Norsemont Mining Announces Additional Constancia Drilling Results and
Commencement of Early Engineering Projects
Highlights include:
53.30 metres at 1.37% CuEq and 37.15 metres at 1.05% CuEq
Share Issued and Outstanding: 81,701,021TSX: NOM
BVL: NOM
TORONTO and LIMA, Peru, Feb. 17 /CNW/ - Norsemont Mining Inc. ("the Company") (TSX: NOM, BVL: NOM) today announced the last drill results for holes completed at the Pampacancha discovery in December 2009. The Company also announced details of the early engineering projects that have now commenced at the Constancia project, which was the subject of a successful definitive feasibility study completed in late 2009.
Mine site exploration strategy and potential
The September 2009 Constancia Definitive Feasibility Study (DFS) reported a production profile for the Constancia deposit which is robust from year 1 to year 6 as higher grade supergene and skarn ore is mined and processed. From year 6 to year 15 the production profile diminishes as lower grade hypogene ore predominates.
Norsemont's mine site exploration strategy is to define high grade ore that can supplement the lower grade hypogene ore that would be processed starting in year 6. To date Norsemont has, in addition to the Constancia deposit, discovered satellite prospects at Pampacancha and Chilloroya South, which are both in close proximity to the Constancia deposit. These prospects are the primary focus of the Company's current exploration program.
Access to higher grade throughput using ore from satellite prospects would result in a positive impact on the Constancia project economics. For example, an additional 50 million tonnes of ore at a head grade of 0.75% Cu during years 6 to 8 of the operations improves the NPV at $2 copper by approximately US$100 million. Likewise, 100 million tonnes of higher grade ore at 1% Cu would increase the NPV by approximately US$453 million to a total NPV of US$756 million.
Accordingly, the key focus of Norsemont's current exploration program is to define additional tonnes of mineralization at or above 0.75% Cu from the satellite prospects. Initial results from the Pampacancha drill program indicate the presence of high-grade Cu-Au-Ag-Mo mineralization in porphyry-related skarn bodies, which is an encouraging start to this program.
Pampacancha Drill Results
The Pampacancha prospect, located 3 kilometres SE of the Company's 100-percent controlled Constancia deposit, was discovered in late 2008. On January 27 2009, the Company reported the results of the first drill holes where high grade mineralization was intersected in holes PR-08-08, PR-08-012 and PR-08-10 and PR-08-011, drilled from platforms located 420 meters apart. Results of this drilling identified a north-south-striking mineralized corridor with dimensions of about 1,000 metres by 400 metres, which was the focus of the current follow-up drilling campaign carried out during November and December 2009.
Commenting, Norsemont President and COO Robert Baxter said: "These results are confirming the high Cu-Au-Ag-Mo grade mineralization reported previously at the southern sector, and also extending the high-grade mineralized corridor to the northern sector, a distance of at least 500 metres. Additional drilling is planned both at the southern and northern sectors, as well as drill testing of skarn mineralization to the east of the currently known mineralized area. The current results are very encouraging as high-grade Cu-Au-Ag-Mo skarn mineralization is still being found in the sectors under current exploration, which will increase the quality and volume of the mineralized resource for this area".
Table 1 below contains the latest results from the current drill campaign. Additional to the drilling results reported on January 14, 2010, the best intercepts for the holes reported herein are: hole PO-09-013, drilled in the southern sector to the SW (striking 195degrees) from the same platform of hole PO-09-006 (reported last month), intersected 53.30m of magnetite-calc-silicates skarn (from 74.69m to 128.00m depth) averaging 1.06% Cu, 7.24 g/t Ag, and 0.29 g/t Au, and hole PO-09-014 drilled in the northern sector to the SW (striking 185degrees) from the same platform of hole PO-09-011 (reported last month) intersected 37.15m (from 58.50m to 95.65m depth) averaging 0.80% Cu, 8.38 g/t Ag and 0.35 g/t Au.
Table 1. Pampacancha Drill Results from Drilling carried out during November-December 2009
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HOLE_ Start End Mo_ Ag_ Au_
ID AZ DIP Length At At COG Cu% ppm g/t g/t CuEq%
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195 -70 34.00 12.00 46.00 0.2 0.38 31 3.37 0.27 0.56
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PO-09- 53.30 74.69 128.00 0.2 1.06 171 7.24 0.29 1.37
013 --------------------------------------------------------------
inclu-
ding 50.95 74.69 125.65 0.5 1.07 164 7.23 0.28 1.36
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185 -65 37.15 58.50 95.65 0.2 0.80 10 8.38 0.35 1.05
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PO-09- inclu-
014 ding 29.65 66.00 95.65 0.3 0.97 8 10.00 0.37 1.24
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and 29.65 66.00 95.65 0.4 0.90 3 9.21 0.33 1.14
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28.29 263.70 292.00 0.2 0.32 25 3.37 0.10 0.41
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Note: Copper equivalent values (CuEQ) are estimated using long-term metal
prices including: copper US$2.25 per lb, molybdenum US$13.00 per lb,
silver US$12 per oz and gold US$800 per oz. Adjustment factors to account
for differences in relative metallurgical recoveries for copper,
molybdenum and silver will depend upon the completion of definitive
metallurgical testing. All mineralized intercepts are at least 10 meters
long and accept intervals of up to 5 meters internal dilution.
The Pampacancha prospect area is comprised of scattered outcrops of limestone intruded by dioritic and lesser monzonite intrusives where both magnetite and garnet skarns are developed near their contacts. Outcropping copper oxides in skarn bodies highlight the potential for significant copper mineralisation. Additionally, high-grade gold and silver mineralization associated with veins, shear zones and limestone replacements occur in an area of about 6 square kilometres. The longest structure can be projected up to one kilometre in length. Gold and silver returned values as high as 39 grams per tonne gold and 38 ounces per tonne silver.
The Pampacancha South target is typified by scattered outcrops of copper-bearing magnetite-calc-silicates skarns and potassically-altered dioritic porphyries, being crosscut by a series of conjugate, NW and NE-oriented shear zones and gold-bearing vein structures, well exposed along the road-cuts opened in the area.
Further drilling in the area surrounding hole PR-08-008 (located 130m NW of hole PO-09-006, see map attached), where high grade Cu-Au-Mo skarns was intercepted is required. The shallower skarn body was 43.50m wide from 112.50 to 156.00m depth averaging 1.70% Cu, 0.10% Mo, 10.25 g/t Ag and 0.757 g/t Au. Similar and thicker skarn interceptions are expected to occur at the surroundings of this hole especially to the east and west, which will increase significantly the potential Cu-Au-Mo resource of the area.
Drilling was temporarily disrupted for a period of 10 days during an anomalous period of heavy regional rain. Drilling has now recommenced at the Yanaccacca discovery, located 500m immediately north of the north-western limit of the Constancia Porphyry pit-outline.
The agreement with the community of Chiloroya that allowed follow-up drilling at Pampacancha during November-December 2009 restricted access to some drilling locations because of a high level of artisanal gold mining in those areas. Norsemont anticipates that the new agreement currently being negotiated will provide the flexibility to allow the full evaluation of the area. Drilling will resume as soon as this agreement is finalized.
Norsemont is currently concluding the terms of a new agreement with the community of Chiloroya in order to gain access to the Chiloroya South discovery where the Company has already been granted a drill permit by Peru's Minister of Mines. Drilling is already planned and will be carried out as soon as the agreement is reached.
The drilling program and geological studies at the Constancia project are being supervised by Mr. Gaston Loyola (MAusIMM), Norsemont's Qualified Person as defined by NI 43-101. Core samples are cut with a diamond saw, with one-half of the core placed in sealed bags, and shipped to SGS Laboratoriess in Lima, Peru. Core samples are collected at 2.0 metre intervals. 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. All intersections were determined using a rolling 0.2% Cu cut-off and up to 5 metres of internal waste and 10 metres of minimum intercept length.
Early Engineering Projects
As part of the Constancia optimization study, early engineering projects were identified in consultation with AMEC Minproc Limited ("AMEC") in January 2010. The objectives are twofold:
1. to improve the Constancia project economics through the optimization
of the mining and process schedules; and
2. to protect the project schedule through optimization of capital cost
estimates.
The following early engineering activities have now been initiated:
1. The evaluation of zinc as a recoverable product and the potential to
produce a zinc concentrate.
2. Validation copper recoveries from the hypogene ore, which represents
approximately 30% of the Constancia ore body, with a view to
increasing the copper recovery from the hypogene ore.
3. Upgrade of the Constancia inferred resources. The definitive
feasibility study was based on measured and indicated resources,
excluding inferred. Drilling requirements are being determined to
bring the in-pit inferred resource into the mineral reserve thereby
improving the project economics.
4. Potential for zinc batching is being investigated. Depending on the
zinc volumes, grades, costs and metal price assumptions, modifying
the mining and process plant to selectively mine and batch process
high grade zinc ores encountered during mining is expected to capture
zinc revenue and improve the quality of copper concentrates sold.
Results from these early engineering projects are expected to be released during the second quarter of 2010.
ABOUT NORSEMONT MINING - Norsemont is a mineral exploration and development company advancing the Constancia Copper project in Southern Peru. The Company's Constancia project is located in Cusco department, approximately 100 kilometres south of Cusco, Peru. The company's shares are traded on the Toronto Stock Exchange under the symbol NOM, and on the Bolsa de Valores, Lima (BVL) also under the symbol NOM.
The technical information provided in this news release was reviewed and approved by Robert. W. Baxter (MAusIMM), the President, COO and a director of the Company and a qualified person for the purposes of National Instrument 43-101.
For further information: Mr. Bob Baxter, President and COO, Norsemont Mining Inc, Phone: 011-51-1-99352-6473; Patrick Evans, CEO, Norsemont Mining Inc, Phone: (416) 670-5114; E-Mail: [email protected], Web Site: www.norsemont.com
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