US Canadian Minerals Inc. Upgrades C.O.D. Mines Potential Reserves
Tue Jun 9, 10:18 AM
ca.news.finance.yahoo.com
LAS VEGAS--(BUSINESS WIRE)--US Canadian Minerals Inc. (OTCBB: USCN.OB), a U.S. based junior mineral exploration company would like to announce to Shareholders that a current reserve report has been completed by Duncan Bain, P.Geo., a consulting Geologist. The report upgrades the potential reserves of the C.O.D. Mine to $490 million from the C.O.D. – Rico Vein and a possible of $516 million additional reserves from the White Eagle – Reube Vein. This report is NOT an NI 43-101 Compliant Report and is intended to be used by USCN to base future business opportunities on.
Mr. Duncan James Bain acquired a Bachelor of Science Degree, Geology from the University of Western Ontario, London, Ontario, Canada in 1977. He is a Fellow, Geological Association of Canada (1986), a Professional Geoscientist of B.C. (P.Geo., 1991), APEGBC and a Professional Geoscientist of Ontario (P.Geo., 2004), APGO. He is also a Member, Prospectors and Developers Association of Canada and is presently a Qualified Person (QP) as defined by National Instrument 43-101. Mr. Bain is a Director of St. Elias Mines Ltd. (SLI: TSX-V) and Tao Minerals Inc. (TAOLE: OTCBB) and is a Consultant to Hi Ho Silver (HHS;CNSX, HHSRF:PK) and Razor Resources (RZOR: OTCBB).
The following is a brief overview of this report:
The C.O.D. Gold-Silver Project is located in Mohave County, 18 km (11 miles) north of the city of Kingman, Arizona. The property consists of 13 contiguous mining claims referred to as the C.O.D. Claim Block and White Eagle Claim Block. The total area for these claims is 105.30 hectares (260 acres).
In 2004 US Canadian Minerals Inc. gained 100% ownership of all claims associated with the C.O.D. Mine (C.O.D.) property in exchange for shares given to El Capitan Precious Metals (ECPN: OTCBB). At the same time, US-Canadian and El Capitan established a Joint Venture partnership, in which El Capitan retained a 20% interest in revenues.
Access to the C.O.D. Project is by the paved 2-lane Stockton Hill Road north from Kingman for 18 km (11 miles). The Project is located 2.4 km (1.5 miles) southeast of the Mineral Park open pit Cu-Mo operation of Mercator Minerals Ltd.(ML: TSX). In 2008 Mercator’s mine was producing approximately 12 million pounds of copper per year from its leach operation and has an estimated 25 year mine life. This property has a current reserve value of $4.75 billion (according to their NI 43-101 compliant reports) and it lies within geology similar to that of the C.O.D. project. The implication is that C.O.D. could have similar mineralization to that at Mineral Park.
The C.O.D. mineralization is a polymetallic vein system type associated with but on the outer edge of a porphyry copper-molybdenum mineralizing system whose core is recognized as the Mercator/ Mineral Park porphyry copper-molybdenum deposit.
C.O.D.’s primary fault system is represented by the C.O.D./Rico Vein, which strikes N80W (280o) and dips at 75o-80o to the northeast. A second fault system is represented by the White Eagle and Reube veins, which trend N50W (310o). Cross-fracturing and faulting produce considerable brecciation and the formation of high-grade ore shoots into the wallrock on either side of these major structures. Ore minerals include gold, silver, chalcopyrite (CuFeS2), galena (PbS), bornite (CuFeS4), covellite (CuS), chalcocite (Cu2S), anglesite (PbSO4), sphalerite (ZnS), argentite (Ag2S), cerussite (PbCO3) and smithsonite (ZnCO3). Although mainly sulphide and carbonate ores, occasional oxide zones are known to be present above the 400-foot Level. There are three additional faults located within the property, the Unit, Ryson and I.X.L. Veins.
Some random grab samples of vein material were also taken from trenches and small underground workings located on the property, including the Reube Vein, the White Eagle Vein and the Rico Vein. Best values from this sampling are 5.15% lead, 2.89% zinc, 23.9 g/T gold and 755 g/T silver.
C.O.D. – Rico Vein
The C.O.D. vein structure can be traced from the southeastern property boundary past the Rico Mine as far as the Mineral Park deposit, a distance of 2500 m. A report by Alanco in the 1980s gave a total underground resource of 89,962 US tons (81,612 Metric tonnes) from a mineralized zone with an average 4.5 ft (1.5 m) width and a strike length of 700 ft (230 m). This was a small target zone of blocked out ore. The Alanco report also included a report by Keegel Engineering that gave a resource of Proven, Probable and Possible Ore as 160,000 tons with an average grade of 0.16 oz/ton gold, 12.81 oz/ton silver, 1.54% lead and 3.91% zinc. The report included a separate figure of 33,750 tons of ore grading 0.14% copper. Duncan Bain, P.Geo. is acting as the Consulting Geologist and Qualified Person for the C.O.D. Project. He feels that if the C.O.D.-Rico structure continues to be mineralized with grades and widths similar to the known C.O.D. deposit it has the potential to contain 1 million US tons (900,000 Metric tonnes) of ore with a metal content of 220,000 oz gold, 13 million oz of silver, 30,000,000 lbs of lead, 76,000,000 lbs of zinc and 140,000 lbs of copper. There is also the potential for an increase in copper and gold content towards the Mineral Park porphyry copper system.
White Eagle – Reube Vein
Historical production from the White Eagle Mine gave an average ore grade of 0.30 oz/ton Au and 18.99 oz/ton Ag (1939), and 1.01 oz/ton Au and 15.02 oz/ton Ag (after 1946). A sample taken by Mr. Bain in 2008 (WE-05) gave results of 0.23 oz/US ton (7.33 g/Metric tonnes) gold, 143 oz/US ton (4580 g/Metric tonnes) silver, 0.18% copper, 3.43% lead and 1.87% zinc from the White Eagle mine. Although the information is limited Mr. Bain suggests that there is good potential for a C.O.D.-Rico pattern and strike length of mineralization in the White Eagle - Reube structure and in other veins within the property. There is also the potential for an increase in copper and gold content towards the Mineral Park porphyry copper system here as well.
Unit – Ryson – I.X.L. Veins
These structures have good potential for a similar pattern and strike length of mineralization of C.O.D. – Rico and White Eagle – Reube structures as well. These structures would require further exploration and sampling to identify minerals in their geophysical structure.
From this evaluation USCN could conclude potential reserves as follows (NOT NI 43-101 Compliant):
C.O.D. – Rico Vein; $490,000,000
White Eagle – Reube Vein; $516,000,000
Unit – Ryson – I.X.L. Vein; Further Exploration Required
Above ground NI 43-101 Proven Reserves from tailings; $5,000,000
A copy of this report will be available on our website at www.uscanadianmin.com.
About USCN Inc
US Canadian Minerals Inc. is a junior mining and exploration company whose business strategy is to grow shareholder value through acquisition, exploration and exploitation of near term production precious metal properties in North and South America.
Safe Harbour
This press release contains statements, which may constitute "forward-looking statements" within the meaning and “safe harbour” provisions of the Private Securities Litigation Reform Act of 1995. Those statements include statements regarding the intent, belief or current expectations of US Canadian Minerals Inc., and members of its management as well as the assumptions on which such statements are based. Prospective investors are cautioned that any such forward-looking statements are not guarantees of future performance and involve risks and uncertainties, and that actual results may differ materially from those contemplated by such forward-looking statements. Important factors currently known to management that could cause actual results to differ materially from those in forward-statements include fluctuation of operating results, the ability to compete successfully and the ability to complete before-mentioned transactions. The company undertakes no obligation to update or revise forward-looking statements to reflect changed assumptions, the occurrence of unanticipated events or changes to future operating results. US Canadian would also like to inform that all references to reserves or valuations are not NI 43-101 compliant unless otherwise identified.
US Canadian Minerals Inc.
Dale Baeten, Investor Relations
Phone: 920-273-7941
Email: ir@uscanadianmin.com |
