Celeste Copper Announces Updated Ni 43-101 Resource Estimate for the Dolcoath Section of the South C
September 05, 2012 at 15:25 PM EDT
Celeste Copper Announces Updated Ni 43-101 Resource Estimate for the Dolcoath Section of the South Crofty Project; 2.47mt @ 0.68% Tin Equivalent
Calgary, Alberta CANADA, September 05, 2012 /FSC/ - Celeste Copper Corporation (C - TSX Venture)("Celeste" or the "Company"),is pleased to announce that the Company has received the results of an updated independent National Instrument 43-101 ("NI 43-101") estimate (the "Estimate") for the Dolcoath section of the South Crofty project, located in Cornwall, United Kingdom.
Highlights:
a) The updated NI 43-101 estimation reports an inferred resource of 2.47 million tonnes grading 0.46% tin, 0.54% copper and 0.23% zinc (0.68% tin equivalent)
b) An exploration target of between 6.7 and 13.5 million tonnes with grades ranging between 1.4% and 1.8% tin in an area east of the Great Crosscourse within the South Crofty mine.
c) An exploration target of between 1.25 and 2.5 million tonnes with grades ranging between 1.25% and 1.6% tin in the Dolcoath deep and Roskear areas of the South Crofty project.
The Estimate was prepared by Micromine Consulting Services UK ("MCS") and includes all project exploration drill hole and channel sampling data from exploration completed since 2008 up to February 29th 2012. The technical report related to the Estimate will be filed within the regulatory required 45 days on SEDAR at www.sedar.com and will be posted on the Corporation's website. This Estimate follows on from the initial maiden NI43-101 resource estimation and report titled "National Instrument 43-101 Technical Report for Celeste Copper Corporation, Dolcoath Resource Estimation, South Crofty Mine, Cornwall, England", signed June 17 2011 with an effective date of March 7, 2011.
The exploration targets reported for the South Crofty property are historical, the potential quantity and grade is conceptual in nature, there has been insufficient exploration to define a mineral resource, and it is uncertain if further exploration will result in discovery of a mineral resource.
Mr. Alan Shoesmith, CEO of Celeste, commented "I am very pleased that the resource at Dolcoath continues to grow, particularly with the developing zones of wide, lower grade mineralization in the Dolcoath Main lode, while the exploration targets identified by analysis of historical data provides an exciting medium term objective. The next step in the growth of the resource will be to access known but as yet undrilled lodes that may be accessed from modest extensions of the current underground development. A comprehensive development plan for the project with the objective of reaching a production decision is currently being compiled."
Resource Estimate
The Estimate for the upper levels of the Dolcoath section of the South Crofty property was prepared by Mr. J.N. Hogg, Senior Geologist, Micromine Ltd. (UK), and Ms. Marta Sostre MSc., MAUSIMM, Resource Geologist with MCS with an effective date of February 29th 2012.
The inferred resource for the project, using a 0.2% in (Sn) equivalent cut off grade, is 2.47 million tonnes at 0.46% Sn, 0.53% Cu and 0.23% Zn, and 0.68% Sn Equivalent (Table 1). This estimate conforms to the CIM Mineral Resource and Mineral Reserve definitions referred to in National Instrument 43-101 and the standards of Disclosure for Mineral Projects.
The estimate includes the results of 121 diamond drill holes for 23,067 metres, and 2 underground channels cut for 53 metres. The resource updates the initial resource estimate completed in June 2011 and utilizes the data from 59 additional drill holes. Due to the timing of the Estimate, the study does not incorporate analytical results for 8 holes from the 59 holes from the 2012 drilling program received to date.
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Table 1: South Crofty Dolcoath Section CIM Compliant Resources August 2012
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Dolcoath Section August 2012 Total Resources*
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Cut SG Volume Tonnes Sn Sn % Cu % Zn % MATERIAL
off% g/cm 3 m2 Eq%
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3.0 3.18 2,000 8,000 3.60 2.89 1.68 1.04 INFERRED
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2.5 3.20 15,000 48,000 2.83 2.57 .62 .36 INFERRED
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2.0 3.08 43,000 134,000 2.40 2.20 .51 .20 INFERRED
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1.5 3.07 85,000 264,000 2.09 1.89 .49 .29 INFERRED
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1.0 3.06 152,000 468,000 1.71 1.50 .51 .18 INFERRED
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0.50 3.03 353,000 1,079,000 1.13 .91 .55 .19 INFERRED
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0.45 3.04 392,000 1,198,000 1.07 .84 .57 .19 INFERRED
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0.40 3.04 447,000 1,363,000 .99 .76 .57 .18 INFERRED
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0.35 3.06 522,000 1,593,000 .90 .67 .58 .18 INFERRED
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0.30 3.06 596,000 1,821,000 .83 .60 .57 .18 INFERRED
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0.25 3.06 701,000 2,143,000 .74 .53 .55 .20 INFERRED
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0.20 3.03 809,000 2,469,000 .68 .46 .54 .23 INFERRED
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0.15 3.03 940,000 2,865,000 .61 .40 .51 .25 INFERRED
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0.10 3.03 1,149,000 3,499,000 .52 .33 .45 .29 INFERRED
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*Rounding errors may occur due to best practices principals.
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The reader's attention is drawn to the following Canadian Institute of Mining and Metallurgy ("CIM") definitions:
'Inferred Mineral Resource' is that part of a Mineral Resource for which quantity and grade or quality can be estimated on the basis of geological evidence and limited sampling and reasonably assumed, but not verified, geological and grade continuity. The estimate is based on limited information and sampling gathered through appropriate techniques from locations such as outcrops, trenches, pits, workings and drill hole.
CIM definitions also state:
A Mineral Resource is an inventory of mineralization that under realistically assumed and justifiable technical and economic conditions might become economically extractable. These assumptions must be presented explicitly in Reports.
NI 43-101 requires it to be stated that mineral resources that are not mineral reserves do not have demonstrated economic viability.
Inputs for cut-off calculations used by Micromine Ltd (UK) for resource reporting were prepared by Celeste and audited by MCS.
The inferred resource is contained within eight near surface deposit areas, comprising of single and multiple generally narrow polymetallic lodes. These eight areas are Dolcoath North, Dolcoath Middle, Dolcoath South, Dolcoath South South Branch, Dolcoath Flat, Dolcoath Main, North Entral and South Entral (Figures 1 and 2). The increase in the number of deposit areas from five to eight from the initial maiden resource for the Dolcoath section is as a result of adding Dolcoath Main lode and re-classification and sub-division of previous lodes.
At Dolcoath, mineralized lodes within the eight deposit areas are generally characterized by narrow laterally extensive south west striking lodes, with steep dips to the north-west and south east. Mineralization is hosted within interbedded metamorphic volcano-sedimentary sequence and granite intrusions.The Dolcoath section lies immediately west of the South Crofty mine and is hydraulically independent of it. Drilling has been performed from a decline extending some 400m west of the South Crofty boundary.
The results of the updated block model estimations for the Dolcoath section of South Crofty are positive and offer excellent potential for development of significant resources within the Dolcoath section and immediate South Crofty mine area. The current models and estimations for Dolcoath near surface zones are by no means exhaustive. Strike and dip directions remain open for a large number of lodes and existing stope and mine level wireframes indicate the presence of additional structures some previously mined and developed, others yet to be adequately explored and exploited, while the characteristics of the Dolcoath Main lode offer possibilities of lower mining costs than those used as the basis for cut off calculations in this estimate.
A number of the mineralized zones explored and modeled to date remain open along strike and at depth. Further exploration and resource development drilling is underway.
The resource modeling and estimations was completed using the industry accepted Micromine 2012 3d modeling and estimation software package.
For this estimate, grade interpolation was performed using the Inverse Distance Weighted method. Resources are reported using a marginal cut-off, determined by use of simple block revenue factor methodology, three year trailing average metal prices and based on operating costs assumed from industry typical data and metallurgical recoveries consistent with previous operating practice at the property.
Reporting of resources has been performed using a metal equivalent simple block value, break even cut off determination method, adhering to best practices and NI43-101 reporting requirements in order to satisfy the criterion of "potential commercial extractability".
The Sn equivalent value was calculated for each cell in the Dolcoath ore body block models; the key inputs for cut-off calculations are presented in Tables 2 to 4 below.
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Table 2: Tin Equivalent Calculation Inputs
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Sn Equivalent Calculation Inputs
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Commodity PriceUS %Diff Sn$Value
$/t /ppm
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Sn 21,675 0.022
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Cu 7,883 0.364* 0.005
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Zn 2,101 0.097* 0.002
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Sn equivalent calculation = Sn grade + (Cu grade*0.364) + (Zn grade*0.097)
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Table 3: Product Recovery Inputs
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Product Recovery
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Commodity Unit Value Source
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Sn % 85 Similar Operations/Industry averages
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Cu % 85 Similar Operations/Industry averages
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Zn % 85 Similar Operations/Industry averages
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Block revenue was calculated for each resource block using Sn equivalent grade values using the formula below.
Block revenue calculation = Sn Eq grade * recovery * Sn price/ppm
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Table 4: Operating Inputs
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Indicative Operating Inputs
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Mining Method * Alimak Mining Method or
mechanized sub level
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Production * 200 to 400kt per annum
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Anticipated Processing Method * Gravity and flotation
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Total Estimated Cost US$50/t Typical costs for type of operation
of Mining and Processing
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South Crofty Exploration Targets
In addition to the current NI 43-101 resources in the Dolcoath section, Micromine Consulting Services and WUM staff have also carried out extensive research from historical records of mineralisation remaining in situ in the South Crofty mine itself as a means of defining targets for further exploration Historically, South Crofty lies east of a geological feature known as the Great Crosscourse, however the more modern workings of South Crofty extended west of the Crosscourse and underlie the Dolcoath South and Dolcoath North structures which are included in the current 43-101 compliant resource in Dolcoath; they also include the Roskear lodes from which past operators produced at depth but which have not yet been drilled at the upper levels. Because, unlike the upper levels of Dolcoath, these workings are hydraulically connected to South Crofty, they are excluded from the Dolcoath resource. The South Crofty section occurs from below -350m RL, a sub-division made by the historical operators of the South Crofty mine, and still recognised today for identification of the mining areas. The spatial relationship of these targets to the current inferred resource is shown in Figures 3 and 4. The South Crofty workings are currently flooded and the targets are inaccessible for verification.
The study was carried out by digitising historical drill and channel sampling results and using historic mining records and plans to remove zones known to be previously mined. The results of this study and re-modelling of structures utilising available historical data have outlined exploration targets expressed as a range of tonnage and tin grades using a simple solid model wireframe grade tonnage calculation method. Wireframe grade tonnage estimates outlining the targets are presented in Table 5 below:
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Table 5: South Crofty Exploration Targets
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South Crofty Exploration Targets
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Zone Tonnage t Grade Sn %
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East of Great Crosscourse 6,750,000 to 1.4 to 1.8
13,500,000
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West of Great Crosscourse 1,250,000 to 1.25 to 1.6
(Dolcoath Deep & Roskear) 2,500,000
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*Rounding errors may occur due to best practices principles.
* Estimations using tin values only
* Zones modelled at a 0.2% Sn grade boundary, inputs to interpretation comprising unverified u/g channel sampling, historical drilling. Where open zones extended approximately 30 to 50m along strike and 15m down/up dip.
* In situ estimation performed by extraction of known stope and u/g infrastructure models derived from historical hard copy plans.
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There has been insufficient exploration to define a mineral resource and that it is uncertain if further exploration will result in these exploration targets being delineated as a mineral resource.
As announced on May 25, 2011, the Company entered an earn-in agreement to acquire up to a 100% interest in Cornish Minerals Limited ("Cornish UK") which, through wholly owned subsidiary corporations, owns the South Crofty Mine property, located in the tin/copper district at Pool, near Redruth, Cornwall in England.
Western United Mines ("WUM"), a subsidiary of Cornish UK, is responsible for the exploration activities conducted at the South Crofty project. WUM employs approximately 45 persons in its exploration and mining activities and contributes significantly to the local economy.
Qualified Person
Mr. J.N. Hogg, MSc., MAIG, Senior Geologist and Qualified Person with Micromine Consulting Services (MCS), has reviewed and approve the technical information contained in this news release.
About Celeste:
Celeste is a Canadian corporation currently focused on the acquisition of an interest in Cornish Minerals Ltd. which controls mining rights in the historic Cornish mining region in Cornwall, England, including the South Crofty Mine as announced in this press release and the press release dated May 25th, 2011. Celeste continues to assess other tin, copper and copper-gold properties for exploration and development opportunities.
Celeste shares trades on the TSX Venture Exchange under the symbol C. Celeste's website can be accessed at http://www.celestecopper.com. ;
For further information, please contact:
David B. McQuaig
Director
403-265-1109
davidmcquaig@shaw.ca
Neither 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.
Caution Concerning Forward-Looking Information
Certain statements contained in this news release constitute "forward-looking statements" as such term is used in applicable Canadian and US securities laws. These statements relate to analyses and other information that are based on forecasts of future results, estimates of amounts not yet determinable and assumptions of management. In particular, there is no certainty that the additional assays from the 2011 and 2012 drilling program or future drill programs or the formalizing next steps will identify additional mineralization or resources and other factors and events described in this news release should be viewed as forward-looking statements to the extent that they involve estimates thereof. Any statements that express or involve discussions with respect to predictions, expectations, beliefs, plans, projections, objectives, assumptions or future events or performance (often, but not always, using words or phrases such as "expects" or "does not expect", "is expected", "anticipates" or "does not anticipate", "plans, "estimates"
or "intends", or stating that certain actions, events or results "may", "could", "would", "might" or "will" be taken, occur or be achieved) are not statements of historical fact and should be viewed as "forward-looking statements". Such forward looking statements involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of the Company to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements. Such risks and other factors include, among others, identifying additional resources, availability of capital to fund exploration projects; political, social and other risks inherent in carrying on business in a foreign jurisdiction and such other business risks as discussed herein and other publicly filed disclosure documents. Although the Corporation has attempted to identify important factors that could cause actual actions, events or results to differ materially from those described in forward-looking statements, there may be other factors that cause actions, events or results not to be as anticipated, estimated or intended. There can be no assurance that such statements will prove to be accurate as actual results and future events could vary or differ materially from those anticipated in such statements. Accordingly, readers should not place undue reliance on forward-looking statements contained in this news release.
Forward looking statements are made based on management's beliefs, estimates and opinions on the date the statements are made and the Company undertakes no obligation to update forward-looking statements and if these beliefs, estimates and opinions or other circumstances should change, except as required by applicable law.
To view graphic ?FIGURE 1: Plan view of the mineralized domain wireframes (Cu >= 450ppm lode modeling)? please click on the following link:
http://www.fscwire.com/pr/celestefig1sept052012.jpg
To view graphic ?FIGURE 2: Looking North views of the mineralized domain wireframes (Sn >= 0.2% (2000ppm) lodes modeling)? please click on the following link:
http://www.fscwire.com/pr/celestefig2sept052012.jpg
To view graphic ?FIGURE 3: Roskear and Dolcoath targets (grey) relative to inferred resource? please click on the following link:
http://www.fscwire.com/pr/celestefig3sept052012.jpg
To view graphic ?FIGURE 4: East of Great Crosscourse targets (grey) relative to inferred resource? please click on the following link:
http://www.fscwire.com/pr/celestefig2sept052012.jpg
To view this press release as a webpage, please click on the following link:
http://www.fscwire/pr/celestesept052012.htm
Source: Celeste Copper Corporation (TSX-V: C) http://www.celestecopper.com
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