VANCOUVER, BRITISH COLUMBIA -- (Marketwire) -- 01/31/12 -- THEMAC Resources Group Ltd. (TSX VENTURE: MAC) ("THEMAC" or the "Company") today announced the completion of an updated National Instrument 43-101 (NI 43-101) resource estimate of its 100% owned Copper Flat project located in Sierra County, New Mexico, prepared by M3 Engineering & Technology Corporation (M3) and Independent Mining Company (IMC), both located in Tucson, Arizona.
The recently completed resource estimate reflects the results of a previously announced drilling completed in 2010 and 2011; the re-assay of 2,969 historical pulps to obtain gold and silver values and continued geotechnical and engineering design studies.
Highlights
-- The total Measured and Indicated Resource increased by 56% to
1,005,891,000 pounds of contained copper from the previously reported
645,000,000 pounds of contained copper.
-- The total Resource (indicated and inferred) of 153,000 Ktons, of which
107,000 was indicated, that was reported in the 2010 Preliminary
Economic Analysis (PEA) has been increased to 202,303 Ktons of which
194,097 Ktons is now measured and indicated resources.
-- Only 8,206 Ktons remain classified as Inferred Resources.
-- The re-analysis of 2,969 pulps of historical drill samples has permitted
IMC to factor both gold and silver values into approximately half of the
current resource model. As a result, additional re-assaying of
historical pulps is planned with the intent to increase contained gold
and silver.
The resource estimate summarized in the table below was prepared under the supervision of John M. Marek, P.Eng., President of Independent Mining Consultants of Tucson, Arizona who is an Independent Qualified Person as defined under NI 43-101, and reviewed by Raymond Irwin, P.Geo., a Qualified Person for the Company. The subject resource classifications were assigned in conformance with NI 43-101 and its standards and guidelines.
"I am extremely pleased with the progress that is being made on the evaluation of the Copper Flat deposit and the results of the recently completed resource update. The continuing enhancement of the resource from the recent drilling is extremely positive for the economic viability of the copper flat project; and, the recent recovery in the commodity prices may also be expected to add substantially to the value of the resource," said Andre J. Douchane, CEO. "Having a copper resource that now contains a billion pounds puts the Copper Flat Project in a much different league than when it only had 645 million pounds of copper scheduled to be processed. Equally as exciting, we've added 430,000 ounces of gold and 9 million ounces of silver to the resource."
Assumptions
-- The mineral resource is based on the application of the floating cone
algorithm to the block model to establish the component of the deposit
that has "reasonable prospects of economic extraction." The mineral
resources are therefore contained within a computer-generated open pit
geometry.
-- Slightly different metal prices were used in the November 2011 resource
estimate as compared to the June 30, 2010 study, comprising part of the
PEA undertaken by SRK Consulting Inc.
-- The cutoff grade reflects the estimated cost to process the ore plus
site general and administrative expenses which total $7.25/ton.
-- Ktons is equivalent to 1,000 short tons, and a short ton is equivalent
to 2,000 lbs.
-- Copper and molybdenum grades are dry weight.
-- Gold and silver values are reported in Troy ounce/short ton.
-- Gold and silver values were not available at the time of this study in
the outer edges of the deposit so the inferred grades for gold and
silver are respectively shown as zero or near zero.
January 2012 Updated NI 43-101 Resource:
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Tonnage and Grade
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Classification Ktons Cu % Mo % Au Oz/t Ag Oz/t
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Measured 41,236 0.33 0.011 0.003 0.07
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Indicated 152,861 0.24 0.007 0.002 0.04
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Measured + Indicated 194,097 0.26 0.008 0.002 0.05
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Inferred 8,206 0.23 0.004 0 0.01
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"Along with moving forward with engineering, definitive metallurgical test work and final mill design, we are also finalizing a spring drill program to bring the comparatively higher grade core that was described in earlier work up to NI 43-101 standards," said Ray Irwin, VP Exploration. "As the orebody is still open, the spring drilling program is viewed with optimistic anticipation."
Location and Project History
The Copper Flat project hosts a Laramide porphyry copper-molybdenum deposit containing recoverable gold and silver credits located in the Las Animas Mining District of Sierra County, NM, approximately 150 miles (242 km) south of Albuquerque, NM and 20 miles (32 km) southwest of Truth or Consequences, NM.
The Copper Flat project consists of 26 wholly owned patented mining claims, 184 unpatented mining claims and 29 placer mining claims totaling 4,241.2 acres or 1,717 ha.
This advanced stage exploration/development project operated for a short period of time in 1982 (March-June 1982) by Quintana Minerals Corporation before operations were curtailed due to falling copper prices. During this brief period of production, the Copper Flat mine produced 1.48 Mst of ore yielding 7.4 Mlbs. of copper, 2,301 ounces of gold and 55,966 ounces of silver.
About THEMAC Resources Group Limited
THEMAC is a copper development company with a strong management team and as of May 18, 2011, a 100% ownership interest in the Copper Flat copper-molybdenum-gold-silver project in New Mexico, USA. We are committed to bringing the closed copper mine, Copper Flat, in Sierra County, New Mexico back into production with innovation and a sustainable approach to mining development and production, local economic opportunities and the best reclamation practices for our unique environment. The Company is listed on the TSX Venture Exchange (ticker: MAC) and has issued share capital of 74,117,622 common shares (fully diluted share capital 136,423,241).
For more information please visit www.themacresourcesgroup.com or review the Company's filings on SEDAR (www.sedar.com).
Forward-Looking Statements
This news release may contain certain information that constitutes forward-looking statements. Forward-looking statements are frequently characterized by words such as "plan", "expect", "project", "intend", "believe", "anticipate" and other similar words, or statements that certain events or conditions "may" or "will" occur, including statements regarding planned work on the Copper Flat Property. Forward-looking statements are based on the opinions and estimates of management at the date the statements are made, and are subject to a variety of risks and uncertainties and other factors that could cause actual events or results to differ materially from those projected in the forward-looking statements. These factors include the inherent risks involved in the exploration and development of mineral properties, the uncertainties involved in interpreting drilling results and other geological data, fluctuating metal prices, the availability of funds to complete work programs and studies, and other factors described above. The Company disclaims any obligation to update or revise any forward-looking statements if circumstances or management's estimates or opinions should change. The reader is cautioned not to place undue reliance on forward-looking statements.
Neither the TSX Venture Exchange (the "TSXV") nor its Regulation Services Provider (as that term is defined in the policies of the TSXV) has reviewed, nor do they accept responsibility for the adequacy or accuracy of, this release.
Contacts:
THEMAC Resources Group Limited
Andre J. Douchane
President & Chief Executive Officer
416-671-8089 or 520-850-7529
www.themacresourcesgroup.com
