Norsemont Mining Drills 242.5 gpt Gold at Constancia
By Norsemont Mining Inc., PRNEMonday, October 11, 2010
High Grade Gold Intercepts Including 3 Metres @ 242.5 gpt Au
TORONTO and LIMA, Peru, October 12, 2010 -
Share Issued and Outstanding: 82,243,000
TSX: NOM
BVL: NOM
Norsemont Mining Inc. ("the Company") (TSX: NOM, BVL: NOM) today
announced the results of ongoing exploration drilling at the Company's
Chilloroya South and the Pampacancha discoveries, located approx.
5 kilometres south and 2.5 k ilometres south east, respectively, of the
Constancia Project's planned first mine development ("Phase 1 Mine").
Commenting, Norsemont President and COO Mr. Robert Baxter said: "Our
exploration program, which is measured and methodical, is progressing well
with the latest drill results indicating the potential for bonanza gold
mineralisation at our Chilloroya South "Target 1" and high grade Cu-Au
mineralisation in skarn at another Chilloroya South prospect, "Target 3".
Drilling at Chilloroya South has confirmed a very large porphyry style
copper-gold system, which requires further analysis. Included in our plans
for further investigation is the commencement next month of a Titan 24
geophysical survey to be carried out by Quantec Geophysics. This state of the
art, multi-channel and multi dimensional system will be able to assist us
with the deeper targeting."
At Chilloroya South, the Phase 1 drill program has tested five targets
with 7,609.35 metres of drilling, which has shown high levels of porphyry
copper-gold mineralisation. Two of the five targets have now been selected
for Phase 2 follow-up drilling. At "Target 1", two holes reported high grade
gold intercepts in a broad 20 to 30 metre correlated zones across four
reverse circulation holes over an initial 500 metre N-S strike length, with
skarns extending on surface for about 400 metres in an E-W direction. High
grade intercepts include hole SR-10-013 which returned a bonanza grade
intercept of 3 metres assaying 242.5 gpt Au (from 136 to 139m) within an 18
metre zone of mineralised skarn carrying highly anomalous gold from 130 to
148 metres depth. Hole SR-10-010 returned 84 metres of mineralised skarn
(from 52 to 136m) averaging 0.52 gpt Au, including 3 metres assaying 7.1 gpt
Au from 76 to 79m depth. These two holes are approximately 165 metres apart
and present a new high grade to bonanza grade gold exploration target.
At our "Target 3", high grade copper-gold mineralisation was intercepted
in skarn mineralisation adjacent to a potassically altered porphyrytic
diorite in hole SO-10-008, where 31.60 metres (from 251.75 to 283.35m)
returned 0.72% Cu, 0.29 gpt Au, and 6 gpt Ag (0.98 Cu-Eq). Immediate
follow-up is underway.
The Company also announced results from ongoing exploration drilling at
the highly prospective Pampacancha discovery, where 7,152 metres of drilling
has been completed. Pampacancha is located approximately 2.5 kilometres
south-east of Constancia's Phase 1 Mine and has reported further high grade
intercepts from the current drill program. Hole PO-10-017 returned 75.25
metres (from 116 to 191.25m) with 0.94% Cu, 412 ppm Mo and 0.94 gpt Au (1.84%
Cu-Eq). Hole PO-10-019 intersected 68.95 metres (from 124.45 to 193.40m)
assaying 1.05% Cu, 439 ppm Mo, 7.58 gpt Ag, and 0.70 gpt Au (1.82% Cu-Eq).
Significant intervals from the current drill program are reported in the
table below:
HOLE_ID Int From To COG Cu%
Chilloroya SO-10-008 31.60 251.75 283.35 0.2 0.72
SR-10-010 84.00 52.00 136.00 0.05
including 3.00 76.00 79.00 0.03
SR-10-013 3.00 136.00 139.00 0.02
Pampacancha PR-10-015 37.35 16.90 54.25 0.07
18.00 62.00 80.00 0.12
77.60 104.00 181.60 0.20 0.30
including 11.65 114.35 126.00 0.05
PO-10-016 50.70 4.84 55.54 0.20
31.00 149.00 180.00 0.19
13.40 186.00 199.40 0.33
PO-10-017 75.25 116.00 191.25 0.10 0.94
PO-10-018 2.00 44.00 46.00 0.15
1.35 160.65 162.00 0.00
2.65 176.00 178.65 0.04
PO-10-019 68.95 124.45 193.40 0.20 1.05
including 41.25 146.75 188.00 0.50 1.24
PR-10-026 13.00 0.00 13.00 0.20 1.16
PR-10-016 22.00 0.00 22.00 0.14
9.00 94.00 103.00 0.11
PR-10-017 9.00 73.00 82.00 0.02
PR-10-022 55.00 0.00 55.00 0.20 0.53
Cont.
Mo Ag Au Pb Zn
HOLE_ID ppm gpt gpt ppm ppm CuEq%
Chilloroya SO-10-008 65 6.00 0.29 18 141 0.98
SR-10-010 1 1.56 0.52 81 249
including 1 0.60 7.10 280 313
SR-10-013 1 19.10 242.56 134 375
Pampacancha PR-10-015 395 0.53 0.03 24 210
205 1.62 0.21 128 481
330 3.01 0.18 305 2,190 0.65
including 1,437 2.33 0.13 342 583
PO-10-016 108 2.34 0.27 75 2,037 0.45
187 3.43 0.18 218 372 0.45
93 3.58 0.23 211 525
PO-10-017 412 9.56 0.94 628 1,401 1.84
PO-10-018 486 4.31 0.09 330 1,156
3 5.10 15.08 1,171 696
533 1.47 0.01 117 258
PO-10-019 439 7.58 0.70 495 1,114 1.82
including 502 8.60 0.69 2.04
PR-10-026 91 17.97 0.33 389 1,329 1.57
PR-10-016 61 3.41 0.62 882 1,649
0 1.77 0.72
PR-10-017 10 1.77 1.00 174 313
PR-10-022 145 5.86 0.06 51 295 0.71
Note 1: Copper equivalent values (CuEQ) are estimated using long-term
metal prices including: copper US$2.00 per lb, molybdenum US$13.00 per lb,
silver US$12 per oz and gold US$ 800 per oz.
Note 2: All analytical results presented are carried out by SGS-Lakefield
laboratories in Lima, Peru. All appropriate QA-QC measures are adopted by
both the laboratory and the company involving the use of duplicates and
standards. The intercepts presented are not true widths.
Constancia Phase 1 Mine Permitting
Progress on the approval of the Environmental and Social Impact
Assessment (ESIA) continues with no further observations identified by Peru's
National Water Authority. We anticipate final approval of the ESIA within the
next month.
Constancia Phase 1 Mine Optimisation Study
The First Mine optimisation study is progressing well with the recent
completion of the preliminary grinding circuit layout and equipment
configuration to support increased throughput over the life of mine. Also,
preliminary results from the pit optimisation study using new optimisation
parameters in addition to the revised mine schedule are expected in the near
future. The results from the pit optimisation and mine scheduling will
support a revised Phase 1 Mine economic model, which will include the use of
more robust long-term metal price assumptions.
Commenting, Norsemont CEO Patrick Evans said: "We are pleased with the
progress of the Phase 1 Mine optimisation study and look forwards to the
approval of the ESIA by mid-November. On the back of these critical
milestones, Norsemont is now mobilising a mine development team with the
intention of taking Constancia's Phase 1 Mine into development as
expeditiously as possible. Norsemont is also currently reviewing proposals
from financial consultants who are prepared to assist us in arranging the
capital for the Phase 1 Mine's development. We expect to make further
announcements in this regard in the near future."
ABOUT NORSEMONT MINING - Norsemont is a mineral exploration and
development company advancing the extensive Constancia Copper-Gold project in
Southern Peru. A September 2009 independent definitive feasibility study
indicates that the Phase 1 Mine development at the Constancia Project has a
NPV (8%) of US$931.8M and an IRR of 26.9% (based on US$2.75/Lb Cu) and can
support a 15-year mine producing an annual average of approx. 150 million
pounds of copper, 1,180 tonnes of molybdenum and 1.5 million ounces of
silver. Constancia's Phase 1 Mine has a proven and probable reserve of 277.4
million tonnes grading at 0.43% Cu, 0.012% Mo, 3.69 g/t Ag. Exploration
drilling at Constancia's satellite Pampacancha and Chilloroya South
discoveries are expected to add significant tonnage to the global resource.
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. All analytical results presented are carried out by SGS-Lakefield
laboratories in Lima, Peru. All appropriate QA-QC measures are adopted by
both the laboratory and the company involving the use of duplicates and
standards.
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 Patrick Evans
President and COO CEO
Norsemont Mining Inc Norsemont Mining Inc
Phone: +51-1-99352-6473 Phone: +1-416-670-5114
E-Mail: investors@norsemont.com
Web Site: www.norsemont.com
For further information: Mr. Bob Baxter, President and COO, Norsemont Mining Inc, Phone: 011- 51-1-99352-6473, E-Mail: investors at norsemont.com; Patrick Evans, CEO, Phone: +1-416-670-5114, Norsemont Mining Inc
Tags: Norsemont Mining Inc., October 12, Ontario, Peru, Toronto And Lima
