PEBBLE CREEK MINING LTD. ANNOUNCES ADDITIONAL 1.2 MILLION TONNES INFERRED MINERAL RESOURCE AT
ASKOT PROJECT
New Westminster, British Columbia and New Delhi, India � February 14, 2011 � Pebble Creek Mining Ltd. (�the Company�) is pleased to announce that following the results of the Company�s 2010 drilling program, the Company has recalculated the Inferred mineral resource estimate for the Company�s Askot project in Uttarakhand, India by including an additional 1.2 million tonnes (over the previous estimate of 149,000 tonnes of Inferred mineral resource).
The new estimate of the inferred mineral resource is reported in accordance with the Canadian Securities Administrators� National Instrument 43-101 (�NI 43-101�) and has been estimated in conformity with generally accepted CIM �Estimation of Mineral Resources and Mineral Reserves Best Practices Guidelines.� Together with the Company�s previously estimated Indicated and Inferred mineral resources, the total mineral resources at Askot are now summarized as follows:
Table. Mineral Resource Estimate, Askot Massive Sulfide Deposit, Uttarakhand, India as at February 14, 2010
| Category |
Tonnes |
Cu (%) |
Zn (%) |
Pb (%) |
Ag (gpt) |
Au (gpt) |
Cu equiv (%) |
Previously reported mineral resource estimate, SRK Consulting
(August 12, 2008) |
| Indicated |
1,860,000 |
2.62 |
5.80 |
3.83 |
38 |
0.48 |
6.39 |
| Inferred |
149,000 |
1.70 |
4.56 |
1.89 |
29 |
0.44 |
4.32 |
Current addition to Inferred Mineral Resource,
Pebble Creek Mining Ltd. |
| Inferred |
1,200,000 |
0.81 |
1.16 |
1.82 |
34 |
0.21 |
2.12 |
| Total and weighted average of Inferred Mineral Resource |
| Inferred |
1,349,000 |
0.91 |
1.54 |
1.83 |
33 |
0.24 |
2.37 | Cutoff grade is $100 of total metal recovered in concentrates per tonne of run-of-mine material based on the following parameters: 85% of copper (Cu), 76% of zinc (Zn), 78% of lead (Pb), and 60% of each of silver (Ag) and gold (Au). Prices used are Cu $2.50/lb, Zn $1.00/lb, Pb $0.90/lb, Ag $15/oz and Au $1,000/oz. Prices are based on long-term estimates by BMO Capital Markets and other analysts, and are considerably less than current world metals prices. Four prices have been changed from the 2008 estimates, which used $2.00 Cu, $0.90 Zn, $0.65 Pb and $900 Au. The same parameters are used in calculating �copper equivalent� grades, converting all recovered metals into dollars and equating the sum as if due entirely to a comparable value of recovered copper in the concentrates.
The new Inferred mineral resource has been estimated using the area of influence of drillhole 10AA019A, 300 metres along strike and 200 meters vertically, with a thickness of 6.7 metres. The Company�s news release dated October 25, 2010 described a high-grade zone within this panel and the sampling, assaying and QA/QC protocols. The new mineral resource estimate includes low-grade mineralization in both footwall and hanging wall of the near vertical high-grade zone. The density of the mineralization is 3.1 tonnes per cubic meter.
The new Inferred mineral resource estimate is made by Dr. Andrew E. Nevin, P.Eng, President and CEO of the Company, who is a Qualified Person under NI 43-101. Dr. Nevin is responsible for directing the work at the Askot project and is responsible for preparing, reviewing and approving of the technical information contained in this news release.
The previous Indicated and Inferred mineral resource estimates for the Askot project was prepared by SRK Consulting and first reported in the Company�s news release dated August 12, 2008 and in detail in a technical report dated September 26, 2008, entitled, �Mineral Resource Estimation - Askot Polymetallic Project - Uttarakhand, India�.
A technical report providing details on the updated mineral resource estimate for the Askot project will be posted on the SEDAR website at www.sedar.com and the Company�s website www.pebcreek.com within 45 days of this news release.
Prior to the Company�s 2010 drilling program, drilling at the Askot project had been conducted on a segment of the deposit south of a post-mineral �boundary� fault that apparently cut off the deposit. Tunnelling and drilling attempts to find an offset extension of mineralization north of the fault had been unsuccessful until the 2010 drilling program, which concentrated on the prospective extension north of the fault. A drill station was located in a valley on the footwall (underlying) side of the steeply dipping structure, instead of on the high mountain on the hanging wall (overlying) side. From one location four holes were drilled in various directions and inclined approximately minus 60 degrees. A downhole directional motor was used to curve the holes to a minus 30 degree inclination sufficient to intersect the prospective target beds at a strong angle.
Hole 10AA019A intersected the extension 160 metres deeper than prior holes south of the fault. The entire prospective northern target is more than 340 metres along strike and more than 600 metres vertically.
Directional drilling from the footwall side of the mineralized beds will be used in the next drilling program, which will focus on deep drilling on both the south and the north sides of the offsetting fault.
|
201 �304 Columbia Street
New Westminster, BC, Canada V3L 1A6
Tel. +1 604 529 9076
Fax +1 604 529 9064
Email info@pebcreek.com
Web site www.pebcreek.com
TSXV Symbol: PEB
This news release contains forward-looking statements that address future events and conditions and are subject to various risks and uncertainties. The Company�s actual results, programs and financial position could differ materially from those anticipated in such forward-looking statements as a result of numerous factors, some of which may be beyond the Company�s control. These factors include: the availability of funds; the timing and content of work programs; results of exploration activities and development of mineral properties, the interpretation of drilling results and other geological data, the uncertainties of resource and reserve estimations, receipt and security of mineral property titles; project cost overruns or unanticipated costs and expenses, fluctuations in commodity prices; currency fluctuations; and general market and industry conditions.
Forward-looking statements are based on the expectations and opinions of the Company�s management on the date the statements are made. The assumptions used in the preparation of such statements, although considered reasonable at the time of preparation, may prove to be imprecise and, as such, undue reliance should not be placed on forward-looking statements.
Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release. |