Trading Symbol: CCY
VANCOUVER, Aug. 10, 2012 /PRNewswire/ - Catalyst Copper Corp. ("Catalyst" or
"the Company") advises there will be a delay in releasing the results
of and filing the Preliminary Economic Assessment (PEA) on the La Verde
copper porphyry deposit located in Michoacán State, Mexico.
The delay has been recommended after our consultants and ourselves
reviewed all pertinent information. This review has determined that the
existing geological model did not adequately report deleterious
elements and as a consequence the economic model may be under-reporting
the effect of these elements on net smelter return calculations. While
the data is available to correct the geologic model, the qualified
person who prepared the report is no longer employed by the consulting
firm that prepared the report.
The Company has retained Tetra Tech Inc. to prepare an updated geologic
model and NI 43-101 report based on all work completed to date. The
Company has therefore elected to delay the release of the PEA until
such time as the updated resource model can be incorporated.
We thank shareholders for their support and understanding.
About La Verde
La Verde is located in an area with excellent infrastructure. Power,
rail and water all cross the property. Lazaro Cardenas, Mexico's third
largest port on the Pacific Ocean coast is 180 km from the site.
Significant upside potential remains for the two known zones of
porphyry style copper, gold and molybdenum mineralization as the 2010
drill program has shown both deposits remain open to depth and along
strike.
La Verde property is subject to an option agreement with a Mexican
subsidiary of Teck Resources Limited (Teck) whereby Catalyst's 100%
Mexican subsidiary, Minera Hill 29, may earn a 60% interest in La Verde
by making US$10,000,000 in exploration expenditures (including 30,000
meters of drilling and 200 kilometers of IP) by December 31, 2012. Upon
Catalyst earning a 60% interest, Teck has the option to increase its
interest to 60% by incurring aggregate expenditures equal to two times
the amount spent by Catalyst. Should Teck fail to exercise its option
to earn a 60% interest, Catalyst can acquire a 100% interest in La
Verde by paying to Teck US$20 million. The property is subject to an
underlying 0.5% NSR.
ON BEHALF OF THE BOARD OF DIRECTORS OF CATALYST COPPER CORP.
"Terence W. Hodson, P.Geo."
TERENCE HODSON, V.P. EXPLORATION
Certain information set forth in this news release may contain
forward-looking statements that involve substantial known and unknown
risks and uncertainties. These forward-looking statements are subject
to numerous risks and uncertainties, certain of which are beyond the
control of the Company, including, but not limited to, risks associated
with mineral exploration and mining activities, the impact of general
economic conditions, industry conditions, dependence upon regulatory
approvals, and the uncertainty of obtaining additional financing.
Readers are cautioned that the assumptions used in the preparation of
such information, although considered reasonable at the time of
preparation, may prove to be imprecise and, as such, undue reliance
should not be placed on forward-looking statements. Neither 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.
Quality Assurance: The Company employs a system of quality control for
drill results which includes the use of blanks, certified reference
materials (standards) and check assaying. Core is logged on site and
split with a diamond saw. Samples are shipped to Acme Analytical
Laboratories Ltd. for analysis. All elements with the exception of gold
are analyzed by Aqua Regia digestion and ICP-ES analysis. Gold is
analyzed by fire assay method.
SOURCE Catalyst Copper Corp.
