Rockcliff Resources Inc.
TSX VENTURE : RCR

Rockcliff Resources Inc.

April 23, 2014 09:29 ET

Rockcliff Options High Grade Talbot Deposit From Hudbay Minerals Inc., Historic Inferred Resource of 1,434,000 tonnes @ 3.4% Copper, 1.9g/t Gold, 2.9% Zinc, 58.4g/t Silver

TORONTO, ONTARIO--(Marketwired - April 23, 2014) - Rockcliff Resources Inc. ("Rockcliff" or the "Company") (TSX VENTURE:RCR) is pleased to announce that it has signed an option agreement to earn a 51% interest in the Talbot Property from Hudson Bay Exploration and Development Company Limited (HBED), a wholly owned subsidiary of Hudbay Minerals Inc. (TSX:HBM). The property hosts the high grade Talbot Deposit which hosts a historic inferred mineral resource of 1,434,000 tonnes at a grade of 3.4% Copper, 1.9g/t Gold, 2.9% Zinc and 58.4g/t Silver. The Talbot Property is strategically located 35km west of Rockcliff's high grade NI 43-101 T-1 Deposit. The Talbot Property covers a total of 4,458 hectares and represents a geological environment similar to that of present and past producing base metal mines associated with bi-modal volcanic rocks in the Flin Flon-Snow Lake Greenstone Belt.

Rockcliff's President & CEO stated, "Rockcliff's portfolio now consists of four (4) high grade deposits of which two (2) have NI 43-101 copper resources with significant credits in gold, silver and zinc. The acquisition of the high grade Talbot Deposit into our existing high grade copper portfolio represents a significant strategic breakthrough for our Company. It now provides us with two high grade copper deposits in close proximity to each other near a highway and active power lines. As a result, the economic viability of the region is greatly enhanced and we look forward to advancing both deposits in 2014."

Hudbay Minerals Inc. prepared an internal report (see reference to Talbot Report below) which Rockcliff is treating as a historic estimate. The historic estimate for the Talbot Deposit is detailed below.

Zone Resource Category Tonnes Cu (%) Zn (%) Ag (g/t) Au (g/t)
10 Inferred 1,170,000 3.9 3.0 65.7 2.0
15 Inferred 43,000 3.4 1.8 48.3 1.1
20 Inferred 221,000 1.0 2.8 21.5 1.4
TOTAL Inferred 1,434,000 3.4 2.9 58.4 1.9

Notes:

  1. CIM definitions were followed for the estimation of mineral resources.
  2. Mineral resources are estimated at a minimum zinc equivalent cut-off of 4.0% over a minimum two meter core length.
  3. Cut-off grade was based on a $2/pound copper, $700/ounce gold, $0.85/pound zinc, $12/ounce silver.
  4. Specific Gravity measurements were taken by HBED and HBMS personnel on sampled assay interval included in the resource estimation.
  5. Mineral resources are not mineral reserves and do not have demonstrated economic viability.
  6. The report entitled "Technical Report Talbot Lake Deposit, Manitoba" dated December 19, 2008 (the "Talbot Report") was prepared by Mr. Brian Hartman, Central Geologist, HBMS under the supervision of Robert Carter, P.Eng., Senior Mines Analyst, HBMS, a Qualified Person under NI 43-101. Kimberley Lau, P.Geo., Mines Technical Services Superintendent, HBMS, a Qualified Person under NI 43-101, peer reviewed the report.

Historical estimates of grade and tonnage given in this Press Release are viewed as reliable and relevant based on the information and methods used at the time. They were prepared in compliance with resource definitions under NI 43-101 but must be considered only as historic resources as the Talbot Report is not a public document. Neither Rockcliff nor its Qualified Persons have done sufficient work to classify the historic estimate as a current mineral resource under current mineral resource or mineral reserve terminology and are not treating the historic estimate as a current mineral resource. The historic resource should not be relied upon.

Rockcliff can earn a 51% interest in the Talbot Property by spending $6,120,000 on exploration expenditures over the next six (6) years. Rockcliff is not required to make any cash or stock payments under the agreement. The first and second year expenditure commitments are $200K and $400K respectively with escalating expenditure commitments over the remaining years. The agreement provides that once Rockcliff has earned its 51% interest in the Property, Rockcliff (51%) and Hudbay (49%) will form a joint venture and Rockcliff will be the Operator of the joint venture. Provided Hudbay contributes its pro rata (49%) share of expenditures under the joint venture, it will have two (2) years from the date Rockcliff earns its 51% interest to purchase an additional 2% interest for a cash payment of $240,000 and either incurring expenditures over a two (2) year period equivalent to 2% of the joint venture expenditures made since the formation of the joint venture or paying such amount to Rockcliff in cash. If Hudbay acquires the additional 2%, it will become the Operator of the joint venture. Once a positive Feasibility Study has been completed and mining development has commenced, the Operator can increase its interest in the Property to 65% by paying the other participant a cash payment equal to the pro rata share of expenditures made by the other participant to reduce it to a 35% interest. The Operator would then fund the costs of development and will be reimbursed for 100% of the development costs including the 35% interest of the non-operator. Once the costs of development have been repaid, the parties will be reimbursed their pro rata share of expenditures made prior to the date development commences before net profits are distributed pro rata.

The Talbot Deposit is defined as a volcanogenic massive sulphide deposit, a stratabound accumulation of sulphide minerals that precipitated at or near the seafloor in association with contemporaneous volcanism. The depositional environment is similar to that of present and past producing base metal deposits of felsic to mafic volcanic and volcaniclastic rocks in the Flin Flon - Snow Lake Greenstone Belt. Three lenses outline the Talbot Deposit and mineralization tops at 150m vertical and consists generally of coarse-grained disseminated to massive sulphides of pyrite, chalcopyrite, sphalerite, and pyrrhotite in a quartzofeldspathic gneiss.

The authors of the Talbot Report recommended completing a Preliminary Economic Assessment on the Talbot Deposit and metallurgical sampling to determine metallurgical performance and appropriate treatment protocols for the Talbot material. They also recommended if warranted, further diamond drilling to increase the confidence level of the inferred resource.

Ken Lapierre P.Geo., President and CEO of Rockcliff Resources Inc., a Qualified Person in accordance with Canadian regulatory requirements as set out in NI 43-101, has reviewed and approved the information in this press release.

For more information please visit our website at www.rockcliffresources.com

Rockcliff Resources Inc.

Rockcliff Resources Inc. is a Canadian resource exploration company focused on discovery and resource growth of its high-quality mineral properties at its Snow Lake Project. Rockcliff presently controls the Snow Lake Project in central Manitoba, totalling in excess of 400 km2. The project includes two (2) VMS high grade copper rich NI 43-101 Resources (T-1, Rail), two (2) historic VMS copper deposits (Lon and Talbot), the T-2 Copper Zone (Tower), numerous untested geophysical anomalies and several additional properties with VMS potential (Freebeth, Dickstone North). Rockcliff also owns a zinc-silver rich NI 43-101 Resource (Shihan) in Ontario.

Additional information can be viewed at www.rockcliffresources.com.

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 potential mineralization and resources, exploration results, and future plans and objectives of the Company are forward looking statements that involve various risks. The following are important factors that could cause the Company's actual results to differ materially from those expressed or implied by such forward looking statements: changes in the world wide price of mineral commodities, general market conditions, risks inherent in mineral exploration, risks associated with development, construction and mining operations, the uncertainty of future profitability and the uncertainty of access to additional capital. There can be no assurance that forward-looking statements will prove to be accurate as actual results and future events may differ materially from those anticipated in such statements. Rockcliff undertakes no obligation to update such forward-looking statements if circumstances or management's estimates or opinions should change. The reader is cautioned not to place undue reliance on such forward-looking statements.

Neither 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 release.

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