Copper Reef to Form a Gold Division and to Focus on Gold and Zinc
June 1, 2016
Copper Reef Mining Corporation (CSE: CZC) (the "Company") plans to turn its exploration focus to gold and zinc and form a separate gold division. Copper Reef is fortunate because it has a number of properties that host high grade deposits of zinc and gold aside from its copper properties. All these properties are 100% owned by Copper Reef and are available for option or joint venture.
North Star --Gold Rock Property
Copper Reef will immediately focus will be on the North Star -- Gold Rock Property aiming to expand the known high grade mineralization, develop new drill targets and search for new horizons through prospecting. Work permits have been applied for prospecting, field mapping and drilling. The "North Star Group Property" is an advanced exploration property with more than $ 9 million spent on it in the last 10 years along a 2 km long structure with the following work completed, all work is supported with full documentation:
- Five major drilling programs,
- Ramp access and underground development and sampling;
- Large surface blast hole sampling and trenching together with extensive assaying for gold, trace elements and whole rock geochemistry. Average grade from blast holes and trench faces was over 0.35 oz/t gold.
- Extensive metallurgical testing at Lakefield Research established 85% recovery of gold by gravity alone and 98% recovery overall.
- A large grid covers the gold shear with mapping, prospecting and geophysical surveys carried out. The Shear is still open to the north and south and the grid can be extended to follow the shear on strike (unexplored).
- Over two km of all-weather road to the site was constructed, as well as 15 km of the Dickstone road brought back to all weather road status providing year round access.
- Numerous environmental surveys were completed, including: ungulate, rare plant, raptor, fish surveys and other surveys required for the establishment of tailings facilities.
- A digital topographical airborne survey over the main area of the vein, and potential areas for tailings disposal and water intake.
- Camp site and storage areas were established and permitted. A mill foundation; a concrete slab shop floor and a water waste disposal pond were also completed.
There are 8,000 tonnes of ore stored at the Chisel pit in Snow Lake grading 0.2 to 0.3 ounces (6.9 to 10.3 g) gold per ton (at a minimum at $1500 Canadian would be $2.4 million worth of gold). An additional 3000 tonnes of broken ore was left in the North Star pit grading 0.3 to 0.4 ounces/ton (undiluted) and 4000 tonnes of ore from the underground development of undocumented diluted grade located at surface. The underground ore material averaged 0.29 ounces gold per ton from face and back sampling (2010 Gold Rock Drilling Report).
One km to the north of North Star, along the same shear, are located the Gold Rock high grade veins with a 200-250 strike length (open). These veins tend to be narrow but higher grade than at North Star. Over 125 drill holes have been drilled to date and a new 43-101 resource estimate must be calculated.. Selected drill holes from Gold Rock include GR-08-06 which returned assays of 24.14 g/t gold over 3.9 meters (12.8 ft.); GR-08-31 returned 81 g/t gold over 1.6 m ( 5.3 ft.); GR-08-41 returned 27.85 g/t gold over 2.4 m (7.9 ft.); GR-08-50 returned 104.39 g/t gold over 3.4 m (11.2 ft.); GR-08-59 returned 30.61 g/t gold over 2.4 m ( 7.9 ft.), GR-09-91 returned 15.95 g/t gold over 2.9 m (9.5 ft.).
To advance both the North Star and Gold Rock Project, a new NI 43-101 is required to bring resources up to date with current prices as well as the last two phases of drilling to build on the existing resources. The first order of business this summer will be to discover new drill targets in parallel structures and build on extensions of known mineralization in unexplored areas along strike and in between the two deposits.
The 2922 hectare property also contains basemetal potential being contiguous with the former Dickstone copper-zinc mine to the east and Rockcliff's Rail Zone to the south and west. The property lies within in the Reed Lake volcanic Arc assemblage which hosts the present Operating Mine owned by Hudbay Minerals and Royal Nickel. A VTEM survey was carried out over the entire claim group in 2010 which require ground follow up.
Copper Reef has applied for a MEAP Grant from the Manitoba Government for a $1,388,478 work program on this property. Copper Reef is eligible for a grant of up to 50% of expenditures on the property, capped at $200,000.
Albert's Lake Gold Property
The Alberts Lake Gold Property, located 20 km east of Flin Flon Manitoba, hosts a large wide (average 40 meters) gold mineralized shear zone. Mike Kilbourne of White Pine resources calculated from sections of 25 m spacing's and a 500 m strike length of historical 5,150 assays from previous drilling a resource of 2.7 million tonnes with an average grade of 1.4 g/t gold for approximately 120,000 ounces of gold ( Kilbourne 2010 Report) . Within the larger envelope is a higher grade section with more quartz veining that Granges Inc had roughly calculated a resources of 800,000 tonnes of 7.8 g/t gold. Kilbourne in his report was sceptical if this high grade section was continuous. The reader is cautioned that neither of these resource estimates are NI 43-101 compliant and should not be relied upon other than a conceptual indication of size and nature.
Twinning of four holes later in 2010 by Copper Reef returned very similar results. The gold is finely and relatively evenly distributed throughout individual samples with negligible nugget effect.
Kilbourne in March of 2010 wrote in his report that "this is a well mineralized and hydrothermally altered system that shouldn't be ignored. Opportunities may exist looking for extensions of this zone along strike. Additional potential may lie in the footwall volcanics, as very few holes were drilled for any meaningful distance into the footwall and there may be parallel zones. A structural and geology map should be completed to look for those areas where structurally prepared rocks could host larger, higher grade deposits." Approximately $700,000 has been spent on this property since 2011.
Twin Lakes Property-Burn Property
This is a large (2000 ha) property that straddles the Number 10 highway 35 kilometers south of Flin Flon where $250,000 has been spent in the last 5 years on geology, geophysics and drilling. The gold mineralization occurs along a large 100 km break that separates the Flin Flon Arc volcanic sequences from the ocean floor volcanic rocks. Former mines along this trend include the Century and the Gurney Gold Mines. Copper Reef controls 35 km of this structure. At least 3 known zones of high-grade gold mineralization occur on the Twin Lakes property within less than 250 m of Highway 10, as well as other showings in old trenches, adits and shafts further east along the structure. To date, most of the veins to date including the Parres showing are 1.5m to 0.25m in width but generally high-grade containing appreciable silver as well.
Grab samples collected from the showing in 1995 by the Manitoba Mines Branch personnel assayed up to 4.5 oz/t gold, 39.04 oz/t silver, 1.59% copper, and 4.80% lead. Three samples assayed over 1 oz/t gold and 12.96 oz/t silver. Based on these results, eight trenches were blasted into the showing over a strike length of 200 ft. Grab samples collected from the trenches assayed between 1.15 to 2.32 oz/t gold and 10.8 to 25.1 oz/t silver.
Jewel Box and Kississing Gold Showing
Copper Reef also holds two other gold properties which are the Kississing Property in the Sherridon Camp of Manitoba and the Jewel Box on the eastern margin of the main Flin Flon Camp. No work is planned for these properties this year. Coarse finger nail-sized coarse gold occurs in narrow quartz veins on the Jewel Box from grab samples with exceptional grades. In 1950 John Murray drilled three holes totaling 459 feet. Samples from holes 11, 12, and 13 returned values of 5.80 oz/ton (198.8 g/t) gold over 0.33 ft. (10 cm), 14.92 oz/ton (511.46 g/t) gold over 0.83 ft. (25 cm), and 4.16 oz/ton (142.6 g/t) gold over 0.92 ft. (28 cm).
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. Our business plan is to acquire key properties enhance them or make a discovery and then to seek JV partners to further advance the projects. 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.
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.