Tintina Applies for Exploration Decline Approval for Its 100% Owned High Grade Black Butte Copper Project, Montana, USA
VANCOUVER, BRITISH COLUMBIA -- (Marketwire) -- 01/08/13 -- Tintina Resources Inc. (TSX VENTURE: TAU)(OTCQX: TINTF) ("Tintina" or the "Company") is pleased to announce it has submitted an amendment to its current Exploration License, for approval to the Montana Department of Environmental Quality (MDEQ) for construction of an Exploration Decline at its Black Butte Copper project site (Figure 1). The decline will provide underground ramp access to the Johnny Lee high grade copper deposit.
Exploration Decline Highlights
-- 1,500-meter long decline access ramp
-- Expect to begin construction in 2013
-- Approval under Tintina's existing state of Montana exploration license
-- The decline will provide for:
-- Underground diamond drilling and
-- Bulk sampling of as much as 10,000 tonnes of ore for metallurgical
testing
The Company has submitted to the Montana DEQ an amendment to its exploration license to construct a 1,500-meter long exploration decline to provide ramp access into the Johnny Lee high grade copper deposit. This decline would afford several advantages to the project including access for a bulk tonnage sample (up to 10,000 tonnes) for metallurgical and mill testing purposes, and access for more detailed drilling of areas of the Johnny Lee deposit in preparation for mining. The Company anticipates beginning construction of the decline later in 2013. In preparation for submission of the amendment document, the Company has completed a variety of studies including drill testing along the path of alignment of the decline, hydrologic studies, waste rock characterization studies, and engineering studies. Tintina representatives have maintained frequent communication with the Montana DEQ during the course of preparation of the amendment document to ensure all critical information is readily available to the permitting agency.
Jerry Zieg, Vice President of exploration for Tintina, stated, "Construction of an exploration decline at the Black Butte Copper project represents a real milestone as we transition the project from the resource definition stage into the permitting and development stage. The work undertaken to date shows our confidence in the Johnny Lee deposit resource and our expectation that the Black Butte Copper project will become an important new mining operation in Montana's future."
2012 achievements and 2013 plans
The Company completed a Preliminary Economic Assessment ("PEA") on the Johnny Lee deposit Indicated and Inferred Resource during 2012 (see news release dated September 4, 2012) and has since upgraded the Johnny Lee deposit to a Measured and Indicated resource containing 910 million pounds of copper at a 3.57% copper grade, with an additional Inferred resource of 94 million pounds of copper at a 2.91% copper grade (see news release dated November 13, 2012). The Company is also completing an infill drilling program on the Lowry deposit, which has an Inferred Resource of 294 million pounds of copper at a grade of 2.6% (see news release dated November 1, 2012). The Company expects this drilling will allow an upgrade of the Lowry deposit to an indicated resource. The Company continues engineering, geotechnical, hydrological, and metallurgical and baseline environmental studies in preparation for an expanded PEA to include the Lowry deposit expected Q2, 2013. Finally, the Company plans to commission a pre-Feasibility Study ("PFS") or Feasibility Study ("FS") after completion of the Expanded PEA. The Company expects to complete the PFS or FS by Q3, 2014.
About the Black Butte Copper Project
Geologists with Cominco American Inc. and joint venture partners Utah International and BHP discovered the deposits during exploration programs in the 1980's. In 1993, after completing 76,000 meters drilled in the district, Cominco turned the property back over to the ranch owners and the copper deposits lay dormant until 2010 when members of the original discovery team now with Tintina re-established contact with the property owners. In May of 2010 Tintina completed mining leases on over 5,000 acres (2023.4 hectares) of private ranch lands which contain all currently identified resources at Black Butte. Present land holdings consist of 7,684.3 acres (3,109.7 hectares) of private ranch lands and 239 Federal mining claims totaling 4,541 acres (1,837.7 hectares). Tintina has completed over 54,000 meters of drilling since September of 2010, and from this work has achieved resource estimates on the Johnny Lee and Lowry deposits (described below). At least five additional copper mineralized zones have been identified in the resource area and may contain additional resource. Tintina has completed a positive Preliminary Economic Assessment (PEA), expects completion of an expanded PEA, and expects approval of their amendment for an exploration decline in Q2, 2013. The company is targeting the granting of a Mine Operating Permit in 2015 and copper production in 2016.
The Johnny Lee Deposit lies 3.2 km (2 miles) west of U.S. Highway 89, and is comprised of the Johnny Lee Deposit Upper Zone and the Johnny Lee Deposit Lower Zone. Both zones consist of tabular layers of copper-cobalt-silver mineralization as bands of massive chalcopyrite within fine-grained massive pyritic sulfide layers hosted by shale and conglomerate. The Johnny Lee Deposit Upper Zone deposit lies at depths ranging from 30 to 210 meters below the surface and is up to 29.17 meters thick. The Johnny Lee Deposit Lower Zone lies at depths ranging from 340 to 500 meters below surface and is up to 22.30 meters thick. Portions of both the Upper and Lower Zones are faulted away and have yet to be located. Additional sulfide zones lie above the Johnny Lee Upper Zone and contain variable concentrations of zinc and copper. The Johnny Lee deposit contains an undiluted Measured and Indicated resource of 910 million pounds of copper at a copper grade of 3.57%. This includes the Johnny Lee Lower Zone, which contains an undiluted Indicated Resource of 337 million pounds of copper at a grade of 6.4% copper. The Johnny Lee deposit also contains an undiluted Inferred Resource of 94 million pounds of copper at a copper grade of 2.91% copper.
The Lowry Deposit (Fig. 2) lies 1.2 kilometers (0.75 miles) west of U.S. Highway 89 and consists of at least five copper mineralized zones. Of these, the Lowry Middle Zone is a tabular layer of copper-cobalt-silver mineralization reaching up to 52 meters thick with high concentrations of chalcopyrite (copper-iron sulfide) concentrated within fragmental, silicified and dolomitized shale and carbonate. Individual drill holes contain as much as 2.8% Cu over 50.9 meters drilled thickness. The deposit dips gently to the south, lies at depths ranging from 265 to 718.5 meters below surface, and measures 600 meters by 300 meters in plan. The northeast trending Rose fault down drops the southeast portion of the zone, where two holes extend the zone by about 100 meters. These holes have not been offset further east or south. The Lowry Middle Zone contains an undiluted Inferred Resource of 294 million pounds of copper at a copper grade of 2.6% copper. More drilling is required to bring any of the other copper mineralized zones to the Inferred category.
These deposits are amenable to underground mining, an approach consistent with the desires of the landowners and community. Community and regional support for the project is high due to the strong desire for jobs in this economically challenged rural Montana area. Permitting activities are ongoing using highly knowledgeable Montana-based consulting groups together with the in-house team. Base-line and other key studies for permitting are carried out in close cooperation with the Montana Department of Environmental Quality to ensure high quality and complete permit applications.
Black Butte Copper Mineral Resource Statement as of November 1, 2012
Table 1 - Undiluted Measured and Indicated Resources at Black Butte Copper,
MT, USA
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UNDILUTED MEASURED RESOURCES - Johnny Lee Deposit
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Estimated Metal Grades Estimated Contained Metal
---------------------- -------------------------
Cu Co
Cu Lbs Lbs Ag
Cutoff Tonnes Cu Co Au Ag (Mill- (Mill- Au Ozs
(%) (000) (%) (%) (g/t) (g/t) ions) ions) Ozs (000)
---------------------------------------------------------------------------
Upper Zone 1.60 2,659 2.99 0.118 0.007 16.3 175 6.9 598 1,393
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UNDILUTED INDICATED RESOURCES - Johnny Lee Deposit
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Estimated Metal Grades Estimated Contained Metal
---------------------- -------------------------
Cu Co
Cu Lbs Lbs Ag
Cutoff Tonnes Cu Co Au Ag (Mill- (Mill- Au Ozs
(%) (000) (%) (%) (g/t) (g/t) ions) ions) Ozs (000)
---------------------------------------------------------------------------
Upper Zone 1.60 6,520 2.77 0.125 0.009 15.5 398 18.0 1,887 3,249
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Lower Zone 1.50 2,387 6.40 0.033 0.304 4.5 337 1.7 23,330 345
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TOTAL 8,907 3.74 0.10 0.088 12.6 735 19.7 25,217 3,594
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UNDILUTED MEASURED AND INDICATED RESOURCES - Johnny Lee Deposit
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Estimated Metal Grades Estimated Contained Metal
---------------------- -------------------------
Cu Co
Lbs Lbs Ag
Tonnes Cu Co Au Ag (Mill- (Mill- Au Ozs
(000) (%) (%) (g/t) (g/t) ions) ions) Ozs (000)
---------------------------------------------------------------------------
Upper and 11,566 3.57 0.10 0.069 13.4 910 26.6 25,815 4,987
Lower
Zones
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TOTAL 11,566 3.57 0.10 0.069 13.4 910 26.6 25,815 4,987
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Table 2 - Undiluted Inferred Resources at Black Butte Copper, MT, USA
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UNDILUTED INFERRED RESOURCES - Johnny Lee Deposit
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Estimated Metal Grades Estimated Contained Metal
---------------------- -------------------------
Cu Co
Cu Lbs Lbs Ag
Cutoff Tonnes Cu Co Au Ag (Mill- (Mill- Au Ozs
(%) (000) (%) (%) (g/t) (g/t) ions) ions) Ozs (000)
---------------------------------------------------------------------------
Upper Zone 1.60 1,255 2.52 0.102 0.008 15.2 70 2.8 323 613
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Lower Zone 1.50 205 5.33 0.025 0.207 4.1 24 0.1 1,364 27
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TOTAL 1,460 2.91 0.09 0.036 13.6 94 2.9 1,687 640
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UNDILUTED INFERRED RESOURCES - Lowry Deposit
---------------------------------------------------------------------------
Estimated Metal Grades Estimated Contained Metal
---------------------- -------------------------
Cu Co
Cu Lbs Lbs Ag
Cutoff Tonnes Cu Co Au Ag (Mill- (Mill- Au Ozs
(%) (000) (%) (%) (g/t) (g/t) ions) ions) Ozs (000)
---------------------------------------------------------------------------
Middle Zone 1.60 5,139 2.60 0.12 0.009 14.6 294 14 1,487 2,412
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TOTAL 5,139 2.60 0.12 0.009 14.6 294 14 1,487 2,412
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UNDILUTED INFERRED RESOURCES - Johnny Lee and Lowry Deposits
---------------------------------------------------------------------------
Estimated Metal Grades Estimated Contained Metal
---------------------- -------------------------
Cu Co
Lbs Lbs Ag
Tonnes Cu Co Au Ag (Mill- (Mill- Au Ozs
(000) (%) (%) (g/t) (g/t) ions) ions) Ozs (000)
---------------------------------------------------------------------------
Johnny Lee 1,460 2.91 0.09 0.036 13.6 94 2.9 1,687 640
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Lowry 5,139 2.60 0.12 0.009 14.6 294 14 1,487 2,412
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GRANDTOTAL 6,599 2.67 0.11 0.015 14.4 388 16.9 3,174 3,052
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Notes:
1. Mineral Resources have been classified according to the "CIM Standards on Mineral Resources and Reserves: Definitions and Guidelines" (December 2005). The preliminary economic assessment contained herein is preliminary in nature and includes inferred Mineral Resources that are considered too speculative geologically to have the economic considerations applied to them that would enable them to be categorized as Mineral Reserves and there is no certainty that the preliminary economic assessment will be realized.
2. It cannot be assumed that all or any part of an Inferred Resource will be upgraded to an Indicated Resource, or that an Indicated Mineral Resource will be upgraded to a Measured Resource, as a result of continued exploration. Mineral Resources are not Mineral Reserves and do not have demonstrated economic viability. There is no certainty that all or any part of the Mineral Resources will be converted into Mineral Reserves. Mineral Resources are global in situ totals.
3. For the Johnny Lee Upper Zone, cutoff grade calculation is based on assumed metal prices of $2.75/lb for copper and an 81% recovery. A mining cost of $US $59.00/tonne, processing costs of US $16.00/Tonne, and G&A costs of U.S. $5.00/tonne were assumed to form the basis for the resource cut-off determination. For the Johnny Lee Lower Zone, cutoff grade calculation is based on an assumed metal price of $2.75/lb. for copper and an 84% Cu recovery. A mining cost of US $50/tonne, processing costs of US $16/tonne, G&A costs of US $5.00/tonne, and refining costs of US $5.53/tonne, were assumed to form the basis for the resource cut-off determination. Note: these costs differ from those used for the cash flow model in the PEA.
4. Mineral resource tonnage and contained metal quantities have been rounded to reflect the accuracy of the estimate, and thus the numbers may not sum due to rounding.
Qualified Persons
Jerry Zieg, Vice President of Exploration for the Company is a Qualified Person for the purposes of National Instrument 43-101 and has reviewed and approved the information of a scientific nature contained in this news release. Assays for this program have been completed by ALS Chemex including duplicates, standards, and blanks for QA/QC purposes.
About Tintina Resources Inc.
Tintina Resources Inc. (www.tintinaresources.com) is a well-funded Vancouver based resource company focused on the development and mining of its 100% owned Black Butte high grade copper project (Fig. 1) in central Montana. Black Butte is the third highest grade copper deposit in development in North America, with an M&I resource of 910 million pounds of copper (Cu) at a grade of 3.57%, and Inferred Resources of 388 million pounds of copper (Cu) at a grade of 2.67%. On August 31, 2012, the Company filed on SEDAR a Preliminary Economic Assessment (PEA) for the Johnny Lee deposit on the Black Butte copper property. The Company is also conducting infill drilling on the Lowry deposit at Black Butte to upgrade existing Inferred resources to Indicated resources and will be updating the PEA to include the Lowry Inferred resource, previously not included in the PEA filed August 31, 2012.
About Mining in Montana
Montana has been a mining state for a well over 100 years. Today, more than two dozen mining operations are active making mining a cornerstone contributor to the State's GDP. Tintina has met with State regulators and looks forward to presenting the Black Butte Copper project as an underground mine with a small footprint located on private land. The project continues to benefit from broad local community support.
ON BEHALF OF THE BOARD OF DIRECTORS
Raj Chowdhry, CA, CEO & Executive Vice Chairman
Cautionary Note Regarding the PEA:
The PEA is preliminary in nature and includes inferred mineral resources that are considered too speculative geologically to have the economic considerations applied to them that would enable them to be categorized as mineral reserves. Furthermore, there is no certainty that the preliminary economic assessment will be realized. Mineral resources that are not mineral reserves do not have demonstrated economic viability. Readers are encouraged to read the technical report, which discloses the basis for the preliminary economic assessment and the qualifications and assumptions made by the authors of the report.
Cautionary Note Regarding Forward-Looking Statements:
Certain disclosures in this release, including statements regarding the Company's plans for and intentions with respect to advancement of the Company's Black Butte Copper Project to production resource estimates, the upgrading of resource estimates, the PEA, including estimates of capital and sustaining costs, anticipated internal rates of return, mine production, estimated recoveries, mine life, estimated payback period, and net present values, planned exploration activities and the results thereof, development activities, including the receipt of approvals and permits, the preparation of an updated preliminary economic analysis and a feasibility study and other plans and objectives of the Company with respect to the Black Butte Project and surrounding area constitute "forward-looking statements" and "forward-looking information" (collectively, "forward-looking statements") within the meaning of the United States Private Securities Litigation Reform Act of 1995 and Canadian securities legislation. In making the forward-looking statements in this release, the Company has applied certain factors and assumptions that the Company believes are reasonable, including that the Company is able to obtain any government or other regulatory approvals and any financing required to complete the Company's planned exploration and development activities, that the Company is able to procure equipment and supplies in sufficient quantities and on a timely basis, that the Company's exploration and development activities on the Black Butte Copper Project will not be affected by actions of environmental activists or other special interest groups, that actual results of exploration activities are consistent with management's expectations, that the proposed mine plan and recoveries will be achieved, that capital costs and sustaining costs will be as estimated, that the assumptions underlying mineral resource estimates are valid and that no unforeseen accident, fire, ground instability, flooding, labor disruption, equipment failure, metallurgical, environmental or other events that could delay or increase the cost of development will occur.
However, the forward-looking statements in this release are subject to numerous risks, uncertainties and other factors relating to Tintina's operation as a mineral exploration company and the Black Butte Copper Project property that may cause future results to differ materially from those expressed or implied in such forward-looking statements. Such uncertainties and risks include, among others, actual results of the Company's exploration activities being different than those expected by management, uncertainties involved in the interpretation of drilling results and geological tests, delays in obtaining or inability to obtain required government or other regulatory approvals or financing, interference with Tintina's exploration or development activities by environmental activists or other special interest groups, inability to procure equipment and supplies in sufficient quantities and on a timely basis, the risk of unexpected variations in mineral resources, grade or recovery rates, of failure of plant, equipment or processes to operate as anticipated, of accidents, labor disputes, and unanticipated delays in obtaining governmental approvals and completing other development activities, the risk that estimated costs will be higher than anticipated and the risk that the proposed mine plan and recoveries will not be achieved, equipment breakdowns and bad weather. There can be no assurance that such statements will prove to be accurate, and actual results and future events could differ materially from those anticipated in such statements. Readers are cautioned not to place undue reliance on forward-looking statements. Tintina does not intend, and expressly disclaims any intention or obligation to, update or revise any forward-looking statements whether as a result of new information, future events or otherwise, except as required by law.
To view the figures accompanying this press release, please click on the following link: http://media3.marketwire.com/docs/tau18.pdf
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.
Contacts:
Tintina Resources Inc.
Corporate Development
604.628.1162
info@tintinaresources.com
www.tintinaresources.com
