Copper One (CUO-V) Aug 6, '14 provides an updated mineral resource estimate for the past-producing Troilus property, located 175 road-kilometres northwest from the town of Chibougamau, Quebec (Canada) (see press release dated April 8, 2014). The open pit and underground estimates were completed by RPA Inc. (Toronto) utilizing an updated block model and wireframes and input from Copper One's geological personnel. Tables 1 to 4 below summarize the resource estimate at Troilus by open pit and underground cut-off grades. Figure 1 shows the relative position of the mineral resources on a geologic map of the Troilus property. Highlights
Highlights of the 2014 Troilus mineral resource estimate are as follows:
Total Indicated resources of 2.28 million (M) ounces of gold and 160 M pounds (lbs) of copper (2.65 Moz gold equivalent); Total Inferred resources of 0.85 Moz gold and 48.0 Mlbs of copper (0.96 Moz gold equivalent); Open Pit Indicated resources of 1.79 Moz of gold and 128 Mlbs of copper (2.08 Moz gold equivalent); Open Pit Inferred resources of 0.44 Moz gold and 27 Mlbs of copper (0.50 Moz gold equivalent); Underground Indicated resources of 0.50 Moz gold and 32 Mlbs of copper (0.57 Moz gold equivalent); Underground Inferred resources of 0.41 Moz gold and 21 Mlbs of copper (0.45 Moz gold equivalent); and Excellent resource expansion and new discovery potential.Scott Moore, President and CEO, stated "We are extremely pleased with the updated mineral resource at Troilus. As expected, significant and substantial open pit and underground mineral resources still exist at the property, as a result of factoring in current metal prices and additional data from the historical mine. A thorough review of all resource and production drilling has identified multiple targets for resource growth potential and we look forward to following up with a drill program designed to grow this resource in the near future following completion of the acquisition of the property from First Quantum Minerals".
2014 Mineral Resource Estimate Results
The 2014 mineral resource estimate for Troilus defines a near-surface Whittle pit constrained open pit resource and a higher grade underground resource. The resources remain open to future expansion along strike, across strike and particularly down-dip.
Open Pit Resource Estimate
The open pit resource estimate is constrained within a Whittle open-pit shell (Table 1). The open pit-constrained resource estimate is reported at a cut-off grade of 0.3 g/t gold. Total Indicated resources are 60.9 Mt grading 0.91 g/t gold and 0.095% copper for 2.08 Moz gold equivalent. Total Inferred resources are 18.1 Mt grading 0.76 g/t gold and 0.068% copper for 0.50 Moz gold equivalent. These resources are derived from mineralization that was not extracted during previous mining operations at Troilus (1996-2009) and are constrained by a new Whittle pit. The maximum depth of the Whittle constrained open pit resource is 500 metres (m) from surface, an increase in depth of 200 m compared to the actual Z87 open pit. Consequently, substantial resources may be within range of a potential future open pit mining operation at Troilus. More advanced studies are planned to investigate the remaining open pit mining potential at Troilus.
Table 1 - 2014 Troilus Open Pit Mineral Resource Summary
Classification
| Zone
| Tonnage (t)
| Au
(g/t)
| Cu%
| AuEq (g/t)
| Contained
Gold (oz)
| Contained
Copper (lb)
| Contained
AuEq (oz)
| Indicated
| Z87
| 46,472,000
| 0.94
| 0.111
| 1.11
| 1,401,700
| 113,521,000
| 1,660,000
| Indicated
| J4
| 12,155,700
| 0.84
| 0.044
| 0.91
| 329,100
| 11,778,200
| 356,000
| Indicated
| J5
| 2,222,900
| 0.80
| 0.052
| 0.88
| 56,900
| 2,530,000
| 63,000
| Indicated
| TOTAL
| 60,850,500
| 0.91
| 0.095
| 1.06
| 1,787,800
| 127,829,100
| 2,079,000
|
| Inferred
| Z87
| 8,159,000
| 0.82
| 0.095
| 0.97
| 215,000
| 17,111,000
| 254,000
| Inferred
| Z87 Low
| 3,767,000
| 0.67
| 0.045
| 0.74
| 81,000
| 3,730,000
| 90,000
| Inferred
| J4
| 2,947,000
| 0.85
| 0.043
| 0.92
| 81,000
| 2,779,000
| 87,000
| Inferred
| J5
| 710,000
| 0.78
| 0.059
| 0.87
| 18,000
| 918,000
| 20,000
| Inferred
| J4 Low
| 249,000
| 0.56
| 0.049
| 0.63
| 4,000
| 271,000
| 51,000
| Inferred
| TOTAL
| 18,075,000
| 0.76
| 0.068
| 0.86
| 440,000
| 27,249,000
| 502,000
| Notes:
The Independent Qualified Persons for the mineral resource estimate, as defined by NI43-101, are Luke Evans,
P.Eng. and Tudor Ciuculescu, P.Geo. of RPA Inc. (Toronto) and the effective date of the resource estimate is June 30,
2014 CIM definitions were followed for Mineral Resources Mineral Resources were estimated at a cut-off grade of 0.3 g/t Au and were constrained by a Whittle pit shell Mineral Resources were estimated using long-term metal prices of US$1500 per ounce gold and US$3.50 per pound
copper; and an exchange rate of US$1.00 = C$1.1 A recovery of 83% was used for gold and 92% for copper A block size of 5 m x 5 m x 5 m was used Overall gold grade capping of 10 g/t AuEq = gold assay + copper assay * 1.562 Numbers may not add due to rounding Mineral resources that are not Mineral Reserves do not have demonstrated economic viability |
The sensitivity of Indicated and Inferred resources within the Whittle pit shell to variations in cut-off grade for Troilus is represented below in Table 2.
Table 2 - Sensitivity of Troilus Pit Constrained Mineral Resource Estimate to Cut-Off Grade
Classification
| Cut-off Au (g/t)
| Tonnage
| Au (g/t)
| Cu%
| AuEq (g/t)
|
| Indicated
| 1.00
| 19,610,000
| 1.50
| 0.143
| 1.72
| Indicated
| 0.70
| 34,410,000
| 1.21
| 0.117
| 1.40
| Indicated
| 0.50
| 50,260,000
| 1.02
| 0.102
| 1.18
| Indicated
| 0.30
| 60,850,000
| 0.92
| 0.095
| 1.07
|
| Inferred
| 1.00
| 1,310,000
| 1.39
| 0.056
| 1.48
| Inferred
| 0.70
| 7,880,000
| 1.09
| 0.087
| 1.23
| Inferred
| 0.50
| 12,980,000
| 0.90
| 0.076
| 1.02
| Inferred
| 0.30
| 18,080,000
| 0.75
| 0.068
| 0.86
| Notes:
Tonnes and gold and copper grades rounded to the nearest thousand Figures for resource tonnes and ounces may not sum due to the rounding Pit optimization based on the following parameters: Gold price US$1500/oz Copper price US$3.50/lb Recovery Gold 83% Recovery Copper 92% Exchange rate US$1.00 = CDN$1.10 Average mining cost US$3.00/t Processing and G&A Cost US$12.00/t Specific gravity 2.8 tonnes/cubic-metre Overall grade capping of 10 g/t AuEq = gold assay + copper assay * 1.562 |
Underground Resource Estimate
The underground resource estimate is reported at a cut-off grade of 0.8 g/t gold and below the base of the Whittle open pits (Table 3). Total Indicated resources are 11.2 Mt grading 1.37 g/t gold and 0.130% copper for 0.57 Moz gold equivalent. Total Inferred resources are 10.9 Mt grading 1.16 g/t gold and 0.088% copper for 0.45 Moz gold equivalent.
Table 3 - 2014 Troilus Underground Mineral Resource Summary
Classification
| Zone
| Tonnage (t)
| Au (g/t)
| Cu%
| AuEq
(g/t)
| Contained
Gold (oz)
| Contained
Copper
(lb)
| Contained
AuEq (oz)
| Indicated
| Z87
| 11,231,100
| 1.37
| 0.130
| 1.58
| 496,000
| 32,139,900
| 569,000
| Indicated
| J4
| -
| -
| -
|
| -
| -
|
| Indicated
| J5
| -
| -
| -
|
| -
| -
|
| Indicated
| TOTAL
| 11,231,100
| 1.37
| 0.130
| 1.58
| 496,000
| 32,139,900
| 569,000
|
| Inferred
| Z87
| 6,179,000
| 1.17
| 0.124
| 1.36
| 232,000
| 16,922,000
| 270,000
| Inferred
| J4
| 4,409,000
| 1.15
| 0.040
| 1.21
| 163,000
| 3,889,000
| 172,000
| Inferred
| J5
| 320,000
| 0.98
| 0.045
| 1.05
| 10,000
| 318,000
| 11,000
| Inferred
| TOTAL
| 10,908,000
| 1.16
| 0.088
| 1.29
| 405,000
| 21,129,000
| 453,000
| Notes:
The Independent Qualified Persons for the mineral resource estimate, as defined by NI43-101, are Luke Evans, P.Eng.
and Tudor Ciuculescu, P.Geo. of RPA Inc. (Toronto) and the effective date of the resource estimate is June 30, 2014 CIM definitions were followed for Mineral Resources Mineral Resources were estimated at a cut-off grade of 0.8 g/t Au Mineral Resources were estimated using long-term metal prices of US$1500 per ounce gold and US$3.50 per pound copper;
and an exchange rate of US$1.00 = C$1.1 A recovery of 83% was used for gold and 92% for copper A block size of 10 m by 10 m by 10 m was used for Z87 and 5 m by 5 m by 5 m was used for J4 and J5 Overall gold grade capping of 10 g/t AuEq = gold assay + copper assay * 1.562 Numbers may not add due to rounding Mineral Resources that are not Mineral Reserves do not have demonstrated economic viability |
The sensitivity of indicated and inferred resources below the Whittle pit shell to variations in cut-off grade for Troilus is shown below in Table 4.
Table 4 - Sensitivity of Troilus Underground Resource Estimate to Cut-Off Grade
Classification
| Cut-off Au (g/t)
| Tonnage
| Au (g/t)
| Cu%
| AuEq (g/t)
|
| Indicated
| 2.00
| 1,350,000
| 2.33
| 0.209
| 2.66
| Indicated
| 1.50
| 3,890,000
| 1.93
| 0.180
| 2.21
| Indicated
| 1.00
| 8,570,000
| 1.55
| 0.143
| 1.77
| Indicated
| 0.80
| 10,120,000
| 1.45
| 0.135
| 1.66
|
| Inferred
| 2.00
| 790,000
| 2.41
| 0.171
| 2.67
| Inferred
| 1.50
| 1,780,000
| 2.02
| 0.153
| 2.25
| Inferred
| 1.00
| 6,140,000
| 1.43
| 0.104
| 1.59
| Inferred
| 0.80
| 9,000,000
| 1.26
| 0.089
| 1.40
| Notes:
Tonnes and gold and copper grades rounded to the nearest thousand Figures for resource tonnes and ounces may not sum due to the rounding Pit optimization based on the following parameters: Gold price US$1500/oz Copper price US$3.50/lb Recovery Gold 83% Recovery Copper 92% Exchange rate US$1.00 = CDN$1.10 Average mining cost US$3.00/t Processing and G&A Cost US$12.00/t Specific gravity 2.8 tonnes/cubic-metre Overall grade capping of 10 g/t AuEq = gold assay + copper assay * 1.562 |
Drilling Database and Estimation Approach
The drill hole databases utilized for this resource estimate contain drill hole collar, survey, assay and lithology data as of June 30, 2014. There have been no new holes drilled at Z87 and J4-J5 since 2006. The Z87 open pit and J4-J5 open pit and underground database includes 645 drill holes with a total length of 127,500 m, 70,440 assays and 39,670 three metre composites. A 5 m by 5 m by 5 m percent block model was created in Geovia GEMS 6.6. The Z87 underground database includes 101 surface diamond holes with a total length of 48,390 m, 16,000 assays, and 1,149 three metre composites. A 10 m by 10 m by 10 m percent underground block model was created in Gemcom 4.02. High grade gold assays are capped at 10 g/t Au for the Z87 and J4-J5 zones.
For the open pit resources at Z87 and at J4-J5 and for the underground resources at J4-J5, the deeper intersections drilled since 2003 were utilized to extend the Z87 Zone mineralization wireframes farther down dip based on a 0.3 g/t Au cut-off grade. The J4 Zone mineralized wireframe from the 2003 resource estimate, based on a 0.3 g/t Au cut-off grade, was expanded for the 2014 estimate to include six additional mineralized lenses. A new mineralized wireframe based on a 0.3 g/t Au cut-off grade was built for the J5 Zone, which had never been modelled previously. In addition two low grade domains were created outside the mineralized wireframes at Z87 and J4-J5. The low grade domains capture material above cut-off grade that is not continuous enough to wireframe. The underground resources for Z87 are based on the 0.8 g/t Au mineralized wireframe created for the 2006 resource estimate.
The mineral resource estimate was generated by inverse distance squared grade interpolation. Ordinary kriging was employed as an alternative interpolation method for gold and copper, for comparison and validation purposes. The mineralized blocks were classified into the Indicated or Inferred resource category based on geological continuity, location relative to the range of influence defined in the variography, and search ellipse ranges. Validation of the block models involved visual inspection and comparison on plan and section of interpolated grades and composites, statistical comparison of resource assays and interpolated blocks, and swath plots.
Resource Expansion and Exploration Upside
The Z87, J4 and J5 mineralized zones remain open to expansion, particularly at depth. In J4, gold grade contouring suggests that the mineralization thickens down plunge, which means that there is a good potential for discovery of higher grade gold mineralization below 200 m vertical depth. Drilling in 1999 and 2000 confirmed that the gold mineralization extends down plunge, where a hole intersected 24 m averaging 4.95 g/t Au from 276 m down hole, which includes 3 m grading 34.7 g/t Au.
Compilation of data for holes drilled outside the main mineralized zones on the Troilus property indicates that there are a number of holes with gold values greater than 0.2 g/t over 10 m. A 500 m long gold anomaly named the Southwest Zone (Figure 1), with similar characteristics to Z87 was discovered in 2000, 3 km south-southwest from Z87 at the southwest end of the Troilus Diorite. One hole drilled in 2005 intersected 56 m grading 0.9 g/t Au from 130 m downhole, including 34 m grading 1.3 g/t Au. Thick overburden prevented testing of the full extent of the zone. Additional diamond drilling is warranted and a major exploration program is planned to test the upside potential of this zone and others like it on the Troilus Property.
For additional details regarding the mineral resource estimate reported in this press release, please see the technical report entitled "Technical Report on the Troilus Gold-Copper Mine Mineral Resource Estimate, Quebec, Canada" dated July 25, 2014 and prepared for Copper One by RPA Inc. (Toronto). The technical report is filed under Copper One's profile on SEDAR ( www.sedar.com) and is available on Copper One's website. |
