Initial Resource on Southeast Zone
Gold Fields Completes Initial Resource Estimate for the Southeast Zone, Woodjam Copper-Gold Project, British Columbia
Vancouver, BC, March 1, 2012 – Consolidated Woodjam Copper Corp. (“Woodjam Copper”) (TSX-V: WCC) is pleased to report that Gold Fields Horsefly Exploration Corporation (“Gold Fields”) a subsidiary of Gold Fields Limited (NYSE: GFI), has completed its initial resource estimation on the Southeast Zone at the Woodjam Property, located 50 km east of Williams Lake, BC. The resource is limited to the Southeast Zone, which is one of several zones of mineralization currently being explored by Gold Fields and provides a glimpse of the overall potential of the Woodjam Property. The resource is inferred and is open pit constrained using the parameters indicated below. The resource is reported only in regards to copper content although accessory gold, molybdenum and silver occur, but are not defined to a level of confidence sufficient to be included in the resource estimation. Effective March 2, 2012, the inferred resource for the Southeast Zone (only) is:
146.5 million tonnes at 0.33% copper for 1.06 billion pounds of copper
The resource also contains a gold grade of 0.06 g/t gold, a portion of which may be recovered as by-product.
The resource estimate is based on data from 80 diamond drill holes with a total of 31,712 m of drilling. This drill hole data, mapping data and geophysical data were used to interpret geology and mineralization domains for modeling. Copper, gold, silver and molybdenum grade was estimated using a recoverable resource estimation method called multivariate uniform conditioning – an established estimation methodology, which ensures that the theoretical grade-tonnage curve is honored by the estimates.
Parameters used to define the theoretical pit:
1.) The disclosed mineral resource is reported using a US$7.50/t net smelter return (NSR) cut-off grade within an optimized pit shell assuming processing costs of US$5.10/t, G&A costs of US$1.40/t and sustaining costs of US$1.00/t for a 30,000 t/day mining rate (this equates to a cut-off grade of 0.16% copper).
2.) Copper price at US$3.90/lb.
3.) Gold price at US$1,450/oz.
4.) Recoveries estimated to be 80% for copper and 70% for gold, based on initial metallurgical testing.
5.) Bulk density of fresh rock is estimated to be 2.65 t/m3.
6.) Copper-gold concentrate shipping, handling, insurance and all other off site charges estimated to be US$157/wet metric tonne concentrate. Concentrate grade estimated at 30% copper.
7.) Overall pit slopes estimated to be 27° for till, 42° for broken fresh rock and 47° for unbroken fresh rock.
The sample data used to estimate resources at Southeast Zone has been verified by QP Ross Sherlock. Historical data were re-entered into Gold Fields’ database from original logs and assay certificates. Gold Fields data is routinely verified and a comprehensive QAQC program is in place to ensure data quality. Gold Fields has security and custody procedures established for all samples.
Additional potential to establish resources exists in the Megabuck and Deerhorn Zones indicated by the 113 diamond drill holes totaling 28,490 m completed in these zones. These zones also offer much higher
gold grades as shown by hole 04-32 in the Megabuck Zone with 0.14% Cu and 1.03 g/t Au over 274.9 m and hole 11-30 in the Deerhorn Zone with 0.28% Cu and 1.30 g/t Au over 123.0 m.
In January 2012, Gold Fields vested a 51% interest in both the Woodjam North and Woodjam South properties by having spent a cumulative CND$14.6 million dollars over the past 2.5 years on exploration. Gold Fields also notified Woodjam Copper of its intent to earn a further 19% interest in both properties (the second option); Woodjam North with a further expenditure of CND$12 million and Woodjam South with a further expenditure of US$8 million and the completion of a feasibility study.
Gold Fields has advised that it will initiate the 2012 program in late March 2012, with a CDN$5.5 million exploration program which will include 20,000 m of diamond drilling focusing on the target areas on the Woodjam North Property, and on continued expansion drilling to identify additional resources in the Southeast Zone and on other targets in the Woodjam South Property.
During 2011, preliminary cost analysis, “high-level” preliminary engineering assessment of selected aspects, water and meteorological monitoring and stakeholder engagement programs were conducted and will continue during 2012.
Ross Sherlock, Ph.D., P.Geo., has overall responsibility for this disclosure. Susan Poos, P.E., SME Registered Member, is responsible for mining constraints applied to this resource disclosure. Alex Trueman, P.Geo., MAusIMM(CP), is responsible for the mineral resource estimation disclosed in this release. All are qualified persons for the purpose of National Instrument 43-101, are employees of Gold Fields, and have authored the NI 43-101 Technical Report, which will be filed on SEDAR within 45 days of this announcement. Additionally they have read and take responsibility for the contents of this news release.
J.W. (Bill) Morton, PGeo, a qualified person for the purposes of National Instrument 43-101, has read and taken responsibility for this news release.
Bill Morton, P.Geo.
CEO and Director
Consolidated Woodjam Copper Corp.
Contact:
Paul Way, Investor Relations
Phone: (604) 681-7913, Toll Free: 888-656-6611; email: office@woodjamcopper.com
The TSX Venture Exchange has not reviewed and does not accept responsibility for the adequacy or accuracy of this release.
About Consolidated Woodjam Copper Corporation
Consolidated Woodjam Copper Corp. (“Woodjam Copper”) (TSX-V: WCC) was called for trading on the TSX-V on November 25, 2011. Woodjam Copper was created when Fjordland Exploration Inc. (“Fjordland”) (TSX-V: FEX) and Cariboo Rose Resources Ltd. (“Cariboo Rose”) (TSX-V: CRB), 60%-40% partners in the Woodjam Joint Venture (“WJV”), jointly put their interests in the WJV into the new company. Shareholders of Fjordland and Cariboo Rose received shares in Woodjam Copper. Woodjam Copper currently owns a 49% interest in the Woodjam North and Woodjam South properties which are under option to Gold Fields who own a 51% interest and may earn a further 19% to total a 70% interest in the properties.
About Gold Fields Limited
Gold Fields is one of the world’s largest unhedged producers of gold with attributable, annual production of 3.5 million ounces per annum from eight operating mines in South Africa, Ghana, Australia and Peru. Gold Fields also has an extensive growth pipeline with both greenfield and near-mine exploration projects at various stages of development. Gold Fields has total attributable Mineral Reserves of 80.6 million ounces and Mineral Resources of 217 million ounces. For more information visit the company’s website at www.goldfields.co.za.
