Initial NI 43-101 Mineral Resource Estimate for San Javier Copper Deposit Sonora, Mexico
Wednesday April 18, 3:40 pm ET
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DENVER, CO, April 18 /CNW Telbec/ - Constellation Copper Corporation (TSX: CCU - News) is pleased to announce an initial mineral resource estimate for the Cerro Verde portion of the San Javier copper deposit, located in Sonora, Mexico.
The mineral resource at San Javier contains a total inferred resource of 81.0 million tonnes grading 0.35% Cu, containing 629 million pounds of copper. This inferred resource is derived from drilling results which are deemed to be insufficient to allow any of the resource to be categorized as measured or indicated. Drilling is continuing on the property to increase the drill density in the area(s) of the inferred resource and to define extensions to this resource. This resource estimate should be considered preliminary in nature and it will be updated periodically as more drill information becomes available. The resource does not include material that falls outside of the search parameters used in the estimation procedure, including that material both internal and external to the drill holes used. A summary of the resource estimate is included in the table below. This resource does not include any contribution from the La Trinidad or Mesa Grande areas, for which there is currently insufficient drill hole data available for a resource estimate, and which were discussed in press release (number sign)2007-04.
These resources are contained within a conceptual open pit shape with a maximum overall 50-degree slope angle, using a copper price of $2.40/lb. and conceptual level mining and processing costs. The copper price used reflects 120% of the 3-year running average price of $2.00/lb. which was used by Constellation for reporting reserves at other properties as of December 31, 2006. The mining and processing costs reflect a large-scale open pit, heap leach SX-EW type operation. The average copper recovery applied is 60% and is based on the leachability indicated by sequential copper analyses for individual three meter sample intervals. Additional copper mineralization is present at Cerro Verde but it is predominantly comprised of chalcopyrite, is not amenable to the process alternative being considered for this resource, and is therefore excluded from the current resource estimate. A total of 42.1 million tons of material below the cutoff grade of 0.10% Cu is also contained in the conceptual open pit which results in a waste:ore strip ratio of 0.52:1.0.
A total of 77 drill holes totaling 15,466 meters were used in the estimate for the Cerro Verde deposit, of which 57 are Constellation core holes, 13 are Constellation RC drill holes, and 7 are historic Phelps Dodge core holes. Complete assay results were available for the Phelps Dodge holes and several of these holes were twinned with Constellation drill holes confirming the Phelps Dodge results, hence these assays were deemed reliable and incorporated into the database for this estimate. Numerous drill assay results from older Penoles drill holes were not used in this estimate.
The grade and copper recovery estimation was done by ordinary kriging constrained by probabilistic shells developed from indicators at a 0.10% total copper threshold. Copper recovery was defined as the sum of acid soluble copper plus cyanide soluble copper divided by total copper.
The mineral resource estimate was completed by Constellation Copper Corporation and has been reviewed by SRK Consulting (US), Inc. ("SRK") of Denver, Colorado. Leah Mach, CPG, Principal Geologist for SRK, is the Qualified Person responsible for this mineral resource estimate and is independent of Constellation, as defined by NI 43-101. Ms. Mach has reviewed and approved the content of this press release. A Technical Report concerning this resource estimate will be filed on SEDAR (www.sedar.com) within the next 45 days.
San Javier Project Constellation Copper
Cerro Verde Deposit
Inferred Resource April 2007
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BENCH k Tonnes Total Contai- Reco- Cu Re- Reco- Waste Strip
above Cu % ned Cu vered covery vered tons Ratio
Internal Mlbs Cu % % Mlbs
cutoff
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Total/
Averages: 81,000 0.35 629 0.21 60% 377 42,100 0.52
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notes:
1) Resources reported are within a raw floating cone pit above
the internal cutoff grade of 0.1% total Cu
2) Cu price of $2.40/lb
3) Pit slope 50 degrees
4) Costs applied in open pit analysis:
Mining ($/t) fixed $ $0.80
Crush ($/t) fixed $ $0.40
Process ($/t) fixed $ $0.40
Acid ($/t) fixed $ $1.60
G&A ($/t) fixed $ $0.33
SXEW ($/lb recovered) variable $ $0.20
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This press release contains certain forward-looking statements. In certain cases, forward-looking statements can be identified by the use of words such as "plans", "expects" or "does not anticipate", or "believes", or variations of such words and phrases or statements that certain actions, events or results "may", "could", "would", "might" or "will be taken", "occur" or "be achieved". Forward-looking statements involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of the Company to be materially different from any future results, performance or achievements expressed or implied by the forward-looking statements. Such factors include, among others, risks related to changes in commodity and power prices, changes in interest and currency exchange rates, inaccurate geological and metallurgical assumptions (including with respect to the size, grade and recoverability of mineral reserves and resources), unanticipated operational difficulties (including failure of plant, equipment or processes to operate in accordance with specifications, cost escalation, unavailability of materials and equipment, delays in the receipt of government approvals, industrial disturbances or other job action, and unanticipated events related to health, safety and environmental matters), political risk, social unrest, and changes in general economic conditions or conditions in the financial markets. Although the Company has attempted to identify important factors that could cause actual actions, events or results to differ materially from those described in forward-looking statements, there may be other factors that cause actions, events or results to differ from those anticipated, estimated or intended. There can be no assurance that forward-looking statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. Accordingly, readers should not place undue reliance on forward-looking statements.
For further information
Constellation Copper Corporation: Gregory A. Hahn, President & CEO
Michelle Hebert, Manager-Corporate Affairs, (720) 228-0055, Toll Free: 1-877-370-5400, info@constellationcopper.com, www.constellationcopper.com
Renmark Financial Communications Inc.: Neil Murray-Lyon, nmurraylyon@renmarkfinancial.com
Barbara Komorowski, bkomorowski@renmarkfinancial.com
Media - Lynda Martineau, lmartineau@renmarkfinancial.com, (514) 939-3989, Fax: (514) 939-3717, www.renmarkfinancial.com
Source: CONSTELLATION COPPER CORPORATION |
