Norsemont Reports 1.23 Billion Pounds of Copper as Inferred Resources Plus 749 Million Pounds as Indicated Resources With Significant Molybdenum and Silver at the Constancia Project
Vancouver, Canada (ots/PRNewswire)
- CONFERENCE CALL AT 11.00AM (PT), OCTOBER 4, 2006
- TSX-V: NOM
Norsemont Mining Inc. ("Norsemont" or "the Company") (TSX-V: NOM;
Frankfurt: N8S; WKN: A0DQKK; OTC-BB: NOMFF; ISIN: CA6565291045) is
pleased to announce results of an Initial Resource Estimate on the
Constancia Copper-Molybdenum-Silver Porphyry Project in southern
Peru.An independent mineral resource estimate has been completed on the Constancia and San Jose Zones of the Constancia Project in Southern Peru. The report estimates an Inferred Resource of 103.9 million tonnes grading 0.537% copper, 0.014% molybdenum and 3.9 g/t silver (0.67% Cu-Equivalent) at a cutoff grade of 0.2% copper, as well as an Indicated Resource of 57.7 million tonnes grading 0.589% copper, 0.015% molybdenum and 4.1 g/t silver (0.73% Cu-Equivalent) at a cutoff grade of 0.2% copper (Table 1). The resource estimate for the Constancia Property also contains small amounts of gold (~0.06 g/t), which has not been reported in the resource table.
Copper equivalent values are estimated using long-term metal prices including: Copper US$1.20 per lb, Molybdenum US$8.00 per lb, and Silver US$ 7.50 per oz. Adjustment factors to account for differences in relative metallurgical recoveries will depend upon the completion of definitive metallurgical testing. Cu-Equivalent equals Cu per cent plus Mo percent times (8.00/1.20) plus Ag grams per tonne times 0.24/(1.20(x)22.05).
The Inferred Resources at a 0.2% copper cutoff contains 1.23 billion pounds of copper, 32 million pounds of molybdenum and 13.0 million ounces of silver. The Indicated Resources at a 0.2% copper cutoff totals 749 million pounds of copper, 19 million pounds of molybdenum and 7.6 million ounces of silver (Table 2).
Copper composites were capped at 4.5% Cu, molybdenum composites were capped at 0.20% Mo, and silver composites were capped at 65 g/t during interpolation. Composites were capped during interpolation because composites are approximately equal to assays.
The resource estimate for the Constancia Property was tabulated under the current topography surface with copper as the primary element. Copper, molybdenum and silver grades were interpolated using a grade-block model utilizing an inverse distance squared method. Table 1 includes resources from the San Jose and Constancia Zones. The resources for the Constancia Property are classified as Indicated and Inferred and are based on a maximum (true) distance of 70 metres from the closest sample. Indicated resources were defined using a 30 metre range in areas of close spaced drilling. Indicated Resources have not been defined at the San Jose Zone.
Table 1: Initial Resources Estimate, Constancia Project, September 2006
Cut-off Copper Molybdenum Silver
Grade Tonnes Grade Grade Grade
(% Cu) (Million) (% Cu) (% Mo) (g/t Ag)
Indicated Resources
0.5 30.1 0.802 0.015 4.8
0.4 39.5 0.718 0.015 4.5
0.3 50.4 0.638 0.015 4.2
0.25 54.6 0.610 0.015 4.2
0.2 57.7 0.589 0.015 4.1
Inferred Resources
0.5 45.1 0.775 0.014 4.9
0.4 63.7 0.678 0.014 4.5
0.3 87.7 0.588 0.014 4.1
0.25 98.2 0.555 0.014 3.9
0.2 103.9 0.537 0.014 3.9
Table 2: Contained Metal, Constancia Project, September 2006
Resource Copper Molybdenum Silver
Category (million lbs) (million lbs) (million oz)
Indicated 749 19.1 7.6
Inferred 1,230 32.1 13.0The Constancia Project is located between Xstrata Resources' Tintaya Mine and Las Bambas copper project in Southern Peru. Norsemont Mining is earning up to 70% of the Constancia Project from Rio Tinto by way of project expenditures, cash payments and the issue of common stock, the details of which can be found on the company's website (www.norsemont.com). Mitsui Mining retains a 30% interest in the project.
"I am highly encouraged to see such a robust initial resource estimate ," said Robert W. Baxter, President of Norsemont Mining Inc. "We continue to expand the extent of the deposit on 100 metre step out drill holes on the Constancia Zone to the south, east and west. We currently have three diamond drill rigs on site, working two shifts per day. The current focus is the Constancia Zone; however, there are a number of other targets including extensions to the San Jose and Constancia Zones, as well as additional geophysical and geochemical anomalies that warrant follow-up. We are also currently reviewing drill orientations in certain structurally controlled areas of the deposit to assist in potentially increasing the overall grade of the deposit in future drilling. This resource estimate is not broken down into supergene and hypogene mineralization."
"This resource clearly demonstrates that the Constancia deposit is a large, well defined copper deposit which remains open to expansion. We look forward to advancing the project through our ongoing engineering studies. The Company will commence a trade-off metallurgical study in October which will focus on heap leaching versus milling and flotation. I am confident that given the strong outlook for copper prices in the next 5 years, and beyond, that the Constancia deposit with this initial resource estimate will prove to be a significant project for Norsemont."
Independent geologist James A. McCrea, P.Geo and a Qualified Person as defined by National Instrument (NI) 43-101, was responsible for the mineral resource estimate dated September 26, 2006. Mr. McCrea 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 have not 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 95 diamond drill holes totaling 24 ,994 metres completed by Rio Tinto and Norsemont through to the end of August 2006. Norsemont has completed 72 holes and Rio Tinto had previously drilled 23 holes that are included in this resource estimation.
The core from Rio Tinto's 2004 drilling was sent to and analysed at ALS Chemex Laboratories in Lima for copper, molybdenum, gold and silver. 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. The Rio Tinto program includes an extensive quality control program for assaying which includes the systematic use of standards, blanks, and field duplicate samples. Secondary laboratories are also used for check assaying. Drill core was sampled each 2m 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 2005 and 2006 at the Constancia project for Norsemont were supervised by Dr. Thomas A. Henricksen, P. Geo., Norsemont's Qualified Person as defined by NI 43-101, who has reviewed and approved the information contained in this news release. Core samples are 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. The program includes an extensive quality control program for assaying which includes the systematic use of standards, blanks, and field duplicate samples. Secondary laboratories are also used for check assaying.
A plan map with drill hole locations and the resource outline 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.
Conference Call
Norsemont Mining will hold an investor conference call on Wednesday, October 4th, 2006, at 11:00 a.m. Pacific Time. Marc E. Levy, CEO and Robert (Bob) Baxter, President, will review the initial resource estimate and Norsemont's plans to develop the Constancia deposit with analysts and investors. Following their remarks there will be a question and answer session.
To join the call dial:
Toll Free in North America: 1-800-525-6384
International: 780-409-1668
To access a replay of the call until 11:00 a.m. (PT) on October 7th,
2006:
Toll Free in North America: 1-888-567-0782
International: 402-220-2884
Pass Code: 7956580About Norsemont Mining
Norsemont Mining is a well structured, well financed exploration company working in the Americas, with a focus on Peru. The Company is currently drilling the Constancia Copper-Molybdenum-Silver project.
ON BEHALF OF THE BOARD OF DIRECTORS,
Robert W. Baxter
President
Norsemont Mining Inc.
The TSX Venture Exchange has reviewed this release. We seek Safe Harbor.
Contact:
For further information: Brian Soregaroli, VP Corporate
Communications, at: Phone: +1-(604)-669-9788 x109, Fax:
+1-(604)-669-9768, E-Mail: investors@norsemont.com, Web Site:
www.norsemont.com