TORONTO, ONTARIO--(Marketwired - Sept. 29, 2016) - Rockcliff Copper Corporation ("Rockcliff" or the "Company") (TSX VENTURE:RCU) today announced that the Company has signed an option agreement dated September 20, 2016 to earn up to 100% interest in the Bur property from Hudson Bay Mining and Smelting Co., Limited, a wholly-owned subsidiary of HudBay Minerals Inc. (Hudbay) (TSX:HBM)(NYSE:HBM). The Bur property hosts a high grade, zinc-rich Volcanogenic Massive Sulphide (VMS) deposit and is strategically located nearby Hudbay's operations in the Snow Lake mining camp within the prolific Flin Flon-Snow Lake greenstone belt in Manitoba.
Rockcliff's President and CEO Ken Lapierre commented, "The Bur deposit is one of the highest grade unmined zinc-rich deposits in the Flin Flon-Snow Lake mining camp and fits perfectly with our goal of acquiring, discovering and advancing high grade metal-rich deposits in this prolific camp. Adding high grade zinc resources near our existing high grade copper resources adds excellent diversity in metals that are moving towards a world-wide shortage. Also, it is one of the most cost effective ways to achieve significant growth within a world class mining camp known for its exceptional metal grades, outstanding infrastructure and low cost electrical power. The addition of this high grade zinc deposit enhances our ability to make significant strides towards our ultimate goal of becoming the next mine finders in one of the best mining and exploration jurisdictions in the world."
The Bur property hosts the high grade zinc-rich Bur deposit, located 22km by road northeast of Hudbay's Snow Lake copper-zinc concentrator and 28km from the Town of Snow Lake, Manitoba. The property covers 86 mining claims, totalling 3,979 hectares. A report (see Bur Deposit Report below) was prepared for Hudbay in 2007. Rockcliff is treating the estimate of mineral resources in the Bur Deposit Report as a "historical estimate" under NI 43-101 and not as a current mineral resource.
Historical Resource, Bur Deposit, Snow Lake, Manitoba
- CIM definitions were followed for the estimation of mineral resources.
- Mineral resources are estimated at a zinc equivalent cut-off of 5%.
- Cut-off grade was based on a zinc price of US$1.15 per pound and a copper price of US$2.35 per pound.
- Given the tonnage, grade and orientation of the deposit, AMEC considers the Bur Deposit to be reasonably amenable to extraction using underground mining methods.
- Specific Gravity measurements used to estimate the mineral resource tonnes ranged from 2.64 to 3.74 with an average of 3.16.
- A minimum mining width of 3m was used.
- Numbers may not add due to rounding
- Mineral resources are not mineral reserves and do not have demonstrated economic viability.
- The deposit was documented in a report dated October 1, 2007 and titled "Bur Project, Snow Lake Manitoba, Canada NI 43-101 Technical Report" (the "Bur Deposit Report"). The report was prepared for Hudbay by AMEC Americas Limited (AMEC) and was filed on Hudbay's SEDAR profile on January 31, 2008.
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 Bur Deposit Report was prepared for Hudbay in 2007. 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. Additional work including surface geophysics, drilling and bore hole geophysics will need to be completed to upgrade the historical resource to current.
The Bur deposit is a stratiform, distal, massive sulphide deposit that occurs within a narrow turbidite assemblage of interbedded metagreywacke, metasiltstone and graphitic meta-argillite in a basinal area situated between a two granitic intrusions. The northeast striking deposit dips 60-70 degrees northwest, ranges from <0.3m up to 5m thick with a known lateral extent of approximately 4,500m. Drilling has encountered disseminated, semi-massive and massive sulphide mineralization below overburden to a vertical depth of 950m. Mineralization consists of sphalerite, chalcopyrite, pyrrhotite, pyrite, galena and arsenopyrite. The Bur deposit contains up to 20% felsic or cherty nodules consisting of wall rock and late quartz fragments displaying a brecciated texture to the mineralization. The deposit remains open in all directions.
Rockcliff can earn a 100% interest in the Bur property from Hudbay by spending $3.0M in exploration over a four year period in increasing yearly expenditure requirements. The first and second year expenditure requirements are $400K and $600K, respectively. Once the 100% earn-in is complete, Rockcliff may exercise its option to own a 100% interest in the property. On exercise of the option, Hudbay will receive a 2% Net Smelter Return (NSR) royalty on the property. Hudbay will then have one year (the buy-back waiting period) to decide whether to buy back 70% of the property by paying Rockcliff a total of $3.0M cash over a three year period. Hudbay will also pay Rockcliff double the exploration expenditures incurred by Rockcliff during the buy-back waiting period, capped at $1.5M, if it elects to exercise its buy-back right. Upon Hudbay exercising its buy-back right, Hudbay's right to receive the 2% NSR royalty shall terminate. Hudbay and Rockcliff will then form a joint venture on a 70/30 (Hudbay/Rockcliff) basis and will be responsible for their respective pro rata share on further exploration of the property. Once a decision is made to construct a mine, Hudbay shall contribute on behalf of Rockcliff Rockcliff's proportionate share of the expenses in the form of a non-interest bearing loan, repayable in accordance with the terms of the joint venture agreement.
Ken Lapierre P.Geo., President and CEO of Rockcliff., a Qualified Person in accordance with Canadian regulatory requirements as set out in NI 43-101, has read and approved the scientific and technical information that forms the basis for the disclosure contained in this press release.
About Rockcliff Copper Corporation
Rockcliff is a Canadian resource exploration company focused on the discovery, exploration and advancement of high grade metal deposits in the prolific Flin Flon - Snow Lake greenstone belt centered on Snow Lake, Canada. The Snow Lake Project, totalling in excess of 39,000 collective hectares is centered around the Snow Lake mining camp and hosts the highest grade unmined copper and zinc- rich VMS properties and a former high grade lode-gold producer. The properties include two high grade VMS NI 43-101 Resources (the Talbot deposit and the Rail deposit), two historic high grade VMS deposits (the Lon deposit and the Bur deposit), a Net Smelter Return Royalty (NSR) on the Tower property which includes the T-1 copper-rich VMS deposit and the highest grade former lode gold producer (Laguna) in the entire belt. Rockcliff also owns a zinc-silver rich NI 43-101 Resource (the Shihan deposit) in Ontario and a royalty on two gold properties in Colombia, South America.
Rockcliff is well funded with over $3.0M in its treasury and no debt.
Cautionary Note Regarding Forward-Looking Statements: This news release includes forward-looking statements that are subject to risks and uncertainties. Forward-looking statements involve known and unknown risks, uncertainties, and other factors that could cause the actual results of the Company to be materially different from the historical results or from any future results expressed or implied by such forward-looking statements.
All statements within, other than statements of historical fact, are to be considered forward looking. Although Rockcliff believes the expectations expressed in such forward-looking statements are based on reasonable assumptions, such statements are not guarantees of future performance and actual results or developments may differ materially from those in forward-looking statements. Factors that could cause actual results to differ materially from those in forward-looking statements include market prices, continued availability of capital and financing, exploration results, and general economic, market or business conditions. There can be no assurances that such statements will prove accurate and, therefore, readers are advised to rely on their own evaluation of such uncertainties. We do not assume any obligation to update any forward-looking statements except as required by law.
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.