Orestone Mining Corp.
TSX VENTURE : ORS

Orestone Mining Corp.

December 16, 2010 19:21 ET

Orestone Mining Corp.: IP-Mag-Drill Results Define Large Copper-Gold Porphyry Target on Captain Property

VANCOUVER, BRITISH COLUMBIA--(Marketwire - Dec. 16, 2010) - Orestone Mining Corp. ("Orestone" or the "Company") (TSX VENTURE:ORS) is pleased to announce complete copper and gold assays from diamond drill hole 09-05 on its 41,000 hectare, 100% owned Captain Property in the Quesnel Terrane of central British Columbia (the "Property"). The drill core yielded assays of up to 0.65 grams per tonne gold and 0.22% copper. The Company reported, in a January 27, 2010 News Release, that the 137 metre vertical hole bottomed in a 3.1 metre interval averaging 0.34 g/T Au and 0.16% Cu. Geologists from the Company have now sampled the entire drill hole and received anomalous copper and gold assays from those samples.

As summarized in a table below, anomalous copper and gold occur in thicknesses up to 20 metres, but the center of the mineralizing system has likely not yet been encountered. This drill hole is adjacent to chargeability and resistivity anomalies resulting from a July 2010 induced polarization (IP) survey completed on the Property. There are also gold and copper anomalies from a recently completed soil survey that are coincident with the chargeability and resistivity features and reinforce new drill targets. 

The Property lies immediately south of the Mt Milligan copper-gold project currently being constructed by Thompson Creek Metals Company Inc. There is variable glacial cover in this area, so geophysics and overburden geochemical techniques are the best targeting tools. Mt. Milligan and other alkalic copper-gold deposits in this region are associated with coincident magnetic and IP anomalies. The glacial overburden in drill hole 09-05 is approximately 45 metres deep.

The chargeability-resistivity-magnetic anomalies to the west of this drill hole are the best and largest copper-gold alkalic porphyry targets ever defined on the Property. Averages of copper and gold assays from approximate ten metre runs are provided in the table below. The data reveals a pronounced increasing gradient of both copper and gold from the top of bedrock to the bottom of the hole. The increasing grades with depth are encouraging as they indicate the potential for higher, potentially economic gold and copper grades at depth and laterally, adjacent to hole 09-05. Mineralization in the hole is hosted by a breccia with a matrix of fine-grained pyrite and chalcopyrite within andesitic volcanoclastic rocks. Overall pyrite content is about 3%.

Table 1 – Average Cu and Au Values over Nominal 10m Intervals in DH 09-05
Interval metres   Length metres   Avg Cu %   Avg Au g/t
45.75-57.5   11.75   0.02   0.05
57.5-66.75   9.25   0.02   0.04
66.75-77.0   10.25   0.01   0.01
77.0-86.36   9.36   0.02   0.05
86.36-97.0   10.64   0.02   0.03
107-116.8   9.80   0.02   0.10
116.8-126.52   9.72   0.06   0.18
126.52-137.23   10.71   0.09   0.24
including            
134.13-137.23   3.10   0.16   0.34

Hole 09-05 was positioned on an 800 m wide IP chargeability anomaly that remains open to the west, northwest and south. In July 2010, an IP line was completed along a forest service road contiguous and to the west of a 2008 IP anomaly that hole 09-05 targeted. The 2010 IP line defined a two kilometre wide, coincident high chargeability/high resistivity anomaly located on the west flank of a 1,000 m wide aeromagnetic high. The 800m wide chargeability anomaly, on which hole 09-05 was positioned, is located on the east flank of the aeromagnetic anomaly. The magnetic anomaly could be indicative of an underlying magnetite-bearing mineralizing intrusion. This relationship of high chargeability anomalies occurring adjacent to magnetic anomalies is a classic indication for alkalic copper-gold porphyry deposits within the Quesnel Terrane.

When coupled with the encouraging copper-gold mineralization in hole 09-05, the coincident geochemical and geophysical anomalies of this scale define drill targets for potential discovery of a sizable porphyry copper-gold deposit. The Company has been granted a permit for the completion of up to 24 diamond drill holes on these targets.

Quality Control and Qualified Person

The technical data in this news release has been reviewed and approved by Gordon Richards, P.Eng. Mr. Richards is registered with The Association of Professional Engineers in the Province of British Columbia and is a Qualified Person under NI 43-101. The drill hole assays were performed at Acme Analytical Labs, who are accredited under ISO 9001 for the provision of assays for mineral exploration. Orestone has made use of Acme Lab's rigorous quality assurance program, which includes the use of analytical control samples. The analytical control samples associated with these samples performed satisfactorily. 

About Orestone

Orestone is a BC focused gold and copper exploration company. The Company trades on the TSX Venture Exchange under the symbol ORS. Its flagship projects are the Todd Creek Au-Cu Project in the Stewart Camp and the Captain Au-Cu Project in the Quesnel Terrane. Orestone controls more than 65,000 hectares in these two prolific districts of northern and central BC. Together these terranes host numerous giant copper-gold deposits, such as Seabridge Gold's KSM Project, Silver Standard's Snowfield Project and Thomson Creek's Mt. Milligan deposit. The Company expects to drill its Captain and Todd Creek Projects in 2011.

Forward Looking Statement

Some of the statements contained herein may be forward-looking statements, which involve known and unknown risks and uncertainties. Without limitation, statements regarding future plans and objectives of Orestone are forward-looking statements that involve various degrees of risk. It is important to note that Orestone's actual results could differ materially from those in such forward-looking statements. 

Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

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