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News>>>>>>>>>>Tuesday June 17 2:45 PM EDT
Company Press Release
Source: Northern Orion Explorations Ltd.
Northern Orion Explorations Ltd. Agua Rica Project -
Updated Geologic Resources
VANCOUVER, June 17 /CNW-PRN/ - NORTHERN ORION EXPLORATIONS LTD.
NNO - TSE
MAE - TSE, VSE
MAENF - NASDAQ
Northern Orion is pleased to announce estimates of geologic resources for
the Agua Rica project, Argentina, as calculated by BHP Copper, the project
operator, for the Initial Feasibility Study currently being prepared. These
resource estimates are based on and include drilling results from the first
103 holes completed at Agua Rica as of December 31, 1996. Drilling in 1997 is
continuing to in-fill and test for extensions to this resource.
1. Initial Feasibility Study
The Agua Rica JV is currently preparing an Initial Feasibility Study
which is scheduled for completion in late August 1997 based on the resource to
December 31, 1996. This study will incorporate estimates of mineable
reserves, mine scheduling, capital and operating costs and an assessment of
environmental impact for production scenarios of 60,000 tonnes per day and
120,000 tonnes per day.
2. Mineral Resource: Sulphides
These estimates are for measured, indicated and inferred geologic
resources, of which 87% are classified as measured and indicated resources
according to Australian IMM definitions of resources. Details are provided in
the table attached.
At 0.2% Copper At 0.4% Copper
Cut-off Grade Cut-off Grade
Tonnes 1,667 million 802 million
Grades
- Copper 0.44% 0.61% - Gold 0.19 g/t 0.24 g/t - Silver 3.01 g/t 3.17 g/t - Molybdenum 0.028%
0.034% - Copper Equivalent (x) 0.68% 0.90%
Contained Metal
- Copper (lbs) 16.2 billion 10.8 billion - Gold (oz) 10.2 million 6.2 million - Silver (oz) 166 million
82 million - Molybdenum (lbs) 1,066 million 601 million
(x) Copper equivalent grades are based on in situ values at the following
metal prices: copper (at) $1/lb, gold (at) $385/oz, silver (at) $5/oz, and
molybdenum (at) $4/lb. Actual payable values received will depend on the
recoveries which may vary for different metals.
3. Mineral Resources, Leach Cap Gold
In addition, BHP Copper has estimated a geologic gold resource in leached
caps which overlie the higher grade sulphide mineralization using a 0.25 g/t
gold cut-off grade. This gold may be amenable to recovery by heap leach
methods.
Tonnes 89 million
Gold Grade 0.41 g/t
Contained Gold (oz) 1.2 million
4. Higher Grade in Early Years
Based on the distribution of the mineralization in the deposit, where the
highest grade secondary enriched copper mineralization lies close to surface,
mining at Agua Rica would access significant tonnages of higher grade copper
mineralization and higher by-product credits of gold, silver and molybdenum in
the first several years of operations.
5. Final Feasibility Study
With a further 25,000 meters of drilling already underway for 1997, the
JV is proceeding with the work required to advance the Agua Rica project to
completion of a final feasibility study during 1998. In addition to the
drilling already underway, work planned includes collection of bulk samples,
further metallurgical testing, updated resource and reserve estimates,
continued environmental and hydrological assessments and updated capital and
operating cost estimates.
6. Property
The Agua Rica deposit is a large porphyry copper-gold-silver-molybdenum
deposit located in Catamarca province, northwest Argentina, and is being
explored by a joint venture between Northern Orion (30%) and BHP Copper (70%).
The joint venture is currently approximately midway through a US$45 million
work program designed to bring the project to completion of a final
feasibility study.
Northern Orion Explorations (NNO-TSE) is a mining company targeting the
development of gold and copper deposits in Latin America and is 54% owned by
Miramar Mining Corporation (MAE-TSE, MAENF-Nasdaq).
AGUA RICA PROJECT, ARGENTINA
Mineral Resource Estimate
(Numbers may not add due to rounding) Mineral Millions Copper Gold Silver Molybdenum
Resource Tonnes Cu Billions Au Millions Ag Millions Mo Millions Category(x) (%) lbs (g/t)
oz (g/t) oz (%) lbs ------------------------------------------------------------------------
Sulphides Cut-off 0.2% Cu Measured 1,200 0.47 12.4 0.19 7.3 3.26 126 0.029 767
Indicated 247 0.35 1.9 0.16 1.3 2.42 19 0.026 142
---- ---- ---- --- ---- --- ----- ----- Sub-total 1,447 0.45 14.3 0.18 8.6 3.12 145 0.028
909
Inferred 220 0.38 1.8 0.17 1.2 2.29 16 0.022 107
----- ---- ---- ---- --- ---- --- ----- ----- Total Sulphide Resources 1,667 0.44 16.2 0.18 9.8
3.01 161 0.028 1,015
Sulphides
Cut-off 0.4% Cu
Measured 646 0.62 8.8 0.24 5.0 3.43 71 0.035 498
Indicated 76 0.53 0.9 0.22 0.5 2.24 5 0.031 52
----- ---- ---- ---- --- ---- --- ----- ----- Sub-total 722 0.61 9.7 0.24 5.5 3.30 77 0.035 550
Inferred 80 0.57 1.0 0.23 0.6 1.96 5 0.029 51
----- ---- ---- ---- --- ---- --- ----- ----- Total Sulphide Resources 802 0.61 10.7 0.24 6.1 3.17
82 0.034 601
Leach Cap Gold
Cut-off 0.25 g/t gold
Measured 71 - - 0.41 0.9 - - - -
Indicated 18 - - 0.41 0.3 - - - -
---- ---- ---- --- ---- --- ----- ----- Leach Cap Resources 89 - - 0.41 1.2 - - - -
---- ---- ---- --- ---- --- ----- -----
*T
(x) Mineral resource categories defined according to the Australian IMM codes for resources. |
