VANCOUVER, BC, March 17, 2021 /CNW/ - Surge Copper
Corp. (TSXV: SURG) ("Surge" or the "Company") is pleased to
announce the results of an updated independent resource estimate
prepared by Tetra Tech for the Berg copper-molybdenum-silver
deposit ("Berg"), located in the Huckleberry district in central
British Columbia.
Highlights
- Total Measured and Indicated resources of 610.0
million tonnes grading 0.38% copper equivalent (see
Table 1, Note 1)
- Measured resource containing 207.2 million tonnes
grading 0.45% copper equivalent
- Pit constrained resource with total strip ratio of
1.85:1
- High-quality resource estimate with 96% contained within
the Measured and Indicated categories
- Deposit remains open with good expansion
potential laterally and at depth
Leif Nilsson, Chief Executive
Officer of Surge, commented: "This updated resource represents a
moment in time snapshot of the Berg deposit based on the
significant investment and high-quality work performed by prior
operators, updated for today's commodity pricing and cost
benchmarking environments. For Surge, it serves as a baseline prior
to our maiden work program under our operatorship, and will guide
our investment programs to deliver value in key focus areas. More
generally, this resource estimate underscores the strategic
significance of our acquisition and the district scale potential we
see in our assets. Recent corporate transactions have demonstrated
the strategic value and significance of porphyry deposits in
British Columbia with a similar
overall size and grade tenor to Berg. Combined with our Ootsa
Property, Surge controls four advanced porphyry deposits with
Measured and Indicated resources totaling 834 million tonnes in an
attractive jurisdiction with excellent infrastructure."
The Berg deposit is located within the 34,798 hectare Berg
Property, in which the Company is earning a 70% interest from
Centerra Gold Inc. through spending commitments totalling
C$8 million over a five-year period
(see December 16, 2020 news release).
The Berg Property is contiguous with the Company's 100% owned Ootsa
Property, which hosts 224.2 million tonnes of NI 43-101 compliant
mineral resources in the Measured and Indicated categories,
containing resources of copper, gold, molybdenum, and silver.
Shane Ebert, President and VP
Exploration, commented: "As evidenced by this resource update,
our acquisition of Berg was a step change for Surge in terms of our
total resource base. The deposit's size, grade profile, and
near-surface geometry make it a highly attractive open pit target
in the district, and there is significant potential to both
increase the size of the deposit and define the near-surface
higher-grade zones."
Table 1. Mineral
Resource Estimate for the Berg Deposit at 0.2% CuEq Cut-off with
Effective Date of March 9, 2021.
|
|
|
|
Grade
|
|
Contained
Metal
|
Material
Type
|
Resource
Category
|
Tonnes
|
Cu
|
Mo
|
Ag
|
CuEq
|
|
Cu
|
Mo
|
Ag
|
CuEq
|
|
|
(Mt)
|
(%)
|
(%)
|
(g/t)
|
(%)
|
|
(Mlbs)
|
(Mlbs)
|
(Moz)
|
(Mlbs)
|
|
|
|
|
|
|
|
|
|
|
|
|
Supergene
|
Measured
|
86.9
|
0.41
|
0.03
|
2.46
|
0.50
|
|
789
|
52
|
6.9
|
960
|
|
Indicated
|
88.5
|
0.29
|
0.02
|
2.67
|
0.37
|
|
572
|
43
|
7.6
|
724
|
|
Measured &
Indicated
|
175.4
|
0.35
|
0.02
|
2.57
|
0.44
|
|
1,362
|
95
|
14.5
|
1,685
|
|
Inferred
|
7.2
|
0.23
|
0.01
|
4.26
|
0.29
|
|
37
|
2
|
1.0
|
47
|
|
|
|
|
|
|
|
|
|
|
|
|
Hypogene
|
Measured
|
120.3
|
0.28
|
0.04
|
3.42
|
0.41
|
|
752
|
97
|
13.2
|
1,098
|
|
Indicated
|
314.1
|
0.22
|
0.03
|
3.10
|
0.34
|
|
1,537
|
226
|
31.3
|
2,343
|
|
Measured &
Indicated
|
434.3
|
0.24
|
0.03
|
3.19
|
0.36
|
|
2,289
|
323
|
44.6
|
3,441
|
|
Inferred
|
20.8
|
0.22
|
0.02
|
3.57
|
0.30
|
|
101
|
8
|
2.4
|
138
|
|
|
|
|
|
|
|
|
|
|
|
|
Leachate
|
Measured
|
0.0
|
0.04
|
0.09
|
5.62
|
0.21
|
|
0
|
0
|
0.0
|
0
|
|
Indicated
|
0.2
|
0.14
|
0.12
|
2.37
|
0.25
|
|
1
|
1
|
0.0
|
1
|
|
Measured &
Indicated
|
0.2
|
0.13
|
0.12
|
2.41
|
0.25
|
|
1
|
1
|
0.0
|
1
|
|
Inferred
|
0.1
|
0.11
|
0.09
|
6.13
|
0.21
|
|
0
|
0
|
0.0
|
0
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
|
Measured
|
207.2
|
0.34
|
0.03
|
3.0
|
0.45
|
|
1,541
|
149
|
20.1
|
2,058
|
|
Indicated
|
402.8
|
0.24
|
0.03
|
3.0
|
0.35
|
|
2,110
|
270
|
39.0
|
3,069
|
|
Measured &
Indicated
|
610.0
|
0.27
|
0.03
|
3.0
|
0.38
|
|
3,651
|
419
|
59.1
|
5,126
|
|
Inferred
|
28.1
|
0.22
|
0.02
|
3.8
|
0.30
|
|
138
|
11
|
3.4
|
185
|
Notes:
|
1)
|
Copper Equivalent
(CuEq) calculated using metal prices of $3.10/lbs Cu, $10.00/lb Mo,
and $20/oz Ag. Recoveries were applied to correspond with estimated
individual metal recoveries based on limited metallurgical testwork
for production of a copper and molybdenum concentrate: supergene
zone (Cu = 73%, Mo = 61%, and Ag = 52%), hypogene zone (Cu = 81%,
Mo = 71%, and Ag = 67%), leachate zone (Cu = 0%, Mo = 61%, and Ag =
52%). Smelter loss was not applied.
|
2)
|
A cut-off value of
0.2% CuEq was used as the base case for reporting mineral resources
that are subject to open pit potential. The resource block model
has been constrained by a conceptual open pit shell, however,
economic viability can only be assessed through the completion of
engineering studies defining reserves including PFS and FS. The CIM
Definition Standards (May 10, 2014) were followed for
classification of Mineral Resources. It cannot be assumed that all
or any part of Inferred Mineral Resources will be upgraded to
Indicated or Measured as a result of continued
exploration.
|
3)
|
Dry bulk density has
been estimated based on 2,996 in situ specific gravity measurements
collected between 2007 and 2011. Values were applied by geology
model domain (n = 18) representing the weathering profiles and
major lithological units; values ranged from 2.38 t/m3
to 2.74 t/m3.
|
4)
|
There are no known
legal, political, unnatural environmental, or other risks that
could materially affect the potential development of the mineral
resources.
|
5)
|
All numbers are
rounded. Overall numbers may not be exact due to
rounding.
|
Background and Description of Resource
The Berg deposit forms a ring-like shape around a
quartz-monzonite intrusive body called the Berg Stock. A total of
53,754 metres of drilling in 215 drill holes has been completed
between 1964 and 2011 by previous operators including Kennecott,
Placer Dome, Terrane Metals and Thompson Creek. This drilling has
defined two highly-fractured mineralized zones in the northeast and
southern portions of the ring. A well-developed supergene
enrichment zone is superimposed on hypogene mineralization, and is
predominantly controlled by topography, fracture intensity, and
hypogene sulphide abundance. Drilling in many areas of the deposit
remains widely spaced and mineralization is open to depth and
outwards from the Berg Stock. Additionally, metallurgical test
programs have been conducted on the resource, most recently between
2007 and 2012. This body of work indicates that conventional
flotation processes can be used to produce marketable copper and
molybdenum concentrates from the mineralization, with copper
recoveries locally exceeding 80%.
The resource model was developed utilizing a database containing
20,281 assays from 49,461 metres of drilling in 201 drill holes.
Drill hole assay data was composited into 3 metre intervals and a
block model with 10m x 10m x 10m block
size was constructed using Datamine modeling software. To better
honour geological contacts, sub-celling was allowed to a minimum
dimension of 5m x 5m x 5m.
Mineralized domains with reasonable prospects for economic
extraction were constrained incorporating geological, structural,
and lithological parameters and using a 0.2% CuEq cut-off value.
Within these domains, grades for copper, molybdenum, and silver
were estimated using ordinary kriging (OK) grade interpolation
guided by geostatistical analysis. The resulting resource model was
subject to pit optimization to define a pit constrained mineral
resource.
Table 2. Berg
Deposit Resource Estimate Sensitivity to Cut-off
Grade
|
CuEq %
Cut-off
|
Category
|
Tonnes
|
CuEq
%
|
Cu
%
|
Mo
%
|
Ag
g/t
|
0.1
|
Measured
|
224,609,062
|
0.43
|
0.32
|
0.03
|
2.91
|
0.1
|
Indicated
|
573,094,464
|
0.29
|
0.20
|
0.02
|
2.57
|
0.1
|
M&I
|
797,703,526
|
0.33
|
0.23
|
0.03
|
2.67
|
0.2
|
Measured
|
207,228,768
|
0.45
|
0.34
|
0.03
|
3.02
|
0.2
|
Indicated
|
402,757,347
|
0.35
|
0.24
|
0.03
|
3.01
|
0.2
|
M&I
|
609,986,115
|
0.38
|
0.27
|
0.03
|
3.01
|
0.3
|
Measured
|
171,106,355
|
0.49
|
0.37
|
0.04
|
3.19
|
0.3
|
Indicated
|
237,451,842
|
0.41
|
0.28
|
0.04
|
3.43
|
0.3
|
M&I
|
408,558,197
|
0.45
|
0.32
|
0.04
|
3.33
|
0.4
|
Measured
|
124,735,864
|
0.54
|
0.41
|
0.04
|
3.38
|
0.4
|
Indicated
|
111,967,437
|
0.49
|
0.34
|
0.04
|
3.82
|
0.4
|
M&I
|
236,703,301
|
0.52
|
0.37
|
0.04
|
3.59
|
0.5
|
Measured
|
71,641,098
|
0.61
|
0.47
|
0.04
|
3.54
|
0.5
|
Indicated
|
38,519,523
|
0.57
|
0.41
|
0.05
|
4.31
|
0.5
|
M&I
|
110,160,621
|
0.60
|
0.45
|
0.04
|
3.81
|
2021 Work Program
Surge's maiden work program at Berg will focus on defining and
expanding known near-surface high-grade zones, identifying the
outer limits of mineralization which remain open in several areas,
and improving understanding of structures which may influence
mineralizing controls, particularly for high-grade silver
occurrences. Drill planning is currently underway, anticipating an
initial program to commence in mid-summer 2021 following completion
of access upgrade work. Prior drilling at Berg was inconsistently
assayed for precious metals, and given the significant economic
contribution, especially from silver, this represents a low-cost
opportunity to re-assay existing core and pulps and potentially
increase the precious metal content in the resource. Recommended
metallurgical test work to optimize process conditions and improve
target metal recovery will be further planned and progressed.
Additionally, an airborne ZTEM geophysical survey is being planned
for early summer to cover the entire Ootsa-Berg project area. Field
teams will be active throughout the summer conducting surface work
on existing regional exploration targets (see Figure 4) including
any new ZTEM anomalies. Surge plans to conduct sufficient field
work on regional targets to allow them to be prioritized for
advanced exploration work and drill testing.
Qualified Person
The Berg mineral resource estimate has been completed by Tetra
Tech in accordance with National Instrument 43-101 Standards of
Disclosure for Mineral Projects. The mineral resource estimate has
been prepared by Cameron Norton,
P.Geo., Independent Qualified Person as defined by National
Instrument 43-101, and has an effective date of March 9, 2021. The mineral resource estimate
technical report will be filed on SEDAR within 45 days of this news
release.
Cameron Norton, P.Geo. has
reviewed and approved the technical disclosure in this news release
for Tetra Tech. Shane Ebert, Ph.D.,
P.Geo. is the Qualified Person for Surge and has reviewed and
approved the contents of this release.
About Surge Copper Corp.
The Company owns a 100% interest in the Ootsa Property, an
advanced stage exploration project containing the East Seel, West
Seel and Ox porphyry deposits located adjacent to the open pit
Huckleberry Copper Mine, owned by Imperial Metals. The Ootsa
Property contains pit constrained NI 43-101 compliant resources of
224 million tonnes in the Measured and Indicated categories with
contained metals of 1.1 billion pounds of copper, 1 million ounces
of gold, and 20 million ounces of silver as summarized in the table
below.
Ootsa Project Pit
Constrained Mineral Resource Estimate at $8.50/t NSR Cut-off
Value
|
Category
|
Tonnes
('000's)
|
CuEq
%
|
Cu
%
|
Au
g/t
|
Mo
%
|
Ag
g/t
|
CuEq
M
lbs
|
Cu
M
lbs
|
Au
K
oz
|
Mo
M
lbs
|
Ag
K
oz
|
Measured
|
187,148
|
0.38
|
0.23
|
0.15
|
0.021
|
2.8
|
1,568
|
934
|
916
|
85
|
17,089
|
Indicated
|
37,041
|
0.35
|
0.21
|
0.12
|
0.023
|
2.8
|
286
|
175
|
146
|
19
|
3,368
|
M&I
|
224,189
|
0.37
|
0.22
|
0.15
|
0.021
|
2.8
|
1,854
|
1,109
|
1,062
|
104
|
20,457
|
Notes: The current
technical report supporting the resource statement and PEA is
available on SEDAR or the Company's website at
www.surgecopper.com and has an effective date of
January 2016. The resource estimate uses $8.50
per tonne NSR cut-off value. Mineral resources are not
mineral reserves and by definition do not demonstrate economic
viability. There is no certainty that all or any part of the
mineral resource will be converted into mineral reserves. A
'Measured Mineral Resource' is that part of a mineral resource for
which quantity, grade or quality, densities, shape and physical
characteristics are so well established that they can be estimated
with confidence sufficient to allow the appropriate application of
technical and economic parameters, to support production planning
and evaluation of the economic viability of the
deposit. An 'Indicated Mineral Resource' is that part
of a Mineral Resource for which quantity, grade or quality,
densities, shape and physical characteristics can be estimated with
a level of confidence sufficient to allow the appropriate
application of technical and economic parameters, to support mine
planning and evaluation of the economic viability of the deposit.
Copper Equivalent (CuEq) calculations are based on base case
metal price (US$3/lb Cu, US$1260/oz Au, US$10.30/lb Mo, and
US$17/oz Ag) and process recovery assumptions and take into account
smelter payable rates and refining costs. M&I = measured
and indicated. The resource update and Preliminary Economic
Assessment was completed by P&E Mining Consultants Inc. in
accordance with National Instrument 43-101 Standards of Disclosure
for Mineral Projects.
|
The Company is also earning into a 70% interest in the Berg
Property from Centerra Gold. Berg is a large, advanced stage
exploration project located 28 km northwest of the Ootsa deposits.
Berg contains pit constrained 43-101 compliant resources of copper,
molybdenum, and silver in the Measured and Indicated categories.
Combined, the adjacent Ootsa and Berg properties give Surge a
dominant land position in the Ootsa-Huckleberry-Berg district and
control over four advanced porphyry deposits.
On Behalf of the Board of Directors
"Leif Nilsson"
Chief Executive Officer
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.
This News Release contains forward-looking statements, which
relate to future events. In some cases, you can identify
forward-looking statements by terminology such as "will", "may",
"should", "expects", "plans", or "anticipates" or the negative of
these terms or other comparable terminology. All statements
included herein, other than statements of historical fact, are
forward looking statements, including but not limited to the
Company's plans regarding the Berg Property and the Ootsa
Property. These statements are only predictions and involve
known and unknown risks, uncertainties and other factors that may
cause the Company's actual results, level of activity, performance
or achievements to be materially different from any future results,
levels of activity, performance, or achievements expressed or
implied by these forward-looking-statements. Such uncertainties and
risks may include, among others, actual results of the Company's
exploration activities being different than those expected by
management, delays in obtaining or failure to obtain required
government or other regulatory approvals or financing, inability to
procure equipment and supplies in sufficient quantities and on a
timely basis, equipment breakdown and bad weather. While these
forward-looking statements, and any assumptions upon which they are
based, are made in good faith and reflect the Company's current
judgment regarding the direction of its business, actual results
will almost always vary, sometimes materially, from any estimates,
predictions, projections, assumptions or other future performance
suggestions herein. Except as required by applicable law, the
Company does not intend to update any forward-looking statements to
conform these statements to actual results.
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SOURCE Surge Copper Corp.