Tintina Drills 23.66 Meters Grading 5.45% Copper on Its 100% Owned High Grade Black Butte Copper Project, Montana, USA
VANCOUVER, BRITISH COLUMBIA -- (Marketwire) -- 02/07/13 -- Tintina Resources Inc. ("Tintina" or the "Company") (TSX-VENTURE: TAU)(OTCQX: TINTF) is pleased to announce it has received assay results for fifteen (15) new drill holes from the company's flagship Black Butte Copper Project, located in central Montana, USA (see table 1). These in-fill drill holes completed in late 2012 in the Lowry Deposit Middle Zone together with earlier drilling results will form the basis for a new Lowry Deposit Middle Zone resource estimate, expected in Q2 of 2013.
Highlights of the 2012 in-fill drill program from the Lowry Deposit - Middle Zone (LD - MZ):
-- Drill hole SC12-152 intersected 38.40 meters grading 2.66% Copper (Cu),
0.09% Cobalt (Co), and 12.5 g/tonne Silver (Ag)
-- Drill hole SC12-163 intersected 16.90 meters grading 2.85% Copper (Cu),
0.08% Cobalt (Co), and 16.6 g/tonne Silver (Ag)
-- Drill hole SC12-164 intersected 38.13 meters grading 2.83% Copper (Cu),
0.08% Cobalt (Co), 16.7 g/tonne Silver (Ag)
-- Drill hole SC12-168 intersected 23.66 meters grading 5.45% Copper (Cu),
0.11% Co, and 20.9 g/tonne Silver (Ag).
The results from the four (4) 2012 drill holes highlighted above are among results from fifteen (15) new drill holes which will help provide the basis for a forthcoming Lowry Deposit Middle Zone (LD-MZ) resource estimate which is scheduled to be completed later in 2013. Two (2) holes, SC12-161 and SC12-163, continued to depth to test the Lowry Deposit Lower Zone (LD-LZ) and six (6) additional holes also produced good grade but thin intersections from the Lowry Deposit Upper Zone (LD-UZ), and these results are also tabled below in Table 1.
Jerry Zieg, Vice President of Exploration said: "We are very pleased to continue to report thick, high grade copper intersections from the Black Butte Copper project. The Lowry Middle Zone results will form the basis for a new resource estimate for the Lowry deposit which should become a substantial addition to our Measured and Indicated Resource inventory. We will then have the opportunity to incorporate the updated drill defined resources in a pre-feasibility or feasibility study currently being contemplated by the Company."
Table 1 - 2012 drill Intersections from Lowry Deposit - Middle Zone (LD-MZ)
and Lowry Deposit- Lower Zone (LD-LZ)
----------------------------------------------------------------------------
Lowry Deposit - Middle Zone (LD-MZ)
----------------------------------------------------------------------------
From To Width Width Cu Co Ag
Drill Hole Zone (m) (m) (m) (ft) % % (g/t)
----------------------------------------------------------------------------
SC12-152 LD-MZ 347.50 385.90 38.40 126.0 2.66 0.09 12.5
----------------------------------------------------------------------------
SC12-153 LD-MZ 348.00 357.00 9.00 29.5 2.50 0.09 14.5
----------------------------------------------------------------------------
SC12-154 LD-MZ 359.30 409.80 50.50 165.7 1.50 0.08 10.6
----------------------------------------------------------------------------
including 359.30 375.50 16.20 53.2 2.12 0.06 9.1
----------------------------------------------------------------------------
and including 392.5 398.6 6.10 20.0 2.33 0.11 21.1
----------------------------------------------------------------------------
SC12-155 LD-MZ 318.52 331.32 12.80 42.0 2.87 0.08 15.8
----------------------------------------------------------------------------
and 341.94 346.42 4.48 14.7 2.15 0.07 16.7
----------------------------------------------------------------------------
SC12-156 LD-MZ 312.00 316.69 4.69 15.4 3.66 0.15 17.4
----------------------------------------------------------------------------
SC12-157 LD-MZ 413.12 426.83 13.71 45.0 1.39 0.10 14.7
----------------------------------------------------------------------------
including 413.12 417.30 4.18 13.7 2.99 0.18 19.4
----------------------------------------------------------------------------
SC12-159 LD-MZ 286.15 309.70 23.55 77.3 1.78 0.08 11.1
----------------------------------------------------------------------------
SC12-160 LD-MZ 405.00 415.60 10.60 34.8 1.97 0.06 10.7
----------------------------------------------------------------------------
including 411.63 415.60 3.97 13.02 4.53 0.05 14.9
----------------------------------------------------------------------------
SC12-161 LD-MZ 306.50 319.30 12.80 41.99 1.30 0.06 13.1
----------------------------------------------------------------------------
SC12-163 LD-MZ 455.85 535.00 79.15 259.7 1.51 0.07 13.7
----------------------------------------------------------------------------
including 510.30 527.20 16.90 55.5 2.85 0.08 16.6
----------------------------------------------------------------------------
SC12-164 LD-MZ 480.97 519.10 38.13 125.1 2.83 0.08 16.7
----------------------------------------------------------------------------
SC12-165 LD-MZ 301.70 308.00 6.30 20.7 3.07 0.04 9.2
----------------------------------------------------------------------------
SC12-166 LD-MZ 431.25 437.00 5.75 18.86 2.26 0.15 24.3
----------------------------------------------------------------------------
SC12-168 LD-MZ 348.76 372.42 23.66 77.62 5.45 0.11 20.9
----------------------------------------------------------------------------
----------------------------------------------------------------------------
Lowry Deposit - Lower Zone (LD-LZ) and Upper Zone (LD-UZ)
----------------------------------------------------------------------------
From To Width Width Cu Co Ag
Drill Hole Zone (m) (m) (m) (ft) % % (g/t)
----------------------------------------------------------------------------
SC12-161 LD-LZ 508.70 515.90 7.20 23.6 2.39 0.12 20.1
----------------------------------------------------------------------------
SC12-163 LD-LZ 648.20 650.20 2.00 6.56 2.51 0.12 14.0
----------------------------------------------------------------------------
SC12-152 LD-UZ 286.00 288.20 2.20 7.2 2.88 0.03 24.1
----------------------------------------------------------------------------
SC12-153 LD-UZ 242.80 244.55 1.75 5.74 2.17 0.05 16.2
----------------------------------------------------------------------------
SC12-154 LD-UZ 272.60 273.15 0.55 1.8 4.03 0.07 28.0
----------------------------------------------------------------------------
SC12-155 LD-UZ 225.59 225.98 0.39 1.28 12.20 0.04 20.0
----------------------------------------------------------------------------
SC12-156 LD-UZ 234.25 235.31 1.06 3.48 5.05 0.09 25.0
----------------------------------------------------------------------------
SC12-165 LD-UZ 206.00 207.70 1.70 5.58 2.11 0.04 10.4
----------------------------------------------------------------------------
(For previous Resource estimates and historic results at Black Butte please
see News Releases dated October 20, 2010; October 27, 2010; January 6, 2011;
April 26, 2011; May 4, 2011; June 21, 2011; June 28, 2011; July 28th, 2011;
August 17, 2011; August 30, 2011; November 30, 2011; January 19, 2012; and
March 1, 2012.)
2012 achievements and 2013 plans
The Company completed a Preliminary Economic Assessment ("PEA") only 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 has also completed an infill drilling program on the Lowry deposit, which currently 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 the recently completed drilling will allow an upgrade of the Lowry deposit to an Indicated resource. The Company continues engineering, geotechnical, hydrological, metallurgical and baseline environmental studies in preparation for a revised PEA incorporating a higher throughput scenario, which may include the Lowry deposit. The revised PEA is expected in Q2, 2013. Finally, the Company plans to commission a pre-Feasibility Study ("PFS") or Feasibility Study ("FS") after completion of the revised 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 contained in the Black Butte Copper project during exploration programs in the 1980's. In 1993, after completing 60,775 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 entered into mining leases on over 5,000 acres (2,023.4 hectares) of private ranch lands which contain all currently identified resources at Black Butte Copper. 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 54,447 meters of drilling since September of 2010. 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) (see news release dated September 4, 2012). The Company expects the completion of an expanded PEA in Q2 2013 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 (JL-UZ) and the Johnny Lee Deposit Lower Zone (JL-LZ). 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 JL-UZ deposit lies at depths ranging from 30 to 210 meters below the surface and is up to 29.17 meters thick. The JL-LZ 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 JL-UZ 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 79 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 and a new resource estimate based on recent infill drilling is expected in Q2, 2013. More drilling is required to bring any of the other copper mineralized zones to the Inferred Resource 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
----------------------------------------------------------------------------
UNDILUTED MEASURED RESOURCES - Johnny Lee Deposit
----------------------------------------------------------------------------
Estimated Metal Grades Estimated Contained Metal
--------------------------------------------------------
Cu
Cutoff Tonnes Cu Co Au Ag Cu Lbs Co Lbs Au Ag Ozs
(%) (000) (%) (%) (g/t) (g/t) (Millions) (Millions) Ozs (000)
----------------------------------------------------------------------------
Upper
Zone 1.60 2,659 2.99 0.118 0.007 16.3 175 6.9 598 1,393
----------------------------------------------------------------------------
----------------------------------------------------------------------------
UNDILUTED INDICATED RESOURCES - Johnny Lee Deposit
----------------------------------------------------------------------------
Estimated Metal Grades Estimated Contained Metal
-------------------------------------------------------
Cu Cu Lbs Co Lbs
Cutoff Tonnes Cu Co Au Ag (Mill- (Mill- Au Ag 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
----------------------------------------------------------------------------
Lower
Zone 1.50 2,387 6.40 0.033 0.304 4.5 337 1.7 23,330 345
----------------------------------------------------------------------------
TOTAL 8,907 3.74 0.10 0.088 12.6 735 19.7 25,217 3,594
----------------------------------------------------------------------------
----------------------------------------------------------------------------
UNDILUTED MEASURED AND INDICATED RESOURCES - Johnny Lee Deposit
----------------------------------------------------------------------------
Estimated Metal Grades Estimated Contained Metal
----------------------------------------------------------
Tonnes Cu Co Au Ag Cu Lbs Co Lbs Au Ag Ozs
(000) (%) (%) (g/t) (g/t) (Millions) (Millions) Ozs (000)
----------------------------------------------------------------------------
Upper and
Lower
Zones 11,566 3.57 0.10 0.069 13.4 910 26.6 25,815 4,987
----------------------------------------------------------------------------
TOTAL 11,566 3.57 0.10 0.069 13.4 910 26.6 25,815 4,987
----------------------------------------------------------------------------
Table 2 - Undiluted Inferred Resources at Black Butte Copper, MT, USA
----------------------------------------------------------------------------
UNDILUTED INFERRED RESOURCES - Johnny Lee Deposit
----------------------------------------------------------------------------
Estimated Metal Grades Estimated Contained Metal
------------------------------------------------------
Cu Cu Lbs Co Lbs
Cutoff Tonnes Cu Co Au Ag (Mill- (Mill- Au Ag 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
----------------------------------------------------------------------------
Lower
Zone 1.50 205 5.33 0.025 0.207 4.1 24 0.1 1,364 27
----------------------------------------------------------------------------
TOTAL 1,460 2.91 0.09 0.036 13.6 94 2.9 1,687 640
----------------------------------------------------------------------------
----------------------------------------------------------------------------
UNDILUTED INFERRED RESOURCES - Lowry Deposit
----------------------------------------------------------------------------
Estimated Metal Grades Estimated Contained Metal
------------------------------------------------------
Cu Cu Lbs Co Lbs
Cutoff Tonnes Cu Co Au Ag (Mill- (Mill- Au Ag 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
----------------------------------------------------------------------------
TOTAL 5,139 2.60 0.12 0.009 14.6 294 14 1,487 2,412
----------------------------------------------------------------------------
----------------------------------------------------------------------------
UNDILUTED INFERRED RESOURCES - Johnny Lee and Lowry Deposits
----------------------------------------------------------------------------
Estimated Metal Grades Estimated Contained Metal
----------------------------------------------------------
Tonnes Cu Co Au Ag Cu Lbs Co Lbs Au Ag Ozs
(000) (%) (%) (g/t) (g/t) (Millions) (Millions) Ozs (000)
----------------------------------------------------------------------------
Johnny Lee 1,460 2.91 0.09 0.036 13.6 94 2.9 1,687 640
----------------------------------------------------------------------------
Lowry 5,139 2.60 0.12 0.009 14.6 294 14 1,487 2,412
----------------------------------------------------------------------------
GRANDTOTAL 6,599 2.67 0.11 0.015 14.4 388 16.9 3,174 3,052
----------------------------------------------------------------------------
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. is a well-funded Vancouver based resource company focused on the development and mining of its 100% owned Black Butte Copper high grade copper project (Fig. 1) in central Montana. Black Butte is the third highest grade copper deposit in development in North America, with M&I resources 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 Copper to upgrade existing Inferred resources to Indicated resources and will be updating the PEA to possibly 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 Images 1-3, please visit the following link: http://media3.marketwire.com/docs/tau207i.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.
Tiffany Konings
Corporate Secretary
604.628.1162
info@tintinaresources.com
www.tintinaresources.com