THEMAC Resources Group Limited
TSX VENTURE : MAC

THEMAC Resources Group Limited

December 07, 2011 14:28 ET

THEMAC Resources Group Limited: Copper Flat Mine 2011 Core Drilling Program Continues To Return Encouraging Results

VANCOUVER, BRITISH COLUMBIA--(Marketwire - Dec. 7, 2011) - THEMAC Resources Group Limited ("THEMAC" or "the Company") (TSX VENTURE:MAC) today provided an update on the 2011 core drilling program at the Company's Copper Flat project.

2011 CORE DRILLING PROGRAM-Results for Holes CF-11-08 through CF-11-12

Additional assay results for the recently completed 16-hole 2011 Copper Flat drilling program have been received for holes CF-11-08 through CF-11-12 (including CF-11-10B). A total of 6076.9 feet of drilling was completed in these six holes. At the end of this release, Figure 1 illustrates the locations of the six new holes and Appendix 1 lists their assay results. A November 17th news release summarized the first eight holes of this drilling campaign: CF-11-01 through CF-11-07 (posted on www.themacresourcesgroup.com). The assays for the remaining two holes (CF-11-13 and CF-11-14) are anticipated in late December.

"The results from these six additional holes at Copper Flat continue to be highly encouraging," said André Douchane, CEO. "These holes addressed areas of limited drilling in an effort to expand our knowledge of the high-grade Cu mineralization while adding to our geotechnical knowledge. Additionally, holes 9 and 11 showed mineralization outside of the current pit design. A surprising number of high grade copper intervals were reported at relatively shallow depths indicating the potential for better than average copper grades during the early years of mining."

Drilling Highlights

  • Six holes totaling 6076.9 feet of drilling
  • 2.34% Cu encountered in hole CF-11-10B at interval depth 20-25 ft
  • 65 feet of 0.90% Cu was encountered in CF-11-08 from interval depth 95-160 ft
  • 1193 ppb Au was encountered in hole CF-11-10B from interval depth 583-588 ft
  • The grades encountered in the angle hole drilling, across historic holes, continues to confirm previous intercepts and grades
  • The overall grades of the assays received to date are comparable to what has been encountered in previous drilling campaigns providing further strong confirmation of the mineralization

Table 1

Table 1 highlights drill intervals by hole based on equal to/greater than 0.65% Cu values.

Hole ID From To Length Au (ppb) Ag (ppm) Cu (%) Mo (%)
CF-11-08 95 160 65 365 5.2 0.90 0.141
265 280 15 369 4.4 0.72 0.015
323 334 11 363 4.9 0.70 0.008
CF-11-09 95 128 33 241 6.2 0.83 0.013
CF-11-10B 20 30 10 309 7.4 1.54 0.309
75 100 25 501 7.8 1.52 0.232
138.9 156.7 17.8 453 7.5 1.58 0.055
274.4 293.8 19.4 210 6.3 0.78 0.027
312.5 323.8 11.3 184 8.5 1.08 0.040
Assay highlights of significant intervals. Intervals were calculated greater than/equal to 10 feet of copper values greater than/equal to 0.65% Cu, with individual five foot intervals of less than 0.65% included

Table 2

Table 2 is a summary of the average grade for each of these six holes. CF-11-10B had the highest average grade for Cu, at 0.35%.

Hole ID Interval Average Grades*
From To Cu (%) Mo (%) Au (opt) Ag (opt)
CF-11-08 0.0 1200.0 0.28 0.014 0.003 0.06
CF-11-09 0.0 1200.0 0.22 0.005 0.002 0.04
CF-11-10 0.0 101.9 0.33 0.006 0.004 0.09
CF-11-10B 0.0 1177.0 0.35 0.019 0.003 0.07
CF-11-11 0.0 1198.0 0.16 0.004 0.001 0.02
CF-11-12 0.0 1200.0 0.20 0.006 0.002 0.04
* Values below the detection limit were converted to zero for calculation purposes

Table 3

Results show 46 intervals with assay values equal to/greater than 0.65% Cu, encountered in holes CF-11-08, CF-11-09, CF-11-10B, and CF-11-11. The highest grade assays returned to date for this 2011 drilling is 2.34% Cu in CF-11-10B. Table 3 below lists each of these higher grade Cu assays on a per hole basis. No intercepts equal to/greater than 0.65% Cu were encountered in CF-11-10 and CF-11-12.

Grades*
Hole ID Interval Cu Mo Au Ag
From To Length (%) (%) (opt) (opt) Comments
CF-11-08 95.0 100.0 5.0 0.85 0.22 0.011 0.23 Lateral and to depth extension; possible extension to high-grade breccia
100.0 105.0 5.0 1.10 0.119 0.016 0.22 " " "
105.0 110.0 5.0 0.68 0.030 0.010 0.12 " " "
110.0 115.0 5.0 1.27 0.17 0.017 0.23 " " "
115.0 120.0 5.0 1.19 0.020 0.017 0.15 " " "
120.0 125.0 5.0 0.75 0.017 0.012 0.13 " " "
125.0 130.0 5.0 1.11 0.045 0.013 0.17 " " "
130.0 135.0 5.0 0.94 0.127 0.010 0.15 " " "
135.0 140.0 5.0 0.85 0.040 0.007 0.13 " " "
145.0 150.0 5.0 0.79 0.388 0.006 0.11 " " "
150.0 155.0 5.0 0.98 0.537 0.009 0.15 " " "
155.0 160.0 5.0 0.75 0.068 0.007 0.11 " " "
170.0 175.0 5.0 0.77 0.050 0.005 0.13 " " "
180.0 185.0 5.0 0.68 0.03 0.005 0.11 " " "
265.0 270.0 5.0 0.72 0.015 0.009 0.13 " " "
275.0 280.0 5.0 0.93 0.017 0.015 0.18 " " "
323.0 328.0 5.0 0.71 0.007 0.009 0.14 " " "
328.0 334.0 6.0 0.68 0.008 0.012 0.14 " " "
616.0 621.0 5.0 1.24 0.070 0.005 0.26 " " "
CF-11-09 95.0 100.0 5.0 0.68 0.011 0.008 0.10 Lateral and to depth extension
100.0 105.0 5.0 1.74 0.014 0.013 0.27 " " "
110.0 115.0 5.0 0.67 0.007 0.004 0.11 " " "
120.0 128.0 8.0 1.52 0.025 0.010 0.49 " " "
257.0 262.0 5.0 1.25 0.021 0.016 0.25 " " "
282.0 287.0 5.0 0.75 0.013 0.004 0.16 " " "
CF-11-10B 15.0 20.0 5.0 0.70 0.06 0.006 0.13 Lateral and to depth extension; possible extension to high-grade breccia
20.0 25.0 5.0 2.34 0.609 0.012 0.33 " " "
25.0 30.0 5.0 0.74 0.009 0.006 0.11 " " "
75.0 80.0 5.0 1.05 0.080 0.009 0.16 " " "
80.0 85.0 5.0 0.95 0.056 0.010 0.17 " " "
85.0 90.0 5.0 1.99 0.076 0.021 0.27 " " "
90.0 95.0 5.0 2.18 0.692 0.020 0.29 " " "
95.0 100.0 5.0 1.45 0.256 0.013 0.25 " " "
138.9 144.5 5.6 1.21 0.032 0.014 0.16 " " "
144.5 149.5 5.0 1.82 0.048 0.013 0.25 " " "
149.5 156.7 7.2 1.72 0.086 0.013 0.24 " " "
217.3 222.3 5.0 0.89 0.044 0.005 0.21 " " "
249.3 256.3 7.0 0.73 0.031 0.005 0.23 " " "
274.4 280.5 6.1 0.87 0.038 0.004 0.22 " " "
280.5 286.5 6.0 0.66 0.024 0.006 0.16 " " "
286.5 293.8 7.3 0.80 0.018 0.008 0.17 " " "
312.5 317.5 5.0 1.35 0.034 0.008 0.33 " " "
317.5 323.8 6.3 0.80 0.045 0.002 0.17 " " "
342.0 347.0 5.0 0.73 0.208 0.003 0.14 " " "
522.0 527.0 5.0 0.67 0.005 0.004 0.20 " " "
CF-11-11 624.3 633.8 9.5 1.88 0 0.017 0.18 Lateral and to depth extension
* Values below the detection limit were converted to zero for calculation purposes

Table 4

Within these 6 holes, there are thirty (30) intercepts with values of greater than or equal to 300ppb Au. The highest Au value encountered in the 2011 drilling to date was in CF-11-09; 1,193ppb at 583-588 feet. Twenty-eight (28) of the thirty (30) intercepts were encountered relatively equally between holes CF-11-08, CF-11-09, and CF-11-10B. Table 4 summarizes the intercepts and values.

Hole ID Interval (Ft) Grades*
From To Length Cu (%) Mo (%) Au (ppb) Ag (ppm) Comments
CF-11-08 95.0 100.0 5.0 0.85 0.220 371 8.00
100.0 105.0 5.0 1.10 0.119 556 7.50
105.0 110.0 5.0 0.68 0.030 347 4.00
110.0 115.0 5.0 1.27 0.170 581 7.90
115.0 120.0 5.0 1.19 0.020 575 5.10
120.0 125.0 5.0 0.75 0.017 400 4.60
125.0 130.0 5.0 1.11 0.045 447 5.70
130.0 135.0 5.0 0.94 0.127 326 5.10
150.0 155.0 5.0 0.98 0.537 306 5.20
265.0 270.0 5.0 0.72 0.015 321 4.30
275.0 280.0 5.0 0.93 0.017 528 6.00
323.0 328.0 5.0 0.71 0.007 318 4.80
328.0 334.0 6.0 0.68 0.008 407 4.90
CF-11-09 100.0 105.0 5.0 1.74 0.014 430 9.40
120.0 128.0 8.0 1.52 0.025 346 16.70
167.0 172.0 5.0 0.60 0.003 346 3.00
202.0 207.0 5.0 0.55 0.020 438 2.10
257.0 262.0 5.0 1.25 0.021 538 8.40
583.0 588.0 5.0 0.17 0.002 1193 1.20
CF-11-10B 20.0 25.0 5.0 2.34 0.609 424 11.20
75.0 80.0 5.0 1.05 0.080 312 5.50
80.0 85.0 5.0 0.95 0.056 350 5.90
85.0 90.0 5.0 1.99 0.076 734 9.20
90.0 95.0 5.0 2.18 0.692 675 9.80
95.0 100.0 5.0 1.45 0.256 436 8.70
138.9 144.5 5.6 1.21 0.032 477 5.40
144.5 149.5 5.0 1.82 0.048 436 8.70
149.5 156.7 7.2 1.72 0.086 446 8.30
CF-11-11 624.3 633.8 9.5 1.88 0.000 581 6.20
CF-11-12 661.0 666.5 5.5 0.16 0.004 313 2.5
* Values below the detection limit were converted to zero for calculation purposes

Assay Methods

Assaying was undertaken at Skyline Laboratory in Tucson, AZ. Copper, molybdenum, gold and silver were determined by multiple methods; gold was by fire assay with AA finish; silver was by AA; and copper and molybdenum by ICP. Reference standards and blanks were inserted in the sample streams, along with duplicate sampling of the core.

Standard procedures for core handling were in place during the program, with core being logged into the core facility at every shift change. A geologist was on site for all sample preparation and shipping.

About the Copper Flat Project

Copper Flat is a former producing mine located approximately 20 miles southwest of Truth or Consequences in Sierra County, State of New Mexico, USA. Permitting for a return of the project to production is at an advanced stage, and a prefeasibility study is in progress and targeted for completion during first quarter 2012.

The Copper Flat project is a porphyry copper-molybdenum-gold-silver deposit. The deposit has NI43-101 Indicated Mineral Resources of 107 million short tons grading 0.303% copper and 0.01% molybdenum for 645 million lbs copper and 21.4 million lbs molybdenum, plus Inferred Mineral Resources of 46 million short tons grading 0.24% copper and 0.006% molybdenum for 222 million lbs copper and 5.6 million lbs molybdenum.

The gold and silver content of the deposit is evidenced by historic production and metallurgical test work, and gold and silver are targeted for incorporation into the deposit's NI43-101 Mineral Resource statement following completion and interpretation of a re-assay program using historic drill pulps.

An NI43-101 Preliminary Economic Assessment ("PEA") dated June 30, 2010 and updated February 25, 2011 has been completed for Copper Flat and can be viewed on SEDAR, which includes the current NI43-101 Mineral Resource statement.

Civil infrastructure in place at Copper Flat includes a tailings dam, largely pre-stripped open pit, power lines, water well field and pipeline, access roads, diversion channels and building foundations. The project land package comprises in excess of 1,200 hectares. For more information visit www.nmcopper.com.

About THEMAC Resources Group Limited

THEMAC is a copper development company with a strong management team and as of May 18, 2011, a 100% ownership interest in the Copper Flat copper-molybdenum-gold-silver project in New Mexico, USA. We are committed to bringing the closed copper mine, Copper Flat, in Sierra County, New Mexico back into production with innovation and a sustainable approach to mining development and production, local economic opportunities and the best reclamation practices for our unique environment. The Company is listed on the TSX Venture Exchange (ticker: MAC) and has issued share capital of 74,117,622 common shares (fully diluted share capital 135,648,241).

Technical information in this news release has been approved by Mr. John Marek, P. Eng., a Qualified Person under National Instrument 43-101.

For more information please visit www.themacresourcesgroup.com or review the Company's filings on SEDAR (www.sedar.com).

To view "Figure 1. Drill Hole Location Map, Copper Flat" please click on the following link: http://media3.marketwire.com/docs/MACFigure1.pdf

To view "Appendix 1. Assay Results for CF-11-01 thru CF-11-07" please click on the following link: http://media3.marketwire.com/docs/MACAppendix1.pdf

Neither the TSX Venture Exchange (the "TSXV") nor its Regulation Services Provider (as that term is defined in the policies of the TSXV) has reviewed, nor do they accept responsibility for the adequacy or accuracy of, this release.

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