CONFERENCE CALL AT 11.00AM (PT), OCTOBER 4, 2006
TSX-V: NOM
VANCOUVER, Oct. 3 /CNW/ - 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.
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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 13.0
------------------------------------------------------------
>>
The 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.
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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: 7956580
>>
About 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.
