Norsemont Mining Drills 242.5 gpt Gold at Constancia

Oct 12, 2010, 10:23 ET from Norsemont Mining Inc.

  • High grade gold intercepts including 3 metres @ 242.5 gpt Au
  • Additional High Grade Cu-Au-Mo at Pampacancha: 75.25 m @ 1.84% Cu Eq
  • First Mine Permitting and Optimisation Studies on track

Share Issued and Outstanding: 82,243,000               
TSX: NOM
BVL: NOM

TORONTO, Ontario and LIMA, Peru, Oct. 12 /PRNewswire/ -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% Mo
ppm
Ag
gpt
Au
gpt
Pb
ppm
Zn
ppm
CuEq%
Chilloroya SO-10-008   31.60 251.75 283.35 0.2 0.72 65 6.00 0.29 18 141 0.98
SR-10-010   84.00 52.00 136.00   0.05 1 1.56 0.52 81 249  
including 3.00 76.00 79.00   0.03 1 0.60 7.10 280 313  
SR-10-013   3.00 136.00 139.00   0.02 1 19.10 242.56 134 375  
Pampacancha PR-10-015   37.35 16.90 54.25   0.07 395 0.53 0.03 24 210  
  18.00 62.00 80.00   0.12 205 1.62 0.21 128 481  
  77.60 104.00 181.60 0.20 0.30 330 3.01 0.18 305 2,190 0.65
including 11.65 114.35 126.00   0.05 1,437 2.33 0.13 342 583  
PO-10-016   50.70 4.84 55.54   0.20 108 2.34 0.27 75 2,037 0.45
  31.00 149.00 180.00   0.19 187 3.43 0.18 218 372 0.45
  13.40 186.00 199.40   0.33 93 3.58 0.23 211 525  
PO-10-017   75.25 116.00 191.25 0.10 0.94 412 9.56 0.94 628 1,401 1.84
PO-10-018   2.00 44.00 46.00   0.15 486 4.31 0.09 330 1,156  
  1.35 160.65 162.00   0.00 3 5.10 15.08 1,171 696  
  2.65 176.00 178.65   0.04 533 1.47 0.01 117 258  
PO-10-019   68.95 124.45 193.40 0.20 1.05 439 7.58 0.70 495 1,114 1.82
including 41.25 146.75 188.00 0.50 1.24 502 8.60 0.69     2.04
PR-10-026   13.00 0.00 13.00 0.20 1.16 91 17.97 0.33 389 1,329 1.57
PR-10-016   22.00 0.00 22.00   0.14 61 3.41 0.62 882 1,649  
  9.00 94.00 103.00   0.11 0 1.77 0.72      
PR-10-017   9.00 73.00 82.00   0.02 10 1.77 1.00 174 313  
PR-10-022   55.00 0.00 55.00 0.20 0.53 145 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".

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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 $931.8M and an IRR of 26.9% (based on $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.

SOURCE Norsemont Mining Inc.