September 23, 2020, Vancouver, British Columbia – Surge Copper Corp. (the “Company” or “Surge Copper”) (TSX-V:SURG), is pleased to announce that results of a 3D induced polarization geophysical survey conducted over the Seel trend at Ootsa have been received and a large new anomaly has been identified. Ootsa is an advanced stage exploration project with large measured and indicated copper and gold resources located adjacent to the Huckleberry Mine in British Columbia.
- A large and previously unidentified geophysical anomaly has been identified on the east side of the Seel trend and could be a fault offset portion of the high-grade East Seel Deposit.
- The anomaly contains chargeability, resistivity, and magnetic values that are similar to the East Seel deposit over an area exceeding 800 metres long by 500 metres wide.
A high resolution and deep penetrating Voltara 3D induced polarization geophysical survey was conducted over the Seel trend by SJ Geophysics during June and July and results are discussed here.
The new geophysical survey has increased resolution and depth penetration and covers the East and West Seel deposits and extends outwards into prospective areas for several kilometres along strike. The survey has resulted in the discovery of a new geophysical anomaly defined by a high chargeability zone 1200 by 800 metres in size located on the east side of the trend. This new anomaly is separated from the East Seel deposit by the East Fault, a prominent northeast trending fault that truncates mineralization at East Seel. Within the new anomaly a zone 800 by 500 metres in size contains chargeability and resistivity values that match those of the East Seel mineralized zone and is considered prospective for East Seel style copper-gold mineralization. A magnetic high overlaps part of the new anomaly providing further support for an East Seel style target. The new anomaly is best developed below 150 to 200 metres depth, confirming previous interpretations that rocks on the east side of the East Fault have been down dropped relative to rocks on the west side.
Maps showing geophysical results and the new chargeability anomaly are available here.
Dr. Shane Ebert, President of the Company stated, “The new deep looking 3D IP survey has identified a strong new geophysical target that has potential to host high grade East Seel style copper-gold mineralization. This target appears to be offset laterally and down dropped which is likely why it was not identified during previous exploration. The Company is currently evaluating plans to conduct further exploration at Ootsa including drill testing this exciting new target.”
About Surge Copper Corp.
The Company owns a 100% interest in the Ootsa Property, an advanced stage exploration project containing the East Seel, West Seel and Ox porphyry deposits located adjacent to the open pit Huckleberry Copper Mine. The property contains NI 43-101 compliant resources of 224 million tonnes in the Measured and Indicated categories with contained metals of 1.1 billion pounds of copper, 1 million ounces of gold, and 20 million ounces of silver as summarized in the table below.
On February 9, 2016, the Company announced a positive Preliminary Economic Assessment (PEA) for the Ootsa Property with potential for low capital cost, low risk and rapid pay back utilizing existing infrastructure in the district with a contract mining and toll milling scenario. The Company currently has no agreement in place to access the existing mining and milling infrastructure in the district.
Ootsa Project Pit Constrained Mineral Resource Estimate at $8.50/t NSR Cut-off Value
The current technical report supporting the resource statement and PEA is available on SEDAR or the Company’s website at www.surgecopper.com and has an effective date of January 2016. The resource estimate uses $8.50 per tonne NSR cut-off value. Mineral resources are not mineral reserves and by definition do not demonstrate economic viability. There is no certainty that all or any part of the mineral resource will be converted into mineral reserves. A ‘Measured Mineral Resource’ is that part of a mineral resource for which quantity, grade or quality, densities, shape and physical characteristics are so well established that they can be estimated with confidence sufficient to allow the appropriate application of technical and economic parameters, to support production planning and evaluation of the economic viability of the deposit. An ‘Indicated Mineral Resource’ is that part of a Mineral Resource for which quantity, grade or quality, densities, shape and physical characteristics can be estimated with a level of confidence sufficient to allow the appropriate application of technical and economic parameters, to support mine planning and evaluation of the economic viability of the deposit. Copper Equivalent (CuEq) calculations are based on base case metal price (US$3/lb Cu, US$1260/oz Au, US$10.30/lb Mo, and US$17/oz Ag) and process recovery assumptions, and take into account smelter payable rates and refining costs. M&I = measured and indicated. The resource update and Preliminary Economic Assessment was completed by P&E Mining Consultants Inc. in accordance with National Instrument 43-101 Standards of Disclosure for Mineral Projects.
Dr. Shane Ebert P.Geo., is the Qualified Person for the Ootsa project as defined by National Instrument 43-101 and has approved the technical disclosure contained in this news release.
ON BEHALF OF THE BOARD OF DIRECTORS
President and Chief Executive Officer
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This News Release contains forward-looking statements, which relate to future events. In some cases, you can identify forward-looking statements by terminology such as "will", "may", "should", "expects", "plans", or "anticipates" or the negative of these terms or other comparable terminology. These statements are only predictions and involve known and unknown risks, uncertainties and other factors that may cause the Company’s actual results, level of activity, performance or achievements to be materially different from any future results, levels of activity, performance, or achievements expressed or implied by these forward-looking-statements. Such uncertainties and risks may include, among others, actual results of the Company's exploration activities being different than those expected by management, delays in obtaining or failure to obtain required government or other regulatory approvals or financing, inability to procure equipment and supplies in sufficient quantities and on a timely basis, equipment breakdown and bad weather. While these forward-looking statements, and any assumptions upon which they are based, are made in good faith and reflect the Company's current judgment regarding the direction of its business, actual results will almost always vary, sometimes materially, from any estimates, predictions, projections, assumptions or other future performance suggests herein. Except as required by applicable law, the Company does not intend to update any forward-looking statements to conform these statements to actual results.