Orestone Mining Corp. press release
Junior Kick-Starts Exploration Near Mt. Milligan
TSXV - TSX Venture Exchange · Gold · Copper · Molybdenum · Silver · Canada
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SOURCE: VantageWire.com— With the 2013 exploration season now underway, a cautious optimism has descended on the junior mining sector. The myriad articles we witnessed in 2012 and early 2013 about cash-starved juniorshave been temporarily forgotten. The fact that juniors saw equity financing for the top 100 plunge 41 percent in 2012 is an accepted part of the new normal—as is the frustration towards the sliding price of gold.
No doubt, the summer drilling period has arrived at a time when positive sentiment in the junior mining sector is greatly appreciated. "The last year has not been easy for juniors," states David Hottman, President & CEO of Orestone Mining (TSX.V: ORS), whose summer exploration program near the renowned Mt. Milligan deposit in central B.C. is now underway. "The market sentiment has been difficult, but I'm confident that we have chosen an attractive project in a strong region."
"We're right next to a major project, in an active area with a lot of promise—and we're set to drill."
The region Orestone operates in is one of the best in a well-performing province. As a recent articlein the Vancouver Sun highlights, B.C.'s mineral exploration and development sector is "leading the way when it comes to attracting investment and building partnerships." Highlighted in the article are huge mining assets such as New Gold's Blackwater project, set to begin production in 2017 (pending environmental approval) and Thomson Creek Metals' nearby Mount Milligan copper/gold mine, a $1.5 billion development that has a proven and probable reserve of 532 Mt grading 0.20% copper and 0.38 g/t gold, set for production in late 2013.
In this challenging economy, projects like Mt. Milligan and Blackwater have demonstrated the potential that a great deposit presents: jobs, wealth and infrastructure. The government has taken notice and now claims to be committed to providing infrastructure in the region, with projects such as the new B.C. Hydro powerline and additional roadways like the Omineca extension. And with Mt. Milligan and Blackwater now set to change the economic landscape of the region, other nearby projects from majors such as Xstrata, Goldfields and Teck are inviting even more smart money into the area.
For a junior, this is an ideal spot for exploration. Stable, proven, and active.
The Captain Project
Located just 41 km northeast of Fort St. James and 30 km south of the Mt. Milligan Mine, Orestone's 100% owned Captain project has now entered an exciting phase in the exploration timeline. As the company's focus property, the Captain hosts a large gold-copper porphyry system that measures 7 by 14 km. Located in the Quesnel Trough, which includes projects such as Afton, Milligan, and Copper Mountain, the Captain project has not surprisingly shown similar geochemical signatures.
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Early in 2013, Orestone announced the discovery of significant gold mineralizationfrom a 912 metre diamond drill program on the Captain project. Of seven holes completed, hole C12-05 showed considerable promise, with 487 metres of gold mineralization. As the table below shows, hole C12-05 returned two significant intervals of strong gold mineralization in intrusive rock: the upper zone, grading 0.65 g/t gold and 0.06% copper over 118.8 metres, including 9.1 metres grading 6.46 g/t gold and 0.27% copper; and the lower zone, grading 0.41 g/t gold and 0.07% copper over 164.6 metres, including 6.1 metres grading 4.45 g/t gold and 0.51% copper. The mineralization remains open to depth
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"We were very pleased with the exploration results," states Hottman. "What we found is that whenever we had gold mineralization we had a magnetic response."
"Shortly after this good news, we embarked on several phases of detailed magnetic surveys. We soon noticed that there was a lot of mineralization on the property and thus we continued to refine the targets."
The first six months of 2013 have produced a steady and reassuring flow of results, as seen in Orestone's news channel. After initiating the magnetic survey, as Hottman mentions, the company quickly outlined two prominent magnetic highs, completed and compiled data from a 130 line-kilometre magnetic survey, and prepared drill locations for the current exploration season.
Summer Exploration
"The most significant development for Orestone since the start of the year is that now, unlike before, we are able to target," says Hottman. "We have a significant land package on the Captain, but the secret to success is being able to target the highest potential areas."
"Back in January the drill results showed a lot of promise. For instance, we have seen a 500 metre intercept of mineralization that remains open to depth; with a little higher grades in the current drill program, we will open up a world of possibilities."
Orestone has identified an area for drilling, known as the Admiral target, on the southern fringe of a large circular magnetic high. Measuring 1,000m x 1,500m, this target is similar in size and intensity to the magnetic high from two ore bodies at the Mt. Milligan project. This high-priority target will be the first to be drilled when Orestone embarks on the next phase of the exploration program in early July.
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Orestone now has all permits in place to facilitate the next several phases of exploration: 75 line kilometers of geophysics and 58 sites approved for drilling, which increases coverage over the nine large magnetic high anomalies outlined. Recent logging in the Admiral target area has also created a network of roads that will allow for easy drill rig access.
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The Captain Project – Open all year, next to roads (Gary Nordin, VP Exploration)
Looking Ahead
For the remainder of 2013, Orestone will be focusing its energy on delivering stakeholder value from the Captain project and supporters can rest assured that the company is staying focused and on track.
"Very seldom in your career as a geologist do you get the opportunity to work on and make the discovery of such a large copper gold system," states Gary Nordin, an Orestone Director and Vice President of Exploration. "The Captain project is also ideally located and open year round for exploration, is situated in flat and easily accessible terrain and is practically right next to Mt. Milligan."
On top of this, Orestone recently announcedthe closure of a private placement. With this financing now under its belt, the company has a working capital of approximately $800,000, which ensures the upcoming drilling of the Captain project goes as planned. Needless to say, these days a junior that can raise money is a junior that has something good.
So could the Captain be another Milligan? The possibility is there. If Orestone hits some great holes in this drill program, the potential is huge. And with a stock trading below ten cents and some solid data to support its exploration, there is little downside for those looking to get in on a low-cost, high-value play.
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