Vancouver, British Columbia, July 13, 2004: Roca Mines Inc. ("Roca" or the "Company") announces assay results from its initial two-hole surface diamond drill program at the MAX Molybdenum Project (formerly the Trout Lake Deposit), located 50 km south of Revelstoke, British Columbia. Roca has a right to earn a 100% interest in the MAX project as described in news release ROK:TSX.V #2-04, dated January 28, 2004.
The deposit was previously the focus of extensive exploration work by Newmont Mining Corporation and Esso Minerals Canada Ltd. (the "Newmont/Esso JV") from 1976 to 1982. The bulk of that work consisted of underground adit and cross-cuts, and approximately 42,000m (138,000 ft) of surface and underground diamond drilling that provided the basis for the following historical molybdenite ("MoS2") resource estimates:
- 49 million tonnes grading 0.19% MoS2 at a 0.1% cutoff (Linnen et al, 1995);
- 48.7 million tonnes grading 0.193% MoS2 at a 0.1% cutoff (Boyle, 1989); including:
11.7 million tonnes grading 0.362% MoS2 at a 0.2% cutoff (Boyle, 1989); and
- 50 million tons grading 0.23% MoS2 at a 0.1% cutoff (Boyle and Leitch, 1983).
These estimates are dated and do not meet the current classifications of mineral resources or reserves defined by National Instrument ("NI") 43-101, and are considered to be useful for exploration information only.
The purpose of Roca's initial drill program was to intersect and obtain MoS2 mineralization and host rock associated with the deposit, and to test reported zones of higher-grade mineralization within the deposit. Roca's initial drill program included a total of 1,134m (3,720 ft) of NQ2 core in two holes. Both drill holes were located approximately along the same section-line at the following coordinates:
Diamond Drill Hole Locations
|Hole #|| Location (UTM)||Elevation(m)||Azimuth||Dip||Length(m)|
Roca's geological personnel confirm that both holes drilled through geology and mineralization consistent with published information from the Newmont/Esso JV, and intersected long intervals containing visible molybdenite. Mineralization occurs as fracture fillings and concentrations associated with quartz veining cutting both granodiorite and variably silicified phyllites (metamorphosed sedimentary rocks), and less so as disseminations within granodiorite and phyllite.
Drill hole MM04-01 was noted as being variably mineralized along its entire length of 488.7m (1,603 ft) and was terminated when it intersected the existing underground adit. Upon completion of MM04-01 it was estimated that it had cut the upper-most portion of the deposit identified by the Newmont/Esso JV and as a result, drill hole MM04-02 was drilled at a lower location. MM04-02 was also observed to be variably mineralized over a length of 407m (1,335ft) in the interval from 143m to 550m.
To assess the higher-grade potential of the deposit, two wide intervals were sampled that included the most visually-mineralized zones in drill hole MM04-02; 12.1m (39.7ft) from 143.4m to 155.5m, and 27.5m (90.2ft) from 397.0m to 424.5m. The intervals were sampled by sawing the core in two, with one half submitted for assay to ACME Analytical Laboratories of Vancouver, BC. All drilling, sampling and core logging was conducted under the supervision of Mr. W. A (Sandy) Sears, P.Geo., a qualified person under NI 43-101.
The upper 12.1m interval returned an average assay of 0.65% MoS2 and the lower 27.5m (90.2ft) interval returned an average assay of 0.58% MoS2. Detailed assay results from drill hole MM04-02 are presented in the following table:
Assay results from Hole MM04-02
Note (1): ACME's analysis reports sample results for elemental molybdenum ("Mo") assays. MoS2 values are calculated using a conversion factor of 1.6681.
Molybdenite ores from other operating mines are generally concentrated by milling and simple flotation. The concentrate is then roasted to convert the product to an oxide, wherein the concentrate loses approximately 10% of its mass. The resulting product, molybdenum-oxide ("MoO3") is the commodity most typically quoted on major metal markets, the price of which has risen from approximately US$5.50/lb one year ago, to the current US$14-$16 range. As an example, a grade of 0.5% MoS2 would equate to an insitu metal value of approximately of US$131.85/ton at today's price of US$14.65/lb MoO3.
Drill hole MM04-02 was successful in intersecting two wide intervals of high-grade mineralization within the deposit. In addition to positively confirming the high-grade mineralization both drill holes also demonstrated long continuous intersections of MoS2 mineralization.
Based on these initial drill results, the Company is accelerating its plans to acquire all historical drill data from Newmont Mining Corporation, and to update the resource calculation as soon as that information is available. Roca is also planning to contract independent scoping studies to highlight the value of various production scenarios for the MAX Molybdenum Project. The updated resource calculation and scoping studies will provide the basis for an exploration program, to include reopening and refurbishing of the existing underground adit for access to the deposit. Underground drilling will then concentrate on the reported higher-grade zones, much of which is reported to exist above the level of the adit.
ROCA MINES INC.
Scott E. Broughton, P.Eng -- President and CEO
For further information contact Scott Broughton, John Mirko or David Skerlec at:
Tel: 604-684-5900 (Broughton Ext. 114 / Mirko Ext. 110 / Skerlec Ext. 147)
Email: sbroughto[email protected] / [email protected] / [email protected]
The TSX Venture Exchange does not accept responsibility for the adequacy or accuracy of this release.
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