Stratton Resources Inc.
TSX VENTURE : SI

Stratton Resources Inc.

April 24, 2012 08:30 ET

Stratton Releases Initial MAC Resource Estimate

VANCOUVER, BRITISH COLUMBIA--(Marketwire - April 24, 2012) - Stratton Resources Inc. (TSX VENTURE:SI) ("Stratton" or the "Company") is pleased to announced the results of an initial National Instrument 43-101 mineral resource estimate for the Camp Zone at the MAC Molybdenum-Copper Project ("MAC") located in central British Columbia.

Highlights

  • Indicated Resources of 70.4 million tonnes at 0.063% Molybdenum ("Mo") and 0.10% Copper ("Cu") or a grade of 0.352% Copper Equivalent1 ("Cu eq") at a cut-off grade of 0.035% Mo.
  • Contained within the Indicated Resource estimate is a high-grade, near surface "starter" zone of 15.3 million tonnes at 0.104% Mo and 0.16% Cu (0.576% Cu eq) at a cut-off grade of 0.035% Mo.
  • Inferred Resources of 177.9 million tonnes at 0.042% Mo and 0.05% Cu (0.22% Cu eq) at a cut-off grade of 0.035% Mo.
  • Contained metal of 546 million pounds of copper equivalent in Indicated Resources and 855 million pounds of copper equivalent in Inferred Resources.
  • Further drill testing is required to determine the extent of additional resources at depth and along strike, as well as to upgrade Inferred Resources to Indicated Resources.
  • Numerous combined electro-magnetic ("EM") and magnetic features that may reflect similar geological aspects of the Camp Zone have been identified within close proximity to the Camp Zone and warrant soil geochemistry, geologic mapping and reconnaissance drill testing.

Stratton's President and CEO, Greg McCunn, commented: "The initial resource estimate for the Camp Zone has exceeded our expectations. Based on only 20,000 metres of drilling we already have evidence of a bulk tonnage porphyry deposit with a zone of high-grade material at or near surface that would be ideal for a starter-pit to feed a mining operation."

Future Plans

  • Completing delineation drilling in the Camp Zone, including drilling across the quartz monzonite stock between the East and Northwest contact zones.
  • Expanding drilling coverage in the Camp Zone to step-out and off-set drilling of unconstrained intercepts, particularly to the South and to depth on both the East and Northwest contact zones.
  • Completing additional drilling near the Camp Zone in the Pond and Peak Zones as well as the EM targets identified.
  • Evaluating property wide exploration targets for new occurrences of Mo-Cu mineralization including stream sediment and soil geochemical targets, geophysical airborne targets, geologic intrusive targets and aeromagnetic intrusive targets.

Giroux Consultants Ltd. was contracted to produce a NI 43-101 resource estimation for the Camp Zone. A total of 104 historic and current diamond drill holes were used in the resource estimate. The grade distributions for Mo and Cu in the historic holes were compared to the holes drilled by Stratton and no bias was identified. A three-dimensional model was built by Stratton geologists to outline the Quartz Monzonite intrusive and several post-mineral dykes. The remainder of the model consisted of hornfelsed volcanics. Within each rock type cap levels were established from the grade distributions. Variograms for Mo and Cu within volcanics and intrusives were produced from 5 m composites to quantify the grade continuity. Grades for Mo and Cu were interpolated into 10 x 10 x 5 metre blocks by Ordinary Kriging. Estimated blocks were classified as Indicated or Inferred based on the grade continuity and density of drilling. The summary table below highlights a cut-off of 0.035% Mo as a possible open pit cut-off, although at this time no economic evaluation has been completed.

The high-grade starter zone within the Indicated Mineral Resource was identified using Leapfrog® modelling software and is highlighted in Figure 1 attached to this release or on the Company's website at www.stratttonresources.com.

Indicated Mineral Resources
Cut-off Grade
Mo (%)
Tonnes Mo
(%
) Cu
(%
) Cu eq
(%
) Contained Metal - Cu eq (million lbs )
0.030 79,502,000 0.059 0.09 0.326 571.4
0.035 70,360,000 0.063 0.10 0.352 546.0
0.040 61,616,000 0.067 0.10 0.368 499.9
including
0.035 15,279,000 0.104 0.16 0.576 194.0
Inferred Mineral Resource
Cut-off Grade
Mo (%)
Tonnes Mo
(%
) Cu
(%
) Cu eq
(%
) Contained Metal - Cu eq (million lbs )
0.030 226,647,000 0.039 0.05 0.206 1,029.3
0.035 177,934,000 0.042 0.05 0.218 855.2
0.040 120,621,000 0.046 0.05 0.234 622.3

An updated technical report for the MAC Property is being prepared and will be filed on www.sedar.com and available on the Company's website within 45 days of this news release.

On behalf of the Board of Directors,

Greg McCunn, President & CEO

To view Figure 1, please visit the following link: http://media3.marketwire.com/docs/si424i.pdf.

Qualified Person

Richard Haslinger, P.Eng. is the qualified person under NI 43-101 who has reviewed the technical disclosure in this news release and is responsible for the technical information contained in this release other than the estimation of Mineral Resources.

Giroux Consultants was contracted by Stratton to complete a Resource Estimate for the Camp Zone. The resources were estimated by Gary Giroux, P.Eng., MA Sc. who is a qualified person and independent of the both the issuer and the title holder, based on the tests outlined in National Instrument 43-101.

On-site supervision of the exploration program at MAC during the period September to December 2011 was the responsibility of Brian Game, P.Geo., and John Walther, P.Geo., of Geominex Consultants Inc., both of whom may be termed "Qualified Persons".

About Stratton Resources

Stratton Resources Inc. is a Canadian mineral exploration company focused on the discovery and development of porphyry molybdenum-copper deposits in British Columbia and Arizona.

Stratton's goal is to build a quality asset portfolio consisting of base metal properties at various stages of development. With an experienced management team, that has a proven track record of successful discovery and development of mineral deposits, Stratton is positioned to rapidly build shareholder value.

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

Disclosure Notes

Delineated mineralization in the Camp Zone is classified as a Mineral Resource according to the following definitions from National Instrument 43-101 and from CIM (2005):

"In this Instrument, the terms 'mineral resource', 'inferred mineral resource', 'indicated mineral resource' and 'measured mineral resource' have the meanings ascribed to those terms by the Canadian Institute of Mining, Metallurgy and Petroleum, as the CIM Definition Standards on Mineral Resources and Mineral Reserves adopted by CIM Council, as those definitions may be amended."

The terms Measured, Indicated and Inferred are defined by CIM (2005) as follows:

"A Mineral Resource is a concentration or occurrence of diamonds, natural solid inorganic material, or natural solid fossilized organic material including base and precious metals, coal and industrial minerals in or on the Earth's crust in such form and quantity and of such a grade or quality that it has reasonable prospects for economic extraction. The location, quantity, grade, geological characteristics and continuity of a Mineral Resource are known, estimated or interpreted from specific geological evidence and knowledge."

"The term Mineral Resource covers mineralization and natural material of intrinsic economic interest which has been identified and estimated through exploration and sampling and within which Mineral Reserves may subsequently be defined by the consideration and application of technical, economic, legal, environmental, socio-economic and governmental factors. The phrase 'reasonable prospects for economic extraction' implies a judgment by the Qualified Person in respect of the technical and economic factors likely to influence the prospect of economic extraction. A Mineral Resource is an inventory of mineralization that under realistically assumed and justifiable technical and economic conditions might become economically extractable. These assumptions must be presented explicitly in both public and technical reports."

Inferred Mineral Resource

"An 'Inferred Mineral Resource' is that part of a Mineral Resource for which quantity and grade or quality can be estimated on the basis of geological evidence and limited sampling and reasonably assumed, but not verified, geological and grade continuity. The estimate is based on limited information and sampling gathered through appropriate techniques from locations such as outcrops, trenches, workings and drill holes."

"Due to the uncertainty that may be attached to Inferred Mineral Resources, it cannot be assumed that all or any part of an Inferred Mineral Resource will be upgraded to an Indicated or Measured Mineral Resource as a result of continued exploration. Confidence in the estimate is insufficient to allow the meaningful application of technical and economic parameters or to enable an evaluation of economic viability worthy of public disclosure. Inferred Mineral Resources must be excluded from estimates forming the basis of feasibility or other economic studies."

Indicated Mineral Resource

"An 'Indicated Mineral Resource' is that part of a Mineral Resource for which quantity, grade or quality, densities, shape and physical characteristics, can be estimated with a level of confidence sufficient to allow the appropriate application of technical and economic parameters, to support mine planning and evaluation of the economic viability of the deposit. The estimate is based on detailed and reliable exploration and testing information gathered through appropriate techniques from locations such as outcrops, trenches, pits, workings and drill holes that are spaced closely enough for geological and grade continuity to be reasonably assumed."

"Mineralization may be classified as an Indicated Mineral Resource by the Qualified Person when the nature, quality, quantity and distribution of data are such as to allow confident interpretation of the geological framework and to reasonably assume the continuity of mineralization. The Qualified Person must recognize the importance of the Indicated Mineral Resource category to the advancement of the feasibility of the project. An Indicated Mineral Resource estimate is of sufficient quality to support a Preliminary Feasibility Study which can serve as the basis for major development decisions."

The above release contains forward-looking information, which in Stratton's view is based on reasonable assumptions and estimates. There can be no assurance that forward looking statements will prove to be accurate and are subject to many factors beyond the control of Stratton including third party consents, regulatory approvals the state of capital markets and the appetite for higher risk junior resource companies. For further details about Stratton and the risks it faces see its public filings at www.sedar.com.

The securities referred to herein have not been and will not be registered under the United States Securities Act of 1933, as amended (the "U.S. Securities Act") or any state securities laws and may not be offered or sold within the United States or to, or for the benefit of, U.S. persons (as defined in Regulation S under the U.S. Securities Act) unless registered under the U.S. Securities Act and applicable state securities laws or pursuant to an exemption from such registration requirements.

1 Copper Equivalent is calculated at a molybdenum price of $14.00/lb and a copper price of $3.50/lb (a 4:1 price ratio) with no adjustment made for relative payable or recoverable metal.

Neither the TSX Venture Exchange nor any other regulatory authority accepts responsibility for the adequacy or accuracy of this release.

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