GLENMARK TO ACQUIRE COPPER-MOLYBDENUM PROPERTY IN CENTRAL BC, CANADA
December 2, 2014 - Glenmark Capital Corp. (TSX.V: GLM; US OTC: GLRKF; ;Frankfurt: 17G) (“Glenmark” or the "Company") is pleased to announce that the Company has entered into an option agreement (the “Agreement”) with Lions Gate Metals Inc. to acquire a 100% interest, subject to existing royalties, in the Poplar Copper-Moly property in central British Columbia. The Poplar Copper-Moly property covers an area of 67,862 hectares in the Omineca Mining Division, in the central interior of British Columbia, 50km south of the town of Houston. The project is a copper – molybdenum porphyry associated with the Late Cretaceous Poplar intrusive stock. The Huckleberry Mine located approximately 35km southwest of the property, produces copper and molybdenum from a deposit of similar age and geological setting.
The property is underlain by andesitic volcanic rocks of the Cretaceous Kasalka Group. These rocks are in faulted contact to the northeast with calc-alkaline rocks of the Telkwa Formation of the Lower Jurassic Hazelton Group. The Kasalka Group rocks have been intruded by stock-like bodies attributed to the Lower Cretaceous Bulkley Plutonic suite. Outliers of the volcanic Eocene Ootsa Lake Group overlap the Kasalka and Bulkley Plutonic Rocks. Zones of alteration and sulphide mineralization associated with these intrusions have resulted in the formation of the Poplar porphyry copper – molybdenum deposit.
The status of the Poplar copper - molybdenum deposit is one of active development. Since the drilling of the discovery hole in 1974 the property has gone through successive stages of exploration and development drilling resulting in the publishing of a historical resource estimate in 1982. In 2011 Lions Gate drilled 42 diamond drill holes on the property totalling 16,483 m.
In 2012, G. H. Giroux, MASc., P. Eng. estimated the resource present on the property. A three dimensional solid was constructed to constrain the mineralized area, using a 0.1 % Cu grade shell as a guide. Large internal waste zones were modelled as were some larger post mineral dykes. Of the total data base 129 drill holes totalling 37,205 m were within the mineralized zone and were used to estimate the resource. Drill holes were compared to the mineralized solid and assays were tagged if inside.
In a NI 43-101 technical report prepared for Lions Gate Metals Inc., entitled "2012 Resource Update on the Poplar Deposit" (the "Lions Gate Metals Report"), copper, molybdenum, gold and silver assays within the mineralized solid were capped at 1.4 % Cu, 0.14 % Mo, 0.34 g/t Au and 41 g/t Ag. Five metre composites were formed and used for variography. For this estimate, and to aid with some preliminary planning, the blocks were reduced to 5 x 5 x 10 m in dimension and were estimated for Cu, Mo, Au and Ag by ordinary kriging. The historical resource is classified as Indicated and Inferred based on each block’s proximity to data and the grade continuity. At a 0.20 % Cu cut-off within the mineralized solid the Indicated resource is 131 million tonnes at 0.31% Cu, 0.009 % Mo, 0.09 g/t Au and 2.39 g/t Ag while the Inferred resource is an additional
132 million tonnes grading 0.27 % Cu, 0.005 % Mo, 0.07 g/t Au and 3.75 g/t Ag. This historical information was taken from the Lions Gate Metals Report, a copy of which is available on SEDAR under Lions Gate's profile. A qualified person has not done sufficient work to classify these historical estimates as current, and the Company is not treating them as current. As part of its continuing disclosure requirement Glenmark anticipates preparing a technical report on the Poplar project, to update this historical information.
Regarding the acquisition, Richard Ko, the CFO of the Company, commented, “The global outlook for copper is tied to Chinese domestic consumption, both for establishing infrastructure in rural areas and for consumer goods. There is no reason to believe that the Chinese economy will slow down anytime soon and the IMF predicts it will expand at an annual rate of 9.7% over the next 5 years. As such the acquisition of the Poplar project is a key strategic acquisition that will underpin shareholder value when copper prices rise.”
Under the terms of the Agreement, Glenmark can acquire a 100% interest by paying to Lions Gate Metals $50,000 on or before December 22, 2014, $100,000 on June I, 2015, $200,000 on December 22, 2015 and a further $2,650,000 at various times over the following three years. In addition, Glenmark must complete $3,000,000 in exploration expenditures over four years. Certain claims within the project area are subject to legacy 1% and 2% NSR interests, which can be purchased by Glenmark for $100,000 and $1,000,000, respectively.
The technical contents of this news release have been prepared under the supervision of Dr. Peter Born, P. Geo. Dr. Born is a Qualified Person, as that term is defined in National Instrument 43-101, and has approved this news release.
For further information, please contact:
Richard W. Grayston
President & CEO
Phone: (604) 990-1012
Contact Financial Corp.
Phone: (604) 689-7422