Lions Gate Metals Announces a 47% Increase in Copper and Adds Significant Gold and Silver Resource at Poplar
February 27 2012 - 4:00AM
Marketwired Canada
Lions Gate Metals Inc. (TSX VENTURE:LGM) ("Lions Gate" or the "Company") is very
pleased to announce the results from the updated Resource Estimate for its 100%
owned, 196 claim, 77,705 hectare Poplar Copper-Gold-Silver Porphyry Property
(the "Property"), located in west-central British Columbia. Just six months
after the Company announced an NI 43-101 Resource Estimate of 1.4 billion pounds
copper for the Property, it has completed a very successful 29 hole, 10,914
metre phase-two drill program, which increased overall confidence in the
resource numbers, upgraded a portion of the deposit from Inferred to Indicated
status, and introduced compelling gold and silver values. See Poplar Deposit map
for resource area and drilling locations.
At a 0.15% Cu cut-off, the Property has a new Indicated Resource of 171.3
million tonnes grading 0.28% Cu (1.06 billion pounds), 0.008% Mo, 0.08 g/t Au
and 2.30 g/t Ag (0.40% CuEq), plus an Inferred Resource of 209.0 million tonnes
grading 0.23% Cu (1.06 billion pounds), 0.004% Mo, 0.06 g/t Au and 3.62 g/t Ag
(0.33% CuEq). These Resources are a significant increase from the initial
Inferred Resource Estimate of 245.89 million tonnes grading 0.23% Cu (1.4
billion pounds) and 0.006% Mo, released on August 23, 2011.
"These tonnage and grade numbers confirm the confidence we had in the Property
from the outset, and we are very pleased to share the results with
shareholders," says Lions Gate President and CEO Paul Sarjeant. "The increased
tonnage is quite significant, made even more so by the favourable economics of
contained gold and silver, near-surface mineralization, and the strategic
advantages of our location within an established mining district. The Property
is displaying the requisites of a viable copper operation with considerable size
and grade, and impressive added-value in precious metals."
The mineralization remains open to the north, east and to depth, and additional
exploration is being planned to further define the limits of the Poplar Deposit
and upgrade portions of the resource to the measured category.
Indicated Resource within Total Blocks - Poplar Copper-Gold-Silver Deposit
----------------------------------------------------------------------------
Cut-off Million Grade greater than
Cu (%) (tonnes) Cut-off Contained Metal
-------------------------------------------------------------
Million Million Million Million
CuEq Cu Mo Au Ag lbs of lbs of ozs ozs
(%) (%) (%) (g/t) (g/t) Cu Mo Au Ag
----------------------------------------------------------------------------
0.05 285.0 0.30 0.21 0.006 0.06 2.01 1,327.6 39.8 0.550 18.420
----------------------------------------------------------------------------
0.10 222.7 0.34 0.24 0.007 0.07 2.17 1,184.3 35.5 0.500 15.540
----------------------------------------------------------------------------
0.15 171.3 0.40 0.28 0.008 0.08 2.30 1,062.1 30.7 0.440 12.670
----------------------------------------------------------------------------
0.20 129.3 0.44 0.31 0.009 0.09 2.38 886.9 25.7 0.370 9.890
----------------------------------------------------------------------------
0.25 92.7 0.48 0.35 0.010 0.09 2.46 717.3 19.9 0.270 7.330
----------------------------------------------------------------------------
Inferred Resource within Total Blocks - Poplar Copper-Gold-Silver Deposit
----------------------------------------------------------------------------
Cut-off Million Grade greater than
Cu (%) (tonnes) Cut-off Contained Metal
-------------------------------------------------------------
Million Million Million Million
CuEq Cu Mo Au Ag lbs of lbs of ozs ozs
(%) (%) (%) (g/t) (g/t) Cu Mo Au Ag
----------------------------------------------------------------------------
0.05 504.3 0.23 0.15 0.004 0.05 2.91 1671.723 39.007 0.810 47.180
----------------------------------------------------------------------------
0.10 328.9 0.28 0.19 0.004 0.05 3.33 1379.410 28.314 0.530 35.220
----------------------------------------------------------------------------
0.15 209.0 0.33 0.23 0.004 0.06 3.62 1060.425 19.825 0.400 24.330
----------------------------------------------------------------------------
0.20 129.5 0.38 0.27 0.005 0.07 3.73 770.877 12.848 0.290 15.530
----------------------------------------------------------------------------
0.25 70.4 0.43 0.31 0.005 0.08 3.86 481.376 7.143 0.180 8.740
----------------------------------------------------------------------------
The updated Resource Estimate is NI 43-101 compliant and has been prepared by
Gary H. Giroux, MSc, P. Eng., of Giroux Consultants Limited. A Technical Report
describing the resource estimate is expected to be filed with SEDAR within 45
days of this release. Mr. Giroux is a 'Qualified Person' as defined by NI 43-101
and is independent of the Company.
The Company is working hard to ensure completion of upgraded resource estimate
maps and displays, in time for PDAC 2012 at the Metro Toronto Convention Centre
from March 4-7, 2012. Lions Gate will be exhibiting in The Core Shack at Exhibit
#5018, on Sunday March 4th, 2012 and Monday March 5th, and in their Investors
Exchange Exhibitor Booth #2524 (Halls F&G) for the four-day duration of the
show. The Core Shack is a PDAC feature destination where 'The latest discoveries
are highlighted, along with maps, charts and technical information'.
To determine the resource present on the Property, a three-dimensional solid was
constructed to constrain the mineralized area, using a 0.1 % Cu grade shell as a
guide. Large internal waste zones were modelled as were some larger post mineral
dykes. Of the total database, 129 drill holes totalling 37,205 metres were
within the mineralized zone and were used to estimate the resource. Drill holes
were compared to the mineralized solid and assays were tagged if inside. Copper,
molybdenum, gold and silver assays within the mineralized solid were capped at
1.4 % Cu, 0.14 % Mo, 0.34 g/t Au and 41.0 g/t Ag. Five metre composites were
formed and used for variography. For this estimate and to aid with some
preliminary planning, the blocks were reduced to 5 x 5 x 10 m in dimension and
were estimated for Cu, Mo, Au and Ag by ordinary kriging. The resource is
classified as Indicated and Inferred based on blocks proximity to data and the
grade continuity. At a 0.15 % Cu cut-off the Indicated Resource is 171.3 million
tonnes at 0.28% Cu, 0.008 % Mo, 0.08 g/t Au and 2.30 g/t Ag while the Inferred
Resource is an additional 209.0 million tonnes grading 0.23 % Cu, 0.004 % Mo,
0.06 g/t Au and 3.62 g/t Ag. This can be compared to the last resource, all
classified as Inferred at a 0.15 % Cu cut-off, of 246 million tonnes with
average grades of 0.27 % Cu and 0.007 % Mo (Giroux, July 2011 Mineral Resource
Estimate on the Poplar Deposit, Omineca Mining Division, British Columbia).
The total database comprises 105 historical diamond drill holes, totalling
23,164 metres, completed by Utah Mines Limited and others and 42 diamond drill
holes, totalling 14,486 metres completed by the Company in 2011. All samples
were submitted to Acme Labs, Vancouver, an ISO 17025 accredited analytical
laboratory, for preparation and analyses. Sample preparation used procedure
R200-250, with digestion and analyses using method 1EX and gold determination by
method G601. Lions Gate QA/QC included the insertion of one standard, one blank
and one duplicate in each batch of 20 samples.
Copper Equivalent (Cu Eq)
Calculations were based on equivalency factors of CuEq% = Cu% x 1,, Au (CuEq%) =
Au g/t x 0.57291667, Ag (CuEq%) = Ag g/t x 0.01041667, and metal prices of Cu
$2.80/lb, Mo $16.00/lb, Au $1100/troy oz., Ag $20/troy oz. The equivalency
factor for molybdenum is Mo (CuEq%) = Mo% x 5.71428571. Metal recoveries are not
used, as metallurgical studies are incomplete.
About the Property
Lions Gate Metals has a 100% interest in the 77,705 hectare, 196 claim Poplar
Copper-Gold-Silver Porphyry Property located in western-central British
Columbia, Canada, approximately 35 kilometres northeast of the Huckleberry
copper-molybdenum mine operated by Imperial Metals Corp, between Huckleberry and
the mining resource town of Houston. The Poplar Deposit on the Property has an
NI 43-101 compliant Indicated Resource of 171.3 million tonnes grading 0.28% Cu,
0.008% Mo, 0.08 g/t Au and 2.30 g/t Ag (0.40 CuEq %), plus an Inferred Resource
of 209.0 million tonnes grading 0.23% Cu, 0.004% Mo, 0.06 g/t Au and 3.62 g/t Ag
(0.33 CuEq %).
Additional diamond drilling is planned to further define and upgrade this
resource. Near-surface mineralization and significant gold and silver presence
are Poplar Deposit highlights. Eight other regional copper-gold porphyry targets
have been identified on the Property.
About Lions Gate Metals
Lions Gate Metals is a Canadian based, junior resource company focused on the
exploration, development, and acquisition of copper and copper-focused
multi-mineral projects. The Company boasts one of the largest consolidated
property portfolios of any Canadian junior resource company, including the
77,705 hectare Poplar copper-gold-silver porphyry property located 35km
northeast of the Huckleberry mine operated by Imperial Metals Corp
(proven/probable 39.7 million tonnes grading 0.343% copper: aggregate production
to Dec 31, 2010 approximately 870.0 million pounds copper, 8.0 million pounds
molybdenum, 105,000 ounces gold and 3.4 million ounces silver) in west-central
British Columbia, and the 6,900 hectare ROK-Coyote copper-gold porphyry property
contiguous with Imperial Metal's Red Chris copper-gold project in northwestern
British Columbia. Poplar and ROK-Coyote are the primary focus of the 2012
Exploration Program.
Andrew Gourlay P. Geol., Vice President Exploration is a 'Qualified Person'
under NI 43-101 and has reviewed and approved the contents of this news release.
For further information on the Company and its projects please visit the web
site at www.lionsgatemetals.com.
Forward-Looking Statements
Statements in this release that are forward-looking statements, including
statements subject to various risks and uncertainties concerning the specific
factors identified in the Company's periodic filings with Canadian Securities
Regulators. These factors include the inherent risks involved in the exploration
and development of mineral properties, the uncertainties involved in
interpreting drill results and other exploration data, the potential for delays
in exploration or development activities, the geology, grade and continuity of
mineral deposits, the possibility that future exploration, development or mining
results will not be consistent with the Company's expectations, accidents,
equipment breakdowns, title matters, labor disputes or other unanticipated
difficulties with or interruptions in production and operations, fluctuating
metal prices, the possibility of project cost overruns or unanticipated costs
and expenses, uncertainties relating to the availability and costs of financing
needed in the future, the inherent uncertainty of production and cost estimates
and the potential for unexpected costs and expenses, commodity price
fluctuations, currency fluctuations, regulatory restrictions, including
environmental regulatory restrictions and liability, competition, loss of key
employees, legal, political or environmental factors that may influence future
events or conditions, and other related risks and uncertainties. The Company
undertakes no obligation to update forward-looking information except as
required by applicable law. Such forward-looking information represents
management's best judgment based on information currently available. No
forward-looking statement can be guaranteed and actual future results may vary
materially. Accordingly, readers are advised not to place undue reliance on
forward-looking statements or information.
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