|
|
Quaterra Resources Inc. (TSX VENTURE:QTA - News; NYSE Amex:QMM)
today announced that Tetra Tech Inc. of Golden, Colorado, has completed an updated
NI43-101 compliant independent resource estimate for its 100%-owned MacArthur
Copper Project near Yerington, Lyon County, Nevada.
MacArthur's base case measured and
indicated oxide/chalcocite resource of 143.7 million tons averaging 0.192%
TCu contains 551.6 million pounds of copper. An inferred oxide/chalcocite
resource of 215.0 million tons averaging 0.197% TCu contains 846.8 million
pounds of copper. An inferred primary sulfide resource of 74.1 million tons
averaging 0.256% TCu contains 379.5 million pounds of copper.
The Tetra Tech report indicates that
there is potential for developing additional mineral resources at MacArthur
adjacent to the current drill-hole pattern.
The updated resource is based on an
additional 42,579 feet of exploration drilling and sampling conducted by
Quaterra during 2009 and 2010. Also, to reflect a more than doubling of
copper prices since the initial resource estimate was completed in January
2009, the base case cutoff grades for the leachable (oxide/chalcocite) and primary
sulfide resources have been lowered from 0.18% and 0.3% total copper (TCu)
respectively to 0.12% and 0.15% TCu.
"This study shows that MacArthur is
an extremely large, low-grade deposit that remains open to expansion,"
says Eugene Spiering, Quaterra's VP Exploration. "The shallow
mineralization and favorable topography, combined with available water, well
developed infrastructure and strong copper prices are factors that could lead
to the development of a robust, near-term heap leach operation. We will
evaluate the probability of such an outcome during 2011."
A summary of measured,
indicated and inferred resources at various cutoff grades is shown in Tables
1-4 at the end of this news release.
Discussion.
Since the February 17, 2009 NI43-101
Technical Report ("MacArthur Copper Project, NI 43-101 Technical Report,
Lyon County, Nevada, U.S.A."), the Company has completed an additional
75 drill holes totaling 42,579 feet. Approximately half the holes were to
infill gaps in coverage and half were to extend mineralization beyond
previously known limits.
The infill drilling was successful in
significantly increasing the measured copper resource. At the previous cutoff
grade of 0.18%, both tons and contained pounds of copper more than doubled,
from 14.2 million tons averaging 0.261% TCu copper and containing 74.0
million pounds of copper to 30.9 million tons averaging 0.245% TCu copper and
containing 151.7 million pounds of copper. At the base case cutoff grades of
0.12%, the measured copper resource rose to 48.3 million tons averaging
0.213% TCu copper and containing 205.4 million pounds of copper.
At a 0.18% cutoff, the tons and
contained pounds of indicated copper resource actually show a decrease of
about 18% and 16% respectively due to the transfer of mineralization from the
indicated into the measured category. However, at the current base case
cutoff grade, the indicated resource of 95.4 million tons averaging 0.181%
TCu contains 346.1 million pounds of copper.
Step-out drilling around the edges of
the mineralized zone on 500-foot centers encountered abundant low-grade acid
soluble copper. The current inferred copper resource at a cutoff grade of
0.18% is about 12% larger than the previous calculation (84.7 million tons at
a grade of 0.277% TCu containing 469.3 million pounds of copper), but
increases substantially at the current base cutoff grade of 0.12% to 215.0
million tons averaging 0.197% TCu and containing 846.8 million pounds of
copper.
The step-out drilling also encountered
intercepts of primary porphyry copper-type mineralization along the northern
fence of holes, which may represent the fringe of a major copper deposit to
the north.
The resources quoted in the tables below
are based on a three-year average copper price of US$3.03 per pound. For the
leachable, SX/EW recoverable resources a base case cutoff grade of 0.12% TCu
has been applied. For the sulfide resources that would be recoverable by
conventional flotation methods, a base case cutoff grade of 0.15% TCu has
been applied. These cutoff grades have been developed based on average mining
costs for similar sized operations and from cost estimation services, using a
metallurgical recovery of 90% of the oxide copper grades for the SX/EW
material and a metallurgical recovery of 88% for the conventional flotation
material, and a smelter charge of US$0.50 per pound for processing
conventional flotation concentrates.
The 2009 drill-hole database contained
450 drill-holes from both Quaterra and prior companies. The 2010 drilling
added 8,547 copper assays to the 26,554 existing copper assays that were used
in the 2009 report. The 2010 updated resource model used the same kriged
estimation parameters as were developed and reported in the 2009 technical
report, with the exception of:
1. The physical dimensions of the block model were increased to include the
new drilling. The 2010 model contains 512 blocks in the x-direction, 400
in the y-direction and 150 levels. The block size utilized was 25x25x20
feet.
2. The interpretation of the mineralized zones for the oxide, mixed
(transition) and sulfide mineralization were updated based on the 2010
information.
3. Finally, slight modifications to the search parameters for the inferred
class were also made.
Quaterra has commissioned Tetra Tech to
prepare a Canadian National Instrument 43-101 (NI43-101)
compliant Technical Report for the MacArthur Copper Project. The Tetra
Tech resource estimate for the project is included with a description of the
project history, geology, mineralization, sampling procedures, and laboratory
Quality Assurance/Quality Control procedures. The NI43-101 Technical Report
will be filed within 45 days of the date of this release. This report will be
available at www.sedar.com.
The Qualified Person for the MacArthur Copper Project resource estimate, the
technical report and this news release is Mr. John W. Rozelle, P.G.,
Principal Geologist for Tetra Tech, Golden Colorado.
For a complete table of MacArthur drill hole intercepts and project maps, please visit the
company's website.
Quaterra Resources Inc. is a junior
exploration company focused on making significant mineral discoveries in
North America. The company uses in-house expertise and its extensive network
of consultants, prospectors and industry contacts to identify,
acquire and evaluate prospects in mining-friendly jurisdictions with the
potential to host large base metal, precious metal or uranium deposits. The
company's preference is to acquire a 100% interest in properties on
reasonable terms and maintain this interest through initial evaluation.
On behalf of the Board of Directors,
Thomas Patton, President and CEO,
Quaterra Resources Inc.
Disclosure note
The results of the Tetra Tech resource
estimate have been reviewed by Quaterra technical staff. The Company believes
that the Tetra Tech resource estimate for the MacArthur Copper Project was
conducted in a professional and competent manner. Inferred resources are
resources that have not been defined in sufficient detail to be characterized
as Measured or Indicated resources. Mineral resources have not had economic
considerations applied to them and are therefore not characterized as
Reserves.
The mining terms "indicated
resource" and "inferred resource" are used in this news
release in accordance with Canadian regulations but are not recognized by the
United States Securities and Exchange Commission. For clarification, the
Company has no properties that contain "reserves" as defined by the
SEC and is providing the forgoing, in part, in order to meet its requirements
under National Instrument 43-101 adopted by the BC Securities Commission and
the Canadian Securities Administrators.
Some statements contained in this news
release are forward-looking statements within the safe harbor of the Private
Securities Litigation Reform Act of 1995. These statements generally are
identified by words such as the Company "believes",
"expects", and similar language, or convey estimates and statements
that describe the Company's future plans, objectives or goals. Since
forward-looking statements are based on assumptions and address future events
and conditions, by their very nature they involve inherent risks and
uncertainties. Further information regarding risks and uncertainties which
may cause results to differ materially from those projected in
forward-looking statements, are included in filings by the Company with
securities regulatory authorities. Readers are cautioned not to place undue
reliance on forward-looking statements, which speak only as of the date
thereof. The Company does not undertake to update any forward-looking
statement that may be made from time to time except in accordance with
applicable securities laws. References may be made in this press release to
historic mineral resource estimates. None of these are NI 43-101 compliant
and a qualified person has not done sufficient work to classify these
historic estimates as a current mineral resource. They should not be relied
upon and Quaterra does not treat them as current mineral resources.
Expanded information on the Company's
projects is described on our website at www.quaterra.com.
-------------------------------------------------------------------------
-------------------------------------------------------------------------
TABLE 1
MACARTHUR COPPER PROJECT -YERINGTON, NEVADA
MEASURED COPPER RESOURCES
December 2010
-------------------------------------------------------------------------
Cutoff Average Contained
Grade Tons Grade Copper
%TCu (x1000) %TCu (lbs x 1000)
-------------------------------------------------------------------------
Oxide and Chalcocite Material 0.50 381 0.584 4,452
(MinZone 10 and 20) -------------------------------------------
0.40 1,232 0.485 11,938
-------------------------------------------
0.35 2,299 0.433 19,896
-------------------------------------------
0.30 4,463 0.379 33,821
-------------------------------------------
0.25 9,899 0.320 63,294
-------------------------------------------
0.20 23,365 0.263 122,947
-------------------------------------------
0.18 30,914 0.245 151,664
-------------------------------------------
0.15 41,544 0.225 186,865
-------------------------------------------
0.12 48,337 0.213 205,432
-------------------------------------------------------------------------
Primary Material 0.50 N/A N/A N/A
(MinZone 30) -------------------------------------------
0.40
----
0.35
----
0.30
----
0.25
----
0.20
----
0.18
----
0.15
-------------------------------------------------------------------------
-------------------------------------------------------------------------
-------------------------------------------------------------------------
-------------------------------------------------------------------------
TABLE 2
MACARTHUR COPPER PROJECT -YERINGTON, NEVADA
INDICATED COPPER RESOURCES
December 2010
-------------------------------------------------------------------------
Cutoff Average Contained
Grade Tons Grade Copper
%TCu (x1000) %TCu (lbs x 1000)
-------------------------------------------------------------------------
Oxide and Chalcocite Material 0.50 797 0.620 9,886
(MinZone 10 and 20) -------------------------------------------
0.40 1,659 0.530 17,575
-------------------------------------------
0.35 2,386 0.482 23,006
-------------------------------------------
0.30 3,766 0.423 31,845
-------------------------------------------
0.25 7,777 0.344 53,521
-------------------------------------------
0.20 22,661 0.263 118,970
-------------------------------------------
0.18 35,409 0.236 167,272
-------------------------------------------
0.15 64,173 0.204 261,697
-------------------------------------------
0.12 95,384 0.181 346,053
-------------------------------------------------------------------------
Primary Material 0.50 6 0.577 69
(MinZone 30) -------------------------------------------
0.40 19 0.486 185
-------------------------------------------
0.35 38 0.428 325
-------------------------------------------
0.30 164 0.350 1,146
-------------------------------------------
0.25 353 0.309 2,179
-------------------------------------------
0.20 639 0.269 3,443
-------------------------------------------
0.18 1,046 0.238 4,987
-------------------------------------------
0.15 1,448 0.218 6,325
-------------------------------------------------------------------------
-------------------------------------------------------------------------
-------------------------------------------------------------------------
-------------------------------------------------------------------------
TABLE 3
MACARTHUR COPPER PROJECT -YERINGTON, NEVADA
MEASURED+INDICATED COPPER RESOURCES
December 2010
-------------------------------------------------------------------------
Cutoff Average Contained
Grade Tons Grade Copper
%TCu (x1000) %TCu (lbs x 1000)
-------------------------------------------------------------------------
Oxide and Chalcocite Material 0.50 1,178 0.609 14,339
(MinZone 10 and 20) -------------------------------------------
0.40 2,891 0.510 29,511
-------------------------------------------
0.35 4,684 0.458 42,896
-------------------------------------------
0.30 8,229 0.399 65,667
-------------------------------------------
0.25 17,676 0.330 116,803
-------------------------------------------
0.20 46,027 0.263 241,918
-------------------------------------------
0.18 66,323 0.240 318,881
-------------------------------------------
0.15 105,717 0.212 448,663
-------------------------------------------
0.12 143,721 0.192 551,601
-------------------------------------------------------------------------
Primary Material 0.50 6 0.577 69
(MinZone 30) -------------------------------------------
0.40 19 0.486 185
-------------------------------------------
0.35 38 0.428 325
-------------------------------------------
0.30 164 0.350 1,146
-------------------------------------------
0.25 353 0.309 2,179
-------------------------------------------
0.20 639 0.269 3,443
-------------------------------------------
0.18 1,046 0.238 4,987
-------------------------------------------
0.15 1,448 0.218 6,325
-------------------------------------------------------------------------
-------------------------------------------------------------------------
-------------------------------------------------------------------------
-------------------------------------------------------------------------
TABLE 4
MACARTHUR COPPER PROJECT -YERINGTON, NEVADA
INFERRED COPPER RESOURCES
December 2010
-------------------------------------------------------------------------
Cutoff Average Contained
Grade Tons Grade Copper
%TCu (x1000) %TCu (lbs x 1000)
-------------------------------------------------------------------------
Oxide and Chalcocite Material 0.50 4,967 0.820 81,479
(MinZone 10 and 20) -------------------------------------------
0.40 7,894 0.680 107,406
-------------------------------------------
0.35 10,776 0.598 128,773
-------------------------------------------
0.30 17,312 0.494 170,939
-------------------------------------------
0.25 30,740 0.397 243,953
-------------------------------------------
0.20 63,538 0.306 389,234
-------------------------------------------
0.18 84,685 0.277 469,155
-------------------------------------------
0.15 132,829 0.236 626,953
-------------------------------------------
0.12 215,043 0.197 846,839
-------------------------------------------------------------------------
Primary Material 0.50 6,482 0.564 73,143
(MinZone 30) -------------------------------------------
0.40 10,044 0.524 105,181
-------------------------------------------
0.35 10,904 0.512 111,657
-------------------------------------------
0.30 13,969 0.469 130,890
-------------------------------------------
0.25 28,347 0.370 209,995
-------------------------------------------
0.20 39,476 0.328 259,120
-------------------------------------------
0.18 51,363 0.297 304,685
-------------------------------------------
0.15 74,090 0.256 379,489
-------------------------------------------------------------------------
The TSX Venture Exchange and the
American Stock Exchange have not reviewed and do not accept responsibility
for the adequacy or accuracy of the contents of this news release, which has
been prepared by management.
|
|