VANCOUVER, BC--(Marketwired - November 29, 2016) - Northisle Copper and Gold Inc. (TSX VENTURE:NCX) ("Northisle" or the "Company") is pleased to announce a maiden NI-43-101 Mineral Resource on its Red Dog copper-gold (Cu-Au) deposit that confirms increased tonnage at similar grades to the historical resource estimate and supports the Company's plan to combine Red Dog and Hushamu into a single project. Red Dog and Hushamu are located within Northisle's 100-per-cent-owned North Island Project on Vancouver Island, British Columbia.
- Using a base-case cut-off grade 0.20 per-cent Copper, Red Dog contains an Indicated Resource of 23.6 Mt grading 0.32 per-cent Copper and 0.46 gpt Gold.
Red Dog is located only ten kilometres by road from Northisle's Hushamu deposit, which contains 304 Mt grading 0.21 per-cent Copper, 0.29 gpt gold, 0.01 per-cent molybdenum (Indicated) and 205.6 Mt grading 0.18 per-cent Copper, 0.26 gpt Gold (Inferred).
In addition to its close proximity, Red Dog's grade is 50% higher than Hushamu's, which may benefit the economics by providing higher-grade feed during the initial two years of a potential mine plan. A preliminary economic assessment (PEA) is currently under way to evaluate the strength of the combined project.
"We are very pleased that the initial estimate resource estimate for the Red Dog deposit has exceeded our expectations and will now complete the PEA incorporating both Red Dog and Hushamu. We are excited by the potential impact the addition of Red Dog will have on the overall project, especially as commodity prices continue to recover," said Jack McClintock, Northisle's President and CEO.
A plan and section for the Red Dog deposit can be found on the Northisle website at http://www.northisle.ca/north-island-project/photo-gallery/.
Red Dog Resource Estimate
The Red Dog Resource estimate is based on 38 drill holes totalling 6,382 metres. The majority of the holes used in the resource calculation were drilled by Utah Mines Ltd in 1980 to 1982 and Moraga and Crew Resources in 1989 to 1991. Over the past year, Northisle compiled the historical drill results, verified drill locations and re-drilled four of the historical holes -- two from the 1980s drill programs and two from the 1989 to 1991 drill programs. Results from the verification drilling compared well with the historical results. The recent Northisle drilling and geological interpretation has been independently reviewed by Brian Game, P.Geo. The resource estimate was completed by Phil Burt, P. Geo.
A full technical report co-authored by Brian Game and Phil Burt will be filed on SEDAR within the next 45 days. The following table shows the tonnages and grades for the Red Dog Project at a range of copper at cut-off grades (COG%).
RED DOG INDICATED MINERAL RESOURCE - TONNES & GRADE
|| ||ppm Au
RED DOG INFERRED MINERAL RESOURCE - TONNES and GRADE
|| ||ppm Au
| || || || || || || || || |
Parameters in Resource Estimate
Resources are based on 38 holes totalling 6,382 metres. A three dimensional geological model was built based on a combination of lithologies and alteration such that two geological domains and one above surface domain was modelled. Raw assays were composited down hole into 5 metre intervals. A statistical analysis of metal values in both the raw and composited data suggested that copper, gold and molybdenum grades are remarkably uniform with no high outliers so grade capping was not required. A block model with 5 m x 5 m x 5 m blocks was created and each block classified based on the geological domains. Block partial percentages and sub-blocking to 1.25 m was used at domain boundaries. Grades of Cu, Au and Mo were interpolated into blocks by Inverse Squared Distance. For the Indicated Resource category, a minimum of 4 and maximum of 16 composites were required to estimate each block using a 150m x 100m x 60m search ellipsoid. A maximum of 3 composites from any single hole were allowed. For the Inferred category, a minimum of 4 and maximum of 16 composites were used to estimate each block using a 200m x 160m x 80m search ellipsoid. Four composites were allowed from a single drill hole. A specific gravity of 2.76 g/cc used is based on 98 measurements spanning all rock-types encountered in the 2016 verification drill holes. Final grade-tonnage estimates were confined to a single geological domain above 250m elevation.
The resource was classified in accordance to National Instrument 43-101 and CIM definition.
The North Island Copper-Gold Project is situated approximately 15-40 kilometres southwest of Port Hardy and contains the Hushamu and Red Dog deposits and five other partially explored copper-gold porphyry occurrences. The project is 100% owned by Northisle.
The Hushamu Resource
The Company has a current Resource estimate of the Hushamu Deposit which has been filed on SEDAR.
|| ||Resource Grade
|| ||Contained Metal
|| ||Cu Eq%
| ||GoldM oz
|| ||MoM lb
|| ||ReKg 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 cut-off grade or Cu Equivalent calculations
The Red Dog Resource
The Red Dog Resource is located 8km northwest of the Hushamu Deposit and hosts a current resource of 23.6 million tonnes grading 0.32% copper, 0.46 gpt gold and 0.007% molybdenum.
Brian Game, P. Geo and Phil Burt, P. Geo are the Qualified Persons 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.
President, CEO and Director
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.