Mining Updates Mineral Resource Estimate For Harper Creek Project
Core was cut by electric rock saw with half core shipped to the ALS Group for sample preparation and analysis. Drill core samples were analyzed for multi-elements by total digestion ICP-ES and for gold by fire assay with an AA finish. Core samples returning greater than 2,000 ppm copper in the ICP-ES process were then assayed for copper. Key elements of Yellowhead's QA/QC program include chain of custody of samples, regular insertion of certified reference standards and blanks, and duplicate check assays. Independent laboratory checks were performed by Acme Analytical Laboratories Ltd.
The mineral resource estimate reported herein was prepared by independent consultant Ron Simpson, P. Geo, President of Geosim Services Inc., an independent "Qualified Person" under National Instrument 43-101 Standards of Disclosure for Mineral Projects ("NI 43-101").
About Yellowhead Mining Inc. and the Harper Creek ProjectThe Harper Creek Project is a copper-gold-silver volcanogenic sulphide deposit with a Measured and Indicated Resource of 815 million tonnes grading 0.29% Cu (5.26 billion pounds of copper) plus 0.032 g/t gold and 1.3 g/t silver, plus an Inferred Resource of 80.2 million tonnes grading 0.30% Cu (0.53 billion pounds of copper). The Harper Creek Project is located in south-central British Columbia, approximately 150 kilometers by highway north of Kamloops. Yellowhead has a 100% interest in the Harper Creek development project [ 1 ]. A Preliminary Economic Assessment Report ("PEA"), which demonstrated the technical and economic viability of the Project, was completed at the end of March 2011 and filed on SEDAR on April 1, 2011 and can be viewed on http://www.sedar.com. The PEA demonstrated a 22 year project life based on a Measured & Indicated resource of 532 million tonnes at a grade of 0.31%, a milling rate of 70,000 tonnes per day, producing 149 million lbs. copper in concentrate per year for years one to eight, (132Mlb/year life-of-mine), a life-of-mine stripping ratio 0.88:1, a pre-tax IRR of 19.8% with a base case copper price of US$2.66/lb., an NPV8 of US$598 million and a capital cost of C$759 million in Q4 2010 dollars, including contingency, with a 4 year payback [ 2 ]. [ 1 ] (Subject to the payment of a 3% NSR royalty capped at $2.5 million, adjusted for inflation and an additional 2.5% NSR royalty on an estimated 3.3 million tonnes of ore which is expected to be mined beginning in year nine within the NI 43-101 resource.) [ 2 ] Mineral resources are not mineral reserves and do not have demonstrated economic viability. FORWARD-LOOKING STATEMENTS AND CAUTIONARY DISCLAIMER
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