VANCOUVER, BRITISH COLUMBIA--(Marketwired - June 28, 2016) - Northisle Copper and Gold Inc. ("Northisle" or the "Company") (TSX VENTURE:NCX) is pleased to announce the receipt of $757,400 from the exercise of 10,820,000 warrants at $0.07 per share. Together with the recently closed $300,000 financing, Northisle now has sufficient funding to advance exploration of the Northisle project through a Preliminary Economic Assessment (PEA).
The immediate plans are to commence a 1,100 metre drilling program on the Red Dog mineralized zone with the primary objective to confirm the historical resource. As part of the program, one of the holes will be drilled to a depth of 500 metres to test for a deeply buried porphyry deposit lying immediately south of the historical resource. This target was identified during last year's geological mapping program and further supported by the presence of increasing copper grade with depths in holes drilled to the south of the historical resource. It is anticipated that the drilling program will commence in mid-July once the access road to the drill sites are rehabilitated. Upon completion of the drill program and verification of the resource, engineering studies with the objective of completing a Preliminary Economic Assessment (PEA) will commence.
John McClintock, President and CEO of Northisle commented, "I am very pleased that we now have sufficient funding to verify the Red Dog's historical resource and advance our North Island Copper - Gold Project through a PEA. If the historical resource is verified, it could significantly improve the economics of the Hushamu Resource by potentially adding up to two years of mineralization at nearly 50% higher grade during the initial start-up period".
The North Island Copper-Gold Project
The Hushamu Resource
The North Island Copper-Gold Project is situated approximately 15-40 kilometres southwest of Port Hardy and contains the Hushamu Deposit and five other partially explored copper-gold porphyry occurrences. The Company has a current resource estimate of the Hushamu Deposit which has been filed on Sedar. The project is 100% owned by Northisle.
Kg x 1000
|** Copper equivalent calculated using US$2.50/lb Cu, US$1100/oz Au and US$14.00/lb Mo and is not adjusted for mining and metallurgical recoveries as these remain uncertain. The formula used is as follows: CuEQ = (Cu% x 22.0462 x 2.50) + (Au g/t x 1100.00/ 31.1035) + (Mo% x 22.0462 x 14.00). Rhenium values have not been used in the cutoff grade or Cu Equivalent calculations
Red Dog Property
The Red Dog Property hosts a historical mineral resource of 20 million tonnes grading 0.30% copper, 0.5gpt gold and 0.012% molybdenum. The reader is cautioned that a qualified person has not done sufficient work to classify the historical estimate as current resources and Northisle is not treating the historical estimate as current mineral resources. Verification of the historical estimate will require additional drilling including twinning a number of the historical drill holes.
The Company has approved the granting of stock options to a consultant for the purchase of 75,000 common shares of the Company. The options will vest over a two-year period, with one-third vested on issue, one-third on the first anniversary date and one-third on the second anniversary date. These options have a five-year term and allow the holder to purchase one common share of the company for $0.10 cents a share until June 28, 2021.
John McClintock, P. Eng is the Qualified Person responsible for the technical content of this release.
For more information on Northisle and the Hushamu Deposit please visit the Company's website at www.Northisle.ca.
On behalf of Northisle Copper and Gold Inc.
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 news release.
This news release contains forward-looking statements. These forward-looking statements are based upon the reasonable beliefs of Northisle and its management as of the date of this news release; however, forward-looking statements involve risks and uncertainties and are based upon factors that may change and assumptions that may prove, with the passage of time, to be incorrect as a result of exploration and other risk factors associated with mineral exploration and development that are beyond the control of Northisle. Accordingly, undue reliance should not be placed upon such statements. If factors materially change or assumptions are materially incorrect, the actual results, performance or achievements of Northisle may be materially different from any future results, performances or achievements expressed or implied by such forward-looking statements. Northisle does not undertake any obligation to update or revise any forward-looking statements to reflect new information, future events or otherwise, except as required by applicable law.