VANCOUVER, BRITISH COLUMBIA–(Marketwire – Oct. 5, 2011) – THEMAC Resources Group Limited (TSX VENTURE:MAC) (“THEMAC” or “the Company”) today provided an update on the Copper Flat project including gold-silver historic pulp re-assay program, pre-feasibility progress and 2011 drill program progress.
AU-AG RE-ASSAY PROGRAM
THEMAC Resources Group Ltd recently completed a re-assay of a statistically selected number of Copper Flat’s historical pulps for gold and silver. SRK was requested, as part of the Preliminary Economic Assessment, to ascertain if there are a sufficient number of the gold and silver assays for inclusion in the resource estimation. From a total copper-moly assay record database of 15,018 samples, a sub-set of 4,625 samples (2,969 of which were re-assayed pulps) were shown to contain 0.1 grams of gold and 2.36 grams of silver per ton.
Figure 1 shows the distribution of the 4,625 gold and silver assay intervals throughout the existing resource model.
To view Figure 1, please visit the following link:
For their evaluations, SRK assumed that copper, silver and gold were geologically related. Essentially, the thought was that copper, silver and gold occurred in the deposit at the same sites and were deposited by the same geological processes. SRK carried out a geostatistical analysis of gold and copper illustrating gold as being well correlated with copper. SRK’s conclusions and recommendations state that gold be estimated using co-kriging estimation and that gold and silver be incorporated in the resource model.
This data has been provided to IMC, a geologic resource estimating firm in Tucson that is currently working on a 43-101 compliant resource model for incorporation in the ongoing pre-feasibility being conducted by M3 Engineering of Tucson, Arizona. IMC will include the gold and silver data in their resource modeling for pre-feasibility. IMC reviewed the SRK analyses of the gold-silver re-assays, and concluded (using different geostatistical methods, i.e. not co-kriging) no additional re-assaying of the pulps will be necessary to incorporate Au-Ag into the resource-reserve calculations for pre-feasibility work indicating that the 4,625 assay intervals are sufficient.
PRE-FEASIBILITY PROGRESS UPDATE
The pre-feasibility study is currently scheduled for completion in early first quarter, 2012. All trade off studies have been completed, a preferred tailings disposal plan was selected, milling equipment has been sized and configured, site general arrangement plans are being finalized, and an initial economic model has been built. Mining sequence will fallout of IMC’s resource and mine plan report later this year as will the milling material and water balance. Both are currently under study. The existing foundations of the original Copper Flat Mine were covered with topsoil when reclaimed in the 1980s. The foundations were recently excavated and found to be in excellent condition. The current engineering design incorporates use of the original foundations.
COPPER FLAT DRILLING PROGRAM—2011
A forty-seven hole drilling program and accompanying exploration permit was approved through the state and federal agencies in May, 2011, with drilling initiated in June 2011. This is designed as a pre-feasibility and feasibility drilling program to address resource and engineering questions at Copper Flat. Fourteen high priority infill holes of this program will be completed during 2011, evaluated and used to design the drilling needed for the final feasibility.
Leading up to the drilling program, a Titan 24 DCIP/MT survey was completed in March 2011 by Quantec Geosciences over the Copper Flat area. In June, Emblem Exploration Services were contracted to interpret the results. The survey consisted of 9 Titan-24 “spreads” approximately 2500 meters in length, with lines 1 and 2 each composed of 3 end-to-end spreads and lines 3, 4, and 5 one spread each. Lines 1 and 5 are oriented NNE and lines 2, 3 and 4 are oriented WNW. The survey and lines were designed to intersect over the known intrusive exposure at Copper Flat, with the exception of line 4 which lies well south of the intrusive. Both MT and DC/IP were acquired on all 5 lines, with MT used for deep resistivity investigation which allows for a high degree of lateral resolution; and IP used in the search for sulfide mineralization. The MT resistivity data was used to determine the potential subsurface extent and geometry of the intrusive stock (where the current Copper Flat resource is defined); and the IP data was used to determine the location of sulfide mineralization. The data and interpretations from the survey were used to guide some of the drill hole placements during this 2011 drilling program.
Phase 1 of the drill program has concluded. A total of 14 holes were drilled totaling 16,539 feet. Assay results are being returned and will be analyzed internally prior to beginning phase 2.
All geological information gained through phase 1 will be incorporated into the overall pre-feasibility evaluations that are progressing at Copper Flat. Initial drill results will be released as soon as internal analysis and QAQC procedures have been completed and verified.
“Work at Copper Flat is progressing well,” said Andre Douchane, CEO of THEMAC Resources Group. “The advancements in the gold-silver re-assays and the 2011 drilling program are providing valuable insight for the pre-feasibility work going forward.”
About the Copper Flat Project
Copper Flat is a former producing mine located approximately 20 miles southwest of Truth or Consequences in Sierra County. Permitting for a return of the project to production is at an advanced stage, and a prefeasibility study is in progress and targeted for completion during 2011.
The Copper Flat project is a porphyry copper-molybdenum-gold-silver deposit. The deposit has NI43-101 Indicated Mineral Resources of 107 million short tons grading 0.303% copper and 0.01% molybdenum for 645 million lbs copper and 21.4 million lbs molybdenum, plus Inferred Mineral Resources of 46 million short tons grading 0.24% copper and 0.006% molybdenum for 222 million lbs copper and 5.6 million lbs molybdenum.
The gold and silver content of the deposit is evidenced by historic production and metallurgical test work, and gold and silver are targeted for incorporation into the deposit’s NI43-101 Mineral Resource statement following completion and interpretation of a re-assay program using historic drill pulps.
An NI43-101 Preliminary Economic Assessment (“PEA”) dated June 30, 2010 and updated February 25, 2011 has been completed for Copper Flat and can be viewed on SEDAR. Technical information in this news release has been approved by Mr. Barrett Sleeman, P.Eng., a Qualified Person under NI 43-101, who is Executive Director of the Company.
Civil infrastructure in place at Copper Flat includes a tailings dam, largely pre-stripped open pit, power lines, water well field and pipeline, access roads, diversion channels and building foundations. The project land package comprises in excess of 1,200 hectares. For more information visit www.THEMACresourcesgroup.com.
About THEMAC Resources Group Limited
THEMAC is a copper development company with a strong management team and as of May 18, 2011, 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 134,523,241). For more information please visit www.themacresourcesgroup.com or review the Company’s filings on SEDAR (www.sedar.com).
This news release may contain certain information that constitutes forward-looking statements. Forward-looking statements are frequently characterized by words such as “plan,” “expect,” “project,” “intend,” “believe,” “anticipate” and other similar words, or statements that certain events or conditions “may” or “will” occur. Forward-looking statements are based on the opinions and estimates of management at the date the statements are made, and are subject to a variety of risks and uncertainties and other factors that could cause actual events or results to differ materially from those projected in the forward-looking statements. These factors include the inherent risks involved in the exploration and development of mineral properties, the uncertainties involved in interpreting drilling results and other geological data, fluctuating metal prices and other factors described above. The Company disclaims any obligation to update or revise any forward-looking statements if circumstances or management’s estimates or opinions should change. The reader is cautioned not to place undue reliance on forward-looking statements.
Neither the TSX Venture Exchange (the “TSXV”) nor its 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.
THEMAC Resources Group Limited
Andre J. Douchane
(416) 671 8089 or (520) 850 7529