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Apr 09, 2018

Copper North Expands Oxide Mineral Resource At Carmacks

Vancouver, British Columbia - Copper North Mining Corp. ("Copper North" or the "Company") (TSX.V:COL) announces the expansion of oxide copper-gold-silver mineral resources at the Carmacks Project, Yukon Territory. The mineral resource expansion is in the southern extension of the Carmacks mineral deposit, in Zones 2000S, 13, and 12, on the basis of the step-out and infill drilling program conducted in September and October 2017 and the recently completed updated mineral resource estimate ("Updated Mineral Resource"). The Updated Mineral Resource has been prepared in accordance with National Instrument 43-101 Standards of Disclosure for Mineral Projects ("NI 43-101") by Independent Qualified Person, Dr. Gilles Arseneau, P.Geo.

Highlights of the Updated Mineral Resource in Zones 2000S, 13, and 12:
  • Step-out and infill drilling in fall 2017 was successful in confirming continuity of the mineral zones and grades of the oxide and sulphide mineralization in the southern extension of the Carmacks mineral deposit.
  • Updated Oxide Measured and Indicated Mineral Resource increased to approximately 4,300,000 tonnes - grading 0.47% copper, 0.13 g/t gold and 1.92 g/t silver:
  • The new Oxide Measured and Indicated Mineral Resource increased 40% over the 2016 Mineral Resource, primarily from lateral expansion of the oxide mineralized zone - upgrading of the already minor inferred resource category was a small contributor;
  • The new Oxide Measured and Indicated Mineral Resource in Zones 2000S, 13, and 12 has the potential to provide an additional 2.4 years of mill feed at the planned processing rate of 1.775 million tonnes per year, subject to economic confirmation by future mine development planning; and,
  • The Updated Sulphide Measured and Indicated Mineral Resource totaled 4,416,000 tonnes grading 0.62% copper, 0.13 g/t gold and 2.3 g/t silver, and an equal tonnage of mineral resource in Inferred category.
Dr. Harlan Meade, President and CEO, commented that "the increase of Measured and Indicated Oxide mineralization in the Updated Mineral Resource for the Carmacks Project confirms there is an opportunity to undertake mine development engineering work on the southern extension to evaluate the potential for extending oxide mineralization mine life and for a potential future shift to mining the sulphide mineralization".

Updated Oxide Mineral Resource

Zones 2000S, 13, and 12 are located 400 to 2,000 m to the south of the proposed open-pit, defined in the 2016 PEA based on the mineral resources in Zones 1, 4 and 7. The oxide mineral resources occur from surface and extend to depths of 80 to 100 m that may be amenable to open pit mining with a modest strip ratio. The Measured category represents 79% of the total Measured and Indicated resource. The 2017 drill results, including location maps, are available in news releases dated January 8 and January 18, 2018, or at www.coppernorthmining.com.

Table 1. Carmacks Project Updated Oxide Mineral Resource in the Southern Extension Zones - 3 April 2018. Based on a 0.15% acid soluble Cu cut-off grade.
Zone Tonnes
(000)
Total Cu
(%)
Acid
Soluble Cu
(%)
Sulphide
Cu
(%)
Au
(g/t)
              
Ag
(g/t)
              
Oxide - Measured            
2000S 596 0.55 0.41 0.14 0.19 2.7
13 North 0 0 0 0 0 0
13 2,255 0.43 0.33 0.10 0.11 1.5
12 558 0.51 0.31 0.20 0.09 2.3
Total Measured 3,409 0.46 0.34 0.12 0.12 1.8
Oxide - Indicated            
2000S 303 0.55 0.38 0.17 0.17 2.60
13 North 0 0 0 0 0 0
13 227 0.35 0.25 0.09 0.12 1.19
12 365 0.54 0.41 0.14 0.09 2.50
Total Indicated 895 0.50 0.36 0.14 0.12 2.20
Oxide - Measured+Indicated          
Total M+I 4,304 0.47 0.34 0.13 0.12 1.92
Oxide - Inferred            
2000S 23 0.56 0.37 0.18 0.17 2.80
13 North 247 0.31 0.26 0.05 0.13 1.40
13 80 0.28 0.22 0.06 0.09 1.20
12 39 0.57 0.41 0.16 0.10 3.50
Total Inferred 389 0.34 0.27 0.07 0.12 1.65


Updated Sulphide Mineral Resource

The Updated Sulphide Measured and Indicated Mineral Resource in Zones, 2000S, 13, and 12 is 4,416,000 tonnes, of which 26% is Measured Resource and 74% is Indicated Resource. The Measured Resource is 1,136,000 tonnes, grading 0.59% copper, 0.13 g/t gold and 2.3 g/t silver. The Indicated Resource is 3,280 tonnes, grading 0.63% copper, 0.13 g/t gold and 2.3 g/t silver. The Inferred Mineral Resource is 4,281,000 tonnes, grading 0.54% copper, 0.12 g/t gold and 1.9 g/t silver. Additional drilling is warranted to confirm the grade, extent, and continuity of the sulphide mineralization, and explore the potential for sulphide resource expansion.

Table 2. Updated Carmacks Project Sulphide Mineral Resource in the Southern Extension Zones -- 3 April 2018. Based on a 0.25% total Cu cut-off grade in Zones 2000S, 13, and 12, and on a 0.15% acid soluble Cu cut-off grade in the Zone 13 Transition.
Zone Tonnes
(000)
Total Cu
(%)
Acid
Soluble Cu
(%)
Sulphide
Cu
(%)
Au
(g/t)
              
Ag
(g/t)
              
Sulphide - Measured          
2000S 292 0.65 0.08 0.57 0.15 3.1
13 596 0.57 0.11 0.47 0.13 1.8
13 Transition 94 0.47 0.23 0.24 0.12 1.6
12 154 0.61 0.06 0.55 0.10 2.9
Total Measured 1,136 0.59 0.11 0.49 0.13 2.3
Sulphide - Indicated          
2000S 448 0.73 0.06 0.67 0.18 3.4
13 2,207 0.60 0.07 0.53 0.13 1.9
13 Transition 54 0.55 0.29 0.26 0.15 1.8
12 571 0.69 0.06 0.64 0.11 3.1
Total Indicated 3,280 0.63 0.07 0.56 0.13 2.3
Sulphide - Measured+Indicated          
Total M+I 4,416 0.62 0.08 0.54 0.13 2.3
Sulphide - Inferred            
2000S 636 0.73 0.05 0.68 0.18 3.5
13 3,474 0.51 0.05 0.46 0.11 1.6
13 Transition 17 0.72 0.26 0.46 0.18 2.6
12 154 0.44 0.04 0.40 0.07 1.4
Total Inferred 4,281 0.54 0.05 0.49 0.12 1.9


Exploration Opportunity

The success of exploration in the southern extension of the Carmacks deposit confirms that further exploration of both oxide and sulphide mineralization is warranted. Of particular interest is exploration of sulphide mineralization, both in the southern extension and in Zones 1, 4 and 7.

November 25, 2016 PEA Mineral Resource

The Updated Mineral Resources are not included in the 7 year mine life estimated within the current Preliminary Economic Assessment that considers open pit mining 11,550,000 tonnes of the oxide resources of Zones 1, 4, and 7, grading 0.98% Cu, 0.44 g/t Au, 4.34 g/t Ag (see NI 43-101 Preliminary Economic Assessment Technical Report on the Carmacks Project, Yukon, Canada", filed on www.sedar.com with a Report date of 25 November 2016).

Resource Estimation Methods

The Updated Mineral Resource for Zones 2000S, 13, and 12 is based on drilling conducted in 2006 and 2007 by Western Copper Corporation and additional drilling in 2014, 2015, and 2017 by Copper North. Copper minerals in the oxide resource are largely comprised of the acid-soluble minerals malachite, azurite, and tenorite. The sulphide resources are located at depth and are comprised of chalcopyrite-bornite mineralization. In zone 13, a transition resource has been estimated, where chalcocite-native copper mineralization developed between the sulphide and oxide zones. The oxide, transition, and sulphide zones were assessed visually during core logging and validated by the ratio of acid-soluble to total copper assays. Sulphide zones largely comprise material with less than 20% of total copper as acid-soluble.

Wireframes for the mineralized zone were built in 3D from the geological interpretation along and between cross-sections made up of fences of drill holes. Inverse distance to the second power was used to estimate grade in zones 12 and 2000S. Ordinary kriging was used to estimate grade in zone 13. The influence of anomalously high copper and silver assays was restricted by the capping of high values. The estimates were run in two passes: firstly, at 50x50x20 m, then at 100x100x45 m. A minimum of two drill holes with a minimum of three composites and a maximum of twelve composites were used to estimate resources. Blocks were classified as Measured Resources if they were estimated with four drill holes during pass one. Blocks that were estimated with two or three drill holes during pass one were classified as Indicated Resources; all other blocks were classified as Inferred Resources. A cut-off grade of 0.25% total Cu was used for the sulphide mineral resources. A cut-off grade of 0.15% acid-soluble Cu was used to estimate oxide and transition mineral resources. Bulk density was estimated by inverse distance squared using a minimum of three density values from the geological unit, any blocks that had insufficient density data were assigned average density values determined by averaging all readings taken from the geological unit.

The previous mineral resource for Zones 2000S, 13, and 12 was estimated in 2016 ("2016 Resource"). The Updated Mineral Resource includes the 2007 Resource, in addition to a revised estimate on Zones 2000S, 13, and 12. Further details of the 2007 Resource and the 2016 Resource can be found in the NI 43-101 technical report for the Carmacks property, filed on www.sedar.com, with a report date of 25 November 2016.

QA/QC

A combination of HTW and NTW sized core were drilled by diamond-drilling. Quality assurance and quality control procedures include the systematic insertion of duplicate and standard samples in to the sample stream. Drill core samples were sawn in half, labelled, placed in sealed bags, and were shipped straight to the preparatory laboratory of ALS Minerals in Whitehorse. All geochemical analyses were performed by ALS Minerals in North Vancouver. Total copper assays were performed by four-acid digestion with an AAS finish. Soluble copper assays were carried out by sulphuric acid digestion with an AAS finish. Gold was analysed by a 30 g charge fire assay with an AAS finish. Silver was analyzed by four-acid digestion and ICP-AES finish.

Qualified Person

The 2007 Resource for Zones 1, 4, and 7 was prepared by an Independent Qualified Person, Dr. Gilles Arseneau, P.Geo., while employed at Wardrop (now Arseneau Consulting Services), and the 2016 Resource for Zones 2000S, 13, and 12 was prepared by an Independent Qualified Person, Dr. Gilles Arseneau, P.Geo., while employed at Arseneau Consulting Services. The 2007 Resource and the 2016 Resource are disclosed in the NI 43-101 Preliminary Economic Assessment Technical Report on the Carmacks Project, Yukon, Canada with a report date of November 25, 2016. The Updated Mineral Resource estimate for Zones 2000S, 13, and 12 was prepared in 2018 by an Independent Qualified Person, Dr. Gilles Arseneau, P.Geo., and will not be supported by a NI 43-101 technical report as the Company does not consider the magnitude of change in total project mineral resources to be material. The estimates of Mineral Resources conform to the Canadian Institute of Metallurgy (CIM) Mineral Resource and Mineral Reserve definitions (May 2014) referred to in National Instrument NI 43-101, Standards of Disclosure for Mineral Projects.

The technical information in this news release has been prepared, reviewed and approved by Dr. Harlan Meade, P.Geo, the President and CEO of Copper North, a Qualified Person within the meaning of NI 43-101.

On behalf of the Board of Directors:

"Dr. Harlan Meade"
President, CEO and Director

About Copper North

Copper North is a Canadian mineral exploration and development company. Its assets include the Carmacks Project located in the Yukon, the Redstone Property located in the Northwest Territories, and the Thor Property in British Columbia. Copper North trades on the TSX Venture Exchange under the symbol COL.

For Further Information
Dr. Harlan Meade
President and Chief Executive Officer
Tel: 604.398.3451
Email: info@coppernorthmining.com
Web: www.coppernorthmining.com

This news release includes certain forward-looking information or forward-looking statements for the purposes of applicable securities laws. These statements include, among others, statements with respect to the use of proceeds from the Private Placement; and proposed exploration and development activities and their timing. These statements address future events and conditions and, as such, involve known and unknown risks, uncertainties and other factors, which may cause the actual results, performance or achievements to differ materially from those anticipated in such statements. Important factors that could cause actual results to differ materially from the Company's expectations include, among others, the timeliness and success of regulatory approvals, the timing and success of future exploration and development activities, exploration and development risks, market prices, exploitation and exploration results, availability of capital and financing, general economic, market or business conditions, uninsured risks, regulatory changes, defects in title, availability of personnel, materials and equipment, unanticipated environmental impacts on operations and other exploration risks detailed herein and from time to time in the filings made by the Company with securities regulators. In making the forward-looking statements, the Company has applied several material assumptions including, but not limited to, the assumptions that the Private Placement will receive regulatory approval, the proposed exploration and development of the mineral projects will proceed as planned, market fundamentals will result in sustained metals and mineral prices, and any additional financing needed will be available on reasonable terms. The Company expressly disclaims any intention or obligation to update or revise any forward-looking statements whether as a result of new information, future events or otherwise except as otherwise required by applicable securities legislation.

Neither the 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.
 
 

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