Happy Creek estimates NI 43-101 Ridley Creek resources

Mar 15, 2016

HAPPY CREEK’S FOX TUNGSTEN PROPERTY, RIDLEY CREEK ZONE INCLUDES 505,000 TONNES OF 0.468% W03 INDICATED AT 4.1:1 STRIP RATIO

Effective today, Happy Creek Minerals Ltd. has released its first resource estimate prepared in accordance with National Instrument 43-101 for the Ridley Creek zone on its 100-per-cent-owned Fox tungsten property. The Fox property is located 75 kilometres northeast of 100 Mile House in the south-central Cariboo, British Columbia, Canada.

The Fox property consists of a new, large-scale, 10-kilometre-by-three-kilometre tungsten skarn mineral system, containing seven mineralized zones at surface. All zones are open in extent. The Ridley Creek zone is currently approximately 350 metres by 175 metres in dimension. It is a gently dipping tabular body approximately five metres to 25 metres in thickness with the top at surface to approximately 25 metres below surface. The current resource for the project is for the Ridley Creek (RC) zone.

At the 0.1% WO3 cut-off selected and within the resource constraining pit shell, the Indicated resource is estimated at 505,000 tonnes grading 0.468% WO3. Inferred resources are 280,000 tonnes of 0.456% WO3 (Table 1).

   
   Resource Estimate at a 0.1% WO3 Cut-off
  
  ClassificationWO3 Cut-off  (%)Tonnage  (t)WO3  (%)WO3  (MTU)
Indicated     >0.1            505,000     0.468   237,000   
Inferred      >0.1            280,000     0.456   127,000

David Blann, P.Eng., President, CEO, comments: “For a single, 45-degree pit-constrained tungsten resource using current metal prices, the Ridley Creek zone has a combination of grade and low strip ratio that are an excellent start. The deposit is still open in extent and we have six other zones that could potentially add to this. The work completed has provided a solid technical foundation to continue with more detailed engineering and assessment, and with the efficient drill-out of this and our other zones. As a new discovery in the western world, we are pleased to achieve this milestone and we look forward to advancing the 100% owned Fox as a leading new tungsten project.”

The Company’s plans for 2016 include the collection of additional engineering and other data to advance the RC zone and continue exploration of six other at-surface tungsten prospects on the property. Details of the Company’s plans for 2016 will be provided in a subsequent news release.

    Base Case Highlighted for Cut-off Sensitivity 
  
  within the 45-degree Pit Wall Resource Constraining Shell

  ClassificationWO3 Cut-off  (%)Tonnage  (tonne)WO3  (%)WO3  (MTU)
Indicated     >0.60           142,000         0.911   130,000   
              >0.40           240,000         0.740   178,000   
              >0.30           303,000         0.660   200,000   
              >0.20           381,000         0.575   219,000   
              >0.15           433,000         0.526   228,000   
              >0.10           505,000         0.468   237,000   
              >0.05           595,000         0.409   243,000   
Inferred      >0.60           63,000          0.873   55,000    
              >0.40           129,000         0.674   87,000    
              >0.30           195,000         0.561   109,000   
              >0.20           249,000         0.494   123,000   
              >0.15           261,000         0.480   125,000   
              >0.10           280,000         0.456   127,000   
              >0.05           295,000         0.435   129,000

Subset of Indicated and Inferred Resources Reported    
Within Selected Revenue Factor Pit Shells

  WO3 Cut-Off (%)Revenue  FactorIndicated      Inferred                              
                              Tonnes WO3  (%)Tonnes WO3   (%)Waste   (t)Strip Ratio
0.2            0.60           188,0000.496   99,000 0.628    732,000    2.55       
0.2            0.80           304,0000.556   203,0000.511    2,049,000  4.04       
0.2            1.00           387,0000.572   253,0000.491    3,367,000  5.26       
0.1            0.60           270,0000.388   102,0000.613    647,000    1.74       
0.1            0.80           403,0000.454   221,0000.48     1,932,000  3.10       
0.1            1.00           505,0000.468   280,0000.456    3,218,000  4.10

Tungsten assays are reported in percent WO3 (tungsten trioxide), the compound for which tungsten market prices are published. Quantities of WO3 are traditionally reported in Metric Ton Units, which are equal to 10 kg of WO3. A grade of 0.5% W0 3 contains 5 kg of W0 3 /tonne.

A NI 43-101 technical report for the Fox Tungsten Project mineral resource estimate will be filed on SEDAR within 45 days.

Pierre Desautels, MSc., P.Geo of AGP Mining Consultants is the qualified person responsible for the resource estimate and Warner Gruenwald, P.Geo. the co-author of the technical report, are independent as defined in Section 1.5 of NI 43-101and have reviewed and approved the technical information within this news release.

Global Mineral Inventory of the Ridley Creek Zone
  
  ClassificationWO3%   BinTonnage  (tonne)WO3  (%)WO3  (MTU)
Indicated     >0.40     274,000         0.74    204,000   
              >0.20     476,000         0.55    261,000   
              >0.15     589,000         0.48    281,000   
              >0.10     776,000         0.39    304,000   
              >0.05     976,000         0.33    319,000   
Inferred      >0.40     258,000         0.71    182,000   
              >0.20     496,000         0.50    249,000   
              >0.15     563,000         0.46    261,000   
              >0.10     654,000         0.42    273,000   
              >0.05     767,000         0.37    281,000

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