Norsemont Reports Updated Mineral Resource Estimate at the 100 Percent-Controlled Constancia Project, Southern Peru
Mon Apr 14, 9:22 AM
ca.news.finance.yahoo.com
Indicated Resource Grows by approx. 350 percent
New Zone of Mineralisation Discovered between Constancia and
San Jose Zones
Vision to Grow Constancia Resource to between 600 and 800 Million Tonnes
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TORONTO, ONTARIO and LIMA, PERU, April 14 /CNW/ - Norsemont Mining Inc. ("Norsemont" or "the Company") (TSX: NOM; BVL: NOM) is pleased to announce results of an updated resource estimate for the Company's 100 percent-controlled Constancia Copper-Molybdenum-Silver porphyry deposit in southern Peru.
The updated independent mineral resource estimate has been completed on the Constancia and San Jose zones of the Constancia deposit by GRD Minproc Limited. The report estimates an Indicated Resource of 256.3 million tonnes grading 0.5 % copper, 0.012 % molybdenum and 4.4 g/t silver (0.62 % Cu-Equivalent) at a cutoff grade of 0.2% copper and an Inferred Resource of 156.5 million tonnes grading 0.33 % copper, 0.01 % molybdenum and 3.2 g/t silver (0.43 % Cu-Equivalent) at a cutoff grade of 0.2% copper (Table 1). The updated estimate for the Constancia deposit also contains small amounts of gold and zinc, which have not been reported.
"I am very pleased to see a large increase in our indicated resource base in this latest resource estimate", said Robert W. Baxter, President of Norsemont Mining. "While we had expected to have our infill drilling largely completed at this time we have now encountered significant mineralisation between the Constancia and San Jose zones. We believe now that within that envelope we are beginning to define a strong potassic alteration zone with potential for a significant additional target between these zones. We currently have six diamond drill rigs on site, working two shifts per day to define this new discovery. In addition, we are scheduled for the arrival of an additional reverse circulation drill rig in April for further rapid screening of other promising exploration targets in the immediate vicinity of the Constancia and San Jose zones."
Mr. Baxter added: "Our updated resource statement clearly demonstrates that the Constancia deposit is a large, well defined copper deposit which remains open to expansion. Also, it is one of the most advanced copper projects in Peru having recently progressed to the definitive feasibility stage following the completion late last year of our scoping study which demonstrated that Constancia has the potential to be a robust low-cost and long-life mine."
Table 1: Resource Estimate, Constancia Project, April 14, 2008
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Cut-off Copper Molybdenum Silver Cu Eq
Grade Tonnes Grade Grade Grade
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(% Cu) (Million) (% Cu) (% Mo) (g/t Ag) %
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Indicated Resource
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0.5 92.0 0.81 0.013 6.0 0.95
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0.4 132.3 0.70 0.013 5.5 0.84
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0.3 193.7 0.59 0.013 4.9 0.72
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0.25 229.9 0.54 0.012 4.6 0.66
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0.2 256.3 0.50 0.012 4.4 0.62
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Inferred Resource
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0.5 13.7 0.71 0.010 6.0 0.83
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0.4 27.3 0.58 0.011 5.0 0.7
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0.3 72.5 0.43 0.011 3.8 0.54
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0.25 112.9 0.37 0.010 3.4 0.47
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0.2 156.5 0.33 0.010 3.2 0.43
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Copper equivalent values are estimated using the following long-term metal prices: copper US$1.80 per lb, molybdenum US$12.00 per lb, and silver US$11.00 per oz. Cu-Equivalent equals Cu (%) plus Mo (%) times (12.00/1.80) plus Ag (g/t) times 0.35/(1.80x22.05). Adjustment factors to account for differences in relative metallurgical recoveries will depend upon the completion of definitive metallurgical testing. Metallurgical recoveries and net smelter returns are assumed to be 100 percent.
Norsemont's CEO, Patrick Evans, stated: "The expansion of the Constancia resource demonstrated by this updated resource statement is very encouraging, as is the discovery of additional mineralisation between the Constancia and San Jose zones. As previously reported, Norsemont has also discovered numerous additional copper anomalies in close proximity to the current Constancia resource. As a consequence of these discoveries, Norsemont has developed a vision to expand the Constancia resource to between 600 and 800 million tonnes."
Based on the April 2008 resource estimate, the Indicated Resources contain approximately 2.85 billion pounds of copper, 68.2 million pounds of molybdenum and 36.5 million ounces of silver at a 0.2% copper cutoff, and the Inferred Resources contain approximately 1.14 billion pounds of copper, 33.4 million pounds of molybdenum and 16.2 million ounces of silver (see Table 2). The April 2008 resource estimate, therefore, displays an increase of approximately 350 percent in contained copper in the Indicated category relative to the previous estimate reported in March 2007.
Table 2: Contained Metal (0.2% Cu cut-off), Constancia Project,
April 14, 2008
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Resource Copper Molybdenum Silver
Category (million lbs) (million lbs) (million oz)
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Indicated 2,852 68.2 36.5
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Inferred 1,147 33.4 16.2
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Composites assay data were capped between 0.050% Mo and 0.060% Mo for Molybdenum for three of nine estimation domains. Silver grade data from three of the domains was capped between 30 g/t Ag and 35 g/t Ag. No capping was applied to copper data.
The resource estimate for the Constancia deposit was generated using geological solids modeled by Atticus & Associates. Copper, molybdenum and silver grades were interpolated into a block model using ordinary kriging, with copper as the primary element. Table 1 includes Resources from the Constancia and San Jose zones. Resource classification was based on a combination of drill spacing, kriging variance, and confidence in geological and grade continuity.
Independent geologist Lynn Widenbar, MAusIMM, and a Qualified Person as defined by National Instrument (NI) 43-101, was responsible for the Mineral Resource Estimate dated April 14, 2008. Mr. Widenbar has read and approved the contents of this news release. The Resource estimate has components of both Indicated and Inferred mineral resources, consistent with the CIM definitions referred to in NI 43-101. This estimate will be filed in a Technical Report compliant with NI 43-101 on SEDAR within 45 days. Mineral Resources which are not Mineral Reserves do not have demonstrated economic viability. Norsemont is not aware of any environmental, permitting, legal, title, taxation, socio-political, marketing or other issues which may materially affect its estimate of mineral resources.
Quality Control
The Resource Estimate is based upon 206 diamond drill holes totaling 66,357.7 meters completed by Rio Tinto and Norsemont through to the end of December 2007. Norsemont has completed 182 holes and Rio Tinto had previously drilled 24 holes that are included in this Resource Estimate.
Core samples were cut with a diamond saw, with one-half of the core placed in sealed bags, and shipped to ALS Chemex Assay Labs in Lima, Peru. Secondary laboratories are also used for check assaying. Drill core was sampled at two metre intervals after logging. Some sample length changes were made when lithological or mineralogical boundaries where important and sample lengths met those boundaries. In general, contacts between high grade and low grade samples (visually estimated) correspond with the sample boundaries. In some visually determined low copper grade intervals, sample length was increased to 3-metres. Half core was sampled after it was symmetrically cut with a core saw.
The drilling program and geological studies during 2007 and 2008 at the Constancia project for Norsemont were supervised by Dr. Leonardo Diaz, (MAusIMM)., and Robert Baxter (MAusIMM), Norsemont's Qualified Person as defined by NI 43-101, who have reviewed and approved the information contained in this news release.
A plan map with drill hole locations and the tabulated drilling results is available on Norsemont's website at www.norsemont.com. Other geological data including cross sections will be made available with the NI 43-101 Technical Report which is to be posted on SEDAR within 45 days of this press release.
About Norsemont Mining
Norsemont Mining is an independent, well-financed exploration and development company focused on the Constancia Cu-Mo-Ag project in southern Peru. The Constancia Project is located between the Tintaya Mine and the Las Bambas copper deposit of Xstrata PLC in Southern Peru. A December 2007 scoping study anticipates a project producing in excess of 90,000 tonnes of copper annually. The study indicates the project has a net present value of $530 million and an internal rate of return of 25.3 percent. The following long-term commodity price assumptions were used in the study: copper $1.80 per pound, molybdenum $12 per pound and silver $11 per ounce. The full study, dated December 11, 2007, and titled "Preliminary Assessment of the Constancia Project, Department of Cusco, Peru" is available for viewing on SEDAR.
Norsemont Mining controls 100 percent of the Constancia Project and has no concentrate off-take commitments.
ON BEHALF OF THE BOARD OF DIRECTORS,
Robert W. Baxter
President
Norsemont Mining Inc.
Contacts
Patrick Evans
Norsemont Mining
Phone: (416) 670-5114
E-Mail: investors@norsemont.com
Web Site: www.norsemont.com |
