Lucky Strike Commences NI 43-101 on Mongolian CN Coal Properties
VANCOUVER, BRITISH COLUMBIA -- (Marketwire) -- 07/18/11 -- Lucky Strike Resources Ltd. ('Lucky Strike' or the 'Company') (TSX VENTURE: LKY) announces that it has retained Norwest Corporation ('Norwest') in Salt Lake City, Utah, USA to prepare a Canadian National Instrument 43-101 ('NI 43-101') compliant Technical Report on the CN Coal Properties covering six mining exploration licenses located within the Choir-Nyalga coal basin of central Mongolia on the terms set out below. This announcement is further to the Company's news release dated July 11, 2011, in which Lucky Strike announced that it has signed definitive agreements to acquire an 80 percent interest in the CN Coal Properties subject to the completion of legal and technical due diligence and acceptance by the TSX Venture Exchange.Norwest has been engaged to provide a preliminary assessment of the reportable coal resource estimates based on the results of a 2,000 meter exploration drill program supervised by Norwest in 2009 on three of the six CN coal properties. This data has not previously been interpreted and could be used along with the historical data to assess the quantity of coal for the six licensed properties, if any, which may be classified as a coal resource in accordance with NI 43-101 standards.
All work required to complete the NI 43-101 Technical Report, including the three-dimensional geological model and resource assessment, will be undertaken by Norwest in a two-phase program. In Phase I, Norwest will complete the analysis of data from the exploration drill program that was carried out in 2009, perform seam correlation, geological modeling and preliminary resource assessment, which is expected to be completed by August 2011. Phase I efforts are intended to provide Lucky Strike with a preliminary assessment of reportable coal resource estimates that could be included in a NI 43-101 compliant resource calculation. Based on results of the Phase I work program, Lucky Strike may elect to proceed with Phase II, which would include completion and filing of a NI 43-101 compliant Technical Report.
2009 Drill and Assay Results
In 2009, Norwest completed a historic data compilation and interpretation study of the 2,156 hectare area from three of the six properties and surrounding area and prepared a NI 43-101 Technical Report on behalf of Gulfside Minerals Ltd, entitled Onjuul Property, Tov Aimag, Mongolia, dated August 12, 2009. Upon the integration of all available data, Norwest then determined prospective targets for the 2,000-meter drilling program, which was carried out in the winter of 2009. Results of the 2009 exploration program include:
Table 1
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Drill Drill Total Thickest Thickest
Hole Northing Easting Depth Coal Seam Seam
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Interval
(Meters) (Meters) (Meters) (Meters)
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NJ-09-22C 5167713 538626 204.0 56.4 38.1 46.5-84.6
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NJ-09-23C 5168344 538133 181.2 48.7 28.8 37.6-66.4
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NJ-09-24C 5168000 539034 201.4 34.4 12.1 26.8-38.9
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NJ-09-25R 5168220 539363 280.0 28.2 10.4 85.8-96.2
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NJ-09-26C 5167220 539324 192.5 30.3 10.4 174.4-184.8
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NJ-09-27 5167941 537787 No Coal
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NJ-09-28C 5166830 538748 51.5 13.9 13.9 36.5-50.4
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NJ-09-29C 5165790 538236 233.2 16.8 12.3 42.1-54.4
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NJ-09-30R 5166840 538742 186.0 38.1 28.8 33.4-62.2
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NJ-09-31R 5168050 538380 162.0 57.3 42.40 62.7-105.1
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NJ-09-32R 5167891 538866 200.0 16.5 8.1 61.1-69.2
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Stewart Group Labs (UK Company), a global provider of geochemical & assay solutions to the exploration industry, analyzed 128 coal quality samples obtained during the 2009 drilling program in their certified testing facility in Ulaanbaatar, Mongolia. The analytical suite included total and air-dried moisture, ash, volatile matter, fixed carbon, sulphur content, and calorific value. The samples were defined to represent the various coal benches within each seam. The samples for the various coal benches were mathematically composited to provide an estimated, weighted average of seam coal quality. The weighted averages for the individual seams are presented on an air-dried basis in Table 2 below.
2009 Coal Quality on Air-Dried Basis Table 2
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Seam ID 1 2U 2L 2.5 3 Average Minimum Maximum
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Moisture % 9.0 8.6 8.6 8.0 8.2 8.5 8.0 9.0
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Ash % 22.1 13.3 15.5 24.3 19.6 19.0 13.3 24.3
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S % 1.5 1.7 1.2 0.6 1.0 1.2 0.6 1.7
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Volatile Matter % 31.5 34 33.5 27.1 32.9 31.8 27.1 34
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Fixed Carbon % 37.4 44.1 42.5 32.9 39.3 39.3 32.9 44.1
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Calorific Value
(KCal/Kg) 4,488 5,411 5,290 4,004 4,929 4,824 4,004 5,411
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The three coal exploration properties under study represent 2,156 hectares of the contiguous 13,096-hectare block which is comprised of six mining exploration licenses and coal properties representing the CN coal properties.
In accordance with a summary table of coal inventory titled 'Mongolian Coal Basins and Deposits', the potential coal tonnage within and surrounding the CN Coal Properties including licensed and non-licensed areas in the vicinity is estimated to contain Mongolian P1 resources of 232 million tonnes, P2 resources of 1,017.9 million tonnes and P3 resources of 271.4 million tonnes for a total of 1.52 billion tonnes historical resource. A qualified person has not done sufficient work to classify the historical estimate as current mineral resources; the Company is not treating the historical estimate as current mineral resources and the historical estimate should not be relied upon.
Edwin Ullmer, P. Geo., a Qualified Person as defined by National Instrument 43-101 and an independent consultant of the Company, has read and approved the technical information in this news release.
ON BEHALF OF LUCKY STRIKE RESOURCES LTD.
Cathy Fong, P.Eng
Chairman & CEO
This news release may contain certain 'Forward-Looking Statements' within the meaning of Section 21E of the United States Securities Exchange Act of 1934, as amended. All statements, other than statements of historical fact, included herein are forward-looking statements that involve various risks and uncertainties. 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. Important factors that could cause actual results to differ materially from the Company's expectations are disclosed in the Company's documents filed from time to time with the TSX Venture Exchange, the British Columbia Securities Commission and the US Securities and Exchange Commission.
This release contains 'forward-looking statements' within the meaning of applicable Canadian securities legislation, including predictions, projections and forecasts. Forward-looking statements include, but are not limited to, statements that address activities, events or developments that the Company expects or anticipates will or may occur in the future, including such things as the completion of the acquisition of the properties described above, potential future exploration activities on such properties, the completion of technical reports in respect of such properties, future business strategy, competitive strengths, goals, expansion, growth of the Company's businesses, operations, plans and with respect to exploration results, the timing and success of exploration activities generally, permitting time lines, government regulation of exploration and mining operations, environmental risks, title disputes or claims, limitations on insurance coverage, timing and possible outcome of any pending litigation and timing and results of future resource estimates or future economic studies.
Often, but not always, forward-looking statements can be identified by the use of words such as 'plans', 'planning', 'planned', 'expects' or 'looking forward', 'does not expect', 'continues', 'scheduled', 'estimates', 'forecasts', 'intends', 'potential', 'anticipates', 'does not anticipate', or 'belief', or describes a 'goal', or variation of such words and phrases or state that certain actions, events or results 'may', 'could', 'would', 'might' or 'will' be taken, occur or be achieved.
Forward-looking statements are based on a number of material factors and assumptions, including the results of the Company's due diligence investigations in respect of the transaction, that the Sellers perform their obligations under the Definitive Agreements, receipt of all necessary regulatory approvals, including that of the TSX Venture Exchange, the result of drilling and exploration activities, that contracted parties provide goods and/or services on the agreed timeframes, that equipment necessary for exploration is available as scheduled and does not incur unforeseen break downs, that no labour shortages or delays are incurred, that plant and equipment function as specified, that no unusual geological or technical problems occur, and that laboratory and other related services are available and perform as contracted. Forward-looking statements involve known and unknown risks, future events, conditions, uncertainties and other factors which may cause the actual results, performance or achievements to be materially different from any future results, prediction, projection, forecast, performance or achievements expressed or implied by the forward-looking statements. Such factors include, among others, the interpretation and actual results of current exploration activities; changes in project parameters as plans continue to be refined; future prices of minerals; possible variations in grade or recovery rates; failure of equipment or processes to operate as anticipated; the failure of contracted parties to perform; labour disputes and other risks of the mining industry; delays in obtaining governmental approvals or financing or in the completion of exploration, as well as those factors disclosed in the company's publicly filed documents. Although the Company has attempted to identify important factors that could cause actual actions, events or results to differ materially from those described in forward-looking statements, there may be other factors that cause actions, events or results not to be as anticipated, estimated or intended. There can be no assurance that forward-looking statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. Accordingly, readers should not place undue reliance on forward-looking statements.
Contacts:
Lucky Strike Resources Ltd.
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