Copper Lake Resources Ltd.
TSX VENTURE : CPL
FRANKFURT : W0I

Copper Lake Resources Ltd.

December 12, 2016 09:00 ET

Copper Lake Confirms Gold Mineralization at the Adnarod, Billiton 2 and Lin Targets On the Marshall Lake Project

TORONTO, ONTARIO--(Marketwired - Dec. 12, 2016) - Copper Lake Resources Ltd. (TSX VENTURE:CPL)(FRANKFURT:W0I) ("Copper Lake" or the "Company") is pleased to announce that the Company has completed a channel sampling, mapping and prospecting program over the Adnarod, Billiton 2, and Lin prospect areas within the Marshall Lake project area during the 2016 field program.

Highlights:

  • Channel sampling of up to 1.62% Cu, 0.49g/t Au and 189g/t Ag over 0.80m at the new Adnarod zone
  • Results of up to 1.05% Cu, 5.62% Zn, 1.00g/t Au and 114g/t Ag over 0.80m from channel sampling of the Billiton 2 zone
  • Chip sampling results of up to 1.05g/t Au, 21g/t Ag, 0.18% Cu and 2.82% Zn over 0.35m from the Lin zone
  • Grab sampling of up to 4.51g/t Au, 140g/t Ag, 6.02% Cu and 2.98g/t Au, 146g/t Ag and 2.26% Cu from along the Lin zone

During 2016 Copper Lake completed a data base compilation of all historical exploration work on the Marshall Lake project area including drilling, surface sampling and geophysical VTEM, IP and magnetic surveys.

Copper Lake Interim CEO Terry MacDonald stated, "The existence of new gold mineralization identified during the recently completed compilation of historical data and which is now confirmed by the 2016 follow-up prospecting, mapping and channel sampling program, has greatly increased the gold and base metal potential and understanding on the Marshall Lake project.

The identification of strong folding of the stratigraphy and east plunging nature of fold structures within East-West trending structures has explained why some of the historical drilling has previously failed to test zones of mineralization and highlights the untested potential at several of these historical and the newly identified zones."

The compilation and interpretation completed resulted in the definition of three roughly East-West trending gold bearing structures which had no historical channel sampling, limited drilling and in some cases no historical gold assays.

The 2016 field program was designed to test the grade and tonnage potential for gold mineralization at the Adnarod, Billiton 2 and Lin targets (see Figure 1). The results of this field program over the 3 zones are summarized below.

A total of 14 channel samples for 88 samples were completed over the Adnarod and Billiton 2 zones and one continuous chip sample of 7 samples was completed at Lin during this program as well as a number of grab samples.

Final results from follow-up of the Billiton Main Zone, the "plate modelled" VTEM anomalies and district prospecting of VTEM and geological anomalies conducted as part of the 2016 program are pending.

To viw Figure 1: Marshall Lake - Prospect Location Map, visit the following link: http://media3.marketwire.com/docs/1079768-Figure%201.pdf

Adnarod Zone

The Adnarod Zone is located approximately 400 metres north of the Billiton Main zone. The zone has been tested with only two historical drill holes. Field mapping outlined a number of outcrops located over a strike length of ~300 metres showing strong folding, some shearing and high strain zones with sericite-silica-chlorite alteration. Structures are oriented roughly East-West and folds plunge ~35° to the east. Disseminated to massive sulphides occur with quartz veining, with many of the sulphide zones being folded and strongly deformed. The quartz veins are also folded and boudinaged. Channel samples were designed to test for gold mineralization associated with the sulphides and quartz veins.

Historical drill testing of the Adnarod Zone returned;

  • 3.81m @ 14.54g/t Au from 47.24m to 51.01m, in hole GGM-77-153
  • 2.53m @ 1.64g/t Au, 189g/t Ag, 1.99% Cu and 7.67% Zn in hole ML-82-07 (Table 2 below)

This historical drilling would have tested an east plunging zone 20m to 50m below the current outcrops which would come to surface west of the 2016 channel samples.

Table 1: 2016 Adnarod Significant Channel Sampling Results
Channel From To Length Au Ag Cu Zn
# metres metres metres (g/t) (g/t) (%) (%)
ML-10 1.20 2.00 0.80 0.18 95 0.41 0.65
ML-11 3.50 4.50 1.00 0.19 65 0.47 0.29
ML-14 1.70 5.90 4.20 0.25 89 0.59 0.36
contains 3.20 4.00 0.80 0.49 189 1.62 0.30
Table 2: Historical Drill Intercepts - Adnarod Zone
Drill Hole From To Length Au Ag Cu Zn
# metres metres metres (g/t) (g/t) (%) (%)
GG-77-153 47.24 51.01 3.81 14.54 NA 0.18 0.87
ML-82-07 20.12 22.65 2.53 1.64 189 1.99 7.67

To view Figure 2: Adnarod and Billiton 2 Zone Results, visit the following link: http://media3.marketwire.com/docs/1079768-Figure2.pdf

Billiton 2 Zone

The Billiton 2 Zone occurs approximately 200 metres to the north of the Billiton Main zone and has been tested by limited historical drilling. The zone is an east-west trending structural zone that can be traced for over 300 metres where mapping has identified strong folding of the altered volcanic stratigraphy. In addition, there exists clear evidence that the sulphides and quartz veins have been strongly folded as well. The folds plunge to the east at up to ~50°. Channel samples were designed to test for gold mineralization associated with the sulphides, and the potential for gold mineralization within the fold hinges.

Table 3: Billiton 2 Zone: 2016 Significant Channel Sampling Results.
Channel From To Length Au Ag Cu Zn
# metres metres metres (g/t) (g/t) (%) (%)
ML-18 5.80 6.90 1.10 0.85 101 0.91 5.62
contains 6.10 6.90 0.80 1.00 114 1.05 6.68
ML-20 0.00 0.90 0.90 0.15 59 0.18 1.04

Lin Zone

The Lin Zone (see Figure 3) occurs as a NNW trending structural corridor located between the main VMS mineralized Teck Hill and Billiton Main centres which have been historically explored. The Lin zone has been traced for over 1,500 metres and has not been drill tested. Historical sampling of outcrops along the structural corridor has returned significant Au-Ag-Cu results. The zone is dominantly hosted in quartz-plagioclase crystal tuff with varying degrees of sericite +/- andalusite +/- garnet alteration. Semi massive sulphide mineralization was observed within all the trenches exposed with quartz veining occurring in deformed / folded portions of the volcanic stratigraphy.

One continuous chip sample across the zone consisting of 7 samples (see Table 4) was completed with results up to 2.03g/t Au, 35g/t Ag, 0.26% Cu and 5.10% Zn over 0.35m and grab sampling of outcrops within trenches along the strike length of the zone returned values of up to 4.51g/t Au, 6.02% Cu, 146g/t Ag and 1.49% Zn (see Table 5).

Historical grab sampling (2006) of structures from outcrops in the Enzo portion of the Lin Zone returned assays of:

  • 16.5 % Cu, 0.32% Zn, 381 g/t Ag and 4.12 g/t Au (Sample MK-06-096)
  • 8.72 % Cu, 0.25% Zn, 229 g/t Ag and 15.35 g/t Au (Sample MK-06-098)
  • 18.0 % Cu, 0.46% Zn, 408 g/t Ag and 5.19 g/t Au (Sample MK-06-099)
  • 4.18 % Cu, 0.13% Zn, 173 g/t Ag and 3.21 g/t Au (Sample MK-06-101)
Table 4: Lin Zone - Continuous Chip Sampling Significant Results
Chip From To Length Au Ag Cu Zn
# metres metres metres (g/t) (g/t) (%) (%)
ML-CHIP-01 0.25 1.51 1.26 1.05 21 0.18 2.82
contains 1.16 1.51 0.35 2.03 35 0.26 5.10
Table 5: Lin Zone - Significant Grab Sampling Results 2016
Prospect Sample Sample Au Ag Cu Zn
Area # Type (g/t) (g/t) (%) (%)
Lin S125606 Grab 0.96 23 1.15 0.03
Lin S125620 Grab 4.51 140 6.02 0.22
Lin S125621 Grab 0.58 20 0.20 0.00
Lin S125622 Grab 2.98 146 2.26 0.08
Lin S125623 Grab 0.91 48 0.83 0.04
Lin S125626 Grab 0.29 21 0.60 1.49
Lin S125627 Grab 1.06 87 2.48 0.32
Lin S125628 Grab 0.56 15 0.63 0.02
Lin S125630 Grab 0.22 23 0.79 0.03
Lin S125643 Grab 0.36 22 0.56 0.08

To view Figure 3: Lin Structural Zone Results, visit the following link: http://media3.marketwire.com/docs/1079768-Figure3.pdf

Quality Assurance and Quality Control Program

All samples were collected under the supervision of an independent contract project geologist, Craig Fitchett, P.Geo. of Orix Geoscience. Channel and chip samples were collected to sample distinct geological and alteration units. Channels were cut using a mechanical "core saw".

Samples were delivered to ALS-Chemex in Thunder Bay with inserted certified standards and blanks, dried and crushed to 70% passing 2mm. A split of 3kg is pulverized to 85% passing - 75 microns (200#). Gold is assayed by Fire Assay with a 50g charge and an AAS finish (AA-AA26). Other elements including Ag, Cu, Pb and Zn in a 33 element suite are analyzed after undergoing a four acid digestion and analysis by ICP-AES (ME-ICP61a).

Assay results undergo precision and accuracy checks prior to being entered into the database.

The content of this press release has been reviewed by Gary O'Connor, MAusIMM, a director of Copper Lake Resources.

About Copper Lake Resources

Copper Lake Resources Ltd. is a publicly traded Canadian company currently focused on advancing two significant properties located in Ontario, Canada:

  1. The Marshall Lake VMS copper, zinc, silver and gold property is an advanced exploration stage property located 120 km north of Geraldton, Ontario via good all weather gravel road from the Trans-Canada Highway and just 22 km north of the main CNR rail line.
    Copper Lake currently has a 68.75% interest in the property and has the option to increase its interest to 75% by incurring additional expenditures of $720,000 by July 15, 2017. The Company can further increase its interest to 87.5% by taking the project to bankable feasibility stage.

  2. The Norton Lake nickel, copper, PGM property (69.79%) is located approximately 100 km north of the Marshall Lake property.

On behalf of the Board of Copper Lake Resources Ltd.

Terrence MacDonald, Interim CEO

The TSX Venture Exchange has not reviewed this news release and does not accept responsibility for the adequacy or accuracy of this release. This news release includes certain statements that may be deemed "forward-looking statements". All statements, other than statements of historical facts, that address such matters as future exploration, drilling, exploration activities, potential mineralization and resources and events or developments that the Company expects, are forward looking statements and, as such, are subject to risks, uncertainties and other factors of which are beyond the reasonable control of the Company. Although the Company 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 forward-looking statements. Factors that could cause actual results to differ materially from those in forward-looking statements include such matters as market prices, exploitation and exploration results, continued availability of capital and financing, and general economic, market or business conditions. Any forward-looking statements are expressly qualified in their entirety by this cautionary statement. The information contained herein is stated as of the current date and subject to change after that date

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