Nuinsco subsidiary CBay Minerals options Perch River Copper Project
Thursday, Feb 14, 2013
Nuinsco Resources Limited ("Nuinsco" or "the Company") (TSX:NWI) (www.nuinsco.ca
) today announced that its 50%-owned subsidiary CBay Minerals Inc. ("CBay") has enhanced its position in the Chibougamau mining camp by optioning the advanced-stage Perch River copper project. Perch River is a shallow, flat-lying, copper deposit located approximately 80 km northeast of the town of Chibougamau. Easily accessible from the existing road network, Perch River has the potential to be a feed source for CBay's Copper Rand mill in the near term.
The Perch River copper mineralization was discovered in 1970 by the Troilus-Maracambeau Joint Venture. The Perch River mineralized horizon is similar to that of the Icon-Sullivan Mine located 15 km to the southwest, which produced 2.1 million tons grading 1.96% copper that was processed at a mill in Chibougamau.
In 1973, an exploration ramp was developed to sample 12,150 tons of material from Perch River which was also processed at a mill in Chibougamau. The Perch River project may contain a total of about 1 million tons at grades in excess of 1.0% copper according to a non-NI-43-101-compliant property report produced by A.J.R Geoconsulting in March 2007.
"CBay's plans are to assess the potential of the Perch River copper mineralization to provide feed for its Copper Rand mill and supplement future production from CBay's partially-developed, high-grade Corner Bay copper project which is located about 45 km south of Chibougamau," said CBay's CEO Roland Horst.
Copper mineralization occurs at 50-100m depth and is predominantly chalcopyrite in a quartz-carbonate host at the footwall of a well-defined horizon of graphitic argillite above dolomite. The deposit is not fully delineated and there is considerable potential to define more mineralization to the north and east. As described in the non-NI-43-101-compliant 2007 A.J.R Geoconsulting report, vertical drill holes intersected near-surface mineralization (approx. 50 m deep) in 15 holes averaging 1.94% copper over 3.12 m.
CBay has made an initial payment of $30,000 and has agreed to pay an additional $170,000 over the next four years to earn a 100% interest in the Perch River project. A 2% net smelter royalty has been retained by the vendors; CBay has the right to buy back 50% of the royalty for $1 million. Paul Jones, President of Nuinsco, acts as a Qualified Person under National Instrument 43-101 and has reviewed and approved the technical contents of this news release.