The Globe and Mail

Go to the Globe and Mail homepage

Jump to main navigationJump to main content

Press release from Marketwire

Burnstone Reports Initial NI 43-101 Mineral Resource on the Tomichi Project

- 622 Million Tonnes Averaging .41% Copper Equivalent - 2.5 Billion lbs Cu, 552 Million lbs Mo, 30 Million oz Ag, 320,000 oz Au

Tuesday, June 26, 2012

Burnstone Reports Initial NI 43-101 Mineral Resource on the Tomichi Project07:00 EDT Tuesday, June 26, 2012VANCOUVER, BRITISH COLUMBIA--(Marketwire - June 26, 2012) - Burnstone Ventures Inc. (TSX VENTURE:BVE) ("Burnstone" or the "Company") is pleased to announce the initial NI 43-101 Resource Estimate on its Tomichi copper-molybdenum (Cu-Mo) porphyry project in Gunnison County, south-central Colorado (the "Tomichi Project"). The resource contains 2.5 Billion lbs Copper (Cu), 552 Million lbs Molybdenum (Mo), 30 Million oz Silver (Ag), 320,000 oz Gold (Au), 124,362 kg Rhenium (Re), or 5.6 Billion lbs Copper Equivalence (Cu Eq) in the Base Case scenario at a 0.20 Cu Equivalent (Cu Eq) cutoff grade.As has recently been reported, the Company over the last few months has re-logged and re-assayed 23 of 49 historic holes. All of the re-assayed holes were drilled by Molycorp Inc. in the early 1980s. The new assays, along with historic assays from 3 of the Molycorp drill holes were used to estimate the first published NI 43-101 mineral resource for the Tomichi Project. The resource estimate was completed by Ronald Simpson of Geosim Services Inc. A full technical report will be filed on Sedar within the next 45 days. The following table shows the tonnages and grades for the Tomichi Project at a range of Copper Equivalent cutoff grades (COG%).TOMICHI INFERRED MINERAL RESOURCE - TONNES & GRADECOG % CuEQTonnes 000'sCu (%)Mo (%)Au (g/t)Ag (g/t)Re (g/t)CuEq (%) **0.10698,5030.1710.0370.0151.380.1850.380.20622,4290.1820.0400.0161.500.2000.410.30506,5130.1970.0440.0181.690.2210.450.40334,3200.2160.0480.0191.930.2490.500.50132,2790.2370.0580.0202.300.2940.57**CuEQ = %Cu + %Mo x 5 + g/t Au x 0.681 + g/t Ag x 0.012Rhenium values have not been used in the cutoff grade or Cu Equivalent calculationsTOMICHI INFERRED MINERAL RESOURCE - CONTAINED METALCOG % CuEQTonnes 000'sCu (lbs.)Mo (lbs.)Au (oz.)Ag (oz.)Re (kg.)CuEq (lbs.) **0.20622,4292.5 Billion552 Million320,00030 Million124,3625.6 Billion0.50132,279691 Million169 Million90,00010 Million38,8901.7 Billion**CuEQ = %Cu + %Mo x 5 + g/t Au x 0.681 + g/t Ag x 0.012Rhenium values have not been used in the cutoff grade or Cu Equivalent calculationsAll analytical work was completed by ALS labs and the results continually showed less than a 10% difference from the original assays in both copper and molybdenum. Rhenium was also analyzed and although the grades are very encouraging, they have not been used in the Cu Equivalent calculations or pit optimization, but should add to the overall economics.HIGHLIGHTS OF THE RESOURCE:An Inferred Mineral Resource of 622 million tonnes grading 0.182% Cu, 0.040% Mo, 1.50 g/t Ag, 0.016g/t Au, 0.200 g/t Re (0.41% Cu Eq**) based on a 0.20 % CuEq cut off.Contained Metal at a 0.20% CuEq cutoff - 2.5 Billion lbs Cu, 552 Million lbs Mo, 30 Million oz Ag, 320,000 oz Au, 124,362 kg Re, or 5.6 Billion lbs Cu Eq.Near surface higher grade resource of 132,279 million tonnes grading 0.237% Cu, 0.058% Mo, 2.30 g/t Ag, 0.02 g/t Au, 0.294 g/t Re (0.57% Cu Eq**) based on a 0.50 % CuEq cut off.Near surface Contained Metal at a 0.50% CuEq cutoff - 691 Million lbs Cu, 169 Million lbs Mo, 10 Million oz Ag, 90,000 oz Au, 38,890 kg Re, or 1.7 Billion lbs Cu Eq.Rhenium values have been estimated but were not used in the pit optimization or the CuEq calculations, although the grades are very encouraging and should add to the overall economics. Rhenium metal has been trading at around US$4,000/kg over the past year. A copy of a drill plan map as well as individual sections of both the higher grade portion of the resource and selected other sections can be found on the Company's web site at www.burnstoneventures.com. All necessary permits have been received for the 2012 drill program which will include approximately 7,500 metres of diamond drilling.The 2012 drilling program will increase the confidence of the existing resource and expand the zones of known mineralization laterally and at depth. All drill holes will be targeted to a depth of at least 600 metres as many of the historic holes ended in mineralization. The data from this program will allow for an updated NI 43-101 compliant mineral resource.Doug Fulcher, President and CEO of the Company, stated, "We are extremely pleased with the initial resource that has been estimated for the Tomichi Project. This has given us the starting point to begin the drill program this summer and implement the results from this program to enhance and potentially recategorize a portion of the inferred resource into a measured and indicated category. The presence of the higher grade zone of mineralization near surface will greatly enhance the overall economics of the Tomichi Project. Confirming and expanding this higher grade zone will be a focus of the upcoming drill program. Drilling is expected to begin by the end of next month and will target the deeper potential as well as the areas to the north and east which remain open."Optimization ParametersBlock size was 15x15x15 metres with a 15 metre composite length, Inverse Distance Squared interpolation method. Grade estimation used analytical data from 26 holes (TM series) drilled in 1979 and 1980 of which 23 holes were re-assayed by the Company in 2011 and 2012. Samples were capped at 1% Cu, 0.2 g/t Au and 15 g/t Ag before compositing. Metal prices used in calculating the Cu Equivalent values were, Mo - $15.00 lb, Cu - $3.00 lb, Ag - $25.00 oz, Au - $1,400.00 oz. Metal recovery factors used in the calculations were Cu - 85%, Mo - 85%, Au - 60% and Ag - 60%. Cost Assumptions for Pit Optimization included Processing + G & A at $6.00/T and Mining at $1.40/T. 3-D solid models of the major lithologies were created to serve as hard boundaries for the Domains.ABOUT BURNSTONEThe Company has an option to earn a 100% interest in the Tomichi copper-molybdenum (Cu-Mo) porphyry Project in Gunnison County, south-central Colorado. The Tomichi Project is located within the Colorado Mineral Belt and was initially worked on in the 1950s by Climax Molybdenum Co. and more recently, in the 1980s by Molycorp Inc. No work has been carried out since the 1982 drill program primarily as a result of fractured land ownership. Mineralization at Tomichi is a typical porphyry deposit characterized by disseminated and fracture controlled molybdenite and chalcopyrite hosted by a mid-Tertiary, potassic altered, intrusive system dominated by a porphyritic quartz monzonite. The mineralized porphyry is exposed at surface on top of Copper Hill. Diamond drilling completed by Molycorp Inc. in the 1980s intersected copper-molybdenum mineralization over a surface area in excess of 1500 metres by 800 metres, to a depth of at least 550 metres and remains open to the north, east and at depth.The re-analyzed samples from holes TM-01 to TM-26 were shipped from Gunnison to the ALS Group - Reno Mineral Lab, where the samples were prepped and fire assayed for gold. Prepped pulps were then forwarded on by ALS Reno to their North Vancouver Laboratory where samples were analyzed for copper, molybdenum, silver and rhenium along with 44 other elements by a four-acid digestion ICP-MS and ICP-AES. Burnstone maintains a quality control program involving the use of standards, blanks and duplicate samples randomly inserted within the sample group at a 5% ratio to provide a check on assay lab data quality. Copper, molybdenum, silver and gold standards were prepared by CDN Resource Laboratory Ltd., Langley, B.C., Canada, or WCM Minerals Ltd., Burnaby, B.C. Canada. The blank sample(s) used to date have been from a local source, i.e., commonly available hardware store silica sand. For the 2012 drill program a commercial blank will be obtained from an accredited source.Mr. James Chapman, P.Geo, is the Qualified Person responsible for the design of the program, and all exploration work on the Tomichi Project will be done under his supervision. Mr. Chapman has read and approved the technical content of this news release.On Behalf of the Board of Directors:Douglas Fulcher, PresidentThis release includes certain statements that may be deemed to be "forward-looking statements" within the meaning of the U.S. Private Securities Litigation Reform Act of 1995. All statements in this release, other than statements of historical facts, that address future production, reserve potential, exploration and development activities and events or developments that the Company expects, are forward-looking statements. Although management believes the expectations expressed in such forward-looking statements are based on reasonable assumptions, such statements are not guarantees of future performance, and actual results or developments may differ materially from those in the forward-looking statements. Factors that could cause actual results to differ materially from those in forward-looking statements include market prices, exploration and development successes, continued availability of capital and financing, and general economic, market or business conditions. Please see our public filings at www.sedar.com.FOR FURTHER INFORMATION PLEASE CONTACT: 604-681-7733Burnstone Ventures Inc.www.burnstoneventures.comNeither 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.