The following excerpt is from the company's
NovaCopper Reports Significant High Grade Drill Results at its Arctic Deposit
(TSX, NYSE-MKT: NCQ) ("NovaCopper" or "the Company") is pleased to announce drill results from its 2015 summer field program at the Arctic poly-metallic volcanogenic massive sulphide (VMS) deposit, which is part of the Upper Kobuk Mineral Projects (UKMP) located in the Ambler mining district of Northwest Alaska. All amounts are in US dollars unless otherwise indicated.
Based on a cut-off grade of 1.0% copper all holes intersected significant zones of high grade copper, gold, silver, lead and zinc mineralization – including:
AR15-0145 intersected four mineralized intervals, including
22 meters of 3.86% copper, 0.86 g/t gold, 71.0 g/t silver, 1.15% lead, and 5.36% zinc,
5 meters of 3.82% copper, 0.68 g/t gold, 74.7 g/t silver, 1.60% lead, and 7.21% zinc,
6.5 meters of 6.67% copper, 0.52 g/t gold, 31.4 g/t silver, 0.20% lead, and 3.38% zinc;
AR15-0136 intersected two mineralized intervals, including
32 meters of 3.08% copper, 1.56 g/t gold, 45.9 g/t silver, 0.18% lead, and 2.72% zinc,
9 meters of 7.36% copper, 2.34 g/t gold, 219.3 g/t silver, 0.77% lead, and 5.00% zinc;
18 meters of 4.93% copper, 0.74 g/t gold, 102.0 g/t silver, 0.94% lead, and 5.11% zinc;
AR15-0144 intersected three mineralized intervals, including
11 meters of 7.10% copper, 0.70 g/t gold, 80.4 g/t silver, 1.09% lead, and 9.04% zinc,
9 meters of 4.22% copper, 0.75 g/t gold, 76.7 g/t silver, 0.82% lead, and 3.46% zinc;
NovaCopper completed fourteen diamond drill holes for a total of 3,056 meters of core. The 2015 in-fill drill program was designed to evaluate vertical and lateral continuity of the high grade polymetallic copper, gold, silver, lead and zinc mineralization, and support upgrading of inferred resources to measured and indicated resource classification within the area of the proposed Arctic open-pit as outlined in the Company's National Instrument 43-101 – Standards of Disclosure compliant technical report entitled "Preliminary Economic Assessment Report on the Arctic Project, Ambler Mining District, Northwest Alaska" dated effective September 12, 2013 (the "2013 PEA") (see press release dated September 12, 2013). Two of the fourteen holes (AR15-0139 and AR15-0145), representing 631 meters drilled, were specifically targeting geotechnical information for preliminary pit slope design work in the area of the highwall of the proposed open pit (see Drill Hole Location Map - Figure 1). The Company is pleased to announce that all fourteen holes encountered significant mineralized intervals of high grade mineralization which are reported in Table 1. These drill results, along with on-going engineering studies described below, will be used in support of a pre-feasibility study on the Arctic deposit (see press release dated July 10, 2015). Results are consistent with previous drilling conducted within the resource area on the property.
Table 1: Arctic Deposit Significant Drill Intervals
Footnotes to Drill Interval Table:
AI = Continuous Assayed Interval (meters).
Copper equivalent (CuEq) calculations use metal prices assumptions of $2.90/lb for copper, $1,300/oz for gold, $22.70/oz for silver, $0.90/lb for lead and $0.85/lb for zinc. Copper equivalent calculations reflect gross metal content and have not been adjusted for metallurgical recoveries.
Results are core intervals and not true thickness; true widths have not been determined for the above intercepts but are believed to be representative of actual drill thicknesses.
Significant interval defined as a minimum of 1.0 meter Cu interval with average grade >0.7% Cu.
Cutoff grade of 1.0% Cu.
Internal dilution up to five meters of <1.0% Cu.
Intervals of <1.0 meter not reported.
Some rounding errors may occur.
"We are pleased to have completed another successful drill campaign, one that saw Zero Loss Time Incidents (LTI's), no environmental incidents, 56% local NANA shareholder hire and some really fantastic drill results that further demonstrate that the Arctic deposit is one of the highest grade, open pitable copper deposits known in the world," stated Rick Van Nieuwenhuyse, President and Chief Executive Officer for NovaCopper. "In addition to the exceptional copper grades, the zinc and precious metals credits will provide the Company additional flexibility as we advance this project up the value chain. Overall, it was an excellent field season and we look forward to improving our geological understanding of the high-grade polymetallic Arctic deposit and incorporating this year's data into our models and future pre-feasibility level work."
NovaCopper contracted SRK Consulting of Vancouver, Canada (SRK) to conduct a dedicated field investigation comprised of drilling, mapping, laboratory test work and downhole installations. A summary report detailing a gap analysis, desktop study findings and field investigation recommendations was issued prior to the drill program. Two dual purpose drill holes were completed for geotechnical (soil and rock) and hydrogeological data acquisition. Additionally, SRK hydrogeologists re-visited previously installed vibrating wire piezometers to ensure data loggers were operational and to download pore...