VANCOUVER, BC, May 28, 2024 /CNW/ - Coast Copper Corp. ("Coast Copper" or the "Company") (TSXV: COCO) is pleased to announce that it has earned a 100% interest in certain mineral claims ("Greater Empire Claims") which form part of the Empire Mine property ("Empire Mine" or the "Property") by making the fifth and final payment, consisting of a cash payment of $250,000 and the issuance of 1,000,000 common shares of Coast Copper to Mirva Properties Ltd. ("Mirva") pursuant to an option agreement that was signed on September 22, 2020 ("Empire Option Agreement"). Empire Mine also consists of certain crown grants ("Quatsino Crown Grants").
Adam Travis, Coast Copper CEO comments: "We are very encouraged by the increased attention that high-grade, critical mineral projects in safe jurisdictions like British Columbia are starting to attract. Benson Lake Mine ticks a number of these boxes having been a high-grade copper producing project for Cominco until 1972. One historical record indicates that when Cominco shut the mine down in December 1972, Benson Lake Mine underground had another 3.154 million tonnes of remaining reserves¹ ².Our review of the information also indicates that Cominco believed the copper mineralization remained open along strike as evidenced by underground development to facilitate future exploration.
With our new geological model, we believe that the Empire Mine Property has the potential to become something much bigger and more important than previously recognized. We have therefore decided to accelerate our acquisition of the Greater Empire Claims and we look forward to demonstrating the scale of opportunity in due course."
The 17,104-hectare Empire Mine Property is located on resource friendly northern Vancouver Island and has good road access to the towns of Port Hardy, Port McNeill and Port Alice. Due to its low elevation and mild coastal climate, it can be worked on all year round. The geology of the Upper Trend was historically mined for magnetite (Merry Widow Mine) and the Lower Trend was historically mined for copper ("Cu") (Benson Lake Mine). In the 2000s, the potential for high-grade, open-pit gold ("Au") deposits was identified within the Upper Trend and gold showings were identified over multi-kilometer ("km") strike lengths. These include the Merry Widow ("MW") and Raven Bluff areas where Coast Copper drilled both high-grade and broader, medium-grade intercepts in 2022 (news releases January 25, and February 01, 2022). Highlights of these drill programs included:
MW21-007 returned 18.00 grams per tonne ("g/t") Au and 1.55% Cu over 3.23 meters ("m") from 23 m depth at MW;
MW21-015 returned 7.18 g/t Au and 3.17% Cu over 16.3 m from 98 m depth at Raven Bluff;
MW21-008 returned 1.63 g/t Au and 0.46% Cu over 42.77 m from 21 m depth at MW.
Further fieldwork and studies completed in 2022 and 2023 resulted in Coast Copper's publication of the first geological model for the Empire Mine identifying the Upper and Lower Trends as stacked, thrust horizons over approximately 5 km of trend that represent good hosts for Au-Cu-Magnetite mineralization. This new geological understanding directly contributed to Coast Copper's "B3" discovery in August 2023 (B3 rock sample results up to 51.60 g/t Au, 30.66 g/t tellurium, 0.25% cobalt and 50.52 g/t silver). B3 is located between the Upper and Lower Trends approximately 700 m from the MW pit.
In May 2023, Coast Copper published a high-grade, starter mineral resource estimate for MW which Coast Copper believes can be expanded with further drilling.
Also in 2023, Coast Copper began recompilation of the historical archive for the Lower Trend, which includes the former Cominco Ltd. ("Cominco") copper-producing Benson Lake Mine. Modern geophysical studies were conducted including Controlled Source Audio-frequency Magnetotellurics ("CSAMT") with the results published on January 23, 2024.
Summary of Empire Option Agreement Terms
To earn its 100% interest in the Greater Empire Claims, Coast Copper made aggregate cash payments of $1,250,000, issued 3,000,000 common shares of the Company to Mirva and completed work commitments on the Property totaling $2,000,000 over a four (4) year period. Mirva retains a 2% net smelter return ("NSR") royalty on the Property of which 1% may be purchased for $1,000,000 at any time up to 120 days after commencement of commercial production. The Empire Option Agreement was structured such that this NSR royalty plus all other NSR royalties which may currently be payable on the Property may not exceed in aggregate 2.5% before buydowns.
To earn a 100% interest in the Quatsino Crown Grants, Coast Copper must pay Mirva the equivalent of $500,000 with either a cash payment or equivalent value in common shares of the Company, at the Company's election, on or before September 22, 2025. The Company has the option to extend the Quatsino Crown Grants payment by one year for a payment of $535,000, two years for a payment of $590,000 and three years for a payment of $665,000.
Corporate Update
On January 26, 2023, at Coast Copper's Annual General and Special Meeting of Shareholders, the Company's shareholders approved the replacement of the Company's existing 10% rolling long-term incentive plan ("Legacy Plan") with a new 20% fixed long-term incentive plan ("LTIP") that included the same categories of awards as the Legacy Plan, being stock options, deferred share units, performance share units, restricted share units and stock appreciation rights. Awards under the LTIP are available to directors, key employees and consultants of Coast Copper, as determined by the Board of Directors. The aggregate number of listed common shares issuable increased from 5,529,669 under the Legacy Plan to 12,800,338 under the LTIP. For more information on the details of the LTIP, please refer to the Company's Management Information Circular, dated December 12, 2022 and filed on SEDAR+.
Qualified Persons
The technical information contained in this news release has been prepared, reviewed, and approved by Wade Barnes, P.Geo. (BC), Coast Copper's geological consultant and a Qualified Person ("QP") within the context of the Canadian Securities Administrators' National Instrument ("NI") 43-101; Standards of Disclosure for Mineral Projects.
About Coast Copper Corp.
Coast Copper's exploration focus is the Empire Mine property, located on northern Vancouver Island, BC, which covers three historical open pit mines and two past-producing underground mines that yielded iron, copper, gold, and silver. Coast Copper's other properties include its 100% owned Sully property located in southeastern BC, Knob Hill NW property located on northern Vancouver Island, its Home Brew property in central BC, and its Scottie West property located in the "Golden Triangle" of northern BC. Coast Copper's management team continues to review precious and base metals opportunities in western North America.
On Behalf of the Board of Directors:
"Adam Travis"
Adam Travis, Chief Executive Officer and Director
Cautionary Notes
1. Historical information, maps or figures contained in this release regarding Coast Copper's Empire Mine Property or adjacent properties cannot be relied upon as the Company's QP, as defined under NI-43-101 has not prepared nor verified the historical information.
2. Cominco Resources, Drill Section Maps "Plan of Cominco's Benson Lake Operations on Empire Claims Showing Ore Reserves & Proposed Exploration Program", 1970, Private Files. While Coast Copper notes that Cominco's historical results are not NI 43-101 compliant and have not been verified by the Company's QP, these combined historical resources total nearly 3.154 million tonnes and will help guide Coast Copper's exploration programs. Benson Lake Mine historical reserves recorded by Cominco Resources (1972) report a non NI 43-101 resource of 454,000 tonnes grading 0.59 g/t Au and 1.3% Cu and an Inferred resource of 2.7 million tonnes of 1.7% Cu with no Au grade calculated.
Neither the 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.
CAUTIONARY STATEMENT REGARDING FORWARD-LOOKING INFORMATION
Certain information contained or incorporated by reference in this press release, including any information regarding the proposed Transaction, private placement, board and management changes, as to our strategy, projects, plans or future financial or operating performance, constitutes "forward-looking statements." All statements, other than statements of historical fact, are to be considered forward-looking statements. Forward-looking statements are necessarily based on a number of estimates and assumptions that, while considered reasonable by Coast Copper, are inherently subject to significant business, economic, geological and competitive uncertainties and contingencies. Although Coast Copper believes the expectations expressed in such forward-looking statements are based on reasonable assumptions, such statements are not a guarantee of future performance. Known and unknown factors could cause actual results to differ materially from those projected in the forward-looking statements. Such factors include but are not limited to: fluctuations in market prices, exploration and exploitation successes, continued availability of capital and financing, changes in national and local government legislation, taxation, controls, regulations, expropriation or nationalization of property and general political, economic, market or business conditions. Many of these uncertainties and contingencies can affect our actual results and could cause actual results to differ materially from those expressed or implied in any forward-looking statements made by, or on behalf of, us. Readers are cautioned that forward-looking statements are not guarantees of future performance and, therefore, readers are advised to rely on their own evaluation of such uncertainties. All of the forward-looking statements made in this press release, or incorporated by reference, are qualified by these cautionary statements. We do not assume any obligation to update any forward-looking statements.
