Vancouver, B.C., June 3, 2003 --- DRC Resources Corporation (DRC--TSX) is pleased to report the results of an independent mineral resource study prepared for the Afton Copper-Gold Project located near Kamloops, British Columbia, by international minerals industry consulting firm Behre Dolbear & Company Ltd. The Mineral Resource Study establishes the Afton Project as a large high-grade copper-gold mineral deposit with potential of developing additional tonnage through further exploration. The study estimates significant tonnage and grade for the Afton Project using cutoff grades ranging from 0.1% to 4.0% Copper Equivalent. This Mineral Resource Study will be incorporated in the Afton Pre-Feasibility which is presently in progress.
Afton Main Zone Mineral Resource Estimate - *1.20% Copper Equivalent Cutoff | Resource Category | Tonnes>Cutoff (tonnes) | Grade>Cutoff | Contained Product In-situ | | CuEQ% | AuEQ(g/t) | Copper (lb) | Gold (oz) | | Measured | 7,500,000 | 2.324 | 3.415 | 244,000,000 | 260,000 | | Indicated | 31,040,000 | 2.023 | 2.972 | 855,000,000 | 990,000 | | Measured and Indicated | 38,540,000 | 2.081 | 3.058 | 1,099,000,000 | 1,250,000 | | Inferred | 14,000,000 | 2.076 | 3.050 | 389,000,000 | 470,000 |
An excerpt from Behre Dolbear's report for the Afton Main Zone measured, indicated and inferred mineral resource, ranging from 0.80% to 1.80% Copper Equivalent Cutoff, are presented below. Copper equivalent values are used to present the data as grade-tonnage tables. The tables are not meant to imply economic cutoff values but are simply a way of showing the results of a multi-element deposit for a wide variety of cutoffs. Copper equivalent grades were calculated assuming 100% recovery. Preliminary flotation test conducted for the company in 2003 on the Afton Mineralization produced metals recoveries of Copper 91%, Gold 95%, Palladium 80%, Platinum 78% and Silver 88%. The following metal prices were used: Copper $US 0.75/lb, Gold $US 350/oz, Silver $US 4.75/oz and Palladium $US 300/oz.
Note the inverse relationship between resource tonnage and cutoff grade. Table 1: Afton Main Zone Measured Resource Cutoff CuEQ % | Tonnes> Cutoff (tonnes) | Grade > Cutoff | Contained Product In-situ | Cu % | Au (g/t) | Ag (g/t) | Pd (g/t) | CuEQ % | AuEQ (g/t) | Cu (Mlbs) | Au (Mozs) | | 0.80 | 9,250,000 | 1.314 | 0.964 | 3.509 | 0.120 | 2.072 | 3.044 | 268 | 0.29 | | 0.90 | 8,780,000 | 1.356 | 0.996 | 3.624 | 0.121 | 2.137 | 3.140 | 263 | 0.28 | | 1.00 | 8,330,000 | 1.396 | 1.027 | 3.748 | 0.123 | 2.200 | 3.233 | 256 | 0.28 | | *1.20 | 7,500,000 | 1.477 | 1.084 | 3.989 | 0.124 | 2.324 | 3.415 | 244 | 0.26 | | 1.40 | 6,680,000 | 1.561 | 1.143 | 4.248 | 0.124 | 2.449 | 3.598 | 230 | 0.25 | | 1.60 | 5,930,000 | 1.641 | 1.195 | 4.496 | 0.125 | 2.568 | 3.773 | 215 | 0.23 | | 1.80 | 5,150,000 | 1.729 | 1.252 | 4.809 | 0.128 | 2.700 | 3.967 | 196 | 0.21 |
Table 2: Afton Main Zone Indicated Resource Cutoff CuEQ % | Tonnes> Cutoff (tonnes) | Grade > Cutoff | Contained Product In-situ | Cu % | Au (g/t) | Ag (g/t) | Pd (g/t) | CuEQ % | AuEQ (g/t) | Cu (Mlbs) | Au (Mozs) | | 0.80 | 43,010,000 | 1.068 | 0.845 | 2.600 | 0.118 | 1.736 | 2.551 | 1,013 | 1.17 | | 0.90 | 39,670,000 | 1.115 | 0.882 | 2.717 | 0.121 | 1.810 | 2.659 | 975 | 1.12 | | 1.00 | 36,730,000 | 1.158 | 0.917 | 2.827 | 0.122 | 1.879 | 2.761 | 938 | 1.08 | | *1.20 | 31,040,000 | 1.249 | 0.989 | 3.062 | 0.125 | 2.023 | 2.972 | 855 | 0.99 | | 1.40 | 26,010,000 | 1.337 | 1.060 | 3.297 | 0.127 | 2.163 | 3.178 | 767 | 0.89 | | 1.60 | 21,310,000 | 1.428 | 1.136 | 3.547 | 0.130 | 2.309 | 3.393 | 671 | 0.78 | | 1.80 | 17,050,000 | 1.524 | 1.214 | 3.822 | 0.133 | 2.462 | 3.617 | 573 | 0.67 |
Table 3: Afton Main Zone Inferred Resource Cutoff CuEQ % | Tonnes> Cutoff (tonnes) | Grade > Cutoff | Contained Product In-situ | Cu % | Au (g/t) | Ag (g/t) | Pd (g/t) | CuEQ % | AuEQ (g/t) | Cu (Mlbs) | Au (Mozs) | | 0.80 | 20,230,000 | 1.055 | 0.860 | 2.403 | 0.133 | 1.740 | 2.557 | 471 | 0.56 | | 0.90 | 18,390,000 | 1.110 | 0.909 | 2.499 | 0.135 | 1.829 | 2.687 | 450 | 0.54 | | 1.00 | 16,860,000 | 1.158 | 0.951 | 2.592 | 0.138 | 1.909 | 2.805 | 431 | 0.52 | | *1.20 | 14,000,000 | 1.259 | 1.042 | 2.788 | 0.142 | 2.076 | 3.050 | 389 | 0.47 | | 1.40 | 11,730,000 | 1.353 | 1.122 | 2.961 | 0.145 | 2.228 | 3.274 | 350 | 0.42 | | 1.60 | 9,780,000 | 1.444 | 1.200 | 3.120 | 0.145 | 2.374 | 3.488 | 311 | 0.38 | | 1.80 | 7,910,000 | 1.543 | 1.285 | 3.270 | 0.147 | 2.533 | 3.722 | 269 | 0.33 |
*Selected Example of Copper Equivalent Cutoff Grade
Note: Mlbs = Million Pounds, Mozs = Million Ounces
The Behre Dolbear report states that their work entailed estimating the mineral resources of the two deposits at the Afton Main Zone and the Northeast Zone that comprise the Afton project in conformance with the CIM Mineral Resource and Mineral Reserve definitions referred to in National Instrument (NI) 43-101, Standards of Disclosure for Mineral Projects. It also involved the preparation of a Technical Report as defined in NI 43-101 and in compliance with Form 43-101F1 (the "Technical Reports").
The Afton mineral resource, estimates based on 2000-2003 diamond drill results from 90 drill holes totaling 42,450 metres, were calculated under the direction of Mr. James A. Currie, P. Eng., an independent Qualified Person as defined under the National Instrument 43-101. All drill hole samples were prepared under the supervision of DRC personnel and shipped to Eco Tech Laboratories Ltd., a British Columbia Certified Assayer, for analysis. DRC employs a comprehensive QA/QC program including the use of standards and internal and external check samples. Behre Dolbear has reviewed the QA/QC program and is of the opinion that it meets or exceeds industry standards. Industry-accepted methods were used for grade estimation using the method of ordinary kriging (a method of determining a weighted average in such a way that the geostatistical estimation variance of the weighted average is minimized). The assays were composited into 10 metre down-hole composites. Reasonableness of grade interpolation was reviewed by visual inspection of sections displaying block model grades, drill-hole composites and geology with good agreement being observed.
Mr. James A. Currie, P.Eng., of Behre Dolbear and Company Ltd., has reviewed and approved the contents of this press release. In accordance with National Instrument 43-101, a technical report detailing the resource estimate will be filed on SEDAR within 30 days.
For further information on DRC and the Afton Project, please visit our web site at www.drcresources.com or call us at 604-687-1629.
On behalf of the Board of Directors
John H. Kruzick
John H. Kruzick, President & CEO
DATE: June 3, 2003
Shares Issued: 9,226,766 common shares
U.S. Rule 12g3-2(b) Exemption
Standard & Poors' Exemption
CUSIP NO. 233296 10 2
The Toronto Stock Exchange (TSX) has not reviewed and does not accept responsibility for the adequacy or accuracy of the release.
CAUTIONARY NOTE: Statements in this press release are a preliminary assessment of potential economics under a certain set of parameters and assumptions. Further studies will be required to determine economic viability. The company relies on litigation protection for "forward-looking" statements.
The terms "Mineral Resource", "Measured Mineral Resource", "Indicated Mineral Resource", "Inferred Mineral Resource" used in this press release are Canadian mining terms as defined in accordance with National Instrument 43-101 - Standard of Disclosure for Mineral Projects under the guidelines set out in the CIM Standards. "Mineral Resources" which are not "Mineral Reserves" do not have demonstrated economic viability.
While the terms "mineral resource", "measured mineral resource," "indicated mineral resource", and "inferred mineral resource" are recognized and required by Canadian regulations, they are not defined terms under standards in the United States and normally are not permitted to be used in reports and registration statements filed with the SEC. As such, information contained in this release concerning descriptions of mineralization and resources under Canadian standards may not be comparable to similar information made public by U.S. companies in SEC filings. With respect to "measured mineral resource" the estimated quantity and grade of that part of the deposit has been well established. With respect to "indicated mineral resource" and "inferred mineral resource" there is a great amount of uncertainty as to their existence and a great uncertainty as to their economic and legal feasibility. It can not be assumed that all or any part of an "indicated mineral resource" or "inferred mineral resource" will ever be upgraded to a higher category. Investors are cautioned not to assume that any part or all of mineral deposits in these categories will ever be converted into reserves.
Certain of the statements made may contain forward-looking statements which involve known and unknown risk, uncertainties and other factors which may cause the actual results, performance or achievements of the Company, or industry results, to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements. Forward-looking statements are subject to a variety of risks and uncertainties which could cause actual events or results to differ from those reflected in the forward-looking statements. Should one or more of these risks and uncertainties materialize, or should underlying assumptions prove incorrect, actual results may vary materially from those described in forward looking statements.
|