|May 27, 2011|
Drill Hole HC11-87 Returned Best Intersection to Date at Harper Creek
|Yellowhead Mining Inc. ("Yellowhead", TSX-V: YMI) is pleased to report Hole HC11-87 returned 242.52 m of 0.39% Cu, 1.6 g/t Ag and 0.037 g/t Au, including 33.45 m of 0.65% Cu, 2.1 g/t Ag and 0.071 g/t Au and 17.62 m of 0.96% Cu, 4.5 g/t Ag and 0.069 g/t Au.|
The results from the other final drill holes of the winter drill program, HC11-85 and HC11-86 are also reported. Hole HC11-85 is in line along strike with Holes HC10-82, HC11-83 and HC11-84 previously reported, as the most northerly drill holes completed at the Harper Creek deposit to date. HC11-86 is the most easterly drill hole on the Harper Creek deposit to date. The new drilling results are presented on two sections.
Holes HC11-85 and HC11-87 are part of a five-hole fence (including historical hole J-45 as well as Yellowhead's holes HC10-79 and HC10-80) at the north-eastern limit of the resource on Section 305300E. Hole HC11-85 is collared 200m east of hole HC10-82 and 489 m north of HC10-80. Hole HC11-87 is collared 118 m south of HC10-79.
The significant intersections from Hole HC11-85 and HC11-87 are presented in the tables below.
Please refer to the Cross Section Map http://www.yellowheadmining.com/i/pdf/2011-05-27-CrossSection305620-85-87.pdf
and Drill Plan Map http://www.yellowheadmining.com/i/pdf/2011-05-27-Drill-Plan-Map.pdf
or available at www.yellowheadmining.com.
Hole HC11-86 is collared 241 m east of HC10-79.
Please refer to the Cross Section Map: http://www.yellowheadmining.com/i/pdf/2011-05-27-CrossSection305860-86.pdf
Ian Smith, Chief Executive Officer, stated "Hole HC11-87 is the best hole drilled on the property to date considering width and grade, with 242.52 m grading 0.39% Cu. This width of mineralization lies entirely below the pit limit established in the Preliminary Economic Assessment (PEA), and shows the potential to increase resources at depth within the pit outline. Holes HC11-85 and HC11-86 also demonstrate the potential to expand the resource to the north down dip and to the east along strike from the pit limit established in the PEA."
The program is being managed by CME Consultants Inc. ("CME").
Christopher O. Naas, P.Geo. B.Sc., Project Manager for Yellowhead's Harper Creek Project, is a qualified person as defined by National Instrument 43-101 and prepared or reviewed the preparation of the scientific and technical information in this press release with respect to the assay results from the Harper Creek drill program.
SAMPLE COLLECTION, ANALYSES, AND QA-QC
All core processing was undertaken by CME personnel. Core was cut by electric motorized rock saw with half core shipped to Eco Tech Laboratory Limited, part of the Stewart Group (Eco Tech), in Kamloops, BC for sample preparation and analysis. Drill core samples were analyzed for gold by fire assay with an AA finish and multi-elements by total digestion ICP-ES. Core samples returning greater than 2,000 ppm copper in the ICP-ES process were then assayed for copper. In addition to control samples inserted by CME, the analytical laboratory routinely inserted their own control samples, which consisted of standards, blanks and sample repeats.
HARPER CREEK PROJECT
Harper Creek is a copper-gold-silver volcanogenic sulphide deposit with a measured and indicated resource of 563.2 million tonnes grading 0.31% Cu (3.6 billion pounds of copper) plus .032g/t gold and 1.08 g/t silver, plus an inferred resource of 117 million tonnes grading 0.29% Cu (0.7 billion pounds of copper). Mineralization occurs as a series of tabular bodies hosted within the Eagle Bay Assemblage metavolcanic and metasedimentary rocks.
ABOUT YELLOWHEAD MINING INC.
Yellowhead has a 100% interest in the Harper Creek Project, (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. The Harper Creek Project is a large copper-gold-silver project located in south-central British Columbia, approximately 150 kilometers by highway from Kamloops. A Preliminary Economic Assessment Report, which demonstrated the technical and economical viability of Harper Creek, was completed at the end of March and filed on SEDAR on 1 April, 2011 and can be viewed on www.sedar.com.
For more information, please contact:
Ronald Handford, Executive Vice President, Corporate Development
Anita Datt Investor Relations
604.273.5597 or 604.916.7175
FORWARD-LOOKING STATEMENTS AND CAUTIONARY DISCLAIMER
Except for statements of historical fact, this news release contains certain "forward-looking information" within the meaning of applica-ble securities laws. Forward-looking information is frequently characterized by words such as "plan", "expect", "project", "intend", "be-lieve", "anticipate", "estimate" and other similar words, or statements that certain events or conditions "may" or "will" occur. Forward-looking statements are based on the opinions and estimates of management at the date the statements are made, and are subject to a variety of risks and uncertainties and other factors that could cause actual events or results to differ materially from those anticipated in the forward-looking statements, including, among others, the accuracy of mineral grades and related assumptions, inherent operating risks, planned expenditures, proposed exploration and development at the Harper Creek Project, operating and economic aspects of the Harper Creek Project, as well as those risk factors identified in the Company's Annual Information Form filed under the Company's SEDAR profile. Yellowhead undertakes no obligation to update forward-looking information if circumstances or management's estimates or opinions should change except as required by law. The reader is cautioned not to place undue reliance on forward-looking statements. More detailed information about potential factors that could affect financial results is included in the documents filed from time to time with the Canadian securities regulatory authorities by Yellowhead.
This news release includes disclosure of scientific and technical information, as well as information in relation to the calculation of resources, with respect to the Harper Creek Project. Yellowhead's disclosure of mineral resource information is governed by National Instrument 43-101 -- Standards of Disclosure for Mineral Projects ("NI 43-101") under the guidelines set out in the Canadian Institute of Mining, Metallurgy and Petroleum (the "CIM") Standards on Mineral Resources and Mineral Reserves, adopted by the CIM Council, as may be amended from time to time by the CIM ("CIM Standards"). There can be no assurance that mineral resources will ultimately be converted into mineral reserves. Mineral resources are not mineral reserves and do not have demonstrated economic viability. This news release uses the terms "measured", "indicated" and "inferred" resources. U.S. persons are advised that while such terms are recognized and required by Canadian regulations, the U.S. Securities and Exchange Commission does not recognize them. "Inferred Resources" have a great amount of uncertainty as to their existence and as to their economic and legal feasibility. It cannot be assumed that all or any part of an inferred resources will ever be upgraded to a higher category. Under Canadian rules, estimates of inferred resources may not form the basis of feasibility or other economic studies. U.S. persons are cautioned not to assume that all or any part of measured or indicated resources will ever be converted into reserves. U.S. persons are also cautioned not to assume that all or any part of an inferred mineral resource exists, or is economically or legally mineable.
Neither the TSX Venture Exchange Inc. 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.
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