NovaCopper Reports Significant Near-Surface Drilling Results from the Ruby Creek Zone of the Bornite Copper Deposit
October 22, 2013 - Vancouver, British Columbia - NovaCopper Inc. (TSX, NYSE-MKT: NCQ) ("NovaCopper" or "the Company") is pleased to announce additional assay results from exploration diamond drilling at its Bornite Project, which is part of the Upper Kobuk Mineral Projects ("UKMP") located in the Ambler mining district of Northwest Alaska.
This is the second set of drilling results, comprising 10 holes out of a total of 17, which total approximately 8,140 meters drilled during the 2013 exploration program at Bornite. Remaining drill results are anticipated to be released over the next several weeks as they become available. The 2013 drilling campaign was designed to expand mineralization on two discrete targets: 1) near-surface, moderate-grade (~1% copper) and potentially open-pit mineable mineralization at the Ruby Creek zone; and 2) deeper, high-grade and potentially underground exploitable copper mineralization at both the South Reef and Ruby Creek zones.
Nine out of ten drill holes intersected significant intervals of copper mineralization:
At a cutoff grade of 0.5% copper selected results are as follows:
RC13-221 intersected five mineralized intervals, starting at 138.9 meters and ending at 367.7 meters (228.8 meter interval), for a combined 123.8 meter composite interval with a weighted average grade of 1.23% copper and comprised of:
- 10.0 meters at a grade of 0.85% copper;
- 12.5 meters at a grade of 0.98% copper;
- 25.8 meters at a grade of 1.18% copper;
- 16.8 meters at a grade of 1.13% copper; and
- 58.8 meters at a grade of 1.39% copper.
- RC13-219 intersected one mineralized interval, starting at 425.9 meters and ending at 468.5 meters for a 42.5 meter composite interval with a weighted average grade of 1.44% copper.
RC13-218 intersected three mineralized intervals, starting at 29.5 meters and ending at 340.2 meters (310.7 meter interval), for a combined 73.8 meter composite interval with a weighted average grade of 1.20% copper and comprised of:
- 14.1 meters at a grade of 0.84% copper;
- 23.5 meters at a grade of 0.94% copper; and
- 36.2 meters at a grade of 1.51% copper.
RC13-217 intersected four mineralized intervals, starting at 159.2 meters and ending at 293.3 meters (134.1 meter interval), for a combined 63.3 meter composite interval with a weighted average grade of 0.99% copper and comprised of:
- 18.8 meters at a grade of 1.23% copper;
- 8.6 meters at a grade of 1.08% copper;
- 5.2 meters at a grade of 0.59% copper; and
- 30.8 meters at a grade of 0.90% copper.
"We are pleased with the results from the near-surface portion of our 2013 drilling program at the Ruby Creek zone (Bornite deposit). Following on our recent exploration drilling success at the high-grade South Reef zone, this near surface drilling program targeted existing shallow resources at the Ruby Creek zone which management believes could potentially be open-pittable. In addition to the 10 holes drilled in the Ruby Creek zone, this year's program also included extensive re-logging and re-assaying of 32 previously drilled core holes which had been only partially assayed by Kennecott. These are encouraging results which we expect to yield significant expansion of the defined 800-meter by 1200-meter near-surface mineralization at Bornite," said Rick Van Nieuwenhuyse, NovaCopper's President and Chief Executive Officer.
This press release reports on drilling conducted at the near-surface, potentially open-pit mineable copper mineralization of the Ruby Creek zone. The 2013 exploration program was focused on converting previously classified waste material into mineral resources and identifying extensions of known copper mineralization at the Ruby Creek zone which were previously reported in the NI 43-101 technical report titled "Technical Report for the Bornite Deposit," dated January 31, 2013 and filed on SEDAR and EDGAR on February 8, 2013 (the "Bornite Technical Report"). The technical report estimated near surface Indicated Resources of 6.8 million tonnes at 1.19% Cu containing 178.7 million pounds of copper, and Inferred Resources of 47.7 million tonnes of 0.84% Cu containing 883.2 million pounds of copper using a 0.5% copper cutoff grade.
Results are presented in Table 1 at a cutoff grade of 0.5% copper so as to be comparable with previous drill results released by NovaCopper in 2011 and 2012.
Table 1. Latest Drilling Results from the Ruby Creek Zone -- Bornite Deposit
Footnotes to Drill Interval Tables:
- Significant open-pit interval defined as a minimum 5 % x meter Cu interval
- Cutoff grade of 0.5 % Cu
- Internal dilution up to 5 continuous meters of <0.5% Cu
- Some rounding errors may occur
- Though mineralization is tabular and shallowly dipping - no true thicknesses are implied
- DDH RC13- 227, 231 and 233 target high-grade underground resources and will be reported in additional press releases
- DDH RC13-230 and 232 are metallurgical holes from the Ruby Creek zone and will also be reported on at a later date
Exploration drilling at Bornite during 2013 was designed to further define and advance both the shallow, approximately 1% grades encountered at the near-surface Ruby Creek zone, and the high-grade and potentially underground mineable resources further down-dip of the Ruby Creek zone and the adjoining South Reef zone. The open-pit target covers the shallow surface projection of the historically drilled Lower Reef and the smaller but higher grade horizon in the Upper Reef, which is located stratigraphically higher in the carbonate stratigraphy. These two horizons of mineralization define a NNE-trending zone called the Ruby Creek zone which management believes may have the potential to support a future open-pit mining operation. Grades in this zone are in the order of 0.8% to 1.2% copper as reported in the Bornite Technical Report.
Down-dip and lateral exploration at the Lower Reef in 2011 and 2012 led to the discovery of the South Reef zone, a parallel NNE-trending zone of high-grade copper mineralization as reported in the Bornite Technical Report. This year's drilling appears to link the two NNE-tending mineralized zones in the Lower Reef at depth into one continuous horseshoe-shaped mineralized zone. The four most northerly holes exploring the Lower Reef (the first two of which are reported in an October 3, 2013 press release) suggest a high-grade continuous zone of strata-bound copper mineralization over a kilometer in width with thicknesses exceeding 100 meters. Figure 1 shows the spatial relationships between the open-pit and underground resource areas as well as the collar locations of historic and 2013 drilling.
Figure 1: Bornite Open Pit Drill Hole Location and Grade x Thickness Map for Drill Holes Containing Near-Surface Mineralization
Figure 2 shows a NNE- trending section down the axis of the Ruby Creek zone showing historical drilling and 2013 drilling reported herein.
Figure 2: NNE Cross-section through the Ruby Creek Zone
Current resources at Bornite (before the 2013 drilling) are estimated in the Bornite Technical Report, for the near surface mineralization, as containing Indicated Resources of 6.8 million tonnes at 1.19% Cu for 178.7 million pounds of contained copper and Inferred Resources of 47.7 million tonnes of 0.84% Cu for 883.2 million pounds of contained copper at a 0.5% copper cutoff grade.
Resources for the potentially underground exploitable South Reef zone, as estimated in the Bornite Technical Report, contain Inferred Resources of 43.1 million tonnes at 2.54% Cu for 2,409 million pounds of contained copper at a 1.0% copper cutoff grade. An updated resource estimate and NI 43-101 technical report for the Bornite Project incorporating the 2013 drill results is anticipated to be completed during the first quarter of 2014.
Copper mineralization at the Ruby Creek and South Reef zones is hosted within broad dolomitized limestones within the Devonian-age Bornite Carbonate Sequence. Mineralization is selectively developed in massive dolostones and associated with both sedimentary and hydrothermal breccias. The mineralized system is strongly zoned with a distal zinc-rich pyrite halo surrounding progressively more proximal chalcopyrite stockworks and disseminations, bornite stockworks and disseminations, and finally, local semi-massive sulphide zones of chalcocite, bornite, and chalcopyrite.
The drill program and sampling protocol were managed by qualified persons employed by NovaCopper. The diamond drill holes were typically collared at HQ diameter drill core and reduced to NQ diameter as drilling progressed down-hole. Samples were collected using a 0.5-meter minimum length, three-meter maximum length with most samples measuring 1.5-meters in sample length. Drill core recovery averaged 90%. Three quality control samples (one blank, one standard and one duplicate) were inserted into each batch of 20 samples. The drill core was sawn, with half sent to ALS Chemex in Fairbanks for sample preparation and the sample pulps forwarded to ALS's North Vancouver facility for analysis. ALS Minerals in North Vancouver, B.C., Canada, is a facility certified as ISO 9001:2008 and accredited to ISO / IEC 17025:2005 from the Standards Council of Canada. NovaCopper will also be submitting 5% of the assay intervals from prospective lithologies to an independent check assay lab for further QAQC control.
Scott Petsel, P.Geo, UKMP Project Manager for NovaCopper, and a Qualified Person as defined by NI 43-101, has reviewed the results of the drill program and confirmed that all procedures, protocols and methodologies used in the drill program conform to industry standards. Mr. Petsel has approved the contents of this press release.
NovaCopper Inc. is a base metals exploration company focused on exploring and developing the Ambler mining district in Alaska. It is one of the richest and most-prospective known copper-dominant districts located in one of the safest geopolitical jurisdictions in the world. It hosts world-class polymetallic VMS deposits that contain copper, zinc, lead, gold and silver, and carbonate replacement deposits which have been found to host high-grade copper mineralization. Exploration efforts have been focused on two deposits in the Ambler district -- the Arctic VMS deposit and the Bornite carbonate replacement deposit. A National Instrument 43-101-compliant Preliminary Economic Assessment for the Arctic Deposit titled "Preliminary Economic Assessment Report on the Arctic Project, Ambler Mining District, Northwest Alaska" dated September 12, 2013 (the "Preliminary Economic Assessment"), identified a polymetallic open-pit project with the Net Present Value of $930 and $535 million on a pre-tax and after-tax basis, respectively using an 8% discount rate and long-term metal prices of $2.90/lb copper, $0.85/lb zinc, $0.90/lb lead, $22.70/oz silver and $1,300/oz gold. This Preliminary Economic Assessment 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 reserves. There is no certainty the Preliminary Economic Assessment will be realized. Both deposits are located within NovaCopper's land package that spans approximately 143,000 hectares. NovaCopper has an agreement with NANA Regional Corporation, Inc. ("NANA"), an Alaskan Native Corporation that provides a framework for the exploration and potential development of the Ambler mining district in cooperation with the local communities. NovaCopper's vision is to develop the Ambler mining district into a premier North American copper producer.
Posted: October 22, 2013