Coast Copper Signs MOU with five other Companies to Study Viability of Hub and Spoke Mill Complex at a Permitted Site at
Coast Copper Signs MOU with five other
Companies to Study Viability of Hub and
Spoke Mill Complex at a Permitted Site at
Kitsault, BC
TSX. V: COCO
VANCOUVER, BC
,
March 21, 2023
/CNW/ -
Coast Copper Corp. ("Coast Copper"
or the
"Company")
(TSXV: COCO) is pleased to announce that it has signed a Memorandum of
Understanding ("
MOU
") with BWCG Holdings Ltd., Blackwolf Copper & Gold Ltd. (TSXV: BWCG),
Dolly Varden Silver Corp. (TSXV: DV) (OTC: DOLLF), New Moly LLC. and Goliath Resources Ltd.
(TSXV: GOT) (OTCQB: GOTRF) (Frankfurt: B41F) (collectively, the "
Companies
"), to jointly study
the viability of using New Moly LLC's Kitsault project ("
Kitsault
" or the "
Project
") as the potential
site for a centralized polymetallic processing facility that could accept mineralized material from the
Companies' respective deposits ("
Kitsault Polymetallic Mill
"), working as a hub and spoke mill.
MOU
The proposed site at Kitsault previously hosted a molybdenum mine. Within the past decade, Kitsault
received Canadian Federal and Provincial Permits and given the buoyant molybdenum market, New
Moly LLC is now considering funding requirements to restart a larger scale project. The Project is in
northern
British Columbia
, approximately 140 kilometers north of
Prince Rupert
. The Project is
located on the BC Hydro grid, has road access to the Nass Valley as well as tidewater access. The
Kitsault Polymetallic Mill concept may assist to enhance and de-risk the potential restart of Kitsault.
The Companies have engaged Fuse Advisors Inc. ("
Fuse Advisors
") to complete an initial
assessment of the technical viability of the Kitsault Polymetallic Mill concept. By reviewing the
respective metallurgical test work completed at the various deposits, Fuse Advisors will assess the
potential for blending or batching mineralized material, potential process flowsheets, potential
throughputs from the various deposits and associated mill sizing and timelines.
Adam Travis
, Coast Copper's CEO comments
:
"We are very pleased to have been included in the
study of the Kitsault Polymetallic Mill. This could greatly increase synergies between the
Companies, reduce respective capital costs as well as reduce permitting timelines and risks by
using a permitted site location. Coast Copper is looking at this assessment as a viable option if
and when our optioned Empire Mine property ever gets to the point of production."
"
Nisga'a Lisims Government has had initial discussions with Blackwolf on the concept of a hub and
spoke mill at the site of the Kitsault Project. We look forward to further consultation on this and
other natural resource opportunities within the Nass Area which is subject to the Nisga'a Final
Agreement where we have constitutionally protected title and rights
" said
Charles Morven
,
Secretary-Treasurer for Nisga'a Lisims Government.
The Companies will jointly share the costs of this assessment. Fuse Advisors is a
Vancouver
based
consultancy group that provides project management and technical advisory services to development
stage companies in the resource sector.
Empire Mine Property
The Empire Mine Property (the "
Property
") was optioned by Coast Copper in
September 2020
.
Coast Copper can purchase a 100% interest in the Property by making staged cash and share
payments. The Property covers 23 mineral occurrences, including 3 past producing open pit and two
underground past producing mines for magnetite, copper, gold and silver.
The Merry Widow deposit has a National Instrument 43-101 Historical measured and indicated
resource of
960,000 tonnes at 2.03 g/t gold, 5.64 g/t silver, 0.34% copper, 0.023% cobalt and
16.1% iron (0.50 g/t gold cut off)
2
which was completed
November 2008
by
Gary Giroux
.
Historical records and maps from Cominco Ltd. In 1972, indicate the Benson Lake Mine
hosts
454,500 tonnes at 0.59 g/t Au and 1.3% Cu classified as "measured and indicated" and
a further 2,700,000 tonnes at 1.7% Cu
(no Au grade estimated) to the 2100 level as of
December
31, 1972
classified as "inferred"
3
.
On
January 18, 2023
Coast Copper announced it had updated its geological model based on
historical work, Coast Copper's drilling and surface work as well as work completed by Dr.
Jim
Oliver
. The new model highlights the potential for significant copper-gold-iron mineralization to
continue adjacent to and up to
500 m
in elevation below the Merry Widow Pit mineralization, as well
as continuing along the trend of these regional features and down dip towards the Benson Lake
Mine. The stacked thrust model is consistent with both local and regional observations and
correlates well with copper-gold-iron mineralization recorded in drill core and historical observations
from underground. Surface geological observations and mapping, ore mineral occurrences,
underground workings and drillhole data also indicate that these thrust horizons and associated
mineralization occur along strike over a 5 km northerly trend.
The model indicates potential for multiple, near-surface targets between the Merry Widow open pit
and the Benson Lake underground. Our understanding of these controls and their relationship with
intersecting structures will prove invaluable in guiding future drill programs.
For more information about these companies please visit their websites at:
Blackwolf Copper & Gold Ltd.
Dolly Varden Silver Corp.
New Moly LLC.
Goliath Resources Ltd.
Qualified Persons
The technical information contained in this news release has been prepared, reviewed and approved
by
Wade Barnes
, P.Geo. (BC), Coast Copper's geological consultant and a Qualified Person within
the context of Canadian Securities Administrators' National Instrument 43-101; Standards of
Disclosure for Mineral Projects.
About Coast Copper Corp.
Coast Copper's exploration focus is the optioned Empire Mine property, located on northern
Vancouver Island,
British Columbia
, which covers three historical open pit mines and two past-
producing underground mines that yielded iron, copper, gold and silver. Coast Copper's other
properties include its 100% owned Knob Hill NW Property located on northern Vancouver Island, its
Home Brew and Shovelnose South Properties in central B.C., and its Scottie West Property located
in the "Golden Triangle" of northern B.C. Coast Copper's management team continues to review
precious and base metals opportunities in western
North America
.
On Behalf of the Board of Directors:
"Adam Travis"
Adam Travis
, Chief Executive Officer and Director
Cautionary Notes Related to this news release and/or maps
1
.
Adjacent Properties: This news release may contain information about adjacent properties on
which Coast Copper Corp has no right to explore or mine. Investors are cautioned that mineral
deposits on adjacent properties are no indicative of mineral deposits on the Company's
properties.
2
.
NI 43-101 Technical Report: Giroux, G.H., & Raven, W. (
November 30, 2008
). Technical Report
on the Copper Gold Resources for the Merry Widow Property. Filed on SEDAR
January 22,
2009
. The 2008 Grand Portage resource estimate was completed by
Gary H. Giroux
, P.Eng,
MASc, of Giroux Consulting Ltd. in
Vancouver, B.C.
The estimate was based on a 3D
geological model integrating 4,448 metres of diamond drilling of 43 drill holes, 2,290 assays,
with 104 down-hole surveys collected between June and
December 2006
. The resource was
reported utilizing gold cut-off grades ranging from 0.10 g/t to 3.00 g/t gold, as more particularly
set out in the report. A complete copy of the report is available on Grand Portage's public filings
on SEDAR (
www.sedar.com
). A gold cut-off grade of 0.50 g/t gold was selected as
representing one possible mining scenario. For the purposes of the calculations, lognormal
cumulative frequency plots were used to assess grade distribution to see if capping of high
values was required and if so at what levels. For all elements, capping levels were established
based on the individual grade distributions as follows: Gold -- a total of 18 gold assays were
capped at 32.0 g/t gold, Silver --a total of 9 silver assays were capped at 165 g/t silver, Copper
-- a total of 7 assays were capped at 11.7% copper, Cobalt -- a total of 5 assays were capped
at 0.48% cobalt, Iron -- all iron assays were capped at 50% iron (the analytical detection limit).
3
.
Cominco Resources, Drill Section Maps "Plan of Cominco's Benson Lake Operations on Empire
Claims Showing Ore Reserves & Proposed Exploration Program", 1970, Private Files. While
Coast Copper notes that Cominco's historical results are not NI 43-101 compliant and have not
been verified by the Company's QP, these combined historical resources total nearly 3.154
million tonnes and will help guide Coast Copper's exploration programs
Neither the 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.
CAUTIONARY STATEMENT REGARDING FORWARD-LOOKING INFORMATION
Certain information contained or incorporated by reference in this press release, including any
information regarding the proposed Transaction, private placement, board and management
changes, as to our strategy, projects, plans or future financial or operating performance,
constitutes "forward-looking statements." All statements, other than statements of historical fact,
are to be considered forward-looking statements. Forward-looking statements are necessarily
based on a number of estimates and assumptions that, while considered reasonable by Coast
Copper, are inherently subject to significant business, economic, geological and competitive
uncertainties and contingencies. Although Coast Copper believes the expectations expressed in
such forward-looking statements are based on reasonable assumptions, such statements are not
guarantees of future performance. Known and unknown factors could cause actual results to differ
materially from those projected in the forward-looking statements. Such factors include but are not
limited to: fluctuations in market prices, exploration and exploitation successes, continued
availability of capital and financing, changes in national and local government legislation, taxation,
controls, regulations, expropriation or nationalization of property and general political, economic,
market or business conditions. Many of these uncertainties and contingencies can affect our actual
results and could cause actual results to differ materially from those expressed or implied in any
forward-looking statements made by, or on behalf of, us. Readers are cautioned that forward-
looking statements are not guarantees of future performance and, therefore, readers are advised
to rely on their own evaluation of such uncertainties. All of the forward-looking statements made in
this press release, or incorporated by reference, are qualified by these cautionary statements. We
do not assume any obligation to update any forward-looking statements.
SOURCE
Coast Copper Corp.
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http://www.newswire.ca/en/releases/archive/March2023/21/c1445.html
%SEDAR: 00032945E
For further information:
Adam Travis, CEO, Coast Copper Corp., 409 Granville Street, Suite 904,
Vancouver, B.C. V6C 1T2, Canada, P: 877-578-9563, E: [email protected]; NR23-04
CO: Coast Copper Corp.
CNW 08:15e 21-MAR-23