Burnstone Ventures Inc.

Burnstone Ventures Inc.

December 06, 2012 07:00 ET

Burnstone Reports First Assay Results from the 2012 Drill Program on Tomichi Project; 318 Metres 0.261% Cu, 0.049% Mo, 4.09 g/t Ag, 0.258 g/t Re, (0.56% CuEq)

VANCOUVER, BRITISH COLUMBIA--(Marketwire - Dec. 6, 2012) - Burnstone Ventures Inc. (TSX VENTURE:BVE) ("Burnstone" or the "Company") is pleased to announce the assay results for the first three (3) holes completed during the 2012 drill program. The 2012 drilling was focused on the higher grade near surface portion of the Tomichi Copper Deposit. The NI-43-101 Resource Estimate released in June of this year confirmed that the Tomichi copper-molybdenum (Cu-Mo) porphyry project in Gunnison County, south-central Colorado (the "Project") currently contains 2.5 Billion lbs Cu, 552 Million lbs Mo, 30 Million oz Ag, 320,000 oz Au and 124,362 kg Re.

Five holes totaling 1581 metres were completed in October 2012 within the northeastern portion of the deposit. Results for the first 3 holes have been received and compiled as shown in the following table. Also include are the historical results and the results from the reassay program completed in 2011for this higher grade zone.

DDH # From To Interval Cu Mo Ag Au Re %CuEq* %CuEq*
m m m % % g/t g/t g/t Cu/Mo Cu/Mo/Ag
TM-27-2012 20.50 338.00 317.50 0.261 0.049 4.09 ** 0.258 0.51 0.56
TM-28-2012 4.60 300.00 295.40 0.288 0.042 1.91 ** 0.222 0.50 0.52
TM-28a-2012 4.45 401.00 396.55 0.258 0.027 1.91 ** 0.129 0.39 0.42
TM-05 20.12 328.27 308.15 0.244 0.050 0.5
TM-05-2011 20.12 328.27 308.15 0.217 0.040 1.76 0.015 0.158 0.42 0.44
TM-07 4.27 441.05 436.78 0.261 0.026 0.39
TM-07-2011 4.27 441.05 436.78 0.256 0.024 1.819 0.027 0.133 0.38 0.41
TM-08 9.76 420.73 410.98 0.251 0.036 0.43
TM-08-2011 9.75 499.87 490.12 0.245 0.035 1.728 0.02 0.192 0.42 0.44
TM-09 10.06 357.93 347.87 0.312 0.057 0.6
TM-09-2011 10.06 357.93 347.87 0.295 0.063 7.853 0.033 0.301 0.61 0.72
TM-10 8.23 263.41 255.18 0.294 0.062 0.61
TM-10-2011 11.28 263.41 252.13 0.281 0.061 2.197 0.02 0.327 0.59 0.62
TM-15 21.34 337.41 316.07 0.217 0.059 0.51
TM-15-2011 21.34 337.41 316.07 0.211 0.058 1.357 0.014 0.265 0.5 0.52
TM-16 33.54 303.96 270.43 0.117 0.060 0.42
TM-16-2011 33.53 303.89 270.36 0.122 0.064 1.061 0.01 0.385 0.44 0.45

* %CuEq is based on $3/lb Cu, $15/lb Mo, $25/oz Ag.
** No Au analyses were carried out on the 2012 drilling.

Drill hole TM-27 was collared at the same location of TM-09 (a 1980's hole drilled by Moly Corp.), and drilled at an azimuth of 90° and a dip of -45°. This hole was successful at confirming continuity of high grade mineralization of the 250 metres between holes TM-09 and TM-10. Holes TM-28 and TM-28a were collared from the same drill pad approximately 300 metres southeast of TM-27. TM-28 was a vertical hole and TM-28a was drilled at an azimuth of 65° and a dip of -55°. Both of these holes were targeted to test a new area to the northeast towards historical holes T-5C and T-8C to test a portion of the deposit that was not included in the 43-101 resource estimate.

The resource estimate was completed by Geosim Services Inc. as summarized in the News Release dated June 26th 2012 and the full Technical report is available on Sedar. The following Table shows the tonnages and grades for the Tomichi Project at a range of Copper Equivalent cutoff grades (COG%). All of the 2012 drilling was carried out within the area of the 0.50%CuEq resource.


COG % CuEQ Tonnes 000's Cu (%) Mo (%) Au (g/t) Ag (g/t) Re (g/t) CuEq (%)
0.10 698,503 0.171 0.037 0.015 1.38 0.185 0.38
0.20 622,429 0.182 0.040 0.016 1.50 0.200 0.41
0.30 506,513 0.197 0.044 0.018 1.69 0.221 0.45
0.40 334,320 0.216 0.048 0.019 1.93 0.249 0.50
0.50 132,279 0.237 0.058 0.020 2.30 0.294 0.57

**CuEQ = %Cu +%Mo x 5 + g/t Au x 0.681 + g/t Ag x 0.012.
Rhenium values have not been used in the cutoff grade or Cu Equivalent calculations.

Doug Fulcher, President and CEO of the Company, stated, "We are pleased to report the results from the first drill program on Tomichi since the NI 43 - 101 resource was completed in June of this year. Burnstone is also the first company to conduct any exploration on the project since the early 1980's when it was last drilled by Moly Corp. This drill program continues to show the continuity of the higher copper moly grades from surface and confirmed the continuity of the mineralization between wide gaps in the historic drilling."


The Company has an option to earn a 100% interest in the Tomichi copper-molybdenum (Cu-Mo) porphyry Project in Gunnison County, south-central Colorado. The Tomichi Project is located within the Colorado Mineral Belt and was initially worked on in the 1950's by Climax Molybdenum Co. and more recently, in the 1980's by Molycorp Inc. No work was carried out between the 1982 drill program and the 2012 Burnstone program.

Mineralization at Tomichi is a typical porphyry deposit characterized by disseminated and fracture controlled molybdenite and chalcopyrite hosted by a mid-Tertiary, potassic altered, intrusive system dominated by a porphyritic quartz monzonite. The mineralized porphyry is exposed at surface on top of Copper Hill. Diamond drilling completed by Molycorp Inc. in the 1980s intersected copper-molybdenum mineralization over a surface area in excess of 1500 metres by 800 metres, to a depth of at least 550 metres and remains open to the north, east and at depth.

The samples from holes TM-27, TM-28 and TM-28a were shipped from Gunnison to the ALS Group - Kamloops Mineral Lab, where the samples were prepped. Prepped pulps were then forwarded on by ALS to their North Vancouver Laboratory where samples were analyzed for copper, molybdenum, silver and rhenium along with 44 other elements by a four-acid digestion ICP-MS and ICP-AES.

Burnstone maintains a quality control program involving the use of standards, blanks and duplicate samples randomly inserted within the sample group at a 5% ratio to provide a check on assay lab data quality. Copper, molybdenum, silver and blank standards were prepared by CDN Resource Laboratory Ltd., Langley, B.C., Canada, or WCM Minerals Ltd., Burnaby, B.C., Canada.

Mr. James Chapman, P.Geo., is the Qualified Person responsible for the design of the program, and all exploration work on the Tomichi Project will be done under his supervision. Mr. Chapman has read and approved the technical content of this news release.

The Company also announces that in accordance with the policies of the TSX Venture Exchange (the "Exchange"), the Company's 2012 Stock Option Plan was approved by its shareholders at the Annual General and Special Meeting held on September 5, 2012, and subsequently by the Exchange. The Company has renewed its fixed plan and has increased the number of shares reserved for issuance thereunder from 5,490,400 shares to 6,212,122 shares.

The Company would also like to announce that it has set aside 400,000 incentive stock options to one of its consultants to purchase shares of the Company at an exercise price of $0.13 per share for a period of five years.

On Behalf of the Board of Directors:

Douglas Fulcher, President

This release includes certain statements that may be deemed to be "forward-looking statements" within the meaning of the U.S. Private Securities Litigation Reform Act of 1995. All statements in this release, other than statements of historical facts, that address future production, reserve potential, exploration and development activities and events or developments that the Company expects, are forward-looking statements. Although management believes the expectations expressed in such forward-looking statements are based on reasonable assumptions, such statements are not guarantees of future performance, and actual results or developments may differ materially from those in the forward-looking statements. Factors that could cause actual results to differ materially from those in forward-looking statements include market prices, exploration and development successes, continued availability of capital and financing, and general economic, market or business conditions. Please see our public filings at www.sedar.com.

Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

Contact Information