Crazy Horse Resources Inc.
TSX VENTURE : CZH

Crazy Horse Resources Inc.

January 06, 2011 14:36 ET

Crazy Horse Intersects 216m 0.5% Cu, 0.32g/T Au and 2.12 g/T Ag in Drill Holes CZT003-CZT005

MANILA, PHILIPPINES--(Marketwire - Jan. 6, 2011) - Crazy Horse Resources Inc. (TSX VENTURE:CZH) -

HIGHLIGHTS:

  • Results from drill holes 3,4 and 5 continue to confirm the presence of a significant and consistent near surface Copper-Gold-Silver deposit
  • High grade sections are present in all three drill holes
  • All three drill holes also contain additional intervals of lower grade mineralization below the main intersections

Crazy Horse Resources Inc. (the "Company") a Philippines based mineral exploration company, announces assays from the third, fourth and fifth holes of a ten-hole confirmatory drilling program on its Taysan copper-gold-silver porphyry project.

Hole CZT003 drilled 448 meters of 0.33% Cu, 0.19 g/T Au and 1.34 g/T Ag, and includes a high grade near surface zone of 216m of 0.5% Cu, 0.32 g/T Au and 2.12 g/T Ag from 54m - 270m down hole.

Hole CZT004 drilled 404 meters of 0.32% Cu, 0.07 g/T Au and 1.24 g/T Ag, and includes a high grade zone of 90m of 0.37% Cu, 0.15 g/T Au and 1.6 g/T Ag from 242m - 332m down hole.

Hole CZT005 drilled 390 meters of 0.304% Cu, 0.084 g/T Au and 1.0 g/T Ag, and includes a high grade zone of 180m of 0.40% Cu, 0.11 g/T Au and 1.4 g/T Ag from 142m - 322m down hole.

Results from the first five holes (CZT001 to CZT005) reinforce that the Company's belief in the presence of a significant Copper-Gold-Silver deposit is well founded.

The confirmatory drilling program of 10 drill holes totalling 5715.3m has now been completed. Drill logging, cutting and sample shipments have also been completed for all ten holes. Assays from holes six to ten are expected shortly and will complete the planned Phase one drill program.

The Company will continue to drill define the Taysan deposit in preparation for the next study phase, however the ten holes drilled to date are anticipated to be sufficient to bring the Taysan deposit into a NI 43-101 compliant resource, which will be finalized once all assays have been completed.

A summary of the results from holes CZT003 to CZT005 are as follows:

  CZT 003          
  From To Interval Cu% Au g/T Ag g/T
             
  2 450 448 0.33 0.19 1.34
including 54 270 216 0.5 0.321 2.12
             
and 474 512 38 0.11 0.04  
  CZT 004          
  From To Interval Cu% Au g/T Ag g/T
             
  46 450 404 0.32 0.073 1.24
including 242 332 90 0.37 0.15 1.6
             
and 480 606 126 0.13 0.044  
  CZT 005          
  From To Interval Cu% Au g/T Ag g/T
             
  70 460 390 0.304 0.084 1
including 142 322 180 0.4 0.111 1.4
             
and 472 522 50 0.13 0.057  

Johan Raadsma, President and CEO of Crazy Horse states, "We are extremely excited about this very large interval of mineralisation with the addition of significant silver grades, which historically have not been incorporated into the project valuation. It confirms our belief that a very robust, near surface deposit is present near the infrastructure required to develop an economical project. We have access to water, electricity, roads, manpower and are only 20 km's from a commercial port. We intend to develop this project rapidly."

QAQC

Drilling is carried out by Quest Exploration Drilling (Philippines) Inc. using Edson 3000 and LF70 drill rigs and a triple tube diamond core drilling system. All holes are started in PQ (150-200m) then continued in HQ. All core is split using a diamond-bladed drill-core saw and always sampled from the (true) left side of the core. The remaining half of the core is sealed in plastic bags in a nitrogen atmosphere and stored in a covered, guarded core shed. Core samples are bagged in new polyethylene, UV stable plastic bags, sealed with a plastic tie, numbered outside and have a tag placed inside the bag. All samples are accompanied by Asian Arc personnel from site to the McPhar Laboratory under secure "Chain of Custody" procedures. Samples are crushed to 85% less than 2mm then 1kg is split out and pulverised in an LM2 Puck and Bowl Pulveriser to 90% less than 75um. Gold is assayed by Fire Assay (50g charge) with AAS finish (PM6). Cu, Ag, As, Pb, Zn, Mo, Al, Ca, Fe, K and S are assayed by 4 Acid Digest (HCl / HNO3 / HClO4 / HF) Ore grade analysis with ICP-AES finish (ICP-3). Sample rejects are returned from the McPhar Laboratory under secure "Chain of Custody" procedures by Asian Arc staff and also stored in the core shed in heat sealed plastic bags in a nitrogen atmosphere. McPhar Geoservices (Phil), Inc. is ISO 17025:2005 accredited and is a member of the International Intertek Laboratory Group.

Taysan Project

A copy of the National Instrument 43-101 ("NI 43-101") report by R. Sowerby, of Geosynthesis Pty Ltd. entitled "A Technical Review of Exploration and Resource Estimates of the Taysan Project, Batangas Province, Philippines", in collaboration with Mining Associates Inc. of Australia can viewed under the Company's profile on SEDAR (www.sedar.com).

The Project contains a drill defined copper-gold porphyry deposit, and is comprised of two mining exploration permits and three mining exploration permit applications (permits: EP-IVA-005 and EP-IVA-016, and permit applications: EPA-IVA-108, EPA-IVA-111 and EPA-IVA-081) over five contiguous claim blocks covering a combined total area of 11,254 hectares. The Project hosts a large and only partly explored copper-gold porphyry deposit similar to other copper-gold porphyry deposits previously mined in the Philippines. The Project is located in southern Luzon, Philippines in a well developed mining province and readily accessible by road located 20km east of the provincial capital and deep water commercial port of Batangas City. The Company is currently conducting a confirmatory scoping study under the management of AMEC Minproc Limited, which remains on track and on schedule.

Brian Lueck, Chairman of the Company, is the qualified person who has reviewed the geological data summarized in this news release on behalf of the Company.

ON BEHALF OF THE BOARD

Johan Raadsma, President, CEO and Secretary

This press release includes "forward-looking statements" including forecasts, estimates, expectations and objectives for future operations that are subject to a number of assumptions, risks and uncertainties, many of which are beyond the control of Crazy Horse Resources Inc. Statements regarding mineral exploration operations and objectives are subject to risk, including, but are not limited to, exploration and geologic risk, inflation and costs of goods and services, property title issues and regulatory approvals. Investors are cautioned that any such statements are not guarantees of future performance and that actual results or developments may differ materially from those projected in the forward-looking statements. Such forward-looking information represents management's best judgment based on information currently available. No forward-looking statement can be guaranteed and actual future results may vary materially. Crazy Horse Resources Inc. does not assume the obligation to update any forward-looking statement, except as required by applicable law.

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.

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