16th Jan 2012 07:37
Level 6, 122 Walker St
North Sydney, NSW 2060
Australia
T +61 (0)2 9460 1856
F +61 (0)2 9460 1857
16 January 2012
ASX ANNOUNCEMENT
MOLLACAS COPPER LEACH PROJECT
·; DRILLING CONFIRMS CONTINUITY OF SUPERGENE ENRICHMENT ZONE
·; TALL COLUMN LEACH TESTWORK COMMENCES
Latest drilling results from Metminco's 100% owned Mollacas copper leach project in Chile confirms the continuity of the copper oxide and enriched supergene zones. To view the complete press release including a surface geological plan showing the drill hole locations and extent of mineralised envelope at the Mollacas Project please download the following pdf http://www.rns-pdf.londonstockexchange.com/rns/5992V_1-2012-1-16.pdf.
Metminco has now received all assay data for drill holes MD 61 to MD 84, which completes the drilling phase of the project in advance of completing a final resource estimate, conducting confirmatory metallurgical testwork and commissioning a feasibility study.
These drill holes form part of an in-fill drilling program designed to convert current resources into JORC-compliant Measured and Indicated Resource categories, as well as to define the outer limits of the oxide and supergene mineralisation. Significant intersections are summarised in Table 1 below.
Table 1: Mollacas Project: Summary of significant intersections.
MD 61 | 33 | 0.53% | Oxide | 0 | 33 |
23 | 0.45% | Supergene | 34 | 57 | |
MD 67 | 10 | 0.60% | Oxide | 27 | 37 |
57 | 0.70% | Supergene | 53 | 110 | |
MD 70 | 38 | 0.78% | Oxide | 37 | 75 |
27 | 0.71% | Supergene | 75 | 102 | |
MD 74 | 47 | 0.96% | Supergene | 42 | 89 |
MD 76 | 31 | 0.47% | Oxide | 20 | 51 |
37 | 0.67% | Supergene | 52 | 89 | |
MD 81 | 12 | 1.01% | Supergene | 39 | 51 |
MD 83 | 27 | 0.57% | Supergene | 42 | 69 |
Mollacas Project
The Mollacas copper leach project, prior to this drill program, had a JORC-compliant resource of 17 million tonnes consisting of Indicated Resources of 7.2 million tonnes @0.56% copper and Inferred Resources of 9.8 million tonnes @0.52% copper (at a 0.2% copper cut-off grade). The in-fill drilling program was designed to upgrade the current resource in advance of the feasibility study planned for H1 2012, and the subsequent development of the project.
The drilling program comprised 23 diamond drill holes (2,250 metres) for resource definition and metallurgical testwork purposes (Tables 1 and 2), and 1,154m of reverse circulation drilling for hydrological testwork.
A final resource estimate based on the in-fill drilling results is expected in Q1 2012. A further metallurgical testwork program has commenced with the selection of samples for tall column leach testwork in order to facilitate the optimal design of the plant and leach circuit.
The Company is close to finalising the environmental base line study for the project and has completed the purchase of land and water rights for its development. It is anticipated that the application to the Chilean Government authorities for a development licence will be completed Q4 2012.
Table 2: Mollacas Project: Summary of in-fill drill hole results.
MD 61 | 90 | 0 | 33 | 33 | 0.53 | Oxide |
34 | 57 | 23 | 0.45 | Supergene | ||
MD 62 | 90 | 41 | 50 | 9 | 0.18 | Supergene |
MD 63 | 75 | 36 | 75 | 39 | 0.32 | Primary |
MD 64 | 110 | 51 | 103 | 52 | 0.15 | Supergene |
MD 65 | 120 | 31 | 65 | 34 | 0.15 | Oxide |
70 | 112 | 42 | 0.37 | Supergene | ||
MD 66 | 90 | 41 | 53 | 12 | 0.10 | Supergene |
MD 67 | 120 | 27 | 37 | 10 | 0.60 | Oxide |
41 | 53 | 12 | 0.24 | Oxide | ||
53 | 110 | 57 | 0.70 | Supergene | ||
MD 68 | 60 | 15 | 26 | 11 | 0.50 | Supergene |
MD 69 | 135 | 71 | 103 | 32 | 0.54 | Supergene |
MD 70 | 120 | 37 | 75 | 38 | 0.78 | Oxide |
75 | 102 | 27 | 0.71 | Supergene | ||
MD 71 | 63 | 49 | 55 | 6 | 0.32 | Primary |
MD 72 | 50 | 14 | 37 | 23 | 0.46 | Supergene |
MD 73 | 80 | 0 | 25 | 25 | 0.42 | Oxide |
MD 74 | 100 | 42 | 89 | 47 | 0.96 | Supergene |
MD 75 | 120 | 115 | 118 | 3 | 0.23 | Primary |
MD 76 | 105 | 20 | 51 | 31 | 0.47 | Oxide |
52 | 89 | 37 | 0.67 | Supergene | ||
MD 77 | 110 | 13 | 37 | 24 | 0.58 | Oxide |
44 | 79 | 35 | 0.57 | Supergene | ||
MD 78 | nil | |||||
MD 79 | 80 | 35 | 76 | 41 | 0.42 | Supergene |
including | 35 | 51 | 16 | 0.77 | Supergene | |
MD 80 | 80 | 0 | 29 | 29 | 0.39 | Oxide |
44 | 80 | 36 | 0.48 | Supergene | ||
MD 81 | 70 | 0 | 9 | 9 | 0.26 | Oxide |
39 | 51 | 12 | 1.01 | Supergene | ||
MD 82 | 110 | 58 | 73 | 15 | 0.34 | Oxide |
80 | 110 | 30 | 0.26 | Supergene | ||
MD 83 | 90 | 42 | 69 | 27 | 0.57 | Supergene |
MD 84 | 85 | 48 | 56 | 8 | 0.17 | Supergene |
William Howe
Managing Director
About Metminco:
Metminco is a dual ASX and AIM listed company with a portfolio of copper and gold projects in Peru and Chile. The Los Calatos project, located in southern Peru, has a JORC compliant resource of 926 million tonnes, comprising Indicated Resources of 111 million tonnes at 0.39% Cu and 380ppm Mo, and an Inferred Resource of 815 million tonnes at 0.37% Cu and 260ppm Mo (at a 0.2% copper cut-off grade).
The Chilean assets include the Mollacas copper leach project with a JORC compliant resource of 17 million tonnes consisting of Indicated Resources of 7.2 million tonnes at 0.56% copper and Inferred Resources of 9.8 million tonnes @ 0.52% copper (at a 0.2% copper cut-off grade); and the Vallecillo gold zinc project with a JORC compliant resource of 10.1 million tonnes consisting of Indicated Resources of 7.9 million tonnes @ 1.14g/t Au; 11.4g/t Ag; 1.32% Zn; 0.29% Pb and an Inferred Resource of 2.2 million tonnes @ 0.78g/t Au; 8.2g/t Ag; 0.58% Zn; 0.26% Pb (at a cut-off grade of 0.3g/t Au).
Competent Persons Statement
The information in this report that relates to Exploration Results and Mineral Resources is based on information compiled by Colin Sinclair, BSc, MSc, who is a Member of the Australasian Institute of Mining and Metallurgy and is a full-time employee of the Company as General Manager Exploration.
Colin Sinclair has sufficient experience (over 30 years) which is relevant to the style of mineralisation, type of deposit under consideration, and to the activity which he is undertaking to qualify as a Competent Person as defined in the 2004 Edition of the 'Australasian Code for Reporting of Exploration Results'. Mr Sinclair, as Competent Person for this announcement, has consented to the inclusion of this information in the form and context in which it appears herein.
For further information please contact:
South America:
William Howe - Managing Director Ph: +56 (2) 411 2600
Australia:
Stephen Tainton - Investor Relations Ph: +61 (0) 9460 1856
Philip Killen - Company Secretary & CFO Ph: +61 (0) 408 609 916
Broker - BGF Equities
Warwick Grigor / Marcus Freeman Ph: +61 3 8688 9100
Financial Public Relations Consultant - Collins St Media
Ian Howarth Ph: +61 (0) 407 822 319
United Kingdom:
Tim Read - Non-Executive Director Ph: +44 (0) 777 072 1809
Nomad and Joint Broker - Canaccord Genuity Limited
Robert Finlay/ Andrew Chubb Ph: +44 (0) 207 050 6500
Joint Broker - Liberum Capital Limited
Michael Rawlinson / Clayton Bush Ph: +44 (0) 20 3100 2227
Financial Public Relations Consultant - Buchanan
Tim Thompson / James Strong Ph: +44 (0) 20 7466 5000
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