Copper Reef Closes Financing and Begins Exploration at Gold Rock
August 18, 2016
Copper Reef Mining Corporation (CNSX: CZC) (the "Issuer") wishes to announce that it has closed a private placement offering and has begun further exploration on its advanced high grade Gold Rock property.
A total of 400,000 Flow Though Units at $0.05 will be issued; each Unit consists of one common share and one share purchase warrant, exercisable at $0.05 and expire within two years of the date of issuance. The non-flow through portion of the financing consists of 1,200,000 Units at $0.025; each unit consists of one common share and two share purchase warrants exercisable at $0.05 within one year of the date of issuance. The Flow Through Shares are issued within the meaning of the Income Tax Act (Canada).
The Offering remains subject to certain conditions including, but not limited to, the receipt of all necessary regulatory approvals. The securities issued under the Offering are subject to a four-month statutory hold period in Canada to December 19, 2016.
The proceeds of $50,000.00 will be used in part for exploration on the Company's North Star-Gold Rock Property and for corporate purposes. The proceeds from the sale of Flow Through shares in this offering will be used along with a future planned raise to move Copper Reef's 100% owned North Star Gold project forward.
Currently on the North Star- Gold Rock property a grid is being cut along which geological mapping, prospecting and sampling will occur starting this month. The additional planned raise will be directed mainly towards completing a new independent National Instrument 43-101 report that will calculate the resources currently outlined by 5 previous phases of drilling, pit bulk and underground bulk sampling. The current 43-101 report dealing only with the North Star vein is out of date as there has been 3 phases of drilling since and the gold price has changed dramatically from roughly $300 US/oz of gold to over $1300 US/oz gold or over roughly just over $1700/oz gold in Canadian dollars. The plan is to raise enough funds to complete any infill drilling that may be required to add to the certainty of continuity of the various lenses to create an overall current resource number.
North Star Vein System
The North Star project consists of two parallel roughly 125 long north trending veins separated by a few meters of rock. The east vein is the one that is mainly mineralized although the west ern vein has significant mineralization at the north end. The east vein was sampled by a bulk sample from a pit 125 meters long, 3 to 5 metres wide and 4 meters deep. 400 blast holes were sampled and ran an average of 0.4 oz/t gold (undiluted).
There are 8,000 tonnes of ore stored at the Chisel pit in Snow Lake grading 0.2 to 0.3 ounce per ton gold (6.9 to 10.3 grams) (at a minimum at $1,500/ounce would be $2.4-million US worth of gold). An additional 3,000 tonnes of broken ore were left in the North Star pit grading 0.3 to 0.4 ounce/ton (undiluted) and 4,000 tonnes of ore from the underground development of undocumented diluted grade located at surface. The underground ore material averaged 0.29 ounce per ton gold from face and back sampling (2010 Gold Rock drilling report).
Metallurgy carried out by Lakefield Research on the vein material both from the surface bulk sample from the pit as well as from the 100 level underground reported 85% gold recovery by gravity alone in a Nelson Concentrator and 98%, if flotation was used.
Gold Rock Vein System
The North Star Vein system is part of an over 2-3 km long NNE shear zone approximately 5-10 m wide. Near the known north end of this shear zone is the Gold rock veins of which there are at least three 125 meters long sections that run gold. These gold bearing lenses are hosted in 0.4 to 3 meters wide quartz carbonate veins within the Gold Rock structure. Three recent phases of drilling have been carried out at Gold rock which have detailed two main zones of high grade gold veins and a third that is more poorly defined. Two holes into this third and most southerly lens assayed 7.79 g/t Au over 2.1m in hole GR-10-119 and 7.01 g/t Au over 2.3m in hole GR-10-125.
In between the three 125 m long gold shoots at Gold Rock, separated by 50 m intervals the quartz vein is still present but does not carry significant (> 2 g/t) gold. In between the North Star and the Gold Rock systems, a distance of 1.3km, additional sets of veins occur within and along the main structure. Only minor drilling and sampling has been carried out in this intervening less exposed area. The Gold Rock veins overall, tend to be higher grade but narrower than the North Star veins and carry more silver.
Selected drill holes from Gold Rock include: GR-08-06, which returned assays of 24.14 grams per tonne gold over 3.9 metres (12.8 feet); GR-08-31, which returned 81 g/t gold over 1.6 m (5.3 feet); GR-08-41, which returned 27.85 g/t gold over 2.4 m (7.9 feet); GR-08-50, which returned 104.39 g/t gold over 3.4 m (11.2 feet); GR-08-59, which returned 30.61 g/t gold over 2.4 m (7.9 feet); and GR-09-91, which returned 15.95 g/t gold over 2.9 m (9.5 feet).
Additional Vein Systems
Additional structures occur parallel to the North Star- Gold Rock structure. Many of these when sampled did not return significant values above 5 grams and were thought to occur along a less developed system. However, during the last phases of mapping in 2007 a significant new discovery was made along a parallel structure located 300-400 m to the north east of the Gold Rock structure. Initial grab samples assaying as high as 31.19 g/t gold were followed up with drilling. Two holes drilled into this New Discovery assayed 14.41 g/t Au over 3.3m in hole GR-10-114 and 15.65 g/t Au over 1.5m in hole GR-10-115. (this zone is wide open to the north and south). The significance of this new discovery is that it lies at the very northern limit of any known exploration. This structure is wide open to the north and south.
The purpose of adding addition lines to the grid at its north end was to explore both the northern extension of both the Gold Rock veins and this new discovery in an area previous unmapped, prospected or sampled. This will add almost another km to the already 2 km long veined structure. A detailed more careful prospecting and sampling program will also be carried out along the New Discovery structure to the south now that we have an idea exactly where the structure goes. The plan is to find and outline new targets for drilling in late fall and winter. The property is accessible year round and is currently fully permitted with a camp in place. Copper Reef has a Manitoba grant application in place for this project which if approved would see returned 50% of exploration funds capped at $200,000. Mapping sampling and prospecting is planned to start next week.
Stephen Masson M.Sc., P.Geo. President of Copper Reef is the Qualified Person under the provisions of National Instrument 43-101 for the Company and has reviewed and approved the contents of this news release.
ABOUT COPPER REEF MINING CORPORATION
Copper Reef is a Canadian junior mineral exploration company with a specific focus on mineral properties in Northwest Manitoba and Northeast Saskatchewan, Canada. All of the Issuer's properties are currently at the exploration stage. The Issuer has no long-term debt and has assembled a portfolio of base metal and precious metal prospects, including strategic locations in the Provinces of Manitoba and Saskatchewan.
Copper Reef Mining Corporation
Stephen L. Masson M.Sc. P.Geo.
President & CEO
No stock exchange or securities regulatory authority has reviewed or accepted responsibility for the adequacy or accuracy of this release. Some of the statements contained in this release are forward-looking statements, such as estimates and statements that describe the Issuer's future plans, objectives or goals, including words to the effect that the Issuer or management expects a stated condition or result to occur. Since forward-looking statements address future events and conditions, by their very nature, they involve inherent risks and uncertainties.