Reservoir Minerals Inc.

Reservoir Minerals Inc.

January 27, 2014 16:14 ET

Reservoir Minerals Reports Initial Resource Estimate for the High Sulphidation Epithermal Zone of Mineralisation at Cukaru Peki in Serbia

VANCOUVER, BRITISH COLUMBIA--(Marketwired - Jan. 27, 2014) - Reservoir Minerals Inc. (TSX VENTURE:RMC)(PINKSHEETS:RVRLF)(BERLIN:9RE) ("Reservoir" or the "Company") is pleased to report the initial resource estimate for the High Sulphidation Epithermal ("HSE") zone of mineralisation within the Cukaru Peki copper-gold deposit, Brestovac-Metovnica Exploration Permit, Serbia. The Cukaru Peki copper-gold deposit forms part of the Timok Project, which is a joint venture between Reservoir and Freeport-McMoRan Copper & Gold ("Freeport"). See "The Timok Project", below.

SRK Consulting (UK) Limited ("SRK"), an independent mining and geological consulting company, estimated the National Instrument 43-101 compliant Inferred Resource for the HSE zone to be 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 (CuEq% = Cu% + (Au g/t x 0.6), containing 1.7 million tonnes (3.8 billion pounds) copper and 3.1 million ounces gold or 2.3 million tonnes (5.1 billion pounds) 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.

The underlying porphyry type mineralisation has not been modelled at this time due to the lack of drill data and geometrical understanding, and is not included in the resource estimate.

A summary of the Cukaru Peki Resource Estimate is presented in Table 1. The "43.101 Technical Report on a Mineral Resource Estimate on the Cukaru Peki deposit, Brestovac-Metovnica Exploration Permit, Serbia, January 2014" (the "Technical Report") will be available on SEDAR ( and the Company web site

Table 1: CIM Compliant Mineral Resource Statement as at November 27, 2013 for the Cukaru Peki HSE Deposit

Category Zone Grade
Copper Gold Arsenic Copper
% Cu Metal
(Cu Mt)
Au g/t Metal
(Au Moz)
% As %CuEQ
Inferred HGMS >10.0 4.5 11.2 0.5 7.4 1.1 0.2 15.7
1.0-10.0 2.3 6.5 0.2 3.1 0.2 0.3 8.3
SMS >3.0 14.0 3.2 0.4 2.7 1.2 0.2 4.8
1.0-3.0 44.5 1.3 0.6 0.4 0.6 0.1 1.6
Sub Total HGMS >1.0 6.8 9.6 0.7 5.9 1.3 0.2 13.1
Sub Total SMS >1.0 58.5 1.8 1.0 0.9 1.8 0.1 2.3
Grand Total >1.0 65.3 2.6 1.7 1.5 3.1 0.1 3.5
1. SRK based reporting criteria for underground Resources on the following parameters:
a. A copper price of USD 6,500/t of copper, and a gold price of USD 1,300/oz.
b. Metallurgical recovery assumptions of 90% for copper and 75% for gold.
c. Operating costs of USD 46 per tonne of ore.
2. The cut-off grade used by SRK for the estimate is 1.0% CuEq.
3. Copper equivalent formula used is as follows: CuEq = Cu% + (Au g/t x 0.6).
4. All figures are rounded to reflect the relative accuracy of the estimate.
5. Mineral Resources are not Mineral Reserves and do not have demonstrated economic viability.
6. The Mineral Resource is given on 100% basis, currently 45% is attributable to Reservoir (refer to section "The Timok Project" in this News Release).

Dr. Simon Ingram, President and CEO of Reservoir Minerals Inc., commented: "The initial Mineral Resource estimate marks a milestone on the discovery history of the Cukaru Peki copper-gold deposit. SRK note the potential for further extensions to the HSE mineralisation, and that continuing infill drilling will provide additional confidence to the resource estimate. The extent of the associated porphyry copper-gold mineralisation has not been determined and remains an important target for further definition drilling. Reconnaissance drilling elsewhere in the Brestovac-Metovnica Exploration Permit continues to intersect alteration and mineralisation that provides encouragement for further discovery within the permit area. We believe that the discovery at Cukaru Peki demonstrates the potential for additional blind discoveries within the Timok Magmatic Complex.

The Resource Estimate:

All drilling has been completed from surface. The drill holes are plotted on sections oriented at 070°, each spaced approximately 100 m apart. The dips for inclined holes range from -50º to -75º, with hole lengths typically over 1,000 m reaching a maximum of 2,160 m. The geological model of the mineralisation was created from 26 drill holes that intersect the HSE mineralisation. Two estimation domains were used: high-grade massive sulphide (HGMS) and semi-massive sulphide (SMS). A structural model was developed to understand the orientation and controls to the limits of the mineralisation. The underlying porphyry was not modelled. The geological interpretation used to generate the model for this Mineral Resource estimate, whilst based on relatively few drill holes, is considered by SRK to be fairly robust, though subject to revision in the future.

Resource estimation parameters are summarised below:

  • Assay and geological data available on or before the November 27, 2013 were included in this resource estimate.
  • Sample preparation and analytical procedures are described in the Company's previous news releases on the project and in the Technical Report. Industry-standard levels of QAQC checks were performed on assay data, including validation by umpire laboratories.
  • SRK created a block model with parent block dimensions of 50 x 50 x 30 m, with sub blocking to a minimum of 5.0 x 5.0 x 3.0 m in the Datamine™ software.
  • Samples were composited to 10 m lengths, resulting in an average of 5 and 17 samples per intersection across the HGMS and SMS domains respectively.
  • High-grade capping was applied only for gold in the SMS domain at 15 g/t gold. The spatial occurrence of the capped values was visually verified to determine that they do not form discrete zones that could be modelled separately.
  • Specific gravity was determined on 552 drill core samples from the HSE zone, out of a total of about 11,250 measurements on all rock types. Based on the relationship between Fe% grade and density, a regression formula was used to calculate density from the Fe% grade in each block. Density values have an average of 3.4 g/cm3 in the HGMS and 2.7 g/cm3 in the SMS domains.
  • Ordinary Kriging ("OK") was used for the grade estimation for the HGMS and SMS domains for copper and gold. Inverse distance weighting (IDW) was used for the grade estimation for iron and arsenic, and for verification of the OK estimates for copper and gold.
  • Quantitative Kriging Neighbourhood Analysis ("QKNA") was undertaken to test the sensitivity and define the optimum sample selection parameters to be used in the grade estimation. A minimum of 10 and maximum of 30 sample composites from a minimum of two drill holes were used to estimate the HGMS and SMS blocks.

The Mineral Resource is classified by SRK as Inferred and is defined as the blocks in which mineralisation represents reasonable strike continuity and down-dip extensions within 100 m of sample data. SRK considers that a cut-off grade of >1.0% CuEq is suitable for reporting Mineral Resources for what is likely to be an underground project. Parameters used to define the cut-off grade are included the footnotes to Table 1.

The Mineral Resources have been estimated in conformity with generally accepted CIM "Estimation of Mineral Resource and Mineral Reserves Best Practices" guidelines and are reported in accordance with the Canadian Securities Administrators' National Instrument 43-101. Mineral Resources are not Mineral Reserves and do not have demonstrated economic viability. There is no certainty that all or any part of the Mineral Resource will be converted into Mineral Reserve.

Our partner, Freeport, did not participate in completion of this resource estimate and is subject to disclosure requirements that are different than Reservoir's disclosure requirements. Accordingly, future disclosures concerning the Cukaru Peki deposit and the Timok Project by our partner Freeport may contain different or additional information as required by those laws, regulations and requirements.

SRK Comments:

The following are summarised from the comments made by SRK in their Technical Report:

  • HSE mineralisation currently remains open towards the north, with the potential for the portions of the geological model that are currently unclassified (due mainly to lack of drilling) to be defined as additional Resources with step out drilling.
  • SRK concurs with Reservoir that there is good potential to define a contiguous proportion of the HGMS that may have sufficiently high grade to be considered as Direct Shipping Ore ("DSO"), however infill drilling is required to confirm this opportunity.
  • Given the similarities with the Bor mine district immediately to the north, where there are multiple discrete HSE ore bodies within a 2 km long area, there is potential for further exploration at Cukaru Peki to find additional distinct zones of mineralisation.
  • SRK notes the potential upside of the underlying lower grade porphyry mineralisation, which has currently been excluded from the resource estimate, due to the lack of geological understanding for the current level of data. The lateral and vertical extent of porphyry remains to be fully defined.
  • Additional exploration potential is suggested by intersections of local HSE copper mineralisation and patchy Pb-Zn mineralisation are recorded in three holes approximately 2 km south of Cukaru Peki.

SRK Recommendations:

SRK considers the next stages of work should comprise:

  • A basic conceptual evaluation of the Cukaru Peki HSE deposit in terms of an underground mine and concentrator facility;
  • A scoping study which provides detailed work programmes required to achieve Mineral Reserves, an environmental and social assessment and a pre-feasibility study (PFS);
  • Testing of extensions to the deposit by geophysics and diamond drilling; and
  • Infill drilling as necessary to upgrade portions of the HSE deposit to Indicated Mineral Resources, to underpin a subsequent PFS.
  • In order to achieve these next steps, SRK recommends an approximate expenditure of USD 20 million.
  • Reservoir note that future work will be determined in accordance with the provisions of Reservoir's joint venture with Freeport as discussed under "The Timok Project".

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:

Mr. Martin Pittuck, C.Eng., MIMMM, is a Qualified Person under National Instrument 43-101 Standards of Disclosure for Mineral Projects of the Canadian Securities Administrators and is an independent consultant to the Company, he co-authored the Technical Report, signed off on the Mineral Resource Statement and approved the technical disclosure in this release.

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.

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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