Gespeg Copper Resources Inc.

March 02, 2012 15:24 ET

Capstock Announces Initial Drill Results From Vortex Project

SASKATOON, SASKATCHEWAN--(Marketwire - March 2, 2012) - CAPSTOCK FINANCIAL INC. (TSX VENTURE:CPK) (the "Company" or "Capstock") Capstock is pleased to report the initial results from exploration drilling campaigns conducted on the Company's Vortex Project located in the central Gaspe area of Quebec. The drilling campaigns were conducted by Kimpar Resources Inc. ("Kimpar"), a non-reporting issuer, and commenced first in 2009 and again in December of 2011. The Company acquired the Votex Project and other mineral claims from Kimpar pursuant to the Company's recently completed qualifying transaction (see the Company's news release dated December 30, 2011).

Capstock controls an extensive mineral claim block in the Gaspe region of Quebec spanning over 800 square kilometers. The claims lie mainly within the geological domain of the Northern Appalachians known as the Conneticut Valley-Gaspe Synclorium, which hosts several important copper deposits in this part of Gaspe such as the formerly producing Gaspe Copper Mine (operated by what was then Noranda Inc.). These deposits occur within a belt of the Northern Appalachians that is recognized for its porphyry Cu, Cu-skarn, and Cu replacement-type deposits. Capstock's claim holdings include two known deposits of these types, the undeveloped Sullipek Cu-Mo skarn deposit and the previously mined, Mine Madeleine porphyry-associated Cu deposit (the latter occurs in early Paleozoic rocks north of the Synclinorium.). Capstock's mineral claims also include the formerly producing Federal Mine, a vein-hosted polymetallic, base-metal deposit that lies within a claim group that has been successfully explored in the past several years by Threegold Resources Inc. (TSX VENTURE:THG) and is in the process of being acquired by Capstock, subject to regulatory, corporate approval and definitive agreement (see the Company's news release dated January 25 2012). Capstock also holds the Murdochville East claim block which is on the east side of the formerly producing Gaspe Copper Mine.

The principal known deposits of this belt and the main target-types for exploration in the Vortex claims, occur at the Gaspe Copper Mine, at Murdochville, about 30 km NE along the geological trend of the Vortex Project. The deposits comprise mineralization of three main types - a large tonnage/low grade porphyry Cu-Mo deposit and smaller tonnage/higher grade Cu-skarns and Cu replacement mineralization.

Drill core from the drilling carried out in December of last year is currently being split and sent for assay. Both drilling campaigns (2009 and 2011) were carried out in the central part of the Vortex Project area in the claim block referred to as Sullipek East. This area was an obvious focus for exploration because surface mapping in the 1980s outlined a large, 1 km-diameter, circular area of altered rock (porcellanite) that has received only limited exploration drilling in the past (mostly shallow drill-holes). Porcellanite is significant as it is the distinctive type of altered rock that is similarly extensive where it encloses the area of the various mineralizations at Murdochville. Stratagraphic units present in the Vortex area are the south-westward-striking continuation of units that are mineralized at Murdochville and are prospective for the same and other favourable horizons of mineralization.

In 2009, 2,149 metres of NQ cores were drilled as follow-up to various geochemical and geophysical surveys. The five widely-spaced holes, 09-K-1 to K-5, were all located on the southeast-dipping, north limb of a regional northeast-trending syncline. Location of drill collars, drilling orientation and depths are as follows:

DDH Number DDH Location
DDH Location
Dip Azimuth Depth
(metres A.S.L.)
09-K-1 285700 5417400 -85° 268° 383 625
09-K-2 285700 5417400 -70° 178° 287 519
09-K-3 287120 5416650 -80° 268° 656 686
09-K-4 287485 5416530 -85° 178° 407 602
09-K-5 286535 5416825 -70° 243° 416 659


* UTM Grid, Zone 20, NAD 83 /WGS 84, Map Sheet NTS 22A/13, scale 1:50,000.

Significant assay results from the 2009 drill cores are given in the table below. Drill holes 09-K-1 and 09-K-2, drilled in the northern portion of Sullipek East, north and west of the surface-mapped porcellanite zone, did not intersect significant mineralization. However they did intersect carbonate-rich strata and calc-silicate horizons that could be favourable, in their down-dip direction, to mineralization in proximity to the probable intrusion-related source of the porcellantite alteration.

The other three drill-holes intersected Cu-mineralized sections (chalcopyrite) of varying style along with widespread but narrower intervals of chalcopyrite mineralization not reported in the table below. Drill hole 09-K-3, collared in the central, southern part of the porcellanite zone as mapped on surface, intersected about 250 metres of continuous porcellanite alteration of locally calcareous mudrock that encloses three zones, each of which exceeds 20 metres in core length and contains calculated weighted average content of > 0.1 to > 0.27% Cu, respectively. The weighted averages are underestimates of the actual Cu content because significant portions of the averaged zones were unassayed and those sections were assumed to contain 0% Cu for the purpose of the calculations. However, the unanalyzed portions were unsampled due to being unmineralized (or local very narrow or weakly mineralized sections), so the actual Cu content in the averaged intervals is not expected to be significantly higher than reported in the table below. Mineralization in these three zones was interpreted to be mainly bedding-parallel and overprints earlier porcellanite alteration. Based on the angle of bedding to core axis, the three averaged intervals are each at least 20 metres in true thickness if these three zones are indeed bedding-parallel.

Drill hole 09-K-5 was collared about 200-300m west of the mapped porcellanite zone and contained mainly vein-style mineralization with more Zn than in drill holes 09-K-3 and 09-K-4. Drill hole 09-K-4 had variable Cu-mineralized styles as described in the table below.

High Cu values are strongly associated with elevated Ag content. Significant Mo values were only associated with the upper of the three 20 metre Cu intervals of drill hole 09-K-3 (see table below). Rhenium values up to 0.5 ppm were associated with the most elevated Mo values. Minor Au was present over 1.1m core length of the upper feldspar porphyry unit in drill hole 09-K-4, yielding 0.475 grams per tonne.

*TABLE OF SIGNIFICANT Cu Ag Zn ASSAYS from VORTEX 2009 drill cores
(m) **
09-K-03 175.55 200.20 24.65* 0.21 1.4 mainly along beds with disseminated chalcopyrite and pyrrhotite
including 175.55 180.70 5.15* 0.23 1.5
including 194.30 200.20 5.9* 0.53 4.0 0.006 (includes vein of massive chalcopyrite and pyrrhotite at 194.35m)
including 187.00 187.20 0.20 4.40 21.2 0.095 0.5 ppm Rhenium
including 199.8 200.2 0.4 2.04 14.4 0.054 0.2ppm Rhenium
215.90 218.80 2.9* 0.41 3.3 disseminated chalcopyrite and pyrrhotite discontinuously along beds
231.90 234.05 2.15* 0.21 disseminated chalcopyrite and pyrrhotite discontinuously along beds
260.3 283.8 23.5* 0.27 3.1 mainly along beds with disseminated chalcopyrite and pyrrhotite
including 271.15 276.00 4.85 0.75 8.6 =weighted average over 4.85m of continuous assay samples
including 280 283.8 3.80 0.41 4.7 =weighted average over 3.80m of continuous assay samples
327.4 348.9 21.5* 0.10 mainly along beds with disseminated chalcopyrite and pyrrhotite
451.5 456 4.50 0.15 chalcopyrite and pyrite in pyrrhotite-rich lenses along bedding of siltstone
=weighted average over 4.5m of continuous assay samples
09-K-04 9.60 11.30 1.7 0.11 chalcopyrite and calcite in fractures parallel to CA in feldspar porphyry
55.80 63.17 7.37 0.25 2.2 =weighted average over 7.37m of continuous assays (58.6-59.7m= 1.1m of 0.475g/t Au)
chalcopyrite in fractures parallel to core axis across feldspar porphyry-mudrock contact
98.10 100.00 1.90 0.54 chalcopyrite disseminated in porcellanite and skarn, along bedding.
198.10 207.90 9.80 0.10 =weighted average over 9.8m of continuous assay samples, chalcopyrite in fractures
in fragmental basalt, in light grey quartzite, and in grey limestone.
233.40 241.00 7.6* 0.20 disseminated chalcopyrite along beds adjacent to mineralized fault shallow angle to CA
including 239.4 240.4 1.0 1.06 8.7 chalcopyrite-mineralized fault zone with breccia
09-K-05 224.14 228.40 4.26 0.19 7.5 0.63 3 sulphide veins parallel to core axis in feldspar porphyry (continuous samples)
including 226.60 228.40 1.80 0.37 14.3 1.2
256.40 259.50 3.10 0.21 fractures with sphalerite (blackjack) in feldspar porphyry (continuous samples)
283.00 283.90 0.90 0.98 44.6 coarse pyrrhotite, chalcopyrite, in vein 25 deg. to CA at contact of 2 porphyries.
09-K-01 no significant intersections
09-K-02 no significant intersections
*Wide Intervals that are averaged include significant intervals that were not analysed. The unanalysed intervals were calculated as 0 ppm Cu/Ag/Zn/Mo and so the average assay values reported here are underestimates of the actual Cu, Ag, Zn, Mo abundance for these intervals.
** Intervals represent core length, not true width

Analyses were performed by ALS-Chemex at their lab in Val d'Or, Quebec. Cu mineralization was almost exclusively seen in the form of chalcopyrite. All cores were analysed for 48 elements by ICP-MS with four acid digestion as well as for Au by fire assay with ICP-AES finish using 30grams of material. Ore grade elements were run by the method of ALS's lab code ME-OG62 (4 acid digestion with ICP-AES instrumental measurement) and Cu by Cu-OG62 (4 acid -variable instrument). A rigorous QA/QC program was implemented as part of the sampling procedures throughout the drill program. Duplicate, standard and blank samples were inserted into the sample stream prior to being sent to the laboratory and the adherence of results to strict parameters was monitored.

The recently completed 2,570 metre drill program in November-December, 2011, consisted of 7 drill holes. The holes tested a near-surface Cu zone that was recently exposed by trenching on the east margin of the km-wide surface porcellanite zone, as well as explored for deeper mineralization below the central portion of the surface expression of porcellanite (to a vertical depth of about 650m). More details of this drill campaign will be described along with the report of assay results from cores that are presently being logged and cut for assay.

Bernard-Olivier Martel, P. Geo, and consultant to the Company, is a qualified person (as such term is defined in National Instrument 43-101 - Standards of Disclosure for Mineral Projects) and has reviewed and approved the technical disclosure contained in this news release.

Cautionary Statement Regarding "Forward-Looking" Information

Some of the statements contained in this press release are forward-looking statements and information within the meaning of applicable securities laws. Forward-looking statements and information can be identified by the use of words such as "expects", "intends", "is expected", "potential", "suggests" or variations of such words or phrases, or statements that certain actions, events or results "may", "could", "should", "would", "might" or "will" be taken, occur or be achieved. Forward-looking statements and information are not historical facts and are subject to a number of risks and uncertainties beyond Capstock's control. Actual results and developments are likely to differ, and may differ materially, from those expressed or implied by the forward-looking statements contained in this news release. Accordingly, readers should not place undue reliance on forward-looking statements. The Company undertakes no obligation to update publicly or otherwise revise any forward-looking statements, except as may be required by law.

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

Contact Information

  • Capstock Financial Inc.
    Victor Goncalves
    President & CEO
    204-997-5517 / 306-653-2692
    306-664-4483 (FAX)