Toronto, Ontario – October 4, 2023 – Orecap Invest Corp. (the "Company" or "Orecap") (TSX.V: OCI) (OTC: ORFDF) is pleased to announce that it has entered into an agreement to acquire a controlling interest in a private company that owns 100% of Thierry Copper Mine ("Thierry"), located in Pickle Lake, Ontario. Thierry reflects Orecap's strategy of acquiring opportunities from special situations and incubating new high-potential brownfield projects with excellent infrastructure and jurisdictions.
Thierry is Ontario's largest primary copper resource and includes a recent PEA covering only the underground portion of the known resources. It is Orecap's view is that Thierry's primary upside is the growth of its bulk tonnage potential. Recent drill holes from September 20, 2023 supports this thesis:
*Copper Equivalent (CuEq) for drill intersections is calculated based on US$ 3.75/lb Cu, US$ 9.25/lb Ni, US$ 1,190/oz Pd and US$ 910/oz Pt with 100% metallurgical recoveries for all metals. Assays have not been capped. The formula used for the calculation is: CuEq = Cu % + (Ni grade X Ni Price)/(Cu Price) + ((Pd grade) X (Pd price / 31)) / (Cu price X 22) + ((Pt grade) X (Pt price/31)) / (Cu price X 22).
Thierry is in the well-known and mature mining camp of Pickle Lake, Ontario, with access to rail, highways, power, and other infrastructure required to develop a mine. This is a unique opportunity to develop an asset of this scale with this level of infrastructure that's in a premier mining jurisdiction. Eastern Canada is starved of high-quality primary copper projects. With Orecap now controlling the second largest primary copper project in the region, the Ore Group collectively controls two of the five largest primary copper projects in Eastern Canada.
Thierry spans 4,670 hectares across 27 mineral leases. The property hosts two past producing open pits that transitioned to underground mining—producing 5.8Mt @ 1.13% Cu, 0.14% Ni between 1976 – 1982 by UMEX Inc. Historically, copper concentrate was shipped to the Horne Smelter in Rouyn-Noranda, QC. Significant infrastructure is already in place, with the property being accessible via all-season road, an airport within 5km, available hydro, and nearby rail.
Figure 1) Location of Thierry Property
The Thierry property hosts a NI43-101 compliant resource across two zones—the Thierry (K2-1) underground deposit, and the K1-1 open pit deposit, along with historical resources at the J & G Zones (see disclosure on Historical Resources):
Thierry (K2-1) underground deposit:
K1-1 Zone open pit deposit:
J & G Zones open pit deposit historical resources:
Thierry 2022 PEA
The Thierry Property, and specifically the Thierry underground deposit, was the subject of an updated PEA study by P&E Mining Consultants in April 2022 that outlined a 14-year mine life, producing at a rate of 4,000 tpd, recovering 567Mlbs Cu, and 21Mlbs Ni. The PEA showed an after-tax NPV6% of $287M, an IRR of 25% and a payback period of 3.1 years. It is important to note that the PEA did not include the K1-1 open pit deposit and that Orecap will seek to drill out the open pit resources and evaluate a larger bulk tonnage scenario for the Project (see disclosure on PEA in Historical Resources and PEA).
In addition to the current resources, the Thierry property hosts large discovery and expansion potential including at the J & G Zones, which hosts a historical resource of 55,000 kt at 0.40% Cu, 0.11% Ni (see disclosure on Historical Resources). Previous geophysical studies and drilling has shown significant upside throughout the property to delineate additional mineralized zones and resources. Moving forward, Orecap will focus on reinterpreting the geology at the Thierry property and delineate further resources that can then culminate into a comprehensive PEA representative of the property's potential.
Terms of the Acquisition
Orecap will acquire 45% of Pickle Lake Minerals ("Pickle Lake"), a subsidiary of Canadian Critical Minerals Inc. ("CCMI"), for $1,350,000 in an upfront, all-cash deal, with CCMI also receiving 3,000,000 share purchase warrants of Pickle Lake with the following terms: 1,000,000 warrants with an exercise price of $0.10 per common share of Pickle Lake and exercisable for a period of 1 year from the closing date of this transaction ("Closing Date"); 1,000,000 warrants with an exercise price of $0.15 per common share of Pickle Lake and exercisable for a period of 2 years from Closing Date; and 1,000,000 warrants with an exercise price of $0.20 per common share of Pickle Lake and exercisable for a period of 3 years from Closing Date. Additionally, CCMI will receive a $500,000 milestone bonus payment for the completion of a new NI 43-101 resource on near surface (300 metres from surface) resources in excess of 100 million tonnes and/or 1.0 billion lbs of copper; and an additional $250,000 milestone bonus payment for the completion of a new NI 43-101 resource on near surface (300 metres from surface) resources in excess of 150 million tonnes and/or 1.5 billion lbs of copper. Principals of Orecap and QC Copper ("Companies"), including Chairman Stephen Stewart, will co-invest alongside the Companies at the same valuation. Following Closing, Orecap intends on renaming Pickle Lake to Cuprum Corp. Closing of the acquisition remains subject to final approval of the TSX Venture Exchange, as well as certain other conditions as are customary in transactions of this nature.
Information Regarding Historical Resources and PEA
Orecap views this historical data as a conceptual indication of the potential size and grade of the gold deposits in the area, and this data is relevant to ongoing exploration efforts. In view of when the resources were estimated and the differences in metal price and operating costs prevailing at the time compared to today, Orecap does not treat any of the historical resources as Current mineral resources or mineral reserves. Note that the PEA referred to above is historical in nature and Orecap has not conducted any economics analysis of the project and is using the conclusions of the PEA only as an indication of the potential economic performance of the project.
The technical information in this news release has been reviewed and approved by Charles Beaudry, P.Geo, Director for Orecap, who is a Qualified Person as defined in "National Instrument 43-101, Standards of Disclosure for Mineral Projects."
Neither 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. Certain information in this press release may contain forward-looking statements. This information is based on current expectations that are subject to significant risks and uncertainties that are difficult to predict. Actual results might differ materially from results suggested in any forward-looking statements. Orefinders' assumes no obligation to update the forward-looking statements, or to update the reasons why actual results could differ from those reflected in the forward-looking statements unless and until required by securities laws applicable to Orefinders. Additional information identifying risks and uncertainties is contained in filings by Orefinders with Canadian securities regulators, which filings are available under Orefinders' profile at www.sedarplus.ca.
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Orecap Invest Corp.
Stephen Stewart, Chief Executive Officer
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