Northisle Reports Initial NI 43-101 Mineral Resource On the Hushamu Deposit
304 Million Tonnes Indicated Averaging .45% Copper Equivalent1.4 Billion lbs Copper, 2.8 Million Ounces Gold, 65.7 Million lbs Molybdenum
VANCOUVER, BRITISH COLUMBIA -- (Marketwire) -- 07/18/12 -- Northisle Copper and Gold Inc. (TSX VENTURE: NCX) ("Northisle" or the "Company") is pleased to announce the initial NI 43-101 Resource Estimate on its Hushamu copper - gold - molybdenum (Cu-Au-Mo) porphyry deposit near Port Hardy, British Columbia (the "North Island Project").
The Indicated Mineral Resource contains 1.4 Billion lbs Copper (Cu), 2.8 Million ozs Gold (Au), 65.7 Million lbs Molybdenum (Mo), or 3.0 Billion lbs Copper Equivalence (Cu Eq) in the Base Case scenario at a 0.30% Cu Eq cutoff grade. The Indicated Mineral Resource also contains 167,350 kgs of Rhenium (Re). Although the Re grades are encouraging, they have not been used in the Cu Equivalent calculations but could add to the overall economics.
In addition to the Indicated Mineral Resource, an Inferred Mineral Resource containing 205 million tonnes averaging 0.39% Cu-Eq has been identified. The Inferred Mineral Resource contains 0.8 Billion lbs Copper (Cu), 1.7 Million ozs Gold (Au), 34.9 Million lbs Molybdenum (Mo), or 1.8 Billion lbs Copper Equivalence in the Base Case Scenario at a 0.30% Cu Eq cutoff grade. The Inferred Mineral Resource also contains 78,135 kgs of Rhenium (Re).
The resource estimate is based on 136 drill holes totalling 31,580 metres including 18 holes recently completed by Northisle, five verification holes drilled within the current resource in 2005 and 2008 by Lumina Resource Corp and IMA Exploration Inc., and 113 holes drilled in the period 1970 through 1994 by Utah International Ltd., BHP-Utah Mines Ltd., and Moraga Resources Ltd. Over the past year the Company has re-logged the historical holes and re-assayed approximately 80% of the historical core for Re and where historical assays were missing for Mo and Au. Additionally, 10 historical holes were resampled and assayed for all metals of interest. The results of the re analysis were statistically similar to the original analyses. The re-logging, geological interpretation and re-assaying of the historical holes and the recent Northisle drilling has been independently reviewed by Scott Casselman, P.Geo. The resource estimate was completed by Gary Giroux of Giroux Consultants Ltd. A full technical report co-authored by Scott Casselman and Gary Giroux will be filed on Sedar within the next 45 days. The following table shows the tonnages and grades for the Hushamu Project at a range of Copper Equivalent cutoff grades (COG%).
Click here to view the chart in full on our website: http://www.northisle.ca/s/Reserves.asp?ReportID=537382.
HUSHAMU INDICATED MINERAL RESOURCE - TONNES & GRADE
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Cut-off Tonnes Grade greater than Cut-off
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Cu Au Mo Re CuEq
(CUEQ) (x1000) (%) (g/t) (%) (ppm) (%)
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0.10 568,820 0.16 0.21 0.009 0.50 0.34
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0.15 520,380 0.16 0.22 0.009 0.52 0.36
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0.20 460,400 0.18 0.24 0.009 0.54 0.38
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0.25 385,430 0.19 0.26 0.010 0.55 0.41
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0.30 304,270 0.21 0.29 0.010 0.55 0.45
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0.35 229,080 0.23 0.32 0.010 0.56 0.49
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0.40 168,110 0.25 0.35 0.010 0.56 0.53
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0.45 120,450 0.28 0.38 0.010 0.55 0.57
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0.50 85,060 0.30 0.41 0.010 0.55 0.62
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Cut-off Tonnes Contained Metal
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Cu Au Mo Re
contained contained contained contained
(CUEQ) (x1000) Blbs Mozs Mlbs (Kg x 1000)
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0.10 568,820 2.0 3.8 106.6 284
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0.15 520,380 1.8 3.7 102.1 270.6
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0.20 460,400 1.8 3.6 93.4 248.6
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0.25 385,430 1.6 3.2 81.6 212.0
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0.30 304,270 1.4 2.8 65.7 167.4
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0.35 229,080 1.2 2.4 50.0 128.3
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0.40 168,110 0.9 1.9 36.7 94.1
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0.45 120,450 0.7 1.5 26 66.3
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0.50 85,060 0.6 1.1 18 46.8
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(ii) Copper equivalent calculated using US$2.50/lb Cu, US$1100/oz Au and
US$14.00/lb Mo and is not adjusted for mining and metallurgical recoveries
as these remain uncertain. The formula used is as follows:
CuEQ = ((Cu% x 22.0462 x 2.50) + (Au g/t x 1100.00/ 31.1035) + (Mo% x
22.0462 x 14.00)) divided by (22.0462 x 2.5)
Rhenium values have not been used in the cutoff grade or Cu Equivalent
calculations.
Click here to view the chart in full on our website: http://www.northisle.ca/s/Reserves.asp?ReportID=537382.
HUSHAMU INFERRED MINERAL RESOURCE - TONNES and GRADE
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Cut-off Tonnes Grade greater than Cut-off
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Cu Au Mo Re CuEq
(CUEQ) (x1000) (%) (g/t) (%) (ppm) (%)
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0.10 1,036,400 0.11 0.13 0.005 0.27 0.22
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0.15 725,750 0.13 0.16 0.006 0.32 0.26
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0.20 494,740 0.14 0.19 0.007 0.36 0.30
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0.25 320,860 0.16 0.22 0.007 0.37 0.35
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0.30 205,620 0.18 0.26 0.008 0.38 0.39
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0.35 126,770 0.20 0.29 0.008 0.38 0.43
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0.40 69,640 0.21 0.33 0.008 0.38 0.47
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0.45 34,720 0.23 0.37 0.008 0.37 0.52
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0.50 16,040 0.26 0.42 0.008 0.38 0.57
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Cut-off Tonnes Contained Metal
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Cu Au Mo Re
Contained Contained Contained Contained
(CUEQ) (x1000) (Blbs) (Mozs) (MLbs) (Kgx1000)
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0.10 1,036,400 2.5 4.3 118.8 279.8
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0.15 725,750 2.1 3.7 97.6 232.2
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0.20 494,740 1.5 3.0 74.2 178.1
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0.25 320,860 1.1 2.3 51.6 118.7
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0.30 205,620 0.8 1.7 34.9 78.1
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0.35 126,770 0.6 1.2 22.4 48.2
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0.40 69,640 0.3 0.7 12.6 26.5
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0.45 34,720 0.2 0.4 6.2 12.8
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0.50 16,040 0.1 0.2 2.8 6.1
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(ii) Copper equivalent calculated using US$2.50/lb Cu, US$1100/oz Au and
US$14.00/lb Mo and is not adjusted for mining and metallurgical recoveries
as these remain uncertain. The formula used is as follows:
CuEQ = ((Cu% x 22.0462 x 2.50) + (Au g/t x 1100.00/ 31.1035) + (Mo% x
22.0462 x 14.00)) divided by (22.0462 x 2.5)
Rhenium values have not been used in the cutoff grade or Cu Equivalent
calculations.
"We are very pleased with Northisle's initial resource estimate for the Hushamu deposit. The grades and size of the resource compare favourably with other deposits in British Columbia that have recently been placed into production or are under construction. Also encouraging is that the deposit remains open for expansion both to the northwest based on recent Induced polarization survey results and to the southeast based on recent drilling. The next steps are beginning the necessary engineering studies required for a Preliminary Economic Assessment and for additional drilling to both upgrade the inferred resource and discover additional resources," said Jack McClintock, Northisle's president and CEO.
Parameters in Resource Estimate
Resources are based on 136 holes totalling 31,580 metres. A three dimensional geological model was built based on a combination of lithologies and alteration and four domains modelled. Assays were composited in to 5 metre intervals respecting domain boundaries. Capping of assays was carried out at appropriate levels based on statistical analysis. Semivariograms were produced for each metal within each domain to establish search distances based on the ranges of the semivariograms. A block model 20x20x5 metres was superimposed over the geological model. Grades of Cu, Au and Mo were interpolated into blocks by Ordinary Kriging. The kriging was completed in a series of 4 passes with the search ellipse for each pass a function of the variogram range. A minimum of 4 composites were required to estimate a block with a maximum of 3 from any single hole. The maximum number of composites used for a block was set to the 16 closest. The results obtained by kriging were verified by the inverse distance squared method. The specific gravity used is based on 351 measurements spanning all rock-types. The resource was classified in accordance to National Instrument 43-101 and CIM (2005).
Scott Casselman, P. Geo and Gary Giroux, P. Eng, are the Qualified Person responsible for the technical content of this release.
About Northisle
Northisle is a Vancouver-based junior resource company committed to the exploration and development of the Island Copper-Gold Project on Northern Vancouver Island. The North Island Copper-Gold Project is situated approximately 15-40 kilometres southwest of Port Hardy and contains the Hushamu Deposit and five other partially explored copper-gold porphyry occurrences. The project is 100% owned by Northisle. Portions of the project including the Hushamu deposit is subject to a 10% NPI royalty due to Royal Gold after payback of all capitalized expenditures.
For more information on Northisle and the Hushamu Deposit please visit the Company's website at www.Northisle.ca.
On behalf of Northisle Copper and Gold Inc.
John McClintock, President, CEO and Director
This news release contains forward-looking statements. These forward-looking statements are based upon the reasonable beliefs of Northisle and its management as of the date of this news release; however, forward-looking statements involve risks and uncertainties and are based upon factors that may change and assumptions that may prove, with the passage of time, to be incorrect as a result of exploration and other risk factors associated with mineral exploration and development that are beyond the control of Northisle. Accordingly, undue reliance should not be placed upon such statements. If factors materially change or assumptions are materially incorrect, the actual results, performance or achievements of Northisle may be materially different from any future results, performances or achievements expressed or implied by such forward-looking statements. Northisle does not undertake any obligation to update or revise any forward-looking statements to reflect new information, future events or otherwise, except as required by applicable law.
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 news release.
Contacts:
NorthIsle Copper and Gold Inc.
Katie Gallagher
Manager, Investor Relations
604.638.2520
604.669.2926 (FAX)
info@northisle.ca
www.northisle.ca