Happy Creek drills 24.7 m of 0.68% WO3 at Fox

2012-11-14 13:05 PT - News Release

 

Mr. David Blann reports

HAPPY CREEK DRILLS 24.7 METRES OF 0.68% W03 AT FOX TUNGSTEN PROPERTY

Happy Creek Minerals Ltd. has released additional drill results from its 100-per-cent-owned, 162-square-kilometre Fox tungsten-molybdenum property. The Fox property is located approximately 75 kilometres northeast of 100 Mile House, B.C., Canada.

On the Fox property, four prospects named the 708, BN, RC (Ridley Creek) and BK span a northerly trending distance of approximately 3.0 kilometres. In 2010 and 2011, trenching results include 1.0 metre of 2.38 per cent WO3 (tungsten trioxide), 0.40 metre of 11.10 per cent WO3, 7.0 metres of 0.80 per cent WO3 and 4.6 metres of 0.85 per cent WO3 at each prospect, respectively. In 2011, the first-ever drilling at the RC prospect returned very positive results. On Sept. 18, Oct. 3 and 17, and Nov. 1, 2012, the company announced additional results.

Final 2012 drill results from the RC prospect include F12-18 containing 24.7 metres of 0.68 per cent WO3 starting at 18.0 metres depth. This includes 1.0 metre grading 9.08 per cent WO3, 0.61 per cent zinc, 4.6 grams per tonne indium and 0.07 gram per tonne gold. The true thickness is estimated to be approximately 90 per cent of the interval thickness.

David Blann, president and chief executive officer of Happy Creek, states: "The Fox property has again delivered globally top-tier tungsten grades that are within conceptual open-pit mining parameters. The RC prospect is a new deposit that remains wide open to further expansion. We believe the Fox property is an exciting and unique opportunity for shareholders to participate in a new tungsten discovery."

 SUMMARY OF RC PROSPECT FINAL DRILL RESULTS        From  To     Interval  WO3   WO3Hole    (m)   (m)    (m)       %     kg/tonneF11-02   5.7 10.85   5.15      0.91   9.1F11-07  14.3  19.0    4.7      1.02  10.0F11-08  8.25 20.65   12.4      0.74  12.2F12-01  14.0  32.4   19.4      0.82   8.2F12-02  13.0  25.0   12.0      0.21   2.1F12-07  13.0  16.0    3.0      1.18  11.8F12-09  15.0  26.0   11.0      0.80   8.0F12-10  17.0  19.0    8.0      0.46   4.6F12-11  27.0  41.0   14.0      0.68   6.8F12-13  19.0  22.4    3.4      0.64   6.4F12-17  20.0  40.0   20.0      0.63   6.3F12-18  18.0  42.7   24.7      0.68   6.8

F12-18 is located at the collar of vertical hole F12-17 and drilled at minus 55 degrees to the east. Results indicate good continuity of thickness and grade with F12-17. F12-19 was drilled at minus 55 degrees toward the southeast and returned 19.0 metres of 0.17 per cent WO3 starting at 18.0 metres. This includes 5.0 metres grading 0.32 per cent WO3. This hole is thought to represent the southeast edge of a higher-grade portion of the deposit. To date, an area approximately 165 metres by 75 metres in dimension contains altogether 13 drill holes with potentially economic tungsten grades. Assays also indicate positive zinc, indium (a rare metal used in modern electronics), and locally gold and silver values. Importantly, the higher grade and thickness of mineralization in the westernmost drill holes (F12-09, F12-11 and F12-17) is open to further expansion. F11-02 is the southernmost drill hole in the RC prospect, and the mineralized zone in this area also remains open in extent.

At the RC prospect, all drill holes have intersected positive to potentially economic grades of tungsten that confirm a large-scale mineralized system. A map of the drill locations and the final results are pending and will be posted on the company's website.

Outside of China, globally commercial tungsten grades are generally greater than 0.24 per cent WO3. Very few mines average greater than 0.45 per cent WO3, and almost all are underground operations. In June, 2012, the market price for WO3 was around $30 per kilogram, and as such, a grade of 0.68 per cent WO3 is equivalent to 2.65 per cent copper or 204.0 grams per tonne silver. (Copper/silver equivalent grade does not account for metallurgical recovery and assumes prices of $7.7/kg copper, $1.0/gram silver and $30.0/kg WO3.) A tungsten grade of 9.08 per cent WO3 is equivalent to 35.38 per cent copper or 2,724 g/t silver.

The Fox property contains positive tungsten values in drill core, outcrop, stream sediment and soil in an area approximately 10 kilometres by three kilometres in dimension that remains largely underexplored. Approximately four kilometres to the south of the Ridley Creek area, the Nightcrawler zone has returned encouraging tungsten values; widely spaced drilling in an area 1.5 kilometres by 500 metres in dimension include 5.0 metres of 0.33 per cent WO3 and 2.0 metres of 0.74 per cent WO3, and surface samples contain over 3.5 per cent WO3. As with the Ridley Creek area, the Nightcrawler also remains open to further expansion.

Happy Creek has advanced the Fox prospect from a very early stage to a new tungsten discovery with large scale and grades thought to be comparable with some of the best tungsten mines or advanced-stage projects worldwide. The near-surface, potentially open-pit configuration and the nearby resource-based infrastructure are additional positive aspects of this project.

The BK and BN prospects are located a kilometre to the north and south of the RC prospect, respectively, and drill results from these areas are pending.

David Blann, PEng, is a qualified person as defined under Canadian National Instrument 43-101 regulations, and has reviewed and approved the technical content of this press release. Happy Creek employs a strong quality assurance and control system for its drilling programs. Samples are cut from NQ- and BQ-size drill core using a rock saw or hand splitter, and a blank, standard or duplicate is inserted into the sample string every 10th sample. Samples are sealed and shipped to Agat Laboratories in Burnaby, B.C., where they are prepared and analyzed first by aqua regia digest and inductively coupled plasma (ICP) plus ICP-MS (mass spectroscopy) finish. Samples that return greater than 50 parts per million W (tungsten) are then retested in triplicate using a peroxide fusion digestion and ICP finish, and are averaged to provide a preliminary result. When these assays return greater than 1.0 per cent W, the sample is subjected to an (X-ray fluorescence) XRF assay, and all four assays are averaged for a final result. Final results for holes F12-1 to F12-19 are presented herein. In general, the individual tungsten assay results are around plus/minus 12 per cent of the final average and are considered reasonable for a nugget effect inherent to coarse-grained scheelite/tungsten mineralization. W is converted to WO3 with a multiplication factor of 1.261.