Reservoir Minerals Reports Initial Resource Estimate for the High Sulphidation Epithermal Zone of Mineralisation at Cukaru Pe...
27 Januar 2014 - 9:14PM
Marketwired Canada
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 (www.sedar.com) and the Company
web site www.reservoirminerals.com.
Table 1: CIM Compliant Mineral Resource Statement as at November 27, 2013 for
the Cukaru Peki HSE Deposit
---------------------------------------------------------------------------
Copper
Copper Gold Arsenic Equivalent
---------- --------- ------- ----------
Grade Million Metal Au Metal
Category Tonnes % (Cu g/ (Au % %
Category Zone %CUEQ (Mt) Cu Mt) t Moz) As CuEQ
---------------------------------------------------------------------------
Inferred HGMS greater than 4.5 11.2 0.5 7.4 1.1 0.2 15.7
10.0
-------------------------------------------------------------
1.0-10.0 2.3 6.5 0.2 3.1 0.2 0.3 8.3
------------------------------------------------------------------
SMS greater than 14.0 3.2 0.4 2.7 1.2 0.2 4.8
3.0
-------------------------------------------------------------
1.0-3.0 44.5 1.3 0.6 0.4 0.6 0.1 1.6
------------------------------------------------------------------
Sub Total HGMS
greater than 1.0 6.8 9.6 0.7 5.9 1.3 0.2 13.1
------------------------------------------------------------------
Sub Total SMS
greater than 1.0 58.5 1.8 1.0 0.9 1.8 0.1 2.3
------------------------------------------------------------------
Grand Total
greater than 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 degrees, each spaced approximately 100 m apart. The
dips for inclined holes range from -50 degrees to -75 degrees, 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(TM) 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 greater than 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.
FOR FURTHER INFORMATION PLEASE CONTACT:
Reservoir Minerals Inc.
Chris MacIntyre
VP Corporate Development
+1.416.703.0010
chris@reservoirminerals.com
www.reservoirminerals.com
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