September 5, 2018: Vancouver, British Columbia: Surge Copper Corp. (the “Company”) (SURG: TSX-V) is pleased to announce that assay results for holes S18-212 and 214 from the Company’s Ootsa Property have been received and are presented below. Holes S18-212 and 214 are the first drill hole results from a recent new discovery located 500 metres northeast of the East Seel deposit. Assays results confirm the new discovery has potential to host high-grade resources.
The Ootsa Property is an advanced stage copper-gold exploration project containing the East Seel, West Seel, and Ox porphyry deposits, and is located adjacent to the Huckleberry Copper Mine in British Columbia.
HIGHLIGHTS
- Hole S18-214 intersected 22 metres grading 1.5% copper equivalent (Cu Eq.) within a larger interval containing 48 metres grading 0.7% Cu Eq.
- Hole S18-212 intersected 22 metres grading 0.5% Cu Eq., including 6 metres grading 1.2% Cu Eq.
- Width and grade of the mineralized zone appear to increase toward the surface.
- Holes S18-212 and 214 both intersected long intervals of intense alteration locally containing highly elevated zinc and silver including:
-
- 98 metres of 0.61% zinc and 5.1 g/t silver, including 14 metres of 1.12% zinc and 6.27 g/t silver in hole S18-214.
-
- 71 metres grading of 0.57% zinc, 0.11% lead, and 6.7 g/t silver in hole S18-212.
Drill Results
The 2018 drill program is focused on expanding existing mineralization and testing new exploration targets around the East and West Seel deposits. Hole S18-212 is located 500 metres northeast of the East Seel deposit and was drilled at an azimuth of 133 degrees and a dip of 50 degrees. This discovery hole contained widespread and intense alteration along with localized and variable zones of mineralization consisting of pyrite, chalcopyrite, and sphalerite along with carbonate and quartz, with sulfides occurring as a sulfide rich breccia matrix. Photographs of the mineralization are available in the photo gallery on our website at www.surgecopper.com or by clicking here. Hole S18-212 intersected 6 meters of high grade mineralization grading 1.2% copper equivalent from 372 to 378 metres depth within a larger zone containing 0.5% copper equivalent over 22 metres from 372 to 394 metres depth. The hole also intersected zones of anomalous zinc mineralization including 71 metres grading 0.57% zinc, 0.11% lead, and 6.7 g/t silver from 271 to 342 metres depth, including 0.83% zinc, 0.11% lead, and 7.1 g/t silver over 24 metres from 312 to 336 metres depth. Hole S18-212 intersected anomalous gold mineralization near the bottom of the hole averaging 0.14 g/t gold over 28.1 metres from 412 to 440.1 metres depth, with the last 4.1 metres sampled averaging 0.29 g/t gold (from 436 to 440.1 metres). This anomalous gold mineralization surrounds a strongly sericite altered feldspar-biotite porphyritic intrusive encountered at the bottom of the hole which is considered prospective for copper-gold porphyry style mineralization.
Hole S18-214 is a 100 metre step out from hole S18-212 and was also drilled at an azimuth of 135 degrees and a dip of -50 degrees. Hole S18-214 intersected the same mineralized sulfide breccia as hole S18-212 and has traced the mineralized zone closer to surface. A cross section showing holes S18-212 and 214 is available here.
Assay results from holes S18-212 and 214 are summarized in the table below.
Summary of select drill intercepts – Holes S18-212 and 214
|
Drill Hole |
From (m) |
To (m) |
Width (m)* |
Cu Eq.%** |
Cu % |
Au g/t |
Ag g/t |
Zn% |
Pb% |
|
S18-212 |
372.0 |
394.0 |
22.0 |
0.5 |
0.29 |
0.03 |
23.5 |
0.26 |
0.04 |
|
including |
372.0 |
378.0 |
6.0 |
1.2 |
0.65 |
0.04 |
56.1 |
0.20 |
0.06 |
|
S18-214 |
89.0 |
137.0 |
48.0 |
0.7 |
0.50 |
0.10 |
17.6 |
0.40 |
0.08 |
|
including |
91.0 |
113.0 |
22.0 |
1.5 |
1.02 |
0.19 |
35.3 |
0.65 |
0.14 |
*Width refers to drill hole intercepts, true widths have not been determined.
**Cu Eq. (copper equivalent) has been used to express the combined value of copper, molybdenum, gold and silver as a percentage of copper, and is provided for illustrative purposes only. No allowances have been made for recovery losses that may occur should mining eventually result. Calculations use metal prices of US $2.50/lb copper, $1200/oz gold, $15 silver, and $10/lb molybdenum using the formula Cu Eq.% = Cu% + (Au g/t x 0.701) + (Ag g/t x 0.0087) + (Mo% x 4.01). Lead and zinc values are not included in copper equivalents.
Hole S18-214 intersected 22 meters of high grade mineralization grading 1.5% copper equivalent from 91 to 113 metres depth within a larger zone containing 0.7% copper equivalent over 48 metres from 89 to 137 metres depth. Hole 214 also intersected zones of zinc mineralization including 0.61% zinc and 5.1 g/t silver over 98 metres from 161 to 259 metres depth, including 14 metres of higher grade returning 1.12% zinc and 6.27 g/t silver from 193 to 207 metres depth.
Hole S18-213 targeted a coincident magnetic-chargeability-resistivity geophysical anomaly located 650 metres east of the East Seel Deposit and the hole was abandoned in an altered fault zone at 120.7 metres depth due to difficult drilling conditions.
Dr. Shane Ebert President of the Company stated, “our 2018 drill program has focused on expansion potential of existing resources and targeting new zones of mineralization, and so far has been very successful on both fronts. The first hole of the 2018 program was a 50 metre step out on the East Seel deposit which returned 138 metres grading 0.31% copper and 0.37 g/t gold (previously released). Holes S18-112 and 214 have confirmed a new discovery which is showing potential to host high grade Cu-Ag mineralization within a very large alteration system containing zones of elevated copper zinc and silver. The new discovery occurs in a covered area containing no surface exposure. Geophysical data suggest the zone could extend for 500 metres or more, although the strike of the zone remains poorly constrained. Holes S18-212 and 214 indicate the high-grade zone could be steeply dipping, potentially increasing in width and grade toward the surface. Additional drilling will be required to delineate the new zone and establish if open pit or underground resources might be defined along it.”
Drill Program Update
During July and August the Company completed 2137 metres of drilling in 7 holes. The drill program is currently suspended as forest fires to the north of the project area have cut off road access. The drill remains on site and is set up on hole S18-217. A map showing the location of 2018 drill holes is available in the map gallery on our website or by clicking here.
Holes S18-216 and 217 both targeted a new area located between the East Seel deposit and the historic Damascus high grade silver vein. Both holes have intersected minor zones of porphyry style quartz-chalcopyrite-molybdenite mineralization and suggest the new area is prospective for porphyry style mineralization. Drill holes S18-215 to 217 have been logged, sampled and sent for assay with results expected in about 3 weeks.
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 and 1 million ounces of gold 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 study recommends the Company continue to advance the Ootsa Project with extended and advanced technical studies with the intention of moving the project toward a production decision.
Ootsa Project Pit Constrained Mineral Resource Estimate at $8.50/t NSR Cut-off Value
|
Category |
Tonnes (‘000’s) |
CuEq % |
Cu % |
Au g/t |
Mo % |
Ag g/t |
CuEq M lbs |
Cu M lbs |
Au K oz |
Mo M lbs |
Ag K oz |
|
Measured |
187,148 |
0.38 |
0.23 |
0.15 |
0.021 |
2.8 |
1,568 |
934 |
916 |
85 |
17,089 |
|
Indicated |
37,041 |
0.35 |
0.21 |
0.12 |
0.023 |
2.8 |
286 |
175 |
146 |
19 |
3,368 |
|
M&I |
224,189 |
0.37 |
0.22 |
0.15 |
0.021 |
2.8 |
1,854 |
1,109 |
1,062 |
104 |
20,457 |
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.
Quality Control
All drill core is logged, photographed, and cut in half with a diamond saw. Half of the core is bagged and sent to Activation Laboratories Ltd. in Kamloops British Columbia for analysis (which is ISO/IEC 17025 accredited), while the other half is archived and stored on site for verification and reference purposes. Gold is assayed using a 30g fire assay method and 37 additional elements are analyzed by Induced Coupled Plasma (ICP) utilizing a 4-acid digestion. Duplicate samples, blanks, and certified standards are included with every sample batch and then checked to ensure proper quality assurance and quality control.
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
“Shane Ebert”
President and Chief Executive Officer
For Further information, please contact:
Telephone: 604-718-5454
Toll Free: 888-500-4587
info@surgecopper.com
Or
Don Mosher
Corporate Development
Telephone: 604-685-6465
Neither 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.
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.