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Nov 30, 2010
Newport to Joint Venture 50% interest in the Chu Chu massive sulphide deposit
Newport Exploration Ltd ("Newport") is pleased to report that an agreement has been reached with Reva Resources Corp (TSX-V: RVA) ("Reva") whereby the Newport can earn a 50% interest in Reva's Chu Chua massive sulphide deposit located approximately 70km north of Kamloops, British Columbia. In order to earn the 50% interest, Newport on or before December 31, 2012, will need to carry out and fund the costs of the recommended work program on the Chu Chua property as detailed in the technical report dated October 15, 2009 prepared for Reva by APEX Geoscience Ltd. and filed on SEDAR, estimated to be $1,670,000. Two directors of Newport are insiders of Reva and as such abstained from voting on the Newport directors resolution approving the agreement.
Chu Chua was discovered in 1978 by Craigmont Mines Ltd. and subsequently optioned to Minnova Inc. One hundred and thirty (130) drillholes have been drilled on the Chu Chua property for a total of 23,500m, with a total of 98 drillholes for a total of 19,000m in the resource area. The deposit is comprised of two vertical and steeply dipping lenses of massive pyrite--chalcopyrite and magnetite up to 40m thick, with a known strike length of 400m and a known depth of 250m.
A resource calculation conducted by Mintec Inc. in 1989 quoted a resource of 2.9m tonnes at 1.6% Cu, 0.26% Zn, and 6.9 g/t Ag. Using a 2% copper cut-off grade, a resource was estimated at 798,611 tonnes at 3.87% Cu, 0.45% Zn and 12.8 g/t Ag. This resource calculation is classified as being an historical resource and is not therefore acceptable for NI43-101 reporting purposes and should not be relied upon. The most commonly reported grade and tonnage for the Chu Chua deposit is in the 1992-93 Canadian Mines Handbook which reports an "open pit reserve" of 1,043,154 tonnes grading 2.98% Cu, 10.2 g/t Ag, 0.54 g/t Au and 0.3% Zn. This is an historical "reserve" and is not therefore acceptable for NI 43-101 reporting purposes and should not be relied upon.
A qualified person has not classified either the historical "resource' or the historical "reserve" as a current mineral resource or reserve and the Company is not treating any of the above estimates as such. As part of the work to be conducted by the Company a new NI 43-101 resource model and estimation will be derived utilising the extensive drillhole data base to construct a 3-D geological resource model to be used for block modelling in order to calculate a NI 43-101 compliant resource estimation and to direct metallurgical testing and sampling. Newport will retain the services of APEX Geoscience Ltd. to conduct this work.
The agreement remains subject to the acceptance of the TSX Venture Exchange.
Mr. Kris Raffle, P. Geol., of APEX Geoscience Ltd. is the Qualified Person who reviewed the scientific and technical information contained in this news release.
For further information contact:
"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."