Reservoir Minerals Inc.

TSX VENTURE : RMC
PINKSHEETS : RVRLF
BERLIN : 9RE


Reservoir Minerals Inc.

February 18, 2014 16:10 ET

Reservoir Minerals Reports Further High Grade Epithermal Drill Intercepts and Long Intercepts of Porphyry Mineralisation from the Cukaru Peki Cu-Au Deposit, Serbia

VANCOUVER, BRITISH COLUMBIA--(Marketwired - Feb. 18, 2014) - Reservoir Minerals Inc. (TSX VENTURE:RMC)(PINKSHEETS:RVRLF)(BERLIN:9RE) ("Reservoir" or the "Company") is pleased to provide an update on the diamond drilling program currently underway on the Cukaru Peki Deposit in eastern Serbia, which is a joint venture with Freeport-McMoRan Exploration Corporation ("Freeport"). New drill intercepts through the High Sulphide Epithermal ("HSE") resource, including drill hole FMTC 1338, which intersected 205.6 metres grading 4.81% copper and 2.88 grams per tonne (g/t) gold for 6.54% copper-equivalent (CuEq), including 114.5 metres grading 7.77% copper and 4.14 g/t gold for 10.25% CuEq. Significant drill intercepts have also been made through porphyry-type copper-gold mineralisation, including drill hole FMTC 1328, which intersected 902.0 metres grading 0.65% copper and 0.14 g/t gold, 0.74% CuEq, which includes a higher grade zone of 231.0 metres at 1.07% copper and 0.18 g/t gold for 1.18% CuEq.

Dr. Simon Ingram, President and CEO of Reservoir Minerals Inc., commented: "The Company is encouraged and it concludes that the new drilling results from the Cukaru Peki Deposit are in line with expectations based on the recently published National Instrument 43-101 Inferred Resource Estimate (News Release January 27, 2014), and that the wide-spaced drilling to the east and north continue to yield long intercepts of associated porphyry style copper-gold mineralisation. The company believes drilling to date demonstrates the possibility that the high grade Cukaru Peki deposit and associated porphyry style mineralisation may develop into a significant copper-gold deposit."

The "NI43-101 Technical Report on a Mineral Resource Estimate on the Cukaru Peki deposit, Brestovac-Metovnica Exploration Permit, Serbia, January 2014" (the "Technical Report") is available on SEDAR (www.sedar.com) and the Company web site www.reservoirminerals.com.

The best results (greater than 0.5% CuEq over a minimum of 10 metres) are summarised in Table 1.

Drill hole ID From (m) To (m) Interval (m) Vertical Thickness (m)* Estimated true thickness (m)** Mineralisation Type*** Copper (%) Gold (g/t) CuEq (%)
FMTC 1327 635.1 668.0 32.9 32.9 HSE 0.90 0.59 1.26
including 652.6 663.0 10.4 10.4 2.37 1.17 3.07
754.7 837.0 82.3 82.3 HSE 0.82 0.33 1.02
1146.0 1952.7 806.7 806.7 P 0.59 0.22 0.72
including 1709.0 1863.0 154.0 154.0 0.95 0.28 1.11
FMTC 1328 617.7 688.9 71.2 71.2 HSE 0.65 0.23 0.79
including 617.7 633.0 15.3 15.3 1.00 0.54 1.33
766.0 1668.0 902.0 902.0 HSE transitioning into P 0.65 0.14 0.74
including 1130.0 1361.0 231.0 231.0 1.07 0.18 1.18
FMTC 1332 918.4 927.3 8.9 8.8 HSE 1.16 0.60 1.52
1136.0 1425.0 289.0 286.4 P 0.90 0.17 1.00
1839.0 2160.3 321.3 319.5 P 0.73 0.18 0.84
including 1840.1 2014.0 173.9 173.1 P 0.90 0.18 1.01
FMTC 1334 426.0 449.2 23.2 23.2 HSE 1.03 0.37 1.26
474.0 497.5 23.5 23.5 HSE 1.03 0.25 1.18
866.6 1475.3 608.7 608.7 P 0.68 0.16 0.78
including 1022.7 1045.0 22.3 22.3 P 1.17 0.12 1.24
and 1202.0 1219.0 17.0 17.0 P 1.13 0.35 1.34
and 1242.0 1282.0 40.0 40.0 P 1.05 0.22 1.18
and 1402.0 1469.9 67.9 67.9 P 0.87 0.29 1.04
FMTC 1335 1209.0 1680.6 471.6 471.6 P 0.41 0.22 0.54
including 1608.0 1680.6 72.6 72.6 P 0.89 0.34 1.09
FMTC 1338 554.4 760.0 205.6 205.6 HSE - SMS 4.81 2.88 6.54
including 558.5 673.0 114.5 114.5 HSE-HGMS 7.77 4.14 10.25
FMTC 1340 705.0 1144.0 439.0 437.2 P 0.71 0.14 0.80
including 746.0 791.4 45.4 45.2 P with HSE overprint 0.96 0.22 1.10
and 802.0 825.4 23.4 23.3 P 1.07 0.14 1.15
and 876.0 911.0 35.0 34.9 P 0.99 0.13 1.07
and 1048.0 1139.9 91.9 91.5 P 0.94 0.19 1.05
FMTC 1343 634.2 644.6 10.4 10.4 HSE - SMS 1.23 0.83 1.73
FMTC 1345 592.2 846.0 253.8 250.1 HSE - SMS&HSGM 1.68 0.95 2.24
including 604.3 615.0 10.7 10.5 HSE - HGMS 7.34 3.74 9.59
FMTC 1346 674.0 728.7 54.7 54.7 HSE - SMS 4.39 1.33 5.19
FMTC 1347 653.8 667.0 13.2 13.0 HSE 0.84 0.78 1.30
733.0 767.9 34.9 34.4 HSE 1.28 0.42 1.53
FMTC 1348 628.0 865.0 237.0 233.4 HSE - SMS+HGMS 1.98 0.72 2.42
including 633.0 653.0 20.0 19.7 HSE - HGMS 8.33 3.48 10.42
TC 130050 823.0 882.0 59.0 57.4 HSE 0.45 0.21 0.58
Table 1: Summary of significant results from drill holes reported in this News Release.
Copper-equivalent (CuEq %) is calculated using the formula (Copper % + 0.6 x g/t of gold).
* Vertical Thickness - the intercept intervals from inclined holes outside of the Inferred Resource model are provided as vertical thicknesses (some drill holes were drilled with -90º declination, and therefore there is no change on the reported interval).
** Estimated true thickness - the intercept intervals from drill holes through the Inferred Resource model are estimated to intersections perpendicular through the orientation of the mineralisation on cross section (some holes are oriented perpendicular to the model, and therefore there is no change).
*** Mineralisation types are denoted by the following: HSE - High sulphidation epithermal mineralisation, P - Porphyry mineralisation, HGMS - High grade massive sulphide sub-type within HSE, SMS - Semi-Massive Sulphide sub-type within HSE, P - Porphyry mineralisation.

Additional holes completed but not reported in Table 1 are:

  • FMTC 1329 and 1336 were terminated before reaching target depth due to technical reasons
  • FMTC 1331, 1337 and 1339 were reconnaissance holes south of the Cukaru Peki target area (see below)

Status of Drilling and Project:

The Company has reported the results from 35 diamond drill holes from Cukaru Peki Project, with assay results pending from a further 2 holes (FMTC 1349 and 1 reconnaissance hole in the Miocene Basin area), 1 hole (TC 130051 has been drilled for metallurgical sampling), and 1 hole is currently being drilled (see Table 2). The drill hole collar locations are shown on a map (Timok Project Drill Plan) and summary results and graphical strip-logs (Timok Project Strip Logs) are available on the Company website (www.reservoirminerals.com).

The Company announced an initial inferred resource estimate prepared by SRK Consulting (UK) Limited ("SRK"), an independent mining and geological consulting company (see News Release January 27, 2014). The National Instrument 43-101 compliant Inferred Resource for the HSE zone is 65.3 million tonnes (Mt) at an average grade of 2.6% copper and 1.5 grams per tonne (g/t) gold, or 3.5% copper-equivalent. The Inferred Resource estimate is reported above a 1% CuEq cut-off grade. The Inferred Resource includes the high-grade massive sulphide (HGMS) domain containing an estimated 6.8 million tonnes at an average grade of 9.6% copper and 5.9 g/t gold (13.1% CuEq) at a 1% CuEq cut-off, and a significant proportion of the semi-massive sulphide (SMS) domain containing 14.0 million tonnes at an average grade of 3.2% copper and 2.7 g/t gold (4.8% CuEq) at a 3% CuEq cut-off grade.

Drill Hole ID Azimuth (º) Declination (º) Depth (m) Target* Status
FMTC 1210 0 -90 1947.0 Discovery hole, HSE&P Completed. Results to 1183 m reported Company News Release July 16, 2012, and additional results reported in News Release December 10, 2012
FMTC 1211 0 -90 1136.7 HSE Completed. Results reported in News Release December 10, 2012.
FMTC 1212 0 -90 1008.8 HSE Completed. Results reported in News Release December 10, 2012.
FMTC 1213 0 -90 798.1 HSE Completed. Reported in Company News Release September 4, 2012
FMTC 1214 250 -80 1308.6 HSE&P Completed. Results reported in News Release December 10, 2012
FMTC 1215 0 -90 950.8 HSE Completed. Results reported in News Release July 22, 2013
FMTC 1216 250 -70 921.0 HSE Completed. Results reported in News Release July 22, 2013
FMTC 1217 070 -80 1006.7 HSE Completed. Results reported in News Release December 10, 2012
FMTC 1218 0 -90 1952.0 P Completed. Results reported in News Release July 22, 2013.
FMTC 1219 0 -90 1900.6 P Completed. Results reported in News Release July 22, 2013.
FMTC 1220 0 -90 1079.5 HSE Completed. Results reported in News Release December 2, 2013
FMTC 1221 0 -90 1004,5 HSE Completed. Results reported in News Release December 2, 2013
FMTC 1223 0 -90 1060.4 HSE Completed. Results reported in News Release April 8, 2013.
FMTC 1224 0 -90 1088.5 HSE Completed. Results reported in News Release September 9, 2013
FMTC 1327 0 -90 1952.7 HSE&P Completed. Results reported in this News Release.
FMTC 1328 0 -90 1742.0 P Completed. Results reported in this News Release.
FMTC 1329 0 -90 718.8 HSE Completed. Results reported in this News Release.
FMTC 1330 0 -90 1112.5 HSE Completed. Results reported in News Release December 2, 2013
FMTC 1331 0 -90 1109.2 RecH Completed. Results reported in this News Release.
FMTC 1332 250 -80 2160.3 HSE&P Completed. Results reported in this News Release.
FMTC 1333 0 -90 1016.5 RecH Terminated, awaiting logging
FMTC 1334 0 -90 1649.0 HSE&P Completed. Results reported in this News Release.
FMTC 1335 0 -90 1680.6 P Completed. Results reported in this News Release.
FMTC 1336 250 -85 849.3 HSE Completed. Results reported in this News Release.
FMTC 1337 0 -90 1100.1 RecH Completed. Results reported in this News Release.
FMTC 1338 070 -55 902.0 HSE Completed. Results reported in this News Release.
FMTC 1339 0 -90 956.7 RecH Completed. Results reported in this News Release.
FMTC 1340 070 -85 1220.8 HSE&P Completed. Results reported in this News Release.
FMTC 1341 070 -51 782.0 HSE Completed. Results reported in News Release December 2, 2013
FMTC 1343 070 -56 861.0 HSE Competed. Results reported in this News Release.
FMTC 1344 075 -56 893.4 HSE Completed. Results reported in News Release December 2, 2013
FMTC 1345 070 -66 1010.4 HSE Completed. Results reported in this News Release.
FMTC 1346 075 -66 728.7 HSE Completed. Results reported in this News Release.
FMTC 1347 070 -76 983.5 HSE Completed. Results reported in this News Release.
FMTC 1348 069 -66 999.2 HSE Completed. Results reported in this News Release
FMTC 1349 052 -60 1134.4 HSE Terminated, awaiting assays
TC 130050 050 -75 645.6 HSE Completed. Results reported in this News Release.
TC 130051 132 -50 900.00 HSE Terminated. Drilled for metallurgical sampling
TC 130052 132 -53 HSE Drilling - twinning of TC 130051
Table 2: Status of drill holes in the Cukaru Peki Project and Miocene Basin areas on February 14, 2014
* Drilling mineralisation targets are denoted by the following; HSE target - High sulphidation epithermal target, P target - Porphyry target, HSE&P target - High sulphidation epithermal and porphyry target, RecH - reconnaissance hole.

Summary of drill holes reported

Drill holes FMTC 1327 was a vertical hole testing the northern extension of the HSE mineralisation defined in the SRK study. Drill holes FMTC 1343, 1345, 1346, 1347, 1348, and TC 130050 were inclined holes drilled on 3 section lines to provide information on the HSE mineralisation. The reconciliation of the intersections and intervals reported in Table 1 with the lithological boundaries and composite grades reported in the SRK Technical Report on the Cukaru Peki deposit is generally good. The Company notes that the new analytical data since the SRK Technical Report results in no differences to the HGMS domain, and only 7 out of 302 composites (approximately 2.3%) from the SMS domain will require adjustment in a subsequent resource estimate, and the effects of these differences on the Resource Estimate is expected to be marginal. The Company is still awaiting the assay results from drill hole FMTC 1349.

Drill holes FMTC 1328, 1334 and 1340 targeted mineralisation between 500 and 900 metres east of the core of the HSE mineralisation (link to Section 6). These holes intersected relatively weak HSE mineralisation at vertical depths of between approximately 300 to 600 metres, and porphyry-style mineralisation from approximately 800 metres to between 1250 and 1650 metres. The intercepts reported in Table 1 demonstrate that the porphyry mineralisation in this area is characterised by grades of 0.75% to 0.80% CuEq over approximately 430 to 900 vertical metres that include significant intercepts with greater than 1% CuEq. Copper sulphide mineralogy is dominated by chalcopyrite that is locally replaced by covellite. Drill holes FMTC 1332 and 1335 were located on Section 9 (link to Section 6), approximately 500 metres north of Section 6, and both holes intersected porphyry type mineralisation that extended to the final depth of the holes. Drill hole FMTC 1327 also intersected porphyry mineralisation at depth of approximately 1250 metres to the end of hole at 1952.7 metres beneath the HSE mineralised envelope. These new drill hole intercepts through porphyry mineralisation, together with previously reported intercepts from FMTC 1210, 1218, and 1219, suggests that the porphyry style mineralisation extends from under the HSE zone of the Cukaru Peki deposit to the north for at least 500 metres and northeast for at least 900 metres, and the limits to the porphyry mineralisation have yet to be defined except to the south, where FMTC1210 has not returned significant Cu or Au grades in porphyry-type mineralization.

The wide-spaced reconnaissance drill holes are located approximately 2.0 to 2.3 kilometres southeast of the Cukaru Peki HSE deposit. Drill hole FMTC 1331 intersected andesite with argillic alteration and pyritisation, and locally enhanced base metal content marked by chalcopyrite and sphalerite. The best single intercepts were in FMTC 1331: 1.3 metres (1005.4 - 1006.7 metres) containing 0.94% copper and 0.67 g/t gold (1.34% CuEq) and 0.45% zinc; and FMTC 1337: 2.0 metres (1093.0 - 1095.0 metres) containing 0.83% copper and 0.58 g/t gold (1.18% CuEq). FMTC 1339 intersected a zone of quartz-alunite alteration with gold and weak copper mineralisation: 19.7 metres (616.0 - 635.7 metres) containing an average of 0.14% copper and 0.52 g/t gold. These results from wide-spaced reconnaissance drill holes suggest that there is a possibility for discovering further centres of epithermal copper-gold mineralisation within the Brestovac-Metovnica exploration permit.

Note on Analytic procedures:

Copper was routinely analyzed by inductively coupled plasma - atomic emission spectroscopy (ICP-AES) using 0.5 gram aliquots. Due to the exceptionally high grade of copper in some samples, repeat analyses were undertaken using atomic absorption spectroscopy (AAS) for samples containing 1 - 11% copper, and ICP-AES with longer sample digestion times and smaller aliquot of 0.1 gram for samples containing greater than 11% copper. The copper values in Table 1 of this news release are from the repeat analytical procedures as available, and otherwise by the routine procedure for the samples yielding less than 1% copper.

All the samples in the reported intervals were analysed for gold by fire assay (30 gram samples) with an AAS finish. Samples containing greater than 3 g/t gold were reanalysed for gold by fire assay (30 gram samples) with a gravimetric finish, and these results are included as available in the composites reported in Table 1 of this news release.

Quality Assurance and Control ("QAQC"):

Drill hole orientations were surveyed at approximately 50 metre intervals. The samples were collected in accordance with the Company and Freeport's protocols that are compatible with accepted industry procedures and best practice. Most samples through the mineralized intervals were 1 metre in length, up to a maximum 4 metres in sections of poorly mineralized or unmineralized core.

The turn-around time for receiving analytical results has been greatly reduced by using two laboratories for preparation and analysis. Samples were submitted to Eurotest Control EAD Laboratory (ISO 9001:2008 and ISO 17025 accredited) in Sofia, Bulgaria, or to ALS Chemex facilities in Bor, Serbia, or Rosia Montana, Romania, for sample preparation. Samples were analysed according to the above-mentioned procedures by Eurotest Control EAD or by ALS Chemex (at their OMAC, Loughrea, Ireland, facility for ICP-AES, at their Rosia Montana facility for gold by fire assay and gravimetry and for copper by AAS). The Company conducted its own analysis of QAQC results generated by the systematic inclusion of certified reference materials, blank samples and field duplicate samples. The analytical results from the Timok Projects quality control samples have been evaluated, and conform to best practice standards.

The Timok Project:

The Timok Project comprises the Jasikovo-Durlan Potok, Brestovac-Metovnica and Leskovo Exploration Permits that are held by Rakita d.o.o., a Serbian company in which Freeport and Reservoir hold 55% and 45% indirect ownership interests respectively. The Exploration Permits cover an area of 245 square kilometres in the highly prospective Timok Magmatic Complex, eastern Serbia, which includes the world-class Bor-Majdanpek mining and smelting complex with reported historical production of 6 million tonnes of copper and 300 tonnes of gold (9.65 million ounces gold) (BRGM publication BRGM/RC-51448-FR, 2002).

Freeport previously exercised the Earn-In Option to acquire a 55% equity interest in the Timok Project in Serbia and is now the operator of the Timok Project. Freeport has given notice to Reservoir (Refer to the news release of August 16, 2012) that it has elected to sole fund expenditures on or for the benefit of the project until the completion and delivery to Reservoir of a feasibility study, subject to its right to cease such funding at any time. The feasibility study must be in such form as is normally required by substantial, internationally recognized financial institutions for the purpose of deciding whether or not to loan funds for the development of mineral deposits. If Freeport completes the feasibility study, Freeport will indirectly own 75% and Reservoir 25% of the Timok Project.

Qualified Person:

Dr. Duncan Large, Chartered Engineer (UK) and Eur. Geol., a Qualified Person under National Instrument 43-101 Standards of Disclosure for Mineral Projects of the Canadian Securities Administrators and a consultant to the Company, approved the technical disclosure in this release and has verified the data disclosed.

About the Company:

Reservoir Minerals Inc. is an international mineral exploration and development company run by an experienced technical and management team, with a portfolio of precious and base metal exploration properties in Europe and Africa. The Company operates an exploration partnership business model to leverage its expertise through to discovery.

This news release includes certain "forward-looking statements" under applicable Canadian securities legislation. Such forward-looking statements or information, including but not limited to those with respect to exploration results, involve known and unknown risks, uncertainties, and other factors which may cause the actual results, performance or achievements of Reservoir Minerals Inc. to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements or information. Such factors include, among others, the actual prices of commodities, the factual results of current exploration, development and mining activities, changes in project parameters as plans continue to be evaluated, as well as those factors disclosed in documents filed from time to time with the securities regulators in the applicable Provinces of British Columbia and Alberta.

Neither TSX Venture Exchange nor the Investment Industry Regulatory Organization of Canada accepts responsibility for the adequacy or accuracy of this release.

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