Highland Copper Reports 46% Increase IN the Measured and Indicated Resource Categories FOR Its Copperwood Project, Michigan, USA
HIGHLAND COPPER REPORTS 46% INCREASE IN THE MEASURED AND
INDICATED RESOURCE CATEGORIES
FOR ITS COPPERWOOD PROJECT, MICHIGAN, USA
Longueuil, Canada, October 19, 2017. Highland Copper Company Inc. (TSXV: HI) (“ Highland”
or the “Company”) is pleased to announce an updated Mineral Resource estimate for its 100%-
owned Copperwood Project located in Gogebic County, in the western Upper Peninsula of
Michigan, U.S.A. (see Table 1 below).
Highlights:
• 46% increase in Measured and Indicated Resources at 1.5 billion pounds of c opper at
1% Cu cut-off grade
• Copper and silver resource grades largely unchanged
• Resource newly identified in the Upper Copper Bearing Sequence (UCBS) zone
• Mineralization remains open along strike and down dip;
• Conversion from Inferred to Indicated Resource categories was robust across the
deposit
The updated Mineral Resource estimate prepared by G Mining Services Inc . (“G Mining”), an
independent Canadian mining consulting firm, represents a 46% increase in Measured and Indicated
Resources compared to the previous resource estimate dated April 15 th, 2015. The new resource is
estimated at 42.5 million tonnes grading an average of 1.59% copper and 3.9 g/t silver containing
1.5 billion pounds of copper and 5.4 million ounces of silver in the Measured and Indicated Resource
category, using a cut -off grade of 1. 0% Cu. There were gains in all resource categories except in
the satellite zones. This will provide a solid base for the current update to the feasibility study that
is expected to be completed in the second quarter of 2018.
In May, Highland retained the services of G Mining as lead consultant for the preparation of an
update to the feasibility study (“FS update”) on the Copperwood project. G Mining used the results
of the 2017 drilling program to update the resource estimate that had been reported in the NI 43-101
technical report generated in 2015.
The 2017 drilling program consisted of 32 HQ-diameter and three PQ-diameter drill holes for a total
of 6,784 meters of core or approximately 74% of the planned 9,198 meters budgeted for the drilling
program. The program was designed to upgrade the current Inferred Mineral Resources at the eastern
section of the deposit, obtain metallurgical samples and carry out geotechnical studies to refine the
mining plan - all of these objectives were realized . Every drill hole intersected copper -silver
mineralization, as expected. The drilling provided 527 samples for copper and silver assaying and
607 kg taken for metallurgical testing.
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The current Mineral Resource estimate is based on 2,738 assay results from 359 diamond drill holes
totaling 66,577 meters, drilled by four companies between 1956 and 201 7. The conversion of
Indicated Resources into Measured Resources was robust in the zones drilled during 2017. Complete
results of the drilling program will be posted on the Company’s website. The Company anticipates
that, once the drilling program in the eastern section of the deposit is completed, most of the Inferred
Resources in the Copperwood LCBS (Lower Copper Bearing Sequence) will move in to the
Indicated Resource category.
Table 1 - Copperwood Project
Mineral Resource Estimate – October 18, 2017
Deposits Resource
Category
Tonnage
(Mt)
Copper
Grade
(%)
Silver
Grade
(g/t)
Copper
Contained
(M lbs)
Silver
Contained
(M oz)
Copperwood
LCBS
Measured 26.8 1.69 4.59 1,000 4.0
Indicated 11.6 1.50 2.68 383 1.0
M + I 38.4 1.63 4.02 1,383 5.0
Inferred 4.6 1.36 1.69 138 0.3
Copperwood
UCBS
Measured - - - - -
Indicated 4.1 1.19 3.33 107 0.4
M + I 4.1 1.19 3.33 107 0.4
Inferred 0.3 1.05 3.23 8 0.0
Satellite LCBS Inferred 33.2 1.21 2.37 885 2.5
Satellite UCBS Inferred 6.1 1.15 4.75 155 0.9
Notes on Mineral Resource Estimate
(1) Mineral Resources are reported using a copper price of US$ 3.00/lb and a silver price of US$ 18/oz.
(2) A payable rate of 96.5% for copper and 90% for silver was assumed
(3) The 2012 Copperwood feasibility study by Orvana Minerals Corp. reported metallurgical testing with recovery
of 86% for copper and 50% for silver
(4) Cut-off grade of 1.0% copper was used, based on an underground “room and pillar” mining scenario
(5) Operating costs are based on a processing plant located at the Copperwood site
(6) An NSR sliding scale royalty is applicable and equivalent to 3.0% at US$ 3.00/lb
(7) Measured, Indicated and Inferred Mineral Resources have a drill hole spacing of 175 m, 250 m, and 350 m,
respectively
(8) No mining dilution and mining loss were considered for the Mineral Resources
(9) Rock bulk densities are based on rock types
(10) Classification of Mineral Resources conforms to CIM definitions
(11) The qualified person for the estimate is Mr. Réjean Sirois, P. Eng, Vice President Geology and Re sources for
G Mining Services Inc. The estimate has an effective date of October 18, 2017
(12) Mineral Resources that are not Mineral Reserves do not have demonstrated economic viability. The estimate
of Mineral Resources may be ma terially affected by environmental, permitting, legal, title, taxation, socio -
political, marketing, or other relevant issues
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(13) LCBS : Lower Copper Bearing Sequence
(14) UCBS : Upper Copper Bearing Sequence
(15) The quantity and grade of reported Inferred Resources in this estimation are uncertain in nature and there has
been insufficient exploration to define these Inferred Resources as Indicated or Measured Mineral Resources.
The sensitivity of Inferred, Measured and Indica ted Resources to variations in cut -off grade is
represented below in Table 2.
Table 2 - Copperwood Project
Sensitivity by Cut-off Grades – October 18, 2017
Deposits
Cut-off
Grade
(% Cu)
Tonnage
(Mt)
Copper
Grade
(%)
Silver
Grade
(g/t)
Copper
Contained
(M lbs)
Silver
Contained
(M oz)
Copperwood
Measured &
Indicated
LCBS + UCBS
2.0% 6.8 2.34 6.32 350 1.4
1.5% 22.1 1.90 4.96 926 3.5
1.0% 42.5 1.59 3.95 1,490 5.4
0.8% 48.9 1.50 3.74 1,616 5.9
Copperwood
Inferred
LCBS + UCBS
2.0% 0.1 2.17 2.70 3 -
1.5% 1.4 1.67 2.49 52 0.1
1.0% 4.9 1.34 1.78 146 0.3
0.8% 11.4 1.08 1.63 270 0.6
Inferred
Satellite
LCBS + UCBS
2.0% 0.6 2.19 3.06 28 0.1
1.5% 2.7 1.79 3.14 107 0.3
1.0% 39.3 1.20 2.74 1,040 3.4
0.8% 89.8 1.03 3.49 2,040 10.1
Mineral Resource Estimate Methodology
The Mineral Resource estimate was based on a block model characterised by two separate copper-
bearing sequences, the Lower Copper Bearing Sequence (“LCBS”: including the Gray Laminated,
Red Massive, and Domino units), and the Upper Copper Bearing Sequence (“UCBS”). Individual
units within the LCBS were modelled and estimated separately according to the logged geological
units. Uncapped raw assays were composited into separate geological units (Domino, Red Massive
and Grey Laminated), with one composite per drill hole produced for each unit . For the UCBS, a
grade-based modelling approach was adopted where a single layer was modelled based on assays
greater than 1% Cu. This approach was applied due to a lack of historical logging and some
ambiguity regarding the UCBS position in the stratigraphy. Variography studies undertaken on each
geological unit highlighted strong continuity of copper and silver grades, with a low nugget effect
observed. A bulk density of 2.7 g/cm3 was applied to Domino and Red Massive uni ts, and 2.72
g/cm3 was applied to the Grey Laminated and UCBS units. Copper and silver grades were estimated
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using the ordinary kriging (OK) interpolation method in three successive passes, using ellipse ranges
of 175 m, 250 m, and 350 m. To address the currently accepted minimum mining height of 2 m,
copper and silver grades were diluted in areas where the LCBS is less than 2 m in height. Dilution
grades were derived from a grade estimation of the hanging wall sediments (Red Laminated unit ),
which was modelled as a 50 cm buffer zone situated directly above the LCBS.
To define resource categories, G Mining outlined groups of globally similar interpolation passes.
Measured Mineral Resources thus constitute the bulk of the mineral resources in the Copperwoo d
Deposit area and include blocks interpolated generally in the first pass. Indicated Mineral Resources
are located at the periphery of the measured category where blocks are generally interpolated in the
second pass. All other interpolated blocks are categorized in the Inferred Mineral Resource category,
including all blocks in the satellite deposits.
The comparison between the 2017 update and the previous 2015 estimate is presented in the Table
3 below. A gain is observed in all resources categories exc ept for the surrounding satellite LCBS,
which was not drilled in 2017 . That decrease is due to the transfer from Inferred to Indicated and
Measured Resource categories.
Table 3 - Copperwood Project
Comparison with April 2015 Estimate
Deposits Resource
Category
Tonnage
(Mt)
Copper
Contained
(M lbs)
Silver
Contained
(M oz)
Copperwood
LCBS
Measured + 4.3 + 139 + 0.3
Indicated + 5.0 + 183 + 0.5
M + I + 9.3 + 322 + 0.8
Inferred + 2.7 + 86 + 0.2
Copperwood
UCBS
Measured - - -
Indicated + 4.1 + 107 + 0.4
M + I + 4.1 + 107 + 0.4
Inferred + 0.3 + 8 + 0.0
Satellite LCBS Inferred - 5.4 - 165 - 0.1
Satellite UCBS Inferred + 6.1 + 155 + 0.9
Data Verification
The qualified person ( QP) responsible for the Mineral Resource estimates has supervised and
reviewed the available data used, including drill logs, assay certificates, down -hole surveys, and
additional supporting information sources. The QP is of the opinion that the drill hole database is in
good condition and could be used with confidence in the Mineral Resource estimate.
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Qualified Person
Réjean Sirois , P. Eng, Vice President of Geology and Resources for G Mining is the qualified
person, as defined in National Instrument 43 -101 - Standards of Disclosure for Mineral Projects
(“NI 43 -101”), responsible for the mineral resource estimates for the Copperwood Project as
reported herein. He has read and approved the technical portions of this news release.
Carlos H. Bertoni, P. Geo., Vice President, Exploration for Highland, is the qualified person for
2017 drilling program, which generated the data used for the Mineral Resource estimate.
G Mining is completing a NI 43-101 technical report for the mineral resource estimate , to be filed
on SEDAR within 45 days of this press release.
ABOUT HIGHLAND
Highland Copper Company Inc. is a Canadian exploration company focused on exploring and
developing copper projects in the Upper Peninsula of Michigan, U.S.A. The Company owns the
Copperwood deposit through long -term mineral leases. The Company also owns surface rights
securing access to the deposit and providing space for infrastructure as required. Highland is fully
financed to complete the Copperwood FS Update. It has 459,148,153 common shares issued and
outstanding. More information about the Company is available on the Company’s website at
www.highlandcopper.com and on SEDAR at www.sedar.com.
CAUTIONARY STATEMENT
This press release contains certain forward -looking statements within the meaning of applicable
Canadian securities legislation. All statements, other than statements of historical fact, including,
without limitation, statements relating to the mineral res ource estimate, the potential timing and
preparation of the FS Update on the Copperwood deposit and the potential upgrade of inferred
resources to measured and indicated category are forward -looking statements. These may also
include statements regarding perceived merit of properties; exploration plans and budgets; mineral
reserves and resource estimates; work programs; capital expenditures; timelines; strategic plans;
market prices for copper; or other statements that are not statements of fact. Forward -looking
statements involve various risks and uncertainties. There can be no assurance that such statements
will prove to be accurate, and actual results and future events could differ materially from those
anticipated in such statements. Important factors that could cause actual results to differ materially
from the Company's expectations include the uncertainties involving the need for additional
financing to develop properties and availability of financing in the debt and capital markets;
uncertainties involved in the interpretation of drilling results and geological tests and the estimation
of reserves and resources; the need for cooperation of government agencies and native groups in
the development and operation of properties; the need to obtain permits a nd governmental
approvals; risks of construction and mining projects such as accidents, equipment breakdowns, bad
weather, non-compliance with environmental and permit requirements, unanticipated variation in
geological structures, metal grades or recovery rates; unexpected cost increases, which could
include significant increases in estimated capital and operating costs; fluctuations in metal prices
and currency exchange rates. All forward-looking statements in this press release are based on
information a vailable to the Company as of the date hereof, and the Company undertakes no
obligation to update forward-looking statements except as required by law.
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Cautionary Note to United States Investors
Highland advises U.S. investors that this press release contains the terms "inferred“, "indicated"
and “measured” resources. All resource estimates have been prepared in accordance with National
Instrument 43-101 Standards of Disclosure for Mineral Projects ("NI 43 -101") and the Canadian
Institute of Mining, Me tallurgy, and Petroleum Definition Standards on Mineral Resources and
Mineral Reserves. NI 43-101 is a rule developed by the Canadian Securities Administrators which
establishes standards for all public disclosure an issuer makes of scientific and technica l
information concerning mineral projects. Canadian standards differ significantly from the
requirements of the United States Securities and Exchange Commission ("SEC"), and resource
information contained therein may not be comparable to similar informatio n disclosed by U.S.
companies. In particular, and without limiting the generality of the foregoing, the term "resource"
does not equate to the term "reserves". "Inferred resources" have a great amount of uncertainty as
to their existence, and great uncerta inty as to their economic and legal feasibility. It cannot be
assumed that all or any part of an "inferred resource" will ever be upgraded to a higher category.
U.S. investors are cautioned not to assume that all or part of an inferred resource exists, or is
economically or legally mineable. U.S. Investors are also cautioned not to assume that all or any
part of mineral deposits in the "measured" or "indicated" resource categories will ever be converted
into reserves.
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.
For further information, please contact:
Mr. Denis Miville-Deschênes, President & CEO
David Charles, Manager, Investor Relations
Tel: 1.450.677.2455
Email: [email protected]
Website: www.highlandcopper.com