Canyon Copper Enters Into Option Agreement to Acquire Bootleg Lake Gold Property
TSXV: CNC
Suite 408 – 1199 West Pender Street • Vancouver, B.C. • V6E 2R1
TEL (604) 331-9326 • FAX (604) 684-9365
Canyon Copper Enters Into Option Agreement
to Acquire Bootleg Lake Gold Property
Bootleg Lake project hosts three past producing Gold Mines
All three past producing mines have historic estimates
Bootleg Rio deposit with historical estimate of 183,871 tons @ 0.35 oz/t
Excellent infrastructu re approximately 5 kilometres from Flin Flon
Vancouver, British Columbia, May 11, 2017 - Canyon Copper Corp. ("Canyon") (TSX-V: CNC) is
pleased to announce that it has entered into an option agreement ("Option Agreement") with New Moon
Minerals Corp. a private company, to earn up to a 75% interest in the Bootleg Lake Gold Property (the
“Property” or “Bootleg Lake”) located near Creighton, Saskatchewan, Canada, five kilometres southwest
of the city of Flin Flon, Manitoba.
The Property consists of 4 contiguous claims totalling 867 hectares hosting three past producing gold
mines, the Bootleg/Rio Mine, the Henning Maloney Mine and the Newcor Gold Mine. All three of these
deposits have historical estimates calculated by Vista Mine Inc. in the mid 1980’s. (See table below.) In
addition to the known deposits there are a number of additional gold and copper occurrences on the
claims including possibly mineralized tailings from previous production at the Bootleg/Rio mine.
Stephen Wallace, President and CEO of Canyon stated, “With multiple high grade gold targets including
historical estimates and within minutes’ drive of the mining centre of Flin Flon, Manitoba, Bootleg Lake
represents a high quality prospect with low cost exploration.”
Historical Estimates of Bootleg Lake deposits
Deposit Category Tons Tonnes Oz/ton Grams/tonne
reported calculated reported calculated
Bootleg (Rio) Reserves 183,871 166,800 0.35 12.0
Henning Maloney Proven 15,000 13,600 0.45 15.4
Possible 43,000 39,000 0.16 to 0.32 5.5 to 11.0
Newcor Proven 42,500 38,600 0.31 10.6
Probable 156,000 141,500 0.31 10.6
1) All historical estimates above were prepared by Vista Mines Inc, in 1983 through 1987.
2) Note the historical estimate used the terms historical reserves, historical proven and possible
reserves and historical proven and probable reserves were prepared before the introduction of
National Instrument 43-101-Standards of Disclosure for Mineral Projects These historical estimates
are considered relevant as the Company uses historical reports to evaluate historic mines as a guide
to plan future exploration programs. The assumption, parameters and methods used to calculate
these historical resource estimates are not known to the Company. The qualified person has not
made any attempt to re-classify the estimates according to current NI 43-101 standards and CIM
definitions. In order for these resources to be current, the Company will be required to conduct
additional drilling on the Bootleg Property. The Company is not treating this estimate as current
mineral resources or mineral reserves as defined in NI 43-101. Although the historical resource
estimate was designated as “reserves”, it cannot be compared to current mineral reserves as it is not
supported by at least a current pre-feasibility study.
3) Data source - ASSESSMENT REPORT ON THE 2014 DIAMOND DRILLING PROGRAM, CREIGHTON
PROPERTY DOUGLAS, BOOTLEG, PHANTOM AND WEKACH LAKE AREAS LARONGE MINING
DISTRICT CREIGHTON, SASKATCHEWAN, by NEW MOON MINERALS CORPORATION by Anthony
Spooner, P. Geo., Flin Flon, MB, August 31, 2016.
Figure 1 Bootleg Lake Gold Project location map
Option Agreement Terms
Under the terms of the Option Agreement, Canyon has the option to acquire up to a 75% interest in
Bootleg Lake by making the following cash payments, share issuances and exploration expenditures:
1) Cash payment of $5,000 upon signing of agreement
2) Cash payment of $5,000 and issuing 250,000 shares within 5 days of the date of TSX Venture
Exchange (the “TSXV”) acceptance.
3) Canyon will earn a 51% upon completing the following
Cash payment of $40,000 and issuing 250,000 shares before June 30 th , 2018;
Cash payment of $50,000 and issuing 500,000 shares before June 30 th , 2019;
Incurring initial exploration expenditures of $100,000 before December 31, 2018, and incurring
further exploration expenditures of $150,000 before December 31, 2019, for a cumulative total of
$250,000 of exploration expenditures.
4) Canyon will earn a 75% upon completing the following
Cash payment of $50,000 and issuing 500,000 shares before June 30th , 2020;
Cash payment of $100,000 and issuing 500,000 shares before June 30th , 2021;
Incurring additional exploration expenditures of $200,000 before December 31, 2020, and
incurring further exploration expenditures of $300,000 before December 31, 2021, for a cumulative
total of $750,000 of exploration expenditures.
Canyon can at its option accelerate the cash pay ments and common shares issuances described above.
Any excess exploration expenditures incurred on the Property within an earn-in time period will be
credited to successive earn-in time periods. All co mmon share issuances by Canyon will be subject to a
4-month hold period as per Canadian securities law.
Under the terms of the Option Agreement, Canyon will pay a 1.0 % Net Smelter Return royalty (the
“NSR”) to New Moon Minerals Corp. on commencement of commercial production. Canyon will have the
right, at any time, to purchase 0.5 % of the 1.0% NSR for $500,000. There is an existing 1% NSR in
favour of the underlying vendor.
The Option Agreement and the transactions contemplated are subject to acceptance of the TSXV.
Bootleg Lake Project Portfolio
Bootleg Mine / Rio Deposit
During the period between 1931 and 1940 Henning-Maloney Gold Mines sunk a shaft to 50m, and during
1940-41 several ore shipments were made. One 352 ton (319 tonne) shipment is reported to have
returned 331 oz. (10,295g) Au. Surface exploration continued by several companies between 1940’s and
1980 with various drilling and geophysics programs
In 1980, Flin Flon Mines Ltd. took over the project conducting a 46 hole diamond drill program totaling
11,352m which included results of 38.28 g/t gold over 4.2 metres in drill hole R12-80 and 14.11 g/t gold
over 1.7 metres in drill hole R21-80.
In fall 1982 Flin Flon Mines Ltd. undertook underground development on the Rio (Bootleg) deposit
consisting of a ramp decline to a depth of 350 ft. (106.7m). Flin Flon Mines purchased a 300 ton per day
mill and planned on using mined material from the Rio and Henning Maloney deposits, with subsequent
mined material from the Newcor deposit.
Start-up was postponed until early 1984 due to te chnical problems but opened by mid-1984. The mine
closed just three months after start up after experiencing lower than forecast recovery rates. The mine
went into receivership, and Vista Mines Inc. (“Vista”) gained possession of the property soon after.
In 1986 through 1988 Vista carried out a three phase exploration program, including surface sampling,
geophysics, surface and underground drilling. A decline was started in July 1987 to enable Vista to
explore the lower mine levels and to allow further drilling to update the reserves.
Early in 1988, Vista reported encouraging test mill results from a 20,000 ton bulk sample that was taken
from various levels down to the 400 ft (121.9m) level. The grade of the sample is reported to have
averaged 0.12 oz/ton gold (4.11 g/t), which was too low to warrant production at that time.
The project area was dormant until acquisition by New Moon Minerals Corp. in 2010.
Henning-Maloney Deposit
Between 1933 and 1941 Henning Maloney Gold Mines Limited sank a shaft to 49.3m. In 1940 several ore
shipments were made to the Flin Flon smelter from a stope above the 15.2m level. In 1941 the mine was
closed.
Surface exploration by several companies continued between 1960 and 1980 with various drilling and
geophysics programs which included a 10 hole diamond drill program totaling 448m carried out by Central
Manitoba Mines Ltd in 1964. This program tested along strike of the mineralized zone underlying the shaft
at shallow depth for approximately 110m in a northeasterly direction. Significant results of this drill
program include 154.29 g/t gold over 0.5 metres in drill hole 9-64 and 11.65 g/t gold over 1.0 metres in
drill hole 5-64.
Vista took the project over in the early 1980’s as part of the Rio Deposit development. Vista published the
latest historical estimates for the Henning-Maloney in 1983, shown in table above.
Newcor Deposit
The Newcor Deposit situated along the eastern shore of Douglas Lake was originally staked in 1933 with
a program of trenching and drilling carried out during the next two years. In 1935 Flin Flon Gold Mines
Ltd. commenced shaft sinking and underground development consisting of a 140m inclined, two-
compartment shaft, with levels at 38m, 69m, 99m and 134m, as well as 1,070m of drifting and raising, and
considerable underground drilling.
In 1936 a 6-ton bulk sample was shipped to the Department of Mines in Ottawa. It assayed 21.43 g/t Au,
30.17 g/t Ag, 4.08% Zn, 0.44% Cu and 22.65% As.
In 1943, after several changes of ownership, Newcor Mining and Refining Ltd. purchased the property,
rehabilitated the surface plant and dewatered the workings. A 200 ton-per-day mill and a 125 ton-per-day
roasting plant were built between 1943 and 1947. The mine operated for part of 1947 and produced an
unknown amount of gold.
Surface exploration continued by several companies between 1940’s and 1980’s with various trenching,
drilling and geophysics programs until acquired by Flin Flon Mines Ltd. in 1981. The most recent
historical estimates reported for the Newcor deposit were prepared by Vista Mines Ltd. in 1983 which are
shown in table above.
Data source for Bootleg Mine/ Rio deposit, Henning-Maloney Deposit and Newcor deposit is the
“ASSESSMENT REPORT ON THE 2014 DIAMOND DRI LLING PROGRAM, CREIGHTON PROPERTY
DOUGLAS, BOOTLEG, PHANTOM AND WEKACH LAKE AREAS LARONGE MINING DISTRICT
CREIGHTON, SASKATCHEWAN, by NEW MOON MINE RALS CORPORATION by Anthony Spooner, P.
Geo., Flin Flon, MB, August 31, 2016.”
Figure 2: Detailed location map
Planned Exploration
Canyon plans to begin exploration in the near term with a detailed compilation of existing information
followed by prospecting and geological mapping during the 2017 summer field season. A detailed
geophysical survey is planned for the Bootleg Mine area to determine the shape and plunge of
mineralization. Based on this work a diamond drill program will be outlined.
Qualified Person
Andrew Gracie PhD PGeo is the Company's designated Qualified Person within the meaning of National
Instrument 43-101 and has reviewed and approved the technical information contained in this news
release.
On behalf of the Board of Directors,
“Stephen Wallace”
CANYON COPPER CORP.
Stephen Wallace, President, CEO and Director
Contact: Canyon Copper Corp.
Investor Relations
(604) 331-9326
Cautionary Statement Regarding Forward Looking Information
This News Release may contain, in addition to historical information, forward-looki ng statements within the meaning of Section 27A of the
Securities Act of 1933, as amended, and section 21E of the Securities Exchange Act of 1934, as amended. These forward-looking statements are
identified by their use of terms and phases such as “believe,” “expect,” “plan,” “anticipate” and similar expressions identifying forward-looking
statements. Investors should not rely on forward-looking statemen ts because they are subject to a variety of risks, uncertainties and other factors
that could cause actual results to diffe r materially from Canyon's expectations, and expressly does not undertake any duty to u pdate forward-
looking statements. These factors include, but are not limited to the following, Canyon's ability to implement its proposed dri ll programs on the
Bootleg Project, Canyon’s ability to obtai n additional financing, uncertainty of esti mates of mineralized material and other fa ctors which may
cause the actual results, performance or achievements of Canyon to be materially diffe rent from any future results, performance or achievements
expressed or implied by such forward-looking statements.
Cautionary Note to U.S. Investors Regarding Estimates of Measured, Indicated and Inferred Resources
This News Release may use the terms “measured”, “indicated” and “inferred” “resources.” We advise U.S. investors that while these terms are
recognized and required by Canadian regulations , the SEC does not recognize them. “Inferred resources” have a great amount of uncertainty as
to their existence, and great uncertainty as to their economic and legal feasibility. It cannot be assumed that all or any part of an “inferred mineral
resource” will ever be upgraded to a higher category. Under Can adian rules, estates of “inferred mineral resources” may not form the basis of a
feasibility study or prefeasibility studies, except in rare cases. The SEC normall y only permits issuers to report mineralizat ion that does not
constitute “reserves” as in-place tonnage and grade, without reference to unit measures. U.S. investors are cautioned not to assume that any
part or all of a measured, indicated or inferred resource exists or is economically or legally mineable.
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POLICIES OF THE TSX VENTURE EXCHANGE) ACCEPTS R ESPONSIBILITY FOR THE ADEQUACY OR ACCURACY OF
THIS RELEASE.