THEMAC Resources Announces Further Positive Drill Results from Copper Flat Project

ECR MINERALS plc
(“ECR Minerals”, “ECR” or the “Company”)

 

AIM: ECR
US OTC: MTGDY

 

London: 9 August 2012 - ECR Minerals plc is pleased to draw attention to the news release made today by THEMAC Resources Group Ltd (“THEMAC”) detailing positive results from drilling completed at THEMAC's 100% owned Copper Flat copper-molybdenum-gold-silver porphyry project in New Mexico, USA. The full text of the release made by THEMAC is provided below.

ECR owns approximately 19% of THEMAC's issued share capital and has a fully diluted interest in THEMAC of approximately 21%. THEMAC is listed on the TSX Venture Exchange with the code MAC.

 

Patrick Harford, Managing Director of ECR Minerals plc, comments:

"It is great to see another strong set of drill results from Copper Flat, following on from those announced by THEMAC in June and of course from the positive prefeasibility study (PFS) results announced in July. As well as demonstrating the Copper Flat deposit's excellent continuity of mineralisation, the results released today have achieved a significant expansion of the higher grade core zone.

We note that THEMAC's 2012 drilling programme at Copper Flat is still in progress and look forward to further results, and more importantly to the reserve and resource update planned for the autumn, which THEMAC is hopeful will result in an increase to the deposit's reserves, resources and byproduct credits."

- Beginning of THEMAC release -

THEMAC Exploration Update: Continued Excellent Results Extend Copper Flat Higher-Grade Core At Depth And To The Northeast

Drill Hole Assays 0.45% Cu and 0.160 oz Ag per ton over 449 ft.

Vancouver, BC, August 8, 2012 - THEMAC Resources Group Limited ("THEMAC" or "the Company") (TSX.V: MAC) today provided an update on its 2012 core drilling program at the Company's Copper Flat project in New Mexico.

2012 CORE DRILLING PROGRAM - Results for Holes CF-12-08 through CF-12-14

The assay results for core holes CF 12-08 through CF 12-14, of the planned 25,000 foot 2012 Copper Flat drilling program, have been received. The location of these seven holes, totaling 6,981.50 feet, is shown on Figure 1 at the end of this release.

In addition to providing a better understanding of the geology and mineralization, the 2012 drilling at Copper Flat had the following objectives:

  • Better define the northern and southern boundaries of known mineralization. In addition to the previously reported drill holes (CF 12-01, CF 12-03, and CF 12-04), drill holes CF 12-10, CF12-12 and CF12-13 fall into this category.
  • Attempt to extend the known mineralization along strike to the NW and SE. To date, holes CF 12-08 and CF 12-09 fall into this category.
  • Infill as needed to upgrade the classification of known resources, and to obtain a better understanding of the geologic controls and distribution of the higher grade copper, molybdenum, gold and silver mineralization within the breccia pipe. To date holes CF 12-02, CF 12- 05, CF 12-06 and CF 12-07, fall into this category.
  • Extend the higher grade mineralization below the bottoms of the existing drilling. To date, holes CF 12-11 and CF 12-14 fall into this category.
  • Attempt to extend and confirm known mineralization northeastward. To date, drill hole CF 12-10 falls into this category.

"The results from these additional seven holes of the 2012 Copper Flat drilling program continue to show excellent continuity in mineralization and expansion of the known higher-grade central zone to the northeast," said Ray Erwin, VP Exploration. "We are now working toward a more refined mineral definition model which will be used in optimizing the overall mine plan and, ultimately, become a key part of the definitive feasibility study."

Although the program has not finished, the majority of the definition and exploration holes have been completed giving a good measure of the program's success. The attempt to extend the mineralization boundary to the northeast and to the southeast as well as to the south certainly has been successful. However, being able to extend to higher grade core northeast and at depth as far as it has been was a welcome surprise. With the higher-grade mineralization being extended considerably below the current pit design a very deep hole, CF12-15 scheduled to a depth of 2,000 feet, is underway and currently at a depth of 1000 feet has become much more important. Seeing the higher-grade mineralization continue at depth is significant. Anywhere from 3 to 5 more holes are planned to finish the 2012 program. The final drill holes are geotechnical and will help define the strength of the west wall of the pit. If the geotechnical holes show good rock quality data with minimal jointing the pit wall will be able to be steepened thereby reducing future waste removal.

As a result of this year's drilling success we are hopeful that as these results are put into the new mineral reserve and resource model this fall we will see an increase in size in reserves, resources, and byproduct credits. Byproduct credits are a significant portion of the proposed project's revenue. Because of the expansion of the higher-grade core, it is essential that a new pit design be completed and optimized to take full advantage of the core area in the mines early years.

The assay results presented below are based on a 0.20% Cu only cutoff unless there is a less than 0.20% Cu sample within a broader zone of Cu values that equal or exceed 0.20% Cu. The intervals and thicknesses reported are along the core axis.

 

Table 1: CF 12-08 (Abandoned in a Fault Zone)

Interval Thickness Cu % Mo % Au oz/t Ag oz/t
148.5’- 153.5’ 5.5’ 0.28 <0.001 0.002 0.032
265.0’- 280.0’ 15.0’ 0.27 0.030 0.001 0.017
300.0’- 308.0’ 8.0’ 0.22 <0.001 0.002 0.044
318.0’- 324.0’ 6.0’ 0.28 <0.001 0.002 0.026
379.5’- 402.5’ 23.0’ 0.25 0.001 0.002 0.033
427.0’- 465.0’ 38.0’ 0.29 0.002 0.002 0.032
480.0’- 488.0’ 8.0’ 0.22 0.002 0.002 0.026
508.0’- 513.0’ 5.0’ 0.21 0.004 0.002 0.012
595.0’- 609.5’ 14.5’ 0.38 0.002 0.004 0.070

 

Table 2: CF 12-09

Interval Thickness Cu % Mo % Au oz/t Ag oz/t
740.0’- 750.0’ 10.0’ 0.29 0.006 0.001 0.040
760.0’- 775.0’ 15.0’ 0.23 0.016 0.001 0.019
780.0’- 785.0’ 5.0’ 0.20 0.042 0.001 0.020

 

Table 3: CF 12-10

Interval Thickness Cu % Mo % Au oz/t Ag oz/t
247.5’- 257.5’ 10.0’ 0.24 <0.001 0.003 0.085
342.5’- 347.5’ 5.0’ 0.21 <0.001 0.002 0.067
382.5’- 400.0’ 17.5’ 0.24 <0.001 0.003 0.088
410.0’- 415.0’ 5.0’ 0.22 <0.001 0.002 0.070
420.0’- 435.0’ 15.0’ 0.40 <0.001 0.004 0.112
440.0’- 455.0’ 15.0’ 0.38 <0.001 0.003 0.117
470.0’- 480.0’ 10.0’ 0.30 <0.001 0.003 0.083
500.0’- 535.0’ 35.0’ 0.60 0.002 0.006 0.146
550.0’- 565.0’ 15.0’ 0.28 <0.001 0.003 0.072
575.0’- 615.0’ 40.0’ 0.22 0.001 0.003 0.060
625.0’- 630.0’ 5.0’ 0.25 0.001 0.002 0.073
680.0’- 685.0’ 5.0’ 0.34 0.001 0.003 0.084
690.0’- 710.0’ 20.0’ 0.22 <0.001 0.003 0.071
720.0’- 922.0’ 202.0’ 0.30 <0.001 0.003 0.082
947.0’- 952.0’ 5.0’ 0.41 0.002 0.004 0.084
977.5’- 987.5’ 10.0’ 0.22 <0.001 0.002 0.046
1045.0’- 1050.0’ 5.0’ 0.31 0.002 0.002 0.067

 

Table 4: CF 12-11 (Abandoned in a Fault Zone)

Interval Thickness Cu % Mo % Au oz/t Ag oz/t
0.0’- 449.0’ 449.0’ 0.45 0.010 0.004 0.16
463.0’- 479.0’ 16.0’ 0.36 0.014 0.003 0.123
500.0’- 510.0’ 10.0’ 0.22 0.006 0.002 0.048
525.0’- 560.0’ 35.0’ 0.24 0.007 0.002 0.060
565.0’- 593.0’ 28.0’ 0.27 0.011 0.002 0.120
608.0’- 613.0’ 5.0’ 0.20 0.009 0.006 0.055
623.0’- 645.0’ 22.0’ 0.24 0.010 0.002 0.049
657.0’- 726.0’ 69.0’ 0.30 0.012 0.005 0.085
736.0’- 781.0’ 45.0’ 0.75 0.034 0.009 0.380
846.0’- 856.0’ 10.0’ 0.22 0.015 0.002 0.052
871.0’- 876.0’ 5.0’ 0.27 0.007 0.002 0.076
881.0’- 886.0’ 5.0’ 0.25 0.007 0.002 0.050
906.0’- 916.0’ 10.0’ 0.28 0.029 0.002 0.240
927.0’- 942.0’ 15.0’ 0.26 0.020 0.002 0.064
957.5’- 977.5’ 20.0’ 0.26 0.007 0.002 0.070
987.5’- 1035.5’ 48.0’ 0.26 0.009 0.002 0.072

 

Table 5: CF 12-12

Interval Thickness Cu % Mo % Au oz/t Ag oz/t
0.0’- 60.0’ 60.0’ 0.30 0.003 0.002 0.040
75.0’- 95.0’ 20.0’ 0.22 0.004 0.002 0.031
110.0’- 120.0’ 10.0’ 0.26 0.003 0.002 0.036
165.0’- 170.0’ 5.0’ 0.24 <0.001 0.003 0.044
190.0’- 210.0’ 20.0’ 0.32 0.002 0.002 0.047
230.0’- 300.0’ 70.0’ 0.24 0.002 0.002 0.042
315.0’- 335.0’ 20.0’ 0.24 0.010 0.002 0.044
340.0’- 615.0’ 275.0’ 0.26 0.005 0.002 0.050
620.0’- 625.0’ 5.0’ 0.20 0.006 0.002 0.023
640.0’- 645.0’ 5.0’ 0.21 0.002 0.002 0.035
655.0’- 660.0’ 5.0’ 0.21 0.004 0.002 0.044
735.0’- 750.0’ 15.0’ 0.22 0.002 0.002 0.045
785.0’- 790.0’ 5.0’ 0.28 <0.001 0.002 0.044
875.0’- 895.0’ 20.0’ 0.30 0.003 0.002 0.044
900.0’- 950.0’ 50.0’ 0.20 0.008 0.002 0.030
980.0’- 985.0’ 5.0’ 0.22 0.013 0.001 0.026

 

Table 6: CF 12-13 (Abandoned After Intersecting a Void)

Interval Thickness Cu % Mo % Au oz/t Ag oz/t
136.0’- 141.0’ 5.0’ 0.22 0.013 0.001 0.023
162.0’- 167.0’ 5.0’ 0.35 0.006 0.001 0.035
223.0’- 234.0’ 11.0’ 0.20 0.003 <0.001 0.050
263.5’- 268.5’ 5.0’ 0.20 0.002 0.001 0.029

 

Table 7: CF 12-14

Interval Thickness Cu % Mo % Au oz/t Ag oz/t
0.0’- 21.5’ 21.5’ 0.22 0.008 0.002 0.034
62.5’- 72.0’ 9.5’ 0.21 0.004 0.002 0.046
178.0’- 183.0’ 5.0’ 0.23 0.024 0.002 0.040
197.0’- 207.0’ 10.0’ 0.22 0.019 0.003 0.036
212.0’- 501.0’ 289.0’ 0.43 0.007 0.005 0.108
506.0’- 542.0’ 36.0’ 0.30 0.004 0.002 0.058
562.5’- 593.5’ 31.0’ 0.34 0.007 0.002 0.065
608.0’-697.0’ 89.0’ 0.34 0.010 0.002 0.066
704.0’- 894.0’ 190.0’ 0.26 0.009 0.002 0.220
910.0’- 960.5’ 50.5’ 0.26 0.008 0.002 0.070
1005.0’- 1015.0’ 10.0’ 0.28 0.005 0.002 0.074
1077.5’- 1083.0’ 5.5’ 0.33 0.004 0.001 0.058
1140.0’- 1145.0’ 5.0’ 0.20 0.054 0.001 0.046
1150.0’- 1155.0’ 5.0’ 0.20 0.007 0.001 0.044
1190.0’- 1195.0’ 5.0’ 0.23 0.003 0.001 0.046
1235.0’- 1290.0’ 55.0’ 0.27 0.008 0.002 0.061
1300.0’- 1310.0’ 10.0’ 0.22 0.020 0.002 0.054
1320.0’- 1325.0’ 5.0’ 0.20 0.006 0.002 0.055
1340.0’- 1370.0’ 30.0’ 0.24 0.012 0.002 0.063
1400.0’- 1425.0’ 25.0’ 0.25 0.016 0.002 0.073
1470.0’- 1500.0’ 30.0’ 0.23 0.016 0.002 0.056

 

Assay Methods

Assaying for the 2012 drilling program is being undertaken at the Skyline Laboratory in Tucson, AZ. Copper and molybdenum values are being determined by ICP/MS, gold by fire assay with AA finish, and silver by AA. Reference standards and blanks were inserted in the sample streams, and every tenth sample is being objectively validated by ALS Minerals, Reno, Nevada using similar methodologies.

Standard procedures for core handling were in place during the entire drilling program, and a geologist was on site for all sample preparation and shipping.

Technical information in this news release has been approved by Mr. Ray Irwin, P. Geo., and a Qualified Person under National Instrument 43-101.

About the Copper Flat Project

Copper Flat is a former producing mine located in Sierra County, State of New Mexico approximately 150 miles south of Albuquerque and 20 miles southwest of the town of Truth or Consequences.

Copper Flat is a porphyry copper-molybdenum deposit containing economically recoverable gold and silver mineralization hosted by a quartz monzonite stock which intrudes an andesitic volcanic complex. The Cretaceous (75 million years ago [Ma]) Copper Flat quartz monzonite hosts mineralization dominated by pyrite and chalcopyrite with subsidiary molybdenite. The mineralization is focused along intersecting northeast and northwest-trending faults, the intersection of which is associated with the host intrusive.

An NI 43-101 prefeasibility summary press release dated July 25, 2012 has been published for Copper Flat and can be viewed on SEDAR. The press release contains the latest NI43-101 Mineral Reserve and Resource statement.

The deposit has NI 43-101 compliant Mineral reserves and resources as set forth in the following tables:

 

Mineral Reserves as Contained in Total Mineral Resources:

Classification Cutoff
Grade
NSR/TON
Mineral Reserves Contained Metal
Ktons Copper
%
Moly
%
Gold
Oz/ton
Silver
Oz/ton
Copper
Lbs x 1000
Moly
Lbs x 1000
Gold
Ozs x 1000
Silver
Ozs x 1000
Proven $7.25 29,536 0.38 0.012 0.003 0.08 224,474 7,089 89 2,363
Probable $7.25 68,582 0.28 0.008 0.003 0.06 384,059 10,973 206 4,115
Total Prov + Prob
98,118 0.31 0.009 0.003 0.07 608,533 18,062 295 6,478

 

Total Mineral Resources:

Classification Cutoff
Grade
NSR/TON
Tonnage and Grade Contained Metal
Ktons Copper
%
Moly
%
Gold
Oz/ton
Silver
Oz/ton
Copper
Lbs x 1000
Moly
Lbs x 1000
Gold
Ozs x 1000
Silver
Ozs x 1000
Measured $7.25 41,503 0.33 0.011 0.003 0.07 273,920 9,131 125 2,905
Indicated $7.25 184,049 0.23 0.006 0.002 0.05 846,625 22,086 368 9,202
Meas + Ind
225,552 0.25 0.007 0.002 0.05 1,120,545 31,217 493 12,107
Inferred $7.25 12,960 0.22 0.003 0.001 0.03 57,024 778 13 389

 

 

The project has an estimated $54 million benefit and financial savings from the civil infrastructure that is currently in place at Copper Flat including a tailings dam, largely pre-stripped open pit, power lines, water well field and pipeline, access roads, diversion channels and usable process building foundations. The Copper Flat land package comprises in excess of 1,200 hectares, and the deposit is located entirely on patented mining claims wholly-owned by THEMAC Resources Group.

Permitting for the return of the project to production is at an advanced stage, and a prefeasibility study is completed and is targeted for publication after final review during August of 2012, but no later than 45 days after July 25, 2012.

 

About THEMAC Resources Group Limited

THEMAC is a mining development company with a strong management team and as of May 18, 2011, acquired 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

Certain information contained or incorporated by reference in this MD&A, including any information as to THEMAC's future financial or operating performance, constitutes  "forward-looking statements". All statements, other than statements of historical fact, are forward-looking statements. The words "believe", "expect", "anticipate", "contemplate",  "target", "plan", "intends", "continue", "budget",  "estimate", "may", "will", "schedule" and similar expressions identify forward-looking statements. Forward-looking statements are necessarily based upon a number of estimates and assumptions that, while considered reasonable by the Company, are inherently subject to significant business, economic and competitive uncertainties and contingencies. Known and unknown factors could cause actual results to differ materially from those projected in the forward-looking statements. Such factors include, but are not limited to: fluctuations in the currency markets; fluctuations in the spot and forward price of copper, molybdenum, gold, and silver; volatility in the price of fuel and electricity; changes in national and local government legislation, taxation, controls, regulations and political or economic developments in Canada and the USA; business opportunities that may be pursued by the Company; the anticipated impact of converting to International Financial Reporting Standards, operating or technical difficulties in connection with mining or development activities; employee relations; litigation; the speculative nature of exploration and development, including the risks of obtaining necessary licenses and permits; and contests over title to properties, particularly title to undeveloped properties. In addition, there are risks and hazards associated with the business of exploration, development and mining, including environmental hazards, industrial accidents, unusual or unexpected formations, pressures, cave-ins, flooding and the risk of inadequate insurance, or inability to obtain insurance, to cover these risks. Many of these uncertainties and contingencies can affect the Company`s actual results and could cause actual results to differ materially from those expressed or implied in any forward-looking statements made by, or on behalf of, THEMAC. These factors are discussed in greater detail in the Company's most recent Form 20-F/Annual Information Form on file with the U.S. Securities and Exchange Commission and Canadian provincial securities regulatory authorities. Readers are cautioned that forward-looking statements are not guarantees of future performance. All of the forward-looking statements made in this MD&A are qualified by these cautionary statements.

The Company 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 to the extent required by applicable laws.

 

For further information contact:

THEMAC Resources Group Limited
Andre J. Douchane, CEO
(+1) 416 671 8089 or (+1) 520 850 7529

Neither the TSX Venture Exchange (the "TSXV") nor it's 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.

- End of THEMAC release -

NB: To view Figure 1 as referred to above please download a copy of the THEMAC release from www.themacresourcesgroup.com

 

ECR's Interest in THEMAC

ECR holds 14.35 million common shares and 14.35 million common share purchase warrants of THEMAC. All the warrants held by ECR are exercisable at C$0.28 per share; 3.85 million warrants are valid until 3 May 2013 and the remaining 10.5 million warrants are valid until 4 March 2016.

 

About ECR Minerals plc

ECR is a mineral development company with 100% ownership of the Sierra de las Minas gold project in La Rioja Province, Argentina; a 21% fully diluted stake in THEMAC Resources Group Ltd (TSX-V: MAC), which is focused on the development of the Copper Flat copper-molybdenum-gold-silver porphyry deposit in New Mexico, USA to production; and stakes in West Wits Mining Ltd (ASX: WWI) and Paniai Gold Ltd (unquoted), both of which have interests in the Derewo River alluvial gold mining and exploration project in Papua, Indonesia.

 

For further information please contact:

ECR Minerals plc

Patrick Harford, Managing Director Tel: +44 (0)20 7929 1010
Stephen Clayson, Director & Chief Financial Officer

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Daniel Stewart & Company plc

Paul Shackleton/Tessa Smith/David Hart Tel: +44 (0)20 7776 6550