Quaterra Responds to Continuous Disclosure Review
VANCOUVER, BRITISH COLUMBIA--(Marketwired - Jan 3, 2014) -
Quaterra Resources Inc. (TSX-VENTURE:QTA)(NYSEMKT:QMM) (the
"Company" or "Quaterra") announces that as a result of a review by
the British Columbia Securities Commission ("BCSC"), it is issuing
this news release to clarify its disclosure regarding the following
issues.
The changes noted by the BCSC do not involve the overall
tonnage, grade and contained metal of resource estimates provided
in the preliminary economic assessment reports released by the
Company, but rather the manner in which they are presented. The
changes also do not affect the mine plans, capital costs, operating
costs and financial analysis of any preliminary economic
assessments the Company has released.
Quaterra has been advised by the BCSC that it was selected for a
continuous disclosure review and has received comments on the
following issues:
Two technical reports prepared for Quaterra and published by it
together with a request to file revised technical reports within
ten days. The technical reports are: MacArthur Copper Project
Report dated May 23, 2012 and Nieves Project Report dated December
20, 2012. Quaterra has requested the authors of the two technical
reports to address the issues raised by the BCSC and to deliver
amended reports. As a consequence, Quaterra issues this news
release disclosing that the technical reports as currently filed,
do not comply with the requirements of NI43-101. It is expected
that revised technical reports will be delivered and filed in
mid-January 2014 and posted on SEDAR, EDGAR and the Company's
website www.quaterra.com.
Technical disclosure issues in the Company's website, fact sheet
and corporate presentation. The Company is clarifying certain
disclosures made in the Company's corporate presentations, fact
sheets and on the Company's website as detailed further in this
news release solely for the purpose of complying with NI 43-101's
technical disclosure rules.
1. Non-Compliant
Disclosure of a PEA
The disclosure on the website and corporate presentation of the
MacArthur Copper Project and Nieves preliminary economic
assessments (PEAs) was based in part on inferred resources. The
disclosure did not include the proximate cautionary language and
details required under section 2.3(3) of NI 43-101. The following
language has now been added to the MacArthur and Nieves project
description sections of the website and presentation: "A PEA should
not, however, be considered to be a pre-feasibility or feasibility
study, as the economics and technical viability of the Project have
not been demonstrated at this time. A PEA is preliminary in nature
and includes Inferred Mineral Resources that are considered too
geologically speculative at this time to have the economic
considerations applied to them to be categorized as Mineral
Reserves. Thus, there is no certainty that the production profile
concluded in the PEA will be realized. Actual results may vary,
perhaps materially."
A Company factsheet on the website also did not include the
proximate cautionary language around the use of inferred resources
in the PEA for the MacArthur Copper Project. The fact sheet should
have included the cautionary statement above. The factsheet has
been removed from the website.
2. Non-Compliant
Disclosure of Historical Estimates
The Company disclosed historical estimates on the website and
its corporate presentation without providing the necessary
information required by section 2.4 of NI 43-101. The historic
estimates on the website in each of the project description
sections of the Cave Peak and SW Tintic projects have been
removed.
The following language has been added to the historic resource
estimate on the website and in the corporate presentation for the
Bear Deposit at Yerington: "The Bear Deposit was discovered in 1961
by Anaconda through condemnation drilling. It is a large porphyry
system, partially delineated through drilling by both Anaconda in
the 1960s and Phelps Dodge in the 1960s and 1970s. Quaterra has
data from 49 drill holes totaling 126,400 feet that define a system
covering an area of two square miles. Estimates of mineralized
material by The Anaconda Company are reportedly more than 500
million tons averaging 0.4% copper (Diles and Proffett, 1995);
there are no known resource estimates by Phelps Dodge. A qualified
person has not done sufficient work to classify this historic
estimate as a current mineral resource. It should not be relied
upon and Quaterra does not treat it as a current mineral resource.
In order to do so, it would have to be confirmed by additional
drilling." Also, the Company has removed from its presentation any
addition of historic resources to current resources in accordance
with 2.4(5) of the Companion Policy 43-101CP.
3. Non-Compliant
Exploration Target
In a September 2012 Smartstox interview posted on the homepage
of the Company's website, it was stated that the Bear deposit at
Yerington has potential for 20-30 billion pounds of copper. This
disclosure did not include the necessary information and cautionary
language required by section 2.3(2) of NI 43-101. The interview has
been removed from the Company's website and investors are cautioned
that such disclosure should not be relied upon.
In a video posted on the homepage of the Company's website, the
Company's copper resources at Yerington were disclosed as
containing over 1 billion tonnes and 6-7 billion pounds of copper.
This disclosure did not include the necessary information and
cautionary language required by section 2.3(2) of NI 43-101. The
video has been removed from the Company's website and investors are
cautioned that such disclosure should not be relied upon.
4. Non-Compliant
Disclosure of Mineral Resources
In the overview sections of the MacArthur and Yerington
projects, as well as the Company presentation, reference was made
to a Yerington district endowment of 24 billion pounds of copper.
This disclosure has been retracted by the Company in terms of
sections 2.2(c) and 2.2(d) of NI 43-101, and removed from the
website. In the MacArthur section, it has been replaced by the
following: "[The Yerington] super district has a large metal
endowment with several known copper deposits controlled by
different companies including those at Pumpkin Hollow, Ann Mason
and those associated with Quaterra's assets." In the Yerington
section it has been replaced by the following: "Yerington is a
world-class copper district with a large metal endowment in
deposits controlled by a number of companies." The reference in the
Company presentation has been removed. The Company has also removed
any reference in the presentation where inferred mineral resources
are added to other categories.
In both the MacArthur and Yerington project description sections
of the Company website, and in the presentation, the Company
aggregated measured and indicated resources, and did not disclose
them separately. The Company has amended the resource tables in
both website sections and in the presentation and now discloses
measured and indicated resources separately in accordance with
section 2.2(b) of NI 43-101.
For MacArthur, the Company now discloses a measured oxide and
chalcocite resource of 71.8 million tons with an average grade of
0.218% TCu containing 313.2 million pounds of copper (using a 0.12%
TCu cutoff). MacArthur's indicated oxide and chalcocite resource is
87.3 million tons grading 0.208% TCu, containing 362.3 million
pounds of copper (using a 0.12% TCu cutoff). The indicated primary
sulfide resource is 1.1 million tons with an average grade of
0.292% TCu and contains 6.4 million pounds of copper (using a 0.15%
TCu cutoff). There is no measured primary sulfide resource
estimate. The MacArthur news release was first issued on May 23,
2012.
For Yerington, the Company now discloses a measured sulfide
resource of 31 million tons at a grade of 0.33% TCu for 205 million
pounds of copper (using a 0.15% TCu cutoff); the measured oxide and
chalcocite resource is 6.5 million tons at a grade of 0.25% TCu
containing 33 million pounds of copper (using a 0.12% TCu cutoff).
Yerington's indicated sulfide resource is 74 million tons at a
grade of 0.30% TCu containing 428 million pounds of copper (using a
0.15% TCu cutoff); the indicated oxide and chalcocite resource is
17 million tons of copper with a grade of 0.25% TCu containing 85
million pounds of copper (using 0.12% TCu cutoff). The Yerington
news release was issued on November 20, 2013.
In the Nieves section of the corporate presentation the Company
did not disclose the measured and indicated resources separately.
The Company has amended the indicated resource on Nieves' Concordia
vein in the presentation to 33 million tonnes at a grade of 50 g/t
silver containing 53.2 million ounces of silver. There is no
measured resource on the Concordia vein. The inferred resource of
the Concordia vein is 39.3 million tonnes at a grade of 32 g/t
containing 40 million ounces of silver. The inferred resource for
the San Gregorio vein is 18.8 million tonnes at a grade of 27 g/t
containing 16.3 million ounces of silver. The Nieves PEA news
release was first issued on September 19, 2012.
5. Qualified
Person
On the Company website, presentation and fact sheet the Company
did not disclose the identity and relationship to the Company of
the qualified person who approved the technical information
disclosed. Steven Dischler, P.E., who is a non-independent
Qualified Person within the meaning of NI 43-101 has now been added
to the website and the presentation. He supervised and approved the
disclosure of the technical information on the website and in the
corporate presentation. The fact sheet has been withdrawn from the
website. Mr Dischler also supervised the preparation and approved
of the disclosure in this news release.
About Quaterra Resources, Inc.
Quaterra Resources Inc. (TSX-VENTURE:QTA)(NYSEMKT:QMM) is a
junior exploration and development company with a successful track
record of making significant mineral discoveries in North America.
The Company's primary objective is the advancement of its flagship
projects in the Yerington copper district, Nevada. The monetization
of non-core assets is in progress to accelerate this effort.
On behalf of the Board of Directors,
Mr. Steven Dischler, President & CEO
Quaterra Resources Inc.
Disclosure note:
Some statements contained in this news release are
forward-looking statements within the safe harbor of the Private
Securities Litigation Reform Act of 1995. These statements
generally are identified by words such as the Company "believes",
"expects", and similar language, or convey estimates and statements
that describe the Company's future plans, objectives or goals.
Since forward-looking statements are based on assumptions and
address future events and conditions, by their very nature they
involve inherent risks and uncertainties. Further information
regarding risks and uncertainties which may cause results to differ
materially from those projected in forward-looking statements, are
included in filings by the Company with securities regulatory
authorities. Readers are cautioned not to place undue reliance on
forward-looking statements, which speak only as of the date
thereof. The Company does not undertake to update any
forward-looking statement that may be made from time to time except
in accordance with applicable securities laws. References may be
made in this press release to historic mineral resource estimates.
None of these are NI 43-101 compliant and a qualified person has
not done sufficient work to classify these historic estimates as a
current mineral resource. They should not be relied upon and
Quaterra does not treat them as current mineral resources.
Neither TSX Venture Exchange nor its Regulation Services
Provider (as that term is defined in policies of the TSX Venture
Exchange) accepts responsibility for the adequacy or accuracy of
this release.
Should you wish to receive news releases by fax please provide
your contact details to Quaterra at 604-681-9059 (direct),
1-855-681-9059 (toll free) or email info@quaterra.com.
Quaterra Resources Inc.Mr. Steven DischlerPresident &
CEO775-463-9600www.quaterra.com
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