TORONTO, June 30, 2015 (GLOBE NEWSWIRE) -- Nuinsco Resources Limited ("Nuinsco" or "the Company") (www.nuinsco.ca) today announced the completion of the initial NI 43-101 resource estimate for the Devlin copper project in the Chibougamau mining camp, central Quebec. The Devlin resource supplements the resource that already exists on the nearby Corner Bay deposit, aggregating over 1,000,000 tons in Measured and Indicated NI 43-101 resources on the two projects alone (see detail below). Devlin and Corner Bay are wholly-owned by CBay Minerals Inc. ("CBay") which is 92.5% owned by Ocean Partners Investments Limited and 7.5% by Nuinsco.
Both Devlin and Corner Bay retain the potential for additional resources, and could provide copper ore to CBay's wholly-owned Copper Rand mill in the nearby town of Chibougamau following a short period of additional development. Developing resources at CBay's projects in the Chibougamau mining camp is considered to be a cost-effective way to add value to the project. CBay is one of the largest landowners in Quebec's prolific Chibougamau mining camp - approximately 75% of all copper and gold produced from the Chibougamau camp was mined from CBay's current land position which totals over 38,000 hectares and the Copper Rand mill is the only concentrator located in the Chibougamau area.
The Devlin project is an easily accessible, partially-developed, high-grade copper deposit. The project is located about 10 kilometres west of Corner Bay and is about 40 kilometres by road from the Copper Rand mill and tailings management facility. Both projects are directly accessible via the local road network.
The Devlin resource estimate is tabulated below (table 1). It was produced by AGP Mining Consultants ("AGP"). Parameters used for the resource estimate are listed below. The mineralized zone as currently identified at Devlin is 365 meters (m) long, 215m wide, approximately 0.82m thick on average and is accessed by a 350m decline and over 600m of exploration drifts. The resource reported here employs a minimum vertical mining height of 1.8m and a 1.6% copper (Cu) cut-off grade.
See Attachment for Table 1: Devlin resource estimate reported at 1.6% copper cut-off
The Devlin resource estimate encompasses a primary vein ("Lower Zone") and three smaller accessory veins located on the hanging wall of the primary structure ("Upper Zone"). The structures are flat lying with the primary vein occupying the lower portion of the model. The estimate was completed based on the concept of an underground operation.
At Corner Bay, successive work programs have resulted in the NI 43-101 resource estimate tabulated below (Table 2) (resource estimate by Roscoe Postle Associates Inc. ("RPA"), 2012, using a 2% Cu cut-off). Corner Bay is developed – access to mineralization is via a decline from surface to a depth of 115m with three levels developed on the mineralized veins at 55m, 75m and 105m depth. Drill intersections have been obtained at depths below the lower boundary of the existing resource estimate that are not included in the resource estimate. The deepest hole, DDH CB-05-92, intersected 9.27% Cu over 16.1m (6.7m true width) at 1200m vertical depth - indicating potential to expand the resource.
See Attachment for Table 2: Corner Bay resource estimate (RPA 2012) reported at 2% copper cut-off
A three-dimensional isometric representation of the Devlin resource model is shown in Figure 1 (below). Additional tonnage and grade tabulations are presented in Table 3 to highlight sensitivity of the model to various cut-offs. A technical report on the Devlin Resource will be prepared in compliance with National Instrument 43-101 and filed by Nuinsco under the Company's profile on SEDAR at www.sedar.com and on the Company's website within 45 days of this press release.
See Attachment for Table 3: Devlin Resources
Mineral Resource Estimate Parameters and Method
A maiden NI43-101 Mineral Resource was estimated for the Devlin project located in Chibougamau, Quebec. The estimate encompasses a primary vein (Lower Zone) and three smaller accessory veins located on the hanging wall of the primary structure (Upper Zone). The structures are flat lying with the primary vein occupying the lower portion of the model. The estimate was completed based on the concept of an underground operation.
The three-dimensional (3D) wireframe model for the Upper and Lower Zones was a primarily based on a grade of 1% or better within the structure with exceptions made for zonal continuity. Intervals shorter than 1.8 m vertically were expanded to account for a 1.8 m vertical minimum mining height. The 3D wireframe describes the shape of the mineralized horizon as defined by the drill holes, but lacks resolution to capture minor fault displacements that were seen in the underground development. The grade boundaries with the hanging wall and footwall waste are both sharp, with a poorly developed low-grade halo.
A 3D geological and block model was generated using GEMS© software. The block model matrix size of 10 x 10 x 2.5 m (width x length x height) was selected in consultation with the engineering team from AGP and was based on the size deemed suitable for an underground narrow-vein mining scenario.
The model was interpolated with 174 holes totalling 18,413 m of drilling completed by Rio Tinto Canadian Exploration Ltd., Campbell Chibougamau Mines Ltd., Camchib Resources Inc. from 1974 through to 1982 and more recently, CBay in 2013 and 2014.
All drill holes are diamond drill core sampled at approximately 0.60 m intervals within the mineralized zone. Grades were length-weight averaged within the mineralized domains creating a single composite for each of the holes intersecting the zones.
For the treatment of outliers, raw assays were capped to 15% Cu for the Lower Zone and 10% Cu for the Upper Zone, affecting less than 2% of the sample population. The impact on the resource amounted to a 2.6% reduction to the total metal in the Measured, Indicated and Inferred category.
Densities were determined from 53 recent representative rock samples using industry standard methods. For the Lower Zone a density of 2.90 tonnes/m3 was applied to the model using the density of each lithology within the wireframe. The Upper Zone received a density of 2.85 tonnes/m3.
Obtaining a valid variogram for a narrow vein, high grade deposit is typically difficult and the Devlin deposit is no exception. Variograms pointing in the expected azimuth and dip direction could not be reliably constructed. Due to the difficulty encountered in obtaining a reasonable variogram, inverse distance squared methodology was used for the grade interpolation of this resource estimate. Variography was only used to assist in defining the ranges of the sample search ellipsoid.
The interpolation was carried out in multiple passes with increasing search ellipsoid dimensions. Classification for all models was based primarily on the pass number and the distance to the closest sample. Measured resources were retained only within 15 m of the underground drift.
No mining plans have yet been completed for the deposit, however from the geometry of the deposit, it seems likely that room and pillar mining methods may be considered for future extraction.
Mineral resources that are not mineral reserves do not have demonstrated economic viability.
Under CIM definitions, mineral resources should have a reasonable prospect of economic extraction. In order to assess the mineral resources, an insitu resource cut-off grade between 1.6% and 2% copper is recommended. A copper price of US $3.25 per pound was used for the estimate which was 2% lower than the January 2015 three-year trailing average and 12% higher than the January 2015 spot price.
The quantity and grade of reported Inferred resources in this estimation are conceptual in nature and there has been insufficient exploration to define these Inferred resources as an Indicated or Measured resource; it is uncertain if further exploration will result in upgrading them to an Indicated or Measured resource categories.
Rounding of tonnes as required by reporting guidelines may result in apparent differences between tonnes, grade, and contained metal content.
A number of collar positions were validated during the site visit using a hand held GPS. Assays were validated against the original certificates obtained from the issuing laboratories or historical logs. Historical grade was validated via six twinned holes drilled by CBay Minerals in 2013 and 2014.
Pierre Desautels, P. Geo., Principal Resource Geologist with AGP, who is independent of the Company and a qualified person as defined under NI43-101, is responsible for the mineral resource estimate presented in this press release. Mr. Desautels has reviewed and approved the scientific and technical content of the news release in regards to the Devlin resource estimate.
About Nuinsco Resources Limited
Nuinsco is a growth-oriented, multi-commodity mineral exploration company that is focused on mineralized belts in Canada and internationally. In addition to its property holdings in Ontario, Saskatchewan and Turkey, Nuinsco owns a participating interest in the cash flows of Victory Nickel Inc. (TSX:NI) and a 7.5% interest in CBay Minerals Inc., a private company that is a dominant player in Quebec's Chibougamau mining camp with assets including a permitted mill and tailings facility, eight past-producing copper/gold mines and a 38,850 hectare land position.
FORWARD-LOOKING STATEMENTS: This news release contains certain "forward-looking statements." All statements, other than statements of historic fact, that address activities, events or developments that Nuinsco believes, expects or anticipates will or may occur in the future are forward-looking statements. Forward-looking statements are often, but not always, identified by the use of words such as "seek," "anticipate," "believe," "plan," "estimate," "expect," and "intend" and statements that an event or result "may," "will," "can," "should," "could," or "might" occur or be achieved and other similar expressions. These forward-looking statements reflect the current expectations or beliefs of Nuinsco based on information currently available to Nuinsco. Forward-looking statements are subject to a number of risks and uncertainties that may cause the actual results of Nuinsco to differ materially from those discussed in the forward-looking statements, and even if such actual results are realized or substantially realized, there can be no assurance that they will have the expected consequences to, or effects on Nuinsco. Factors that could cause actual results or events to differ materially from current expectations include, among other things, failure to successfully complete financings, capital and other costs varying significantly from estimates, production rates varying from estimates, changes in world copper and/or gold markets, changes in equity markets, uncertainties relating to the availability and costs of financing needed in the future, equipment failure, unexpected geological conditions, imprecision in resource estimates, success of future development initiatives, competition, operating performance of facilities, environmental and safety risks, delays in obtaining or failure to obtain tenure to properties and/or necessary permits and approvals, and other development and operating risks. Any forward-looking statement speaks only as of the date on which it is made and, except as may be required by applicable securities laws, Nuinsco disclaims any intent or obligation to update any forward-looking statement, whether as a result of new information, future events or results or otherwise. Although Nuinsco believes that the assumptions inherent in the forward-looking statements are reasonable, forward-looking statements are not guarantees of future performance and accordingly undue reliance should not be put on such statements due to the inherent uncertainty therein.
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CONTACT: Paul Jones, Sean Stokes
Phone: 416.626.0470
Fax: 416.626.0890
Email: admin@nuinsco.ca
Please visit the Company's website at www.nuinsco.ca.
