Copper Canyon
Project  |  CU, AU, AG

DESCRIPTION

The Project

The Copper Canyon property is a multi-million ounce copper-silver-gold deposit located approximately 150 kilometers northeast of the tidewater port of Stewart, British Columbia and 75 kilometers northwest of Barrick Gold’s Eskay Creek gold-silver mine that produced 350,000 ounces of gold annually for more than 20 years. The Galore Creek/Copper Canyon project overlies one of the largest and highest-grade alkalic intrusive-related gold-silver-copper deposits in North America. Copper Canyon Resources controls 40% of the Copper Canyon property.  NovaGold/Teck Cominco have earned a 60% interest in the Copper Canyon project, by completing C$3 million in exploration expenditures, issuing a total of 296,000 of NG shares and making property payments totalling C$250,000.

History

The Copper Canyon property history dates back to August, 1956 when American Metal Co. Ltd (which through several corporate restructurings became Amax and finally Canamax Resources) staked the original claims overlying prominent gossans in the area.  The claims remained in good standing continuously until August, 2001, when they were forfeited during the darkest days of BC’s exploration downturn.  The claims were immediately acquired by Bernie Kreft, of Whitehorse - the first time this opportunity had arisen since 1956!  Eagle Plains Resources Ltd. subsequently optioned the property from Kreft, acquiring a 100% interest.  In June 2006, the shareholders of Eagle Plains approved a plan to reorganize their mineral property assets in an effort to maximize their value.  Under the terms of the arrangement, 100% interest in three of Eagle Plains’ projects: CopperCanyon, Severance and Abo (Harrison) Gold, were transferred into a newly formed company, Copper Canyon Resources Ltd., on a one-for-one share basis.

Inferred Resource

Work on the CopperCanyon property has been carried out annually since 2004, when option partner NovaGold Resources completed an 8 hole drill program and announced on January 10th, 2005 an Inferred Resource based on a compilation of both their work and 14 historic drill holes.  The Inferred category resource estimate was completed by independent engineering firm Hatch Ltd. of Vancouver, B.C., Canada.  The Copper Canyon property contains over 2.86 million ounces of gold, 37.9 million ounces of silver and 1.16 billion pounds of copper at a 0.35% copper equivalent cut-off grade (CuEq).

The drill results have defined a broad area of precious metal rich mineralization at least 700 meters by 400 meters which is open to expansion in 3 directions including depth. The mineralization begins at surface, continuing to as much as 300 meters depth and occurs as a roughly 100+ meter thick zone of disseminated chalcopyrite and pyrite hosted within an intrusive porphyry complex.  Prior to 2007 work, the area covered by the existing drill holes represented less than 0.5% of the entire property area.

The estimate used a geologic model developed from the drilling at Copper Canyon during 2004 as well as historical results that had encountered significant widths of gold, silver and copper mineralization.  

Copper-equivalent grades are based both on long-term average metal prices and estimated recoveries based on extensive metallurgical data from the adjacent Galore Creek Central/SW deposit

Notes:

(1) Copper equivalent calculations (CuEq%) use metal prices of US$375/oz for gold, US$5.50/oz for silver and US$0.90/lb for copper. CuEq% calculations reflect gross metal content that has been adjusted for metallurgical recoveries based on the following criteria: Copper Recovery = (%Cu-0.06)/%Cu with a minimum of 50% and maximum of 95%; Gold Recovery = (Au g/t – 0.14)/Au g/t with a minimum of 30% and maximum of 80%; and Silver Recovery = 80%

.

(2) An “inferred mineral resource” is that part of a mineral resource for which quantity and grade or quality can be estimated on the basis of geological evidence and limited sampling and reasonably assumed, but not verified, geological and grade continuity. The estimate is based on limited information and sampling gathered through appropriate techniques from locations such as outcrops, trenches, pits, workings and drill holes. Due to the uncertainty that may attach to inferred mineral resources, it cannot be assumed that all or any part of an inferred mineral resource will be upgraded to an indicated or measured mineral resource as a result of continued exploration. Confidence in the estimate is insufficient to allow the meaningful application of technical and economic parameters or to enable an evaluation of economic viability worthy of public disclosure. Inferred mineral resources must be excluded form estimates forming the basis of feasibility or other economic studies.

2007 Drilling

During the 2007 season, NovaGold/Teck Cominco completed a 16,000’ (4,940m), 12-hole diamond drilling program on the Copper Canyon Property. The 2007 program had multiple objectives, including resource expansion and the testing of additional geochemical and geophysical targets on the property.  A number of holes were targeted beneath and beyond the existing boundaries of the current inferred resource.

All holes from the 2007 program intersected significant mineralization:

Hole CC07-0033 was drilled to a total depth of 2,076 ft (633 m), testing over 250 m beneath historical drill-hole CC90-2, the highest-grade hole in the Galore District, which intersected 888 ft (270 m) grading 1.92 g/tonne Au, 22.28 g/t Ag and 1.05% Cu.

Follow-up drilling was also completed on hole CC05-030 (drilled in late 2005), which intersected 2.5 m grading 50.6 g/t Au (1.5 oz/ton).

It is expected that the 2007 drill results will be used to calculate an updated inferred resource estimate in early 2008.

Highlights:

Results of the 2007drill program can be viewed here: Copper Canyon News Release - 2007 Drill Results

A compilation map outlining drill-hole locations can be found here: Copper Canyon Drill-hole Location Map

Corporate Outlook

The Galore Creek property contains one of the world’s largest undeveloped copper and gold resources and CPY management believes that the Copper Canyon project holds considerable strategic value to the development of the Galore Creek area.  With long-term demand for copper and gold projected to remain strong, British Columbia remains a good place to invest.  The Company is committed to stand by the merits of this important asset and will work with its partners to develop viable alternatives to the current project.

Updated: February 21, 2008

Google Earth view of Galore Creek (PDF)

Hatch & Associates - Technical Report on Copper Canyon (PDF)

Copper Canyon Project Info (PDF)

Copper Canyon Compilation Map (PDF)

Copper Canyon Infrastructure Map (PDF)

Copper Canyon Geological Model (PDF)

Copper Canyon 2007 Drill Program Map (PDF)