Reservoir Minerals Reports Drill Intersection of 291.3 Metres Grading 7.17% CuEq at the Timok Cu-Au Project
VANCOUVER, BRITISH COLUMBIA -- (Marketwired) -- 04/08/13 -- Reservoir Minerals Inc. (TSX VENTURE: RMC)(PINKSHEETS: RVRLF)(BERLIN: 9RE) ("RMC" or the "Company"), is pleased to provide an update on the diamond drilling program currently underway on the Cukaru Peki target in the Company's Timok Project, eastern Serbia. The Company holds a 45% interest in the Project in a joint venture with Freeport-McMoRan Exploration Corporation ("Freeport"). Drill hole FMTC 1223 yielded an interval of 291.3 metres with an average grade of 7.17% copper equivalent ("CuEq", average 5.13% copper and 3.40 grams per tonne ("g/t") gold) from 428.0 to 719.3 metres, which includes 47.1 metres with an average grade of 18.26% CuEq (average 13.89% copper and 7.27 g/t gold) from 457.6 to 504.7 metres. The copper equivalent (CuEq) is calculated from the formula (copper % + 0.6 x g/t of gold).
Dr. Simon Ingram, President and CEO of Reservoir Minerals Inc. commented: "This intercept which is 99 metres from the 160 metres at 10.16% CuEq intercepted in FMTC 1213, shows both the continuity of this unusually high-grade mineralization and confirms the unique nature of this discovery in a world where averaged mined copper grades are falling well below 1% CuEq".
Drill hole FMTC 1223
Drill hole FMTC 1223 tested to a depth of 1060.4 metres, the continuity of the high grade mineralization reported earlier from FMTC 1210 and FMTC 1213. Drill hole FMTC 1223 was collared 110 metres from FMTC 1210, and 99 metres from FMTC 1213 (refer to the map on the Company website www.reservoirminerals.com, Timok Project Drill Plan: http://www.reservoirminerals.com/files/Home_Page_Timok.pdf). FMTC 1210 intersected 266 metres grading an average of 1.23% CuEq (average 1.06 % copper and 0.28 g/t gold) from 598 to 864 metres, and FMTC 1213 intersected 160 metres grading an average of 10.16% CuEq (average 6.92% copper and 5.40 g/t gold) from 461 to 621 metres.
----------------------------------------------------------------------------
----------------------------------------------------------------------------
Copper Gold CuEq
From To Interval (i) (ii) (iii)
(m) (m) (m) (%) (g/t) (%) Comments
-------------------------------------------------------------------
428.0 719.3 291.3 5.13 3.40 7.17 Massive sulfide (pyrite-
covellite+/-enargite)
428.0 - 551.0 m, altered
including 457.6 504.7 47.1 13.89 7.27 18.26 andesite with pyrite-
covellite disseminations
and veinlets 551.0 - 719.3
m
----------------------------------------------------------------------------
850.0 884.3 34.3 0.33 0.06 0.37 Brecciated andesite,
argillic to advanced
argillic alteration,
897.0 927.0 30.0 0.35 0.04 0.38 disseminated pyrite and
occasional covellite
disseminations and
veinlets
----------------------------------------------------------------------------
----------------------------------------------------------------------------
Table 1: Summary of significant results from drill hole FMTC 1223
(i) Analysis by ICP-AES using 0.5 g aliquot for samples containing less than
1% copper, by AAS for samples containing 1 - 11% copper, and by ICP-AES
using 0.1 g aliquot for samples containing greater than 11% copper.
(ii) Analysis by aqua regia digestion, extraction with organic dissolvent
and flame AAS finish for samples containing less than 3 g/t gold and by fire
assay with gravimetric finish for samples containing greater than 3 g/t
gold.
(iii) The copper equivalent (CuEq%) is calculated from the formula (Copper%
+ 0.6 x g/t of gold).
Drill hole FMTC 1223 intersected the base of the Miocene sedimentary cover at 185.2 metres, and the contact between the Upper Cretaceous sediments and underlying andesites at 422.8 metres. Hydrothermally altered, brecciated and pyrite-bearing Upper Cretaceous andesites were intersected at 427.0 metres, and at 428.0 metres passed into the copper- and gold-mineralized andesite volcanics that continue to 719.3 metres (291.3 metres with an average grade of 7.17% CuEq, average 5.13% copper and 3.40 g/t gold).
Massive sulfide mineralization (pyrite, covellite and enargite), interpreted to be high-sulfidation epithermal in type, occurs from 428.0 to 551.0 metres. Particularly high grades of copper and gold (averaging 18.26% CuEq, 13.89% copper and 7.27g/t gold), were intersected over 48.1 metres from 457.6 to 504.7 metres. The highest copper grades recorded in this interval were 41.51% CuEq (35.93% Cu and 9.30 g/t gold) over 1 metre of massive sulfide from 459.7 to 460.7 metres. The highest gold grades recorded were 44.6 g/t gold and 2.77% copper over 1 metre from 439.0 to 440.0 metres, and relate to a high silica zone within the massive sulfide mineralization. The lowest copper grades in this interval were recorded from 448.0 to 456.7 metres (8.7 metres averaging 0.60% copper with 5.72 g/t gold)
The section from 551.0 to 719.3 metres consists of altered andesite pervasively mineralized with abundant disseminations, veinlets and occasional massive sulfide aggregations of pyrite, covellite and enargite (168.3 metres averaging 3.91% CuEq, 3.22% copper and 1.16g/t gold). This style and grade of mineralization is very persistent through the interval, and only 5 core samples, each 1 metre long, yielded less than 1% copper (minimum 0.42% copper).
At 719.3 metres there is an abrupt transition to altered and brecciated andesite with disseminated pyrite and occasional covellite that continues to the end of hole at 1060.4 metres. The copper and gold mineralization in this section is relatively weak, with the best intervals shown in Table 1.
The hole was drilled through the reported mineralized intervals to 720.2 metres with HQ3 core size, and from 720.2 to the end of hole at 1060.4 metres with NQ core size. Core recovery is recorded as 100% throughout, with the exception of a 3 metre interval from 723.7 to 726.7 metres where the total core recovery was recorded as 88% and 95%.
Previous Drill Hole Results:
Drilling reported to date has returned mineralogy and alteration typical of epithermal high sulphidation systems, and porphyry style mineralization. The extent of both the high-grade "high-sulfidation, massive sulphide" copper-gold mineralization and the porphyry copper-gold style mineralization remains open, and drilling is continuing in order to define the limits to the mineralized system. The drill intercept lengths are all down-hole lengths. At this early stage of exploration for a deep high-sulfidation epithermal and porphyry copper mineralized system typical of the Timok magmatic complex, it is not yet possible to determine the orientation of the mineralized zones, or to estimate their true thickness.
Summary results, including those previously reported, and as graphical strip-logs are available on the Company website (www.reservoirminerals.com, Timok Project Strip Logs: http://www.reservoirminerals.com/files/Strip_Log_feb.pdf).
Note on Analytic procedures
Copper was routinely analyzed by inductively coupled plasma - atomic emission spectroscopy (ICP-AES) using 0.5 gram aliquots. Due to the exceptionally high grade of copper in some samples, repeat analyses were undertaken using atomic absorption spectroscopy (AAS) for samples containing 1 - 11% copper, and ICP-AES with longer sample digestion times and smaller aliquot of 0.1 gram for samples containing greater than 11% copper. The copper values in Table 1 of this news release are from the repeat analytical procedures as available, and otherwise by the routine procedure for the samples yielding less than 1% copper. Slight variations between the copper results for FMTC 1210 and 1213 reported in earlier News Releases are due to new analyses for high grade copper.
Gold was analyzed by aqua regia digestion, extraction with organic dissolvent and flame AAS finish, and with a gravimetric finish for samples containing greater than 3 g/t gold. The results in Table 1 of this news release for gold are from fire assay (30 gram samples) with a gravimetric finish as available, and otherwise by aqua regia digestion, extraction with organic dissolvent and flame AAS finish for the samples yielding less than 3 g/t gold.
Status of Drilling
The status of drilling in the Miocene Basin area of the Brestovac - Metovnica Exploration Permit is shown in Table 2. At the end of March 2013 there were five diamond drilling rigs operating in the Miocene basin area. Although most of the holes focus on the Cukaru Peki target, FMTC 1331 and FMTC 1333 are testing new targets in the Miocene Basin area. The drill hole collar locations are shown on the map on the Company website (www.reservoirminerals.com, Timok Project Drill Plan: http://www.reservoirminerals.com/files/Home_Page_Timok.pdf). Pending analytical results will be released as they are received and evaluated.
----------------------------------------------------------------------------
Drill
Hole Azimuth Declination Depth
ID (degrees) (degrees) (m) Status
----------------------------------------------------------------------------
FMTC 1210 0 -90 1947.0 Completed. Results to 1183 m reported
Company News Release July 16, 2012,
and additional results reported in
News Release December 10, 2012
----------------------------------------------------------------------------
FMTC 1211 0 -90 1136.7 Completed. Results reported in News
Release December 10, 2012
----------------------------------------------------------------------------
FMTC 1212 0 -90 1008.8 Completed. Results reported in News
Release December 10, 2012
----------------------------------------------------------------------------
FMTC 1213 0 -90 798.1 Completed. Reported in Company News
Release September 4, 2012
----------------------------------------------------------------------------
FMTC 1214 250 -80 1308.6 Completed. Results reported in News
Release December 10, 2012
----------------------------------------------------------------------------
FMTC 1215 0 -90 950.8 Completed. Awaiting assays
----------------------------------------------------------------------------
FMTC 1216 250 -70 921.0 Completed. Awaiting assays
----------------------------------------------------------------------------
FMTC 1217 070 -80 1006.7 Completed. Results reported in News
Release December 10, 2012
----------------------------------------------------------------------------
FMTC 1218 0 -90 1952.0 Completed. Awaiting assays
----------------------------------------------------------------------------
FMTC 1219 0 -90 1900.6 Completed. Awaiting assays
----------------------------------------------------------------------------
FMTC 1220 0 -90 1079.5 Completed. Awaiting assays
----------------------------------------------------------------------------
FMTC 1221 0 -90 1004,5 Completed. Awaiting assays
----------------------------------------------------------------------------
FMTC 1223 0 -90 1060.4 Completed. Results reported in this
News Release
----------------------------------------------------------------------------
FMTC 1224 0 -90 1088.5 Completed, Awaiting Assays
----------------------------------------------------------------------------
FMTC 1327 0 -90 Drilling
----------------------------------------------------------------------------
FMTC 1328 0 -90 1742.0 Completed, logging and sampling in
progress
----------------------------------------------------------------------------
FMTC 1329 0 -90 Drilling
----------------------------------------------------------------------------
FMTC 1330 0 -90 Drilling
----------------------------------------------------------------------------
FMTC 1331 0 -90 1109.2 Completed, logging and sampling in
progress
----------------------------------------------------------------------------
FMTC 1332 250 -80 Drilling
----------------------------------------------------------------------------
FMTC 1333 0 -90 Drilling
----------------------------------------------------------------------------
Table 2: Status of drill holes in the Miocene Basin area on March 28, 2013
The drill holes in the Cukaru Peki target area are located approximately 7.5 kilometers from the Bor cluster of copper-gold deposits including high sulphidation epithermal mineralization (now mined out, e.g. the Tilva Ros Deposit) that extends down plunge into the Borska Reka porphyry deposit, which has been drill tested to at least 1,500 metres (see the Company website for relevant maps and sections).
Diamond drilling takes from 120 to 150 days to complete a 1,900 metre drill hole, and from 35 to 55 days to complete a 1,000 metre drill hole. Standard assay turn-around time after logging and cutting of core averages 40 days. The additional analytical procedures for higher-grade samples take an average of two further weeks to report. It currently takes over 200 days to drill a 1,900 metre diamond drill hole and receive the assay results, and this has impacted the Company's ability to provide regular news updates regarding the Timok project. It is anticipated that drilling and assay turn-around times will be improved during 2013.
Quality Assurance and Control ("QAQC"):
Drill hole orientations were surveyed at approximately 50 metre intervals. Timok Project personnel monitored the drilling, with cores delivered daily to the Project's core storage facility in the town of Bor, where it was logged, cut and sampled. The samples were collected in accordance with the Company and Freeport's protocols that are compatible with accepted industry procedures and best practice standards. Most samples through the mineralized intervals were 1 metre in length, up to a maximum 2 metres in sections of poorly mineralized or unmineralized core. The samples were submitted to Eurotest Control EAD Laboratory (ISO 9001:2008 and ISO 17025 accredited) in Sofia, Bulgaria, for sample preparation and analysis according to the above-mentioned procedures. In addition to the laboratory's internal QAQC procedures, the Company conducted its own QAQC with the systematic inclusion of certified reference materials, blank samples and field duplicate samples. The analytical results from the Timok Projects quality control samples have been evaluated, and demonstrated to conform to best practice standards.
The Timok Project:
The Timok Project comprises the Jasikovo-Durlan Potok, Brestovac-Metovnica and Leskovo Exploration Permits that are held by Rakita d.o.o., a Serbian company in which Freeport and Reservoir hold 55% and 45% indirect ownership interests respectively. The Exploration Permits cover an area of 245 square kilometres in the highly prospective Timok Magmatic Complex, eastern Serbia, which includes the world-class Bor-Majdanpek mining and smelting complex with reported historical production of 6 million tonnes of copper and 300 tonnes of gold (9.65 million ounces gold) (BRGM publication BRGM/RC-51448-FR, 2002).
Freeport-McMoRan Exploration Corporation ("Freeport") previously exercised the Earn-In Option to acquire a 55% equity interest in the Timok Project in Serbia and is now the operator of the Timok Project. Freeport has given notice to Reservoir (Refer to the news release of August 16, 2012) that it has elected to sole fund expenditures on or for the benefit of the project until the completion and delivery to Reservoir of a feasibility study, subject to its right to cease such funding at any time. The feasibility study must be in such form as is normally required by substantial, internationally recognized financial institutions for the purpose of deciding whether or not to loan funds for the development of mineral deposits, Reservoir considers this level of feasibility study to be a "bankable" feasibility study. If Freeport completes the feasibility study, Freeport will indirectly own 75% and Reservoir 25% of the Timok Project.
Qualified Person:
Dr. Duncan Large, Chartered Engineer (UK) and Eur. Geol., a Qualified Person under National Instrument 43-101 Standards of Disclosure for Mineral Projects of the Canadian Securities Administrators and a consultant to the Company, approved the technical disclosure in this release and has verified the data disclosed.
About the Company:
Reservoir Minerals Inc. is an international mineral exploration and development company run by a experienced technical and management team, with a portfolio of precious and base metal exploration properties in Europe and Africa. The Company operates an exploration partnership business model to leverage its expertise through to discovery.
This news release includes certain "forward-looking statements" under applicable Canadian securities legislation. Such forward-looking statements or information, including but not limited to those with respect to exploration results, involve known and unknown risks, uncertainties, and other factors which may cause the actual results, performance or achievements of Reservoir Minerals Inc. to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements or information. Such factors include, among others, the actual prices of commodities, the factual results of current exploration, development and mining activities, changes in project parameters as plans continue to be evaluated, as well as those factors disclosed in documents filed from time to time with the securities regulators in the applicable Provinces of British Columbia and Alberta.
Neither TSX Venture Exchange nor the Investment Industry Regulatory Organization of Canada accepts responsibility for the adequacy or accuracy of this release.
Contacts:
Reservoir Minerals Inc.
Chris MacIntyre
VP Corporate Development
+1.416.703.0010
chris@reservoirminerals.com
www.reservoirminerals.com
