MANILA, PHILIPPINES--(Marketwire - March 10, 2011) - Crazy Horse Resources Inc. (TSX VENTURE:CZH) -


  • Net Present Value of Taysan Project of US$734M at 10% (discount after tax) using US$3.00/lb Copper.
  • Production Forecast of 22.7% Internal Rate of Return at US$3.00/lb Copper.
  • NI 43-101 compliant resource report to be completed within 30 days.
  • Crazy Horse proceeding with Bankable Feasibility Study.

Crazy Horse Resources Inc. (the "Company") a Philippines based minerals development company, is pleased to announce the results of a preliminary economic assessment of its Taysan copper-gold porphyry project in the Philippines.

A soon to be completed independent scoping study as managed by AMEC Minproc Limited of Australia, and contributed to by a number of third party industry consultants, indicates the Taysan Project has an NPV (10%) of US$783M at US$3/lb Cu, US$1,000/ozt Au, US$28/ozt Ag and US$60/t of Magnetite.

The Taysan Project remains sensitive to copper prices as shown in the table below.

  2.50 US$/lb Cu 3.00 US$/lb Cu 4.00 US$/lb Cu
NPV (10%) $77M $783M $1,963M
IRR 11.4% 22.7% 40.1%

The Taysan Project is estimated to produce 3.1 billion lbs Cu, 1.5 million ozs Au, 7.4 million ozs Ag and 18.5 million tonnes of Magnetite over the twenty-four (24) year mine life. Annual average production for years 1-4 is estimated at 173 million lbs Cu and 79,400 ozs Au. Average annual production over the life of mine is 129 million lbs Cu, 62,000 ozs Au, 308,000 ozs Ag and 807,000 tonnes of Magnetite (commencing year 2).

A capital cost estimate of US$1,040M is higher than originally estimated (US$914M) due to the addition of the Magnetite plant, additional mining fleet, aggressive pre-strip plan and a general increase in cost of materials.

The C1 cost, net of by-product credits is low at US$0.77/lb Cu for years 1-4 and US$1.14/lb Cu over the 24 year mine life. Unit cost is estimated at US$8.54/tonne of ore processed and is driven by the low waste to ore ratio (0.7:1); proximity to port (20km); and low freight costs to expected market (China, Japan and Korea).

The potential quantities and grades are conceptual in nature, that there has been insufficient exploration to define a mineral resource, and it is uncertain if further exploration will result in the target being delineated as a mineral resource. Further, the preliminary assessment is preliminary in nature, and it includes inferred mineral resources that are considered too speculative geologically to have the economic considerations applied to them that would enable them to be categorized as mineral reserves, and there is no certainty that the preliminary assessment will be realized.

AMEC Minproc Limited:

This release must be read as a whole and is subject to, and limited by, (i) the information available at the time of preparation of the report, (ii) the data supplied by the Company and outside sources, (iii) the assumptions, methodology and procedures that have been agreed as the scope of work to be conducted by AMEC Minproc Limited in connection with any report. To the extent permitted by law, AMEC Minproc Limited disclaims any liability or responsibility for the use of or reliance on the report, or reference within this release by any third party.

An updated NI43-101 compliant resource report is being prepared by Mining Associates of Brisbane, Australia and is due for release this month following the completion of the Scoping Study by AMEC Minproc Limited.

The Company has approved the next stage of the feasibility study on the Taysan Project that is estimated to take up to 18 months to complete. Five diamond drill rigs continue in-fill drilling of the resource.

Johan Raadsma, President of Crazy Horse, states, "We remain bullish on the copper price and these positive results clearly show the tremendous economic upside potential of the Taysan copper-gold-silver project. The addition of magnetite provides for further benefits and we will study the benefits of in-country beneficiation during the feasibility stage."

Taysan Project

A copy of the National Instrument 43-101 ("NI 43-101") report by R.Sowerby, of Geosynthesis Pty Ltd. entitled "A Technical Review of Exploration and Resource Estimates of the Taysan Project, Batangas Province, Philippines", in collaboration with Mining Associates Inc. of Australia, can viewed under the Company's profile on SEDAR (

The Project contains a drill defined copper-gold porphyry deposit, and is comprised of two mining exploration permits and three mining exploration permit applications (permits: EP-IVA-005 and EP-IVA-016, and permit applications: EPA-IVA-108, EPA-IVA-111 and EPA-IVA-081) over five contiguous claim blocks covering a combined total area of 11,254 hectares. The Project hosts a large and only partly explored copper-gold porphyry deposit similar to other copper-gold porphyry deposits previously mined in the Philippines. The Project is located in southern Luzon, Philippines in a well-developed mining province and readily accessible by road located 20km east of the provincial capital and deep-water commercial port of Batangas City. The Company is currently conducting a confirmatory scoping study under the management of AMEC Minproc Limited, which remains on track and on schedule.

Brian Lueck, Chairman of the Company, is the qualified person who has reviewed the geological data summarized in this news release on behalf of the Company.


Johan Raadsma, President, CEO and Secretary

This press release includes "forward-looking statements" including forecasts, estimates, expectations and objectives for future operations that are subject to a number of assumptions, risks and uncertainties, many of which are beyond the control of Crazy Horse Resources Inc. Statements regarding mineral exploration development and production operations and objectives are subject to risk, including, but are not limited to, exploration and geologic risk, inflation and costs of goods and services, mineral ore pricing, production risks (including production delays, processing costs and unknown environmental issues) property title issues and regulatory approvals. Investors are cautioned that any such statements are not guarantees of future performance and that actual results or developments may differ materially from those projected in the forward-looking statements. Such forward-looking information represents management's best judgment based on information currently available. No forward-looking statement can be guaranteed and actual future results may vary materially. There is no assurance that the Company will be successful in developing the Taysan Project or producing mineral ore at the rates or at the costs set out in this news release. Crazy Horse Resources Inc. does not assume the obligation to update any forward-looking statement, except as required by applicable law.

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