Drill Highlights include 128.7 meters at 0.8% Cu and
12 ppm Ag (0.93% Cu Eq)
Significant New Cu-Au-Ag Anomalies Discovered at Constancia
Strengthening Long-term Cu-Mo-Ag Prices increases Constancia NPV to $746M
Shares Issued and Outstanding: 48,837,547
TSX: NOM
BVL: NOM
TORONTO, ONTARIO and LIMA, PERU, May 6 /CNW/ - Norsemont Mining Inc. ("the Company") (TSX: NOM, BVL: NOM) today announced additional results from the ongoing Phase III drill program at the Constancia copper-molybdenum-silver porphyry project in southern Peru. The company also updated shareholders on the implication of recent exploration results, including the early results from the Constancia geophysical program.
Norsemont currently has seven drill rigs at the Constancia site and has completed more than 4,400 meters of drilling since March 12, 2008, when drill results were last released. Since the last resource estimate by GRD Minproc disclosed on March 14, 2008, the majority of the drilling has been definition drilling to test the north-western corridor between the Constancia and San Jose zones. However, a step-out hole drilled 200 meters north of the limits of the San Jose zone has returned a very promising drill intercept of 128.7 meters at 0.8% Cu and 12 ppm Ag (0.93% Cu Eq) in hole CO-08-215 between 217.3 and 346 meters depth. This intercept requires further follow-up to determine what the true thickness is. Other drilling has been in areas of lower grade or narrower intercepts, which has to be completed for the pit optimisation work in ongoing engineering studies during the feasibility study. The results are included on Table 1 below with the full results (together with location map) available on the Company's website (www.norsemont.com).
Commenting on the results, Norsemont's President and Chief Operating Officer Bob Baxter said: "Our Constancia drilling program continues to return exciting results northwest of the Constancia zone and immediately north of the San Jose zone. In view of our latest resource estimate and considering these new results we are now confident that we will be able to extend the life of the planned operation beyond that reported in our scoping study. Interestingly, while we do not include gold results in our resource tables we have encountered potentially significant gold credits in recent drilling. In hole CO-08-220 we report 94.2 meters at 0.51% Cu (0.58% Cu Eq) between 205.8 meters and 300 meters within which there is an 84 meter interval at 0.21 ppm gold between 210 and 294 meters. Further drilling will determine the significance of these results".
Norsemont has also recently completed a detailed ground magnetic survey over a large area of the Company's concessions. An IP/Resistivity survey is currently being carried out over the same area. The magnetic survey has highlighted several magnetic anomalies the most relevant being Target 1 (see map posted on the Company's website under the title "Constancia Ground Magnetic and IP Images" dated April 2008) located 2 kilometers west of the Constancia zone with dimensions of 1.4 kilometers (km) by 0.8 km coincident with several chargeability anomalies. On surface, several silicified gold and silver bearing structures were identified in 2007, returning values of up to 0.88 grams per tonne (gpt) gold and 289 gpt silver in the vicinity of artisanal workings. In terms of copper, surface sampling is anomalous considering the leached nature of the outcrops, with 65 percent of values (out of 73 samples) in the range of 100 to 680 ppm copper.
Target 2 is a magnetic anomaly located 2.5 km southeast of the Constancia zone. It is located in a shear zone exhibiting ductile deformation and historical gold workings with dimensions of at least 1.5 km by 0.8 km. No surface exploration has been conducted over this area thus far.
The Target 3, located 3.2 km northwest of the Constancia zone, is a magnetic anomaly at least 1 km by 0.8 km, coincident with a chargeability anomaly of 0.7 km by 0.4 km which remains open at depth. The images of this survey have also been posted on the Company's website www.norsemont.com.
Norsemont will shortly commence drilling at these and other newly discovered anomalies in the immediate vicinity of the existing Constancia resource. A reverse circulation rig is now on site for the exploration and geotechnical drilling initiated as part of the feasibility study.
Table 1: Significant Copper Intersections at the Constancia Project
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CuT Mo Ag
Hole ID Az Dip Length From To COG (%) (%) (ppm) CuEq
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CO-08-
196 325 -71.2 21.80 276.20 298.00 0.2 0.37 0.005 3.75 0.43
inclu-
ding 19.95 276.20 296.15 0.3 0.32 0.004 3.21 0.37
-------------------------------------------------------------------------
-------------------------------------------------------------------------
CO-08-
197 325 -70.1 13.60 12.40 26.00 0.5 2.05 0.019 5.19 2.22
-------------------------------------------------------------------------
-------------------------------------------------------------------------
CO-08-
199 326 -71.0 17.65 83.80 101.45 0.2 0.30 0.005 2.56 0.36
-------------------------------------------------------------------------
-------------------------------------------------------------------------
CO-08-
201 325 -71.2 14.50 181.50 196.00 0.2 0.62 0.064 4.04 1.08
-------------------------------------------------------------------------
-------------------------------------------------------------------------
CO-08-
203 325 -70.9 29.65 26.80 56.45 0.2 0.74 0.012 16.09 0.96
inclu-
ding 27.20 26.80 54.00 0.4 0.71 0.010 12.52 0.89
and 19.20 26.80 46.00 0.5 0.92 0.012 16.50 1.14
-------------------------------------------------------------------------
-------------------------------------------------------------------------
CO-08-
205 325 -71.0 70.00 262.00 332.00 0.2 0.39 0.016 3.36 0.53
inclu-
ding 29.25 274.00 303.25 0.3 0.44 0.020 3.08 0.59
and 14.00 318.00 332.00 0.3 0.31 0.010 0.97 0.39
-------------------------------------------------------------------------
-------------------------------------------------------------------------
CO-08-
208 325 -70.7 28.00 240.00 268.00 0.2 0.23 0.004 1.44 0.27
23.75 274.00 297.75 0.2 0.26 0.008 0.96 0.32
-------------------------------------------------------------------------
-------------------------------------------------------------------------
CO-08-
209 115 -71.8 62.00 78.00 140.00 0.2 0.23 0.009 2.55 0.32
inclu-
ding 20.00 78.00 98.00 0.3 0.28 0.010 2.70 0.37
17.95 236.05 254.00 0.2 0.23 0.008 3.44 0.31
36.00 264.00 300.00 0.2 0.26 0.003 3.01 0.31
inclu-
ding 14.00 274.00 288.00 0.3 0.34 0.003 3.89 0.39
-------------------------------------------------------------------------
-------------------------------------------------------------------------
CO-08-
210 325 -70.9 34.00 24.00 58.00 0.2 0.25 0.012 0.89 0.34
inclu-
ding 16.00 24.00 40.00 0.3 0.32 0.011 0.86 0.40
152.15 67.85 220.00 0.2 0.33 0.020 1.49 0.47
inclu-
ding 68.00 116.00 184.00 0.3 0.33 0.023 1.43 0.50
and 52.00 120.00 172.00 0.4 0.26 0.019 1.04 0.39
also 28.00 192.00 220.00 0.3 0.50 0.021 2.70 0.66
and 20.00 200.00 220.00 0.4 0.60 0.026 3.21 0.80
also 12.00 200.00 212.00 0.5 0.71 0.031 3.78 0.95
90.00 228.00 318.00 0.2 0.27 0.003 0.86 0.30
inclu-
ding 26.00 228.00 254.00 0.3 0.26 0.002 0.68 0.27
10.00 260.00 270.00 0.3 0.33 0.003 0.90 0.35
14.00 292.00 306.00 0.3 0.31 0.004 0.83 0.34
-------------------------------------------------------------------------
-------------------------------------------------------------------------
CO-08-
213 134 -69.9 18.00 42.00 60.00 0.2 0.35 0.002 4.05 0.40
34.00 68.00 102.00 0.2 0.30 0.002 1.65 0.33
-------------------------------------------------------------------------
-------------------------------------------------------------------------
CO-08-
214 120 -70.4 20.00 34.00 54.00 0.2 0.31 0.015 1.15 0.43
22.00 90.00 112.00 0.2 0.33 0.043 1.64 0.63
22.00 136.00 158.00 0.2 0.35 0.040 3.32 0.64
inclu-
ding 18.00 136.00 154.00 0.3 0.31 0.032 3.14 0.56
20.00 218.00 238.00 0.2 0.20 0.004 1.98 0.24
18.05 282.00 300.05 0.4 0.36 0.002 7.19 0.44
-------------------------------------------------------------------------
-------------------------------------------------------------------------
CO-08-
215 270 -69.0 23.20 217.30 240.50 0.5 1.03 0.002 14.10 1.17
25.60 246.40 272.00 0.5 1.01 0.001 15.59 1.16
30.50 292.60 323.10 0.2 1.25 0.009 17.27 1.46
inclu-
ding 29.45 292.60 322.05 0.5 1.26 0.008 17.25 1.46
with 10 m internal
dilution 128.70 217.30 346.00 0.5 0.81 0.003 11.50 0.93
-------------------------------------------------------------------------
-------------------------------------------------------------------------
-------------------------------------------------------------------------
CO-08-
216 325 -70.4 58.00 112.00 170.00 0.2 0.40 0.009 1.83 0.48
inclu-
ding 48.00 114.00 162.00 0.3 0.44 0.010 2.02 0.52
also 42.00 118.00 160.00 0.4 0.37 0.007 1.32 0.43
and 24.00 130.00 154.00 0.5 0.42 0.008 1.55 0.49
12.00 176.00 188.00 0.2 0.35 0.016 1.52 0.47
36.00 206.00 242.00 0.2 0.45 0.016 3.53 0.59
inclu-
ding 12.00 206.00 218.00 0.4 0.64 0.016 4.88 0.79
and 14.00 224.00 238.00 0.3 0.45 0.020 3.86 0.62
also 12.00 226.00 238.00 0.4 0.40 0.018 3.52 0.55
10.00 250.00 260.00 0.2 0.53 0.025 3.47 0.73
40.00 266.00 306.00 0.2 0.33 0.011 1.89 0.42
inclu-
ding 16.00 286.00 302.00 0.3 0.46 0.009 2.70 0.54
-------------------------------------------------------------------------
-------------------------------------------------------------------------
CO-08-
217 135 -70.0 53.30 62.70 116.00 0.2 0.21 0.015 2.15 0.33
186.70 122.00 308.70 0.2 0.35 0.009 2.60 0.44
inclu-
ding 22.00 130.00 152.00 0.4 0.35 0.008 3.14 0.43
46.00 158.00 204.00 0.3 0.42 0.006 1.80 0.47
inclu-
ding 32.75 168.00 200.75 0.4 0.42 0.006 1.87 0.48
also 10.30 188.00 198.30 0.5 0.58 0.008 2.51 0.65
38.00 230.00 268.00 0.3 0.37 0.021 3.18 0.54
inclu-
ding 34.00 232.00 266.00 0.4 0.31 0.019 2.89 0.46
18.00 274.00 292.00 0.3 0.41 0.004 2.19 0.46
inclu-
ding 14.00 276.00 290.00 0.4 0.33 0.003 1.71 0.36
-------------------------------------------------------------------------
-------------------------------------------------------------------------
CO-08-
218 133 -71.6 30.00 28.00 58.00 0.2 0.21 0.006 2.07 0.27
34.00 252.00 286.00 0.2 0.23 0.002 1.80 0.26
70.00 312.00 382.00 0.2 0.25 0.006 1.73 0.30
inclu-
ding 30.00 332.00 362.00 0.3 0.29 0.007 2.08 0.36
52.00 414.00 466.00 0.2 0.25 0.013 2.11 0.36
inclu-
ding 14.00 428.00 442.00 0.3 0.26 0.013 2.07 0.36
also 18.00 448.00 466.00 0.3 0.22 0.009 1.80 0.29
10.00 488.00 498.00 0.2 0.27 0.016 3.10 0.40
-------------------------------------------------------------------------
-------------------------------------------------------------------------
CO-08-
220 120 -71.0 22.00 128.00 150.00 0.2 0.25 0.010 2.87 0.34
94.20 205.80 300.00 0.2 0.51 0.008 2.53 0.58
inclu-
ding 86.00 208.00 294.00 0.3 0.50 0.008 2.45 0.57
and 76.00 210.00 286.00 0.4 0.51 0.008 2.53 0.58
also 42.00 220.00 262.00 0.5 0.64 0.008 3.37 0.73
14.00 316.00 330.00 0.2 0.26 0.005 1.80 0.30
-------------------------------------------------------------------------
-------------------------------------------------------------------------
CO-08-
221 120 -79.0 92.00 62.00 154.00 0.2 0.35 0.017 1.62 0.47
inclu-
ding 24.00 62.00 86.00 0.3 0.36 0.027 1.82 0.56
and 36.00 92.00 128.00 0.3 0.38 0.012 1.89 0.48
also 12.00 110.00 122.00 0.4 0.51 0.014 1.87 0.62
14.00 196.00 210.00 0.2 0.30 0.005 0.76 0.34
84.00 216.00 300.00 0.2 0.45 0.005 1.91 0.49
inclu-
ding 76.00 218.00 294.00 0.3 0.47 0.005 1.94 0.52
also 42.00 232.00 274.00 0.4 0.49 0.005 1.87 0.54
and 22.00 232.00 254.00 0.5 0.64 0.007 1.94 0.70
-------------------------------------------------------------------------
-------------------------------------------------------------------------
CO-08-
223 45 -70.8 22.15 65.85 88.00 0.2 0.54 0.005 5.19 0.62
inclu-
ding 17.25 65.85 83.10 0.4 0.60 0.004 5.48 0.68
and 12.00 68.00 80.00 0.5 0.74 0.004 6.52 0.83
101.25 140.75 242.00 0.2 0.35 0.005 1.93 0.40
inclu-
ding 48.00 166.00 214.00 0.3 0.40 0.004 2.28 0.45
and 30.00 166.00 196.00 0.4 0.34 0.004 2.29 0.39
also 12.00 224.00 236.00 0.3 0.57 0.003 2.12 0.61
140.25 337.05 477.30 0.2 0.52 0.011 4.12 0.63
inclu-
ding 132.80 337.05 469.85 0.3 0.52 0.011 3.82 0.62
and 106.95 337.05 444.00 0.4 0.51 0.012 2.80 0.62
also 28.00 362.00 390.00 0.5 0.60 0.015 3.40 0.73
and 24.00 408.00 432.00 0.5 0.78 0.011 4.90 0.89
-------------------------------------------------------------------------
-------------------------------------------------------------------------
CO-08-
224 324 -70.0 33.60 30.00 63.60 0.3 0.70 0.009 9.38 0.84
inclu-
ding 20.20 34.00 54.20 0.4 0.73 0.009 10.77 0.89
32.70 177.30 210.00 0.2 0.26 0.004 1.23 0.30
26.00 224.00 250.00 0.2 0.35 0.005 1.69 0.40
inclu-
ding 20.00 224.00 244.00 0.3 0.35 0.005 1.74 0.40
24.00 270.00 294.00 0.2 0.36 0.002 2.98 0.40
14.40 318.00 332.40 0.2 0.55 0.005 4.28 0.62
34.40 339.60 374.00 0.2 0.41 0.006 1.92 0.46
14.60 402.00 416.60 0.3 0.37 0.015 4.14 0.51
-------------------------------------------------------------------------
-------------------------------------------------------------------------
CO-08-
225 324 -69.1 33.25 148.75 182.00 0.3 0.44 0.009 4.17 0.54
inclu-
ding 31.25 148.75 180.00 0.4 0.39 0.007 3.69 0.47
14.00 188.00 202.00 0.2 0.32 0.007 3.83 0.40
-------------------------------------------------------------------------
-------------------------------------------------------------------------
CO-08-
227 325 -69.4 38.00 356.00 394.00 0.2 0.26 0.008 1.72 0.33
inclu-
ding 12.00 382.00 394.00 0.3 0.36 0.005 1.03 0.40
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Note: Copper equivalent values (Cu EQ) are estimated using long-term
metal prices including: copper US$1.80 per lb, molybdenum
US$12.00 per lb, and silver US$11 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. Cu EQ equals Cu percent plus Mo percent times
(8.00/1.20) plus Ag grams per tonne times 0.24/(1.20(x)22.05).
All mineralized intercepts are at least 10 meters long and accept
intervals of up to 5 meters internal dilution.
A scoping study titled "Preliminary Assessment of the Constancia Project, Department of Cusco, Peru" and dated December 11, 2007 (posted on SEDAR) using the 2007 resource block model anticipates a project producing in excess of 90,000 tonnes of copper annually. That study indicated the project has a net present value of up to $530 million (including 25% contingency) and an internal rate of return of 25.3 percent. The following long-term commodity price assumptions were used in the study: copper $1.80 per pound, molybdenum $12 per pound and silver $11 per ounce. If a revised price deck of copper $2.00 per pound, molybdenum $15.00 per pound and silver $10.50 per ounce is used in the same Discounted Cash Flow Model the net present value increases to $746 million and an internal rate of return of 31% (including a 25% contingency) based on the 55ktpd case.
Quality Control
The drilling program and geological studies at the Constancia project are reviewed and the results are approved by Leonardo Diaz (MAusIMM), Norsemont's Qualified Person under NI 43-101. 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. All intersections were determined using a rolling 0.2% copper cut-off and up to 5 meters of internal waste. Due to the disseminated characteristics of the deposit and homogeneity of the mineralisation, all intersections (except where noted) are to be considered true width.
Full disclosure of all 43-101 compliant drill results conducted on the project to date that have or will be used in resource estimations are available on the Company's website (www.norsemont.com) under "Constancia Project" together with a drill-hole location map.
About Norsemont Mining
Norsemont Mining is an independent Canadian mineral exploration and development company focused on the 100 percent controlled Constancia Cu-Mo-Ag deposit in southern Peru. The Constancia Project currently has a 43-101 compliant indicated resource of 256.3M tonnes at 0.50% Cu (2.85 Billion lbs Cu) and an inferred resource of 156.5M tonnes at 0.33% Cu (1.15 Billion lbs Cu).
The technical information provided in this press release has been 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.
Certain disclosure in this release, including management's assessment of Norsemont's plans and projects, constitutes forward-looking statements that are subject to numerous risks, uncertainties and other factors relating to Norsemont's operation as a mineral exploration and development company that may cause future results to differ materially from those expressed or implied. Readers are cautioned not to place undue reliance on forward-looking statements.