Constellation assays 6.62% Zn over 141 m at Terrazas
2006-10-26 11:49 ET - News Release
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CCU Close 2006-10-25 C$ 1.85
Mr. Gregory Hahn reports
DRILLING AVERAGES 104 METERS OF 4.79% ZN AT THE TERRAZAS PROJECT CHIHUAHUA, MEXICO
Constellation Copper Corp. has released assay results from significant intercepts in holes drilled into the Cerro Verde area of the Terrazas zinc-copper project, located approximately 40 kilometres miles north of the capital city of Chihuahua, Mexico, immediately adjacent to paved Mexican Highway 45.
Most of the holes reported below were defined by the engineer responsible for Constellation's independent resource calculation as infill drilling to increase the drill density within the inferred resource portion of the Cerro Verde deposit at Terrazas. These new holes should allow for an upgrade of these inferred resources to at least indicated status, so that these resources could be included in economic models incorporated into the feasibility study. That inferred resource totalled 3.5 million tons grading 5.01 per cent Zn and 0.36 per cent Cu, as reported previously (PR No. 2005-19). The six holes reported here cut an average thickness of 104 metres grading 4.79 per cent Zn and 0.40 per cent Cu, as summarized below. Based on the orientation of these drill holes, the mineralized intercepts reported here represent variable, but close to 100 per cent of, true width. These new results compare favourably with the previous drill intercepts at Cerro Verde and the inferred resource grades reported above. The results from these holes will be incorporated into the current resource model and an updated resource and classification will be announced when available.
Inter-
Hole No. From To val Zn Cu
(m) (m) (m) (%) (%)
MTDD06-02 198 207 9 3.27 0.47
240 288 48 3.50 0.21
336 417 81 5.59 0.46
MTDD06-03 237 378 141 6.62 0.50
MTDD06-04 246 258 12 1.58 0.56
MTDD06-05 60 207 147 4.06 0.33
264 309 45 4.02 0.25
MTDD06-07 243 297 54 5.93 0.26
MTA-06 0 77.2 77 2.70 0.54
89.4 99.6 10 8.13 0.47
Average of
six holes 104 4.79 0.40
Azi-
Drill hole Elev. muth Dip Length
(m)
MTDD06-02 1653.0 075 -60 425.8
MTDD06-03 1645.0 148 -50 429.2
MTDD06-04 1645.0 142 -60 369.0
MTDD06-05 1653.0 055 -78 376.2
MTDD06-07 1646.1 145 -50 402.3
MTA-06 1649.3 0 -90 183.0
Drilling, sampling and assaying were performed under the supervision of Gary A. Parkison, vice-president exploration and development for Constellation Copper, a certified professional geologist and a qualified person. Sample preparation and assaying were performed by Inspectorate America at its facilities in Durango, Mexico, and Sparks, Nev. Prepared standards and duplicate samples are inserted on a regular basis into the sample stream prior to assaying to ensure assay precision and accuracy.
The Terrazas zinc-copper project is currently undergoing a feasibility study to quantify the design parameters and economics of developing the project as an open pit heap leach operation to produce up to 40 million pounds of copper cathode and up to 150 million pounds of zinc annually for a minimum mine life of 13 to 15 years, depending upon commodity prices.
The feasibility study is awaiting the results from the drilling program reported here, refinement of the resource model, as well as a program of large-scale leach tests soon to be started, using 15,000-plus tonnes of bulk material that has been mined and crushed from three zones within the main deposit area. Additionally, the study is waiting on results from further tests on the recovery of zinc from acid leach solutions which are currently being performed. These tests should confirm the zinc recovery method that will be used to refine the zinc recovery capital and operating costs.
Constellation continues to look forward to the successful completion of the feasibility study and the optimization of the zinc recovery method for the Terrazas resource which contains 2.34 billion pounds of zinc and 600 million pounds of copper in measured and indicated categories, and another 400 million pounds of zinc and 40 million pounds of copper in the inferred category, which was the primary target of the drilling program announced here.
This release was prepared by Gary A. Parkison, a certified professional geologist and a qualified person under National Instrument 43-101.
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