BLUE RIVER RESOURCES LTD COMMENCES DRILLING ON THE HIGHLAND VALLEY NORTH PROJECT
Vancouver, BC – September 27, 2012 - Blue River Resources Ltd. (the "Company" or "Blue River") (TSX VENTURE: BXR) (http://www.blueriv.com) announces that it has received an approved Notice of Work with respect to a 2012 diamond drilling program at the 100% owned Highland Valley North Project from the BC Ministry of Mines.With this permit now issued, the Company has mobilized the diamond drill from the Castle Copper Project to the Highland Valley North Project and commenced diamond drilling to take advantage of the remainder of the fall season on the higher elevation Highland Valley North Project. Diamond drilling on the Company’s 100% owned Castle Copper Project near Princeton, BC, will resume immediately after completion of the drill program on the Highland North Project
The 2012 Highland Valley North diamond drill program is planned for 1,500 meters (5,000 feet) and is targeting a 1,600 meter long by 200 meters wide resistivity anomaly identified from a 2011 Induced Polarization (“I.P.”) geophysical survey as well as a series of historical trenches enriched in oxide copper mineralization. The first samples from this drilling project are scheduled to be submitted for analysis by week’s end and assay results will be released as they are received.
The Highland North Project is directly adjacent to Teck’s Highland Valley Copper Mine and is located approximately 6 km (4 miles) east of Teck’s “Bethlehem Pit”. Getty Copper‘s Getty North and Getty South Copper Projects are located immediately adjacent to the north of the Highland Valley North Property. Highland Valley Copper is Canada’s largest open-pit copper mine.
Previous exploration on the Highland Valley North Project consisted of a series of trenches dating from the late 1950’s that partially exposed a north to northwesterly trending copper zone. The Property is located within an extensive northwest trending regional magnetic low and the I.P. geophysical anomalies are coincident with copper-in-soils geochemical anomalies.
Recent exploration included a 2011 geophysical survey (Magnetics and I.P.) and a geochemical survey. Results from these surveys suggest the target area could be 1.6 kilometres in length and up to 200 meters wide.
The Highland Valley North Project in underlain by the Guichon Batholith granodiorite which is cut by dykes of felsic Bethlehem or Bethsaida phase intrusives. Chalcopyrite and malachite/azurite are the predominant copper minerals present within the exposed trenches. The geology, alteration and copper minerals seen on surface are consistent with Highland Valley-style porphyry copper systems.
The technical contents of this news release were approved by Paul D. Gray, P.Geo., Company Director and a qualified person as defined by National Instrument 43-101.
The Company is also pleased to announce that, further to its news release dated September 10, 2012, it has completed the first tranche of its non-brokered private placement (the "Private Placement") of up to 6,500,000 units @ $0.10 unit and 500,000 flow through shares at $0.15 share.
Pursuant to the Private Placement, the Company issued 1,680,000 non flow through units (the "NFT Units") at a price of $0.10 per NFT Unit for gross proceeds of $168,000 and 100,000 flow-through shares (the “FT Shares”) at a price of $0.15 per FT Share for gross proceeds of $15,000.
Each NFT Unit consists of one common share (a "Share") of the Company and one-half of a common share purchase warrant (a "Warrant") of the Company;
Each Warrant will entitle the holder to purchase one Share (a "Warrant Share") of the Company for a period of five (5) years following the date of issuance of the Warrants at a price of $0.20 per Warrant Share.
The common shares and warrants issued pursuant to the Private Placement and any common shares issued on exercise of the warrants are subject to 4-month resale restrictions that will expire on January 18, 2013 and January 27, 2013.
The proceeds raised will be used to continue exploration on the Castle Copper Project and the Highland North Project and for general corporate purposes.
ON BEHALF OF THE BOARD
BLUE RIVER RESOURCES LTD.