InterGeo Resources LLC

InterGeo Resources LLC

September 06, 2012 10:48 ET

InterGeo Resources Announces New District-Scale Porphyry Copper-Gold Discovery

VANCOUVER, BRITISH COLUMBIA--(Marketwire - Sept. 6, 2012) - InterGeo Resources LLC ("IGR"), a member company of the InterGeo Group of privately held companies, is pleased to announce the Company's participation in ongoing discoveries of porphyry copper and gold mineralization in the Malmyzh porphyry copper-gold district in Far East Russia. The Malmyzh exploration and mining licenses are held by a joint venture between IGR, and Freeport-McMoRan Exploration Corporation ("Freeport" or "FMEC"). IGR is currently operating and managing the joint venture. IGR believes Malmyzh represents an exciting new greenfield discovery.

Diamond drilling has confirmed porphyry copper-gold mineralization at fourteen separate target areas that lie within a district-scale, 16 by 5 kilometer structural corridor, and are concealed beneath a shallow cover of soil and vegetation. Drill intercepts from two of these prospects include:

  • 406.7 meters averaging 0.52% copper and 0.29 g/t gold,
  • 223.1 meters averaging 0.54 % copper and 0.18g/t gold, and
  • 459.3 meters averaging 0.36% copper and 0.41 g/t gold with a sub-interval of 111.6 meters averaging 0.80% copper and 1.01 g/t gold.

The joint venture is currently advancing the project towards initial resource definition, and designing an exploration program to: a) follow-up on zones of higher-grade copper-gold mineralization, b) expand the drill defined extent of the known centers of copper-gold mineralization, and c) conduct initial drill tests of additional target areas identified from geophysics and surface geochemical anomalies.

Malmyzh Project Background. Malmyzh is located in Far East Russia, approximately 220 kilometers northeast of the city of Khabarovsk and the nearby border with China. The project has excellent logistics and infrastructure, including a nearby high voltage power line, a paved national highway, and nearby rail. The Amur River lies within two kilometers of the project boundary and is directly linked to major shipping ports. The property is covered by two mining and exploration licenses that total 153 square kilometers.

Freeport (previously Phelps Dodge) identified Malmyzh as a prospective target for porphyry copper mineralization in 2006, and over a three-year period conducted surface geochemical sampling, geophysical surveys, and reconnaissance drilling totaling eight core holes and 1,126 meters. This reconnaissance drilling intersected copper-gold mineralization in five of the early-stage target areas. Subsequently, IGR earned a 51% ownership interest in Freeport's Russian subsidiary that controls the property and other assets in 2011 by a) taking operational control of the project, b) completing 12,000 meters of drilling, and c) ensuring that the joint venture's activities comply with, and fulfill Russian license requirements. Freeport does not retain any "clawback" or NSR provisions under the terms of the agreement with IGR. Should either party reduce its interest to under 10 % of the joint venture, their interest reverts to a 1/2 cent per pound payment of recoverable copper equivalent in the proven and probable categories of mineral reserves derived from each feasibility study through the life of the project.

IGR is owned by several investment firms and private individuals, as well as a 36% equity position on a fully diluted basis held by Eurasian Minerals Inc. ("EMX"). The IGR team is led by President and CEO Tom Bowens, and includes key personnel with in-country expertise and a track record of exploration discovery and project development. EMX is contributing to executive management with the appointment of David M. Cole as the Chairman of the Board of Managers and M. Stephen Enders as a board manager.

Malmyzh Geologic and Exploration Overview. Malmyzh's porphyry centers occur as Cretaceous-aged dioritic to granodioritic stocks that intruded and altered siltstone and sandstone sedimentary sequences. The project's terrain consists of low relief hills within the Amur River valley, with bedrock covered by a relatively shallow veneer of colluvium and alluvium. Drill targeting has focused principally on geophysical and soil geochemical anomalies. IGR believes it has an excellent track record of exploration success to date.

Copper-gold porphyry mineralization consists of near-surface (i.e., within 2-50 meters of the surface) zones of chalcocite enrichment grading into chalcopyrite-rich and chalcopyrite-bornite-magnetite mineralization at deeper levels. Copper-gold mineralization occurs in the porphyry intrusives, as well as in the altered and stockworked sedimentary wall rocks. To date, 90 drill holes (29,300 m) have been completed with 59 holes intersecting significant (>0.3 percent copper equivalent) copper-gold mineralization. The Central Zone is the most advanced prospect, having been partially drill defined at a 200 meter spacing. Select drill results are summarized in the table below.

Hole Area TD From To Width Cu % Au g/t Cu Eq
AMM-035 CENTRAL 450.6 43.9 450.6 406.7 0.52 0.29 0.72
including 140.1 431.0 290.9 0.57 0.34 0.81
AMM-041 CENTRAL 680.8 423.1 646.2 223.1 0.54 0.18 0.66
including 591.3 635.2 43.9 1.23 0.53 1.60
AMM-042 CENTRAL 598.8 32.6 288.1 255.5 0.57 0.17 0.69
386.0 547.7 161.7 0.36 0.09 0.42
AMM-030 NORTH 452 2.0 452.0 450.0 0.31 0.06 0.35
including 26.9 39.7 12.8 1.22 0.08 1.28
including 203.8 225.5 21.7 0.61 0.32 0.83
AMM-069 DESTINY 403.8 16.0 384.8 368.8 0.33 0.22 0.48
including 16.0 117.2 101.2 0.41 0.26 0.60
including 236.2 292.5 56.3 0.58 0.44 0.89
AMM-077 ABV 461.1 188.1 331.0 142.9 0.40 0.09 0.46
AMM-037 FREEDOM 334 33.8 334.0 300.2 0.36 0.37 0.62
including 48.0 73.2 25.2 0.78 0.33 1.01
including 141.0 236.8 95.8 0.51 0.58 0.91
AMM-056 FREEDOM 484.5 25.2 484.5 459.3 0.36 0.41 0.65
including 25.2 136.8 111.6 0.80 1.01 1.51
AMM-082 VALLEY 404.8 46.0 404.8 358.8 0.45 0.20 0.59
including 217.0 298.0 81.0 0.53 0.31 0.74
AMM-033 VALLEY 338 37.4 315.6 278.2 0.39 0.13 0.48
AMM-002 FLATS 475.7 1.0 475.7 474.7 0.26 0.28 0.46
including 56.8 74.9 18.1 0.43 1.49 1.47
including 213.3 347.6 134.3 0.35 0.45 0.67
FMXC-004 FLATS 197.6 2.0 197.0 195.0 0.39 0.29 0.59
including 15.0 49.0 34.0 0.52 0.29 0.72

Copper equivalent calculated as Cu% + (Au g/t * 0.7). Metallurgical recoveries and net smelter returns are assumed to be 100%. Reported intervals are interpreted as true widths in porphyry style mineralization.

The joint venture's ongoing exploration programs include additional geophysical surveys, geochemical sampling, and diamond drilling.

Comments on Drilling, Sampling, Assaying, and QA/QC. The Malmyzh geochemical and drill samples were collected in accordance with accepted industry standards and procedures. The samples were submitted to Irgiredmet Laboratories (ISO 9001:2008 accredited) in Irkutsk, Russia for assay and geochemical analysis. Gold was analyzed by fire assay with an AAS finish, and copper analyses were determined with aqua regia digestion and ICP AES techniques. IGR conducts routine QA/QC analysis on all assay results, including the systematic utilization of certified reference materials, blanks and field duplicates.

Mr. Thomas E. Bowens, CPG, a Qualified Person as defined by National Instrument 43-101 and President and CEO of the Company, has reviewed and verified the technical information contained in this news release.

Forward-Looking Statement

This news release may contain "forward looking statements" that reflect the Company's current expectations and projections about its future results. When used in this news release, words such as "estimate", "intend", "expect", "anticipate", "will" and similar expressions are intended to identify forward-looking statements, which, by their very nature, are not guarantees of the Company's future operational or financial performance, and are subject to risks and uncertainties and other factors that could cause IGR's actual results, performance, prospects or opportunities to differ materially from those expressed in, or implied by, these forward-looking statements. These risks, uncertainties and factors may include, but are not limited to: unavailability of financing, failure to identify commercially viable mineral reserves, fluctuations in the market valuation for commodities, difficulties in obtaining required approvals for the development of a mineral project, expectations of project funding by joint venture partners and other factors.

Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date of this news release or as of the date otherwise specifically indicated herein. Due to risks and uncertainties, including the risks and uncertainties identified in this news release, actual events may differ materially from current expectations.

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