Business
Norsemont Mining Announces Additional Constancia Drilling Results and Commencement of Early Engineering Projects
Norsemont Mining Announces Additional Constancia Drilling Results and Commencement of Early Engin...
About this update from Norsemont Mining Inc.
[{"type":"text","content":"\n\n\n\nFeb. 17, 2010 (Canada NewsWire Group) -- 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 potentialThe 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 ResultsThe 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 mineraliz...