Teck's option agreement bearing fruit in MexicoCatalyst Copper's La Verde has 2.1 billion lb Cu M+I
Catalyst Copper Corp (C:CCY)
Shares Issued 210,499,846
Last Close 12/16/2010 $0.17
Friday December 17 2010 - News Release
Mr. Terence Hodson reports
CATALYST COPPER ANNOUNCES RESOURCE ESTIMATE FOR LA VERDE, MEXICO
Micon International Engineering, of Vancouver, has completed an NI 43-101-compliant independent resource estimate of Catalyst Copper Corp.'s La Verde copper project, Michoacan state, Mexico.
Using a cut-off grade of 0.2 per cent copper, the East and West Hill deposits at La Verde contain measured and indicated resources of 210.5 million tonnes averaging 0.46 per cent total copper (TCu), containing 2.1 billion pounds of copper. An inferred resource of 130.8 million tonnes grading 0.46 per cent TCu contains 1.3 billion pounds of copper.
The Micon report indicates that there is potential for additional tonnage in both deposits especially at depth. Micon, therefore, recommends that additional delineation drilling around the perimeter of the deposits and at depth should be initiated.
The resource has been calculated at various copper cut-off grades and is based on drill results including 596 drill holes totalling 80,606 metres conducted by previous owners. Results from these historic holes were verified with 11 diamond drill holes totalling 6,319 metres, plus nine definition drill holes totalling 5,957 metres completed by Catalyst Copper this year.
"We are extremely pleased with the increased size of the deposits utilizing a 0.2-per-cent copper cut-off and the potential to further improve on the size with the 2011 drill program. These two deposits are exposed at surface and amenable to low-cost, open-pit mining. This, along with the is excellent infrastructure that exists on site, should reduce future anticipated capital and operating costs for this project," says Terry Hodson, Catalyst's vice-president of exploration.
MEASURED, INDICATED AND INFERRED RESOURCES
(total East Hill plus West Hill)
Copper Measured and indicated Copper Inferred tonnes Copper
cut-off tonnes (%) (%)
(%)
0.1 345,165,850 0.34 240,761,200 0.31
0.2 210,487,200 0.46 130,768,400 0.45
0.3 142,785,350 0.56 84,913,150 0.57
0.4 93,595,500 0.67 54,333,700 0.69
0.5 60,113,350 0.79 34,807,650 0.82
It cannot be assumed that all or any part of an inferred mineral
resource will be upgraded to an indicated or measured resource as a
result of continued exploration.
Mineral resources are not mineral reserves because there is
insufficient studies to demonstrate economic viability.
Mineral resources are global in situ totals.
Mineral resource numbers have been rounded and may not add up.
An NI 43-101 technical report detailing the mineral resource estimate will be filed on SEDAR within the next 45 days.
Copper mineralization associated with the deposits is primarily chalcopyrite and, to a lesser extent, bornite. Historically gold (Au), silver (Ag) and molybdenite (Mo) values are known to be associated with the deposits; currently, the number of assays available for these elements is insufficient to interpolate Au, Ag and Mo grades into the block model.
The project is located in an area with excellent infrastructure. Power, rail and water all cross the property. Lazaro Cardenas, Mexico's third largest port on the Pacific Ocean coast, is 150 kilometres from the site. Significant upside potential remains for the two known zones of porphyry-style copper, gold and molybdenum mineralization as the 2010 drill program has shown both deposits remain open to depth and along strike.
The resource was prepared by D. Makepeace, PEng, senior geologist for Micon, who is an independent qualified person as defined by NI 43-101. The mineral resource estimate was completed using a 3-D computer model. The drill hole database was based on 616 drill holes which totalled 92,881 metres. A composite interval of five metres was used and constrained to geological rock types. A single block model (10 by 10 by 10 metres) was created to envelope both mineralized deposits. Block grades were interpolated using the inverse distance squared technique. The estimate did not employ a high-grade copper cap. A density (specific gravity) of 2.70 grams per cubic centimetre was used for the East Hill deposit (porphyry-style mineralization), while the West Hill deposit (chalcopyrite vein-style mineralization) used 2.75 grams per cubic centimetre, based on historical density measurements. All quality assurance/quality control (QA/QC) requirements have been followed, including incorporating standards, blanks and duplicates into the assay procedures and independent check analyses by a second laboratory.
The La Verde property is subject to an option agreement with a Mexican subsidiary of Teck Resources Ltd., whereby Catalyst's 100-per-cent Mexican subsidiary, Minera Hill 29, may earn a 60-per-cent interest in La Verde by making $10-million (U.S.) in exploration expenditures (including 30,000 metres of drilling and 200 kilometres of induced polarization (IP)) by Dec. 31, 2012. During 2010, Catalyst drilled 12,276 metres and completed 150 kilometres of induced polarization surveys. Upon Catalyst earning a 60-per-cent interest, Teck has the option to increase its interest to 60 per cent by incurring total expenditures equal to two times the amount spent by Catalyst. Should Teck fail to exercise its option to earn a 60-per-cent interest, Catalyst can acquire a 100-per-cent interest in La Verde by paying to Teck $20-million (U.S.). The property is subject to an underlying 0.5-per-cent net smelter return (NSR) royalty.
Catalyst Copper currently has approximately $3.5-million in working capital, as a result of the addition of $1.4-million from the exercise of warrants to purchase 10 million shares at 14 cents per share. An aggressive work program is planned for 2011, including commencement of environmental baseline studies, metallurgical testwork, continued definition drilling at the East and West Hill deposits, plus drill testing of various geophysical anomalies.