties. In order for the Company to disclose near-term production, it would need either a pre-feasibility study or feasibility study based on current indicated or measured resource estimates. If the company does advance to oxide production before achieving these milestones, the resulting operations would have a higher risk of technical or economic failure.
Instead, the Company's historical mineral resource estimate on the oxide copper deposit on the Moonlight Property should have been disclosed as per the above 1972 historical oxide estimate by Amex, and the website is being amended accordingly.
The Bottom Line Report and the Corporate Presentation also disclosed that historical resource sulphide estimate was "non-compliant" because changes to property boundaries. Alternatively, the Company's website disclosed that the historical resource estimate was wholly contained with the claims that now comprise the Moonlight Property. The Company wishes to confirm that the Bottom Line Report and the Corporate Presentation are incorrect are misleading as the historical sulphide resource estimate is located within the current claim boundaries of the Moonlight Property.
Instead, the historical estimate should have disclosed that Sheffield Resources Ltd., in the technical report titled "Moonlight Copper Property, Plumas County, California" dated April 2007, prepared by George Cavey, P.Geo and Gary Giroux, P.Eng., and filed on SEDAR on May 14, 2007, disclosed a historical indicated resource of 161,570,000 tons @ 0.324% Cu and a historical inferred resource of 88,350,000 tons @ 0.282% Cu. The historical estimate cited above uses "indicated mineral resource" and "inferred mineral resource", which are categories set out in National Instrument 43-101. Accordingly, Canyon considers these historical estimates reliable as well as relevant as it represents a target for future exploration work by Canyon. The data base for the historical estimate consisted of 207 drill holes and 11,165 sample intervals. Of the drill holes, 194 diamond drill holes were drilled by Placer and 13 diamond drill holes were drilled by Sheffield. Gold and silver values compared reasonably well and the copper values of the Sheffield drill holes were significantly higher (most likely as a result of the larger size HQ diamond drilling) than the Placer drill results. The author of the historical resource estimate used the Placer results as they represented a more conservative estimate. In addition, the author also used a three dimensional block model using a kriging method to calculate the historical resource estimate. The qualified person has not done sufficient work to classify the historical estimate as a current mineral resource and Canyon is treating these historical estimates as relevant but not current mineral resources.
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 assumption, parameters and methods used to calculate this historical resource estimate are not known to 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.
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.
Benjamin Ainsworth, CEO and President
Cautionary Statement Regarding Forward Looking Information
This News Release may contain, in addition to historical information, forward-looking statements. 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.