Orestone Mining Corp. (TSX Venture Exchange–Symbol: ORS) is pleased to announce the intercept of a significant intersection of over 400 metres of strong potassic-sericite-carbonate alteration that includes significant intervals of fine grained pyrite and chalcopyrite in hole DDHC2012-01 at its Captain porphyry copper-gold project. The 100% owned Captain project is located 43 kilometers north of Fort St. James, British Columbia and approximately 30 kilometers south of the Mt. Milligan copper-gold deposit. The Mt. Milligan copper-gold deposit has proven and probable reserves of 482 Mt grading 0.20% copper and 0.39 g/t gold outlined (Terrane Metals Corp. NI 43-101 Technical Report October 2009) and is currently being developed by Thompson Creek Metals Company Inc. as a large open pit mine.
Diamond drill hole DDHC12-01 was collared between holes DDHC11-01 and DDHC11-02 which are located approximately 400 metres to the east and west respectively targeting a large copper-gold porphyry system. The drilling intersected over 400 metres of fine grained chalcopyrite-pyrite mineralization, primarily disseminated and zones including coarse grained and fracture controlled sulphides, associated with intensely potassic-sericite-carbonate altered volcanic rocks. These altered volcanic rocks begin below 54 metres of overburden and continue throughout the hole to the 499.27 metre final depth. The amount of chalcopyrite in this hole shows a significant increase compared to hole C11-01.
The hole C11-01 intersected the same suite of alteration from 60 metres to 255.3 metres which contained 5-15 % pyrite and trace to minor chalcopyrite from 127 metres to 216 metres. Assays have been received for this hole and indicate an intercept of 87 metres from 127 metres to 216 metres grading 0.230 g/t gold and 268 ppm copper including 43 metres from 127 metres to 172 metres grading 0.298 g/t gold and 873 ppm copper.
Initial visual estimates of the chalcopyrite content indicate a significant increase in drill hole C12-01 compared to hole 11-01 and interpreted to be related to its position 400 metres closer to the monzonite intrusive intersected in hole C11-02. Assays of drill holes C11-02 and C12-01 will be released when received.
The principal IP chargeability anomaly in the central portion of the survey area measures 1,000 meters by more than 4,000 meters and corresponds with a resistivity high. This coincident chargeability and resistivity high area is located on the eastern flank of a magnetic high interpreted to be a magnetite bearing intrusive measuring 1,000 to 2,000 meters wide and in excess of 5 kilometers in strike length. This geophysical signature covering the central chargeability/resistivity high target on the Captain Project is similar in nature to the MBX copper-gold deposit at Mt. Milligan. Within the survey area there are three separate IP chargeability anomalies that are flanked by magnetic high anomalies having widths of 1,000 meters or more that have yet to be fully outlined. The Company has 30 drill sites approved on the Captain Project by the B.C. Ministry of Energy and Mines.
The core was transported from the project to a secure warehouse facility in Fort St. James where it was logged and selected intervals cut by diamond saw into 1-2 metre intervals. Half of the core was stored at the warehouse site and the other half shipped by secure transport to ACME Labs sample preparation facility located in Smithers, BC, for analysis in Vancouver, BC. Gary Nordin P. Geo., Vice-President of Exploration for Orestone Mining Corp., is a qualified person under the NI 43-101 guidelines and has reviewed the technical content of this news release.
Orestone Mining Corp. is a Canadian based company headquartered in Vancouver, B.C. and controls a portfolio of gold and gold-copper exploration projects totaling more than 700 square kilometers within British Columbia.
ON BEHALF OF ORESTONE MINING CORP.
President and CEO
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