September 18, 2012

Happy Creek drills 17.4 metres of 0.90% W03 near surface at the Fox tungsten property

September 18, 2012 - Vancouver, British Columbia - Happy Creek Minerals Ltd. (TSX-V:HPY, the “Company”) is happy to announce new drilling results from its 100% owned, 162 square kilometre Fox tungsten-molybdenum property. The Fox property is located approximately 75 kilometres northeast of 100 Mile House, British Columbia (B.C.), Canada.

Four prospects called the 708, BN, Ridley Creek (RC) and BK contain high tungsten values in outcrop and the favorable geology spans a distance of approximately 3.0 kilometres. Trenching these prospects returned 1.0 metre of 2.38% W03 (tungsten trioxide), 0.40 metres of 11.10% W03, 7.0 metres of 0.80% W03, and 4.6 metres of 0.85% W03, respectively. In 2011, the first ever drilling in the RC area returned 7.35 metres of 1.22% W03 in F11-07 and 4.7 metres of 1.02% W03 in F11-08. Refer to press releases dated October 3, October 20, November 1, 2011 and January 12, 2012.

The first preliminary results from 2012 drilling is from the RC area with vertical hole F12-01 containing 17.4 metres of 0.90% W03, including 1.3 metres of 6.08% W03, 0.35% zinc, 0.42 g/t gold, 3.16 g/t silver and 2.1 g/t indium. Splitting the overall zone to above and below a 3.0 metre thick granite sill gives 4.0 metres of 0.41% W03 and 10.4 metres of 1.35% W03, respectively. As the zone is sub-horizontal, the estimated true width is approximately 80-90% of measured width.

David Blann, President and Chief Executive Officer of Happy Creek states: “The three kilometre long area of favorable geology with near surface mineralized zones is translating into a strongly positive outlook for this new tungsten discovery. Drilling in 2011 and 2012 has returned drill core with variable length intervals containing trace to 9.6% W03, everywhere we have tested. In addition, several longer holes at the end of this program intersected tungsten-bearing zones at depth that increase the opportunity on the property.”

Preliminary 2012 Drill Results from Fox Tungsten Property

Hole From
F12.01 15.0 32.4 17.4 0.90 1508 Skarn + granite
includes 29.7 31.0 1.3 6.08 3570 skarn
includes 19.0 22.0 3.0 0.001 34 granite sill
F12-02 16.0 23.0 7.0 0.31 901 Skarn + granite
includes 16.0 17.0 1.0 1.42 3690 skarn
includes 17.0 21.0 4.0 0.007 126 granite sill

F12-01 and F12-02 are vertical and -55 degree angle holes, respectively, located approximately 20 metres west of F11-07 that returned 7.35 metres of 1.22% W03. The mineralized zone is confirmed by four holes to be near surface, sub-horizontal in orientation, extends for approximately 75 metres west of an outcropping surface trench, and is open in extent.

The tungsten bearing skarn zones are found within a favorable geological unit that is between 20 and 40 metres in thickness and consists of marble, calc silicate, orange-red-brown colored garnet and pyroxene. This favorable unit occurs within biotite-muscovite schist and all rocks are cut by dykes or sub-horizontal sills, alaskite-granite or quartz monzonite in composition. The mineralized skarn zones contain variable concentrations of sulphides including pyrrhotite, sphalerite (zinc sulphide) and scheelite (calcium tungstate, an ore mineral of tungsten containing 80.5% W03). Trace elements within the mineralized zones include indium, gold and silver. Locally, molybdenite (molybdenum sulphide) occurs in quartz veins and intrusive rocks that appear separate from the tungsten zones.

F12-01 also tested a portion of a strong induced polarization (IP) geophysical target identified in 2011 that is centered approximately 125 metres below surface. F12-01 and two subsequent drill holes tested to around 150 and 165 metres depth, ending in granite. Geologists state that there is nothing in the drill core to indicate a source of the strong (35 millisecond) IP chargeability, generally associated with sulphides. However, more recent deeper drilling approximately 1.0 kilometre to the south, has intersected several visually positive tungsten zones with sulphides beneath a 30 metre thick granite sill layer. This is thought to be an important indication for other mineralized zones to potentially occur beyond the granite observed at the end of F12-01 and over the entire three kilometre favorable area. More detailed drilling and drilling to a greater depth is required to fully test the strong IP geophysical anomaly, and define all the tungsten bearing zones on the property.

During 2012, the Company completed 29 drill holes averaging approximately 90 metres depth for a total of 2,600 metres. Drilling focused on the RC zone, with holes also completed at the BK and BN zones located approximately one kilometre to the north and south, respectively. Final results from F12-01 and F1202 and additional results are pending.

Tungsten (W) market prices are based on the contained W03, and are recently around US$30.0/kg W03 in a 65% W03 concentrate. 1.0% W03 contains 10 kg/tonne W03.

Processing scheelite ore to a suitable concentrate is typically performed by gravity separation and flotation methods. Upgrading scheelite concentrate to ammonium paratungstate (APT) can also be completed. APT has a market value of around $40/kg W03. Tungsten is used for hard metals such as tungsten carbide, as well as other electrical, catalyst and super-alloy applications. Elevated zinc, indium, cadmium, silver and trace gold also occur locally with the tungsten. Indium is a rare metal used in liquid crystal display and electronics. During 2012, the Company collected approximately 1.5 tonnes of material from three surface trenches that is planned to be used for mineralology, metallurgical and mineral process testing.

The geological setting, nature and scale of mineralization at the Fox property are similar to other tungsten mines and advanced stage projects world-wide. Positive tungsten values occur in drill holes, outcrops, stream sediment and soil in an area approximately three kilometres by 10 kilometres in dimension. Happy Creek has advanced the Fox prospect from a very early stage to a new and large scale system. To date, approximately 15% of the favorable area at the RC zone has been tested to a shallow depth, and positive mineralization at the Nightcrawler area also remains open in extent.

On behalf of the Board of Directors,

“David E Blann”
David E Blann, P.Eng.
President, CEO

David Blann, President, CEO
Corporate Office:

Phone: 604.662.8310
Investor Relations:
James Berard
Phone: 604-687-2768
Toll free: 1-877-459-5507

David Blann, P.Eng., is a Qualified Person as defined under Canadian NI43-101 regulations and has reviewed and approved the technical content of this press release. Happy Creek employs a strong Quality Assurance and Control system for its drilling programs. Samples are cut from NQ size drill core using a rock saw, and a blank, certified standard or duplicate are sequentially inserted into the sample string every tenth sample. Samples are shipped to Agat Laboratories in Burnaby, B.C. where they are prepared and analyzed first by Aqua Regia Digest, ICP/ICP-MS Finish. Samples that return greater than 50 ppm W (tungsten) are then selected for digestion by a peroxide fusion, with ICP-finish in triplicate and averaged for preliminary results. For these assays that return greater than 1% W, the sample is subjected to the Agat W Classical assay for final result that are pending. W is converted to W03 by a multiplication factor of 1.261. 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.

You can view the Next News item:October 3rd, 2012, Happy Creek drills 11.0 metres of 0.82% W03 at the Fox tungsten property

You can view the Previous News item:August 21st, 2012, Happy Creek begins airborne survey at Silver Dollar gold-silver property

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