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

Copper Lake Resources Ltd.

January 11, 2017 09:00 ET

Copper Lake Confirms Gold Mineralization at Billiton Main VMS Prospect on the Marshall Lake Project

TORONTO, ONTARIO--(Marketwired - Jan. 11, 2017) - 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, core assaying and prospecting program over the Billiton Main VMS prospect area within the Marshall Lake project area during the 2016 field program.

Highlights:

  • Channel sampling at Billiton Main Prospect yields:
    • Up to 2.36 g/t Au, 60 g/t Ag, 1.61% Cu, and 4.20% Zn over 0.60m
    • Up to 0.64 g/t Au, 286 g/t Ag, 3.05% Cu and 5.60% Zn over 0.80m
  • Core assays from previous drilling at the Billiton Main Prospect of up to 28.70 g/t Au, 271 g/t Ag, 3.43% Cu and 6.05% Zn
  • Grab samples from regional prospecting of up to 0.96 g/t Au, 23 g/t Ag and 1.15% Cu at the VTEM-005 target
  • Grab sampling of up to 4.05% Zn from the VTEM-008 target

Copper Lake Interim CEO Terry MacDonald stated that "The 2016 compilation program has outlined a number of new gold targets. Subsequent prospecting, channel sampling and the assaying of historical core has confirmed the presence of significant gold mineralization in a number of new zones over a wide area within the Marshall Lake property as well as significant gold assays from the historically tested Cu-Zn Billiton Main target.

The presence of gold mineralization, hitherto unrecognized, as well as the known Cu-Zn mineralization associated with the VMS system will be the focus of our exploration program in the coming months".

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. The compilation and interpretation completed resulted in the out-lining of a number of VTEM anomalies and several gold mineralized structures as well as geological zones not previously explored. The compilation outlined a zone of gold mineralization within the Cu-Zn VMS Billiton Main Zone. The 2016 field program conducted in October and November was designed to test the potential of gold mineralization at the Billiton Main Zone with channel sampling as well as the re-assay of historical drill core not previously assayed as well as the ground truth a number of VTEM anomalies defined.

The 2016 field program included the collection of 42 samples from 8 continuous channels at the Billiton Main Zone and 22 grab samples from the regional follow-up program. The core assay program of historical drill core from the Billiton Main Zone totaled 217 samples from 216.78m of core from previously un-sampled core.

Final results of compilation and interpretation from "plate modelling" of VTEM anomalies conducted as part of the 2016 program are pending.

To view Figure 1: Marshall Lake: Prospect Location Map, please visit this link: http://media3.marketwire.com/docs/X82343.pdf

Billiton Main Zone

Field mapping outlined a number of outcrops at Billiton Main located over a strike length of ~350m showing strong folding, some shearing and high strain zones with sericite-silica-chlorite alteration. Structures are oriented roughly East-West and fold hinges plunge ~40° to the east. Disseminated to massive sulphides occur with quartz veining, with many of the sulphide zones being folded and 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. Significant channel sampling results are included in Table 1.

Table 1: Billiton Main Zone: 2016 Significant Channel Sampling results

Channel From To Length Au Ag Cu Zn
# Metres Metres Metres (g/t) (g/t) (%) (%)
ML-03 0.00 5.00 5.00 0.61 39 0.83 1.29
contains 4.40 5.00 0.60 2.36 60 1.61 4.20
ML-04 0.00 0.80 0.80 0.64 286 3.05 5.60

The sampling of historical core from the Billiton Main Zone was mostly conducted on zones of quartz veining and quartz-sericite alteration, as sulphide rich zones had been previously been sampled in the testing for Cu-Zn VMS mineralization. The half core samples were designed to test for gold and silver mineralization in structures and quartz veins away from the main sulphide rich lenses. Significant gold and silver assay results from historical core are summarized below in Table 2.

Table 2: Billiton Main Zone: 2016 Historical Core Re-Assay Program

Drill Hole From To Length Au Ag Cu Zn
# Metres Metres Metres (g/t) (g/t) (%) (%)
MAR-06-03 38.25 39.00 0.75 1.22 123 2.07 3.74
MAR-06-04 38.45 38.80 0.35 28.70 150 3.43 1.98
MAR-06-06 46.00 46.30 0.30 2.15 8 0.10 1.98
MAR-06-09 82.00 84.00 2.00 2.70 239 0.84 5.01
including 82.00 83.00 1.00 4.04 271 0.93 3.95
MAR-06-10 84.00 85.00 1.00 1.08 63 0.54 6.05

To view Figure 2: Billiton Main Zone Location, please visit this link: http://media3.marketwire.com/docs/X82343.pdf

Regional Prospecting

VTEM-005

Prospecting was conducted over the area covering the VTEM anomaly #005 defined by the 2008 VTEM survey. The target is located some 1.5km to the west of the Billiton Main Zone. Felsic volcanics were seen to host minor sulphide stringer and quartz-sericite-chlorite alteration however as the centre of this VTEM is located under a swampy area it would appear that the main anomaly was not tested by sampling. Significant results of up to 0.96g/t Au and 1.15% Cu were returned from sampling distal to the VTEM anomaly (Table 3). Further follow-up work recommended as the anomaly has not been historically tested.

Table 3: VTEM-005 Target: 2016 Significant Grab Sampling Results

Prospect Sample Sample Au Ag Cu Zn
Area # Type (g/t) (g/t) (%) (%)
VTEM-005 S125604 Grab 0.09 8 0.81 0.06
VTEM-005 S125606 Grab 0.96 23 1.15 0.03

VTEM-008

Prospecting over the area defined by VTEM anomaly #008 identified a surface expression of stringer style mineralization containing chalcopyrite and sphalerite in felsic volcanics. The anomaly is located some 2km north of the Teck Hill Zone which hosts VMS style mineralization. The sampled outcrop is approximately 290 metres from the centre of the VTEM anomaly. Grab sampling of significance are included in Table 5. Results indicate that this previously untested anomaly requires additional follow up.

Table 4: VTEM-008 Target: 2016 Significant Grab Sampling Results

Prospect Sample Sample Au Ag Cu Zn
Area # Type (g/t) (g/t) (%) (%)
VTEM-008 S120971 Grab 0.09 24 0.02 2.68
VTEM-008 S120972 Grab 0.01 2 0.02 3.16
VTEM-008 S120973 Grab 0.05 7 0.07 4.05

Quality Assurance and Quality Control Program

Field 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". Drill core was sawn in half using an electrical core saw with the same half sampled, with a maximum core length of 1.5m and a minimum of 0.3m sampled.

Samples were delivered to ALS-Chemex in Thunder Bay with certified standards and blanks, dried and crushed to 70% passing 2mm. A split of 3kg is pulverized to 85% passing -75um (200#). Gold was 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, were analysed 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 $670,000 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 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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