Antares Reports Significant New Resource Estimate for the Haquira East Primary Sulphide Cu-Mo-Au Discovery, Peru
November 24 2008 - 9:51AM
Marketwired Canada
Antares Minerals Inc. ("Antares") (TSX VENTURE:ANM) is pleased to announce the
completion of an independent National Instrument ("NI") 43-101 compliant interim
resource estimate for its Haquira East Cu-Mo-Au discovery in southern Peru. The
resource estimate was prepared by Tetra Tech, Inc. of Golden, Colorado ("Tetra
Tech") and is the first estimation focused on the primary sulphide resources of
the newly discovered porphyry Cu-Mo-Au zone at Haquira East. Previous Haquira
project resource estimates prepared by Chlumsky, Armbrust, and Meyer L.L.C.,
("CAM") of Denver, Colorado (see press releases of October 9, 2007 and February
14, 2006) focused on the near-surface, leachable secondary copper mineralization
of both the Haquira East and Haquira West zones.
This resource estimate utilizes all drill results up to and including drill-hole
AHAD-120 (reported on August 05, 2008) and is restricted to the Haquira East
zone. Mineralization at Haquira East remains open to depth as well as laterally
to the northwest and southeast. Additional drilling is in progress. Highlights
from this interim resource estimate at a cut-off of 0.3% total Cu are as
follows:
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Table 1. Mineral Resource Summary Haquira Project - 0.3% Cu cut-off
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Haquira East Primary Sulphide Mineral Resources (Tetra Tech Nov 2008)
- 0.3% Cu cut-off
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Resource Tonnes Cu Eq Cu Mo Au Ag lbs Cu lbs Cu Eq(1)
Classification (millions) (1) % % % g/t g/t (billions) (billions)
----------------------------------------------------------------------------
Indicated 147.9 0.71 0.57 0.015 0.054 1.63 1.86 2.31
----------------------------------------------------------------------------
Inferred less
than 700m 205.2 0.69 0.56 0.014 0.055 1.56 2.53 3.13
----------------------------------------------------------------------------
Inferred greater
than 700m 99.4 0.54 0.46 0.008 0.031 1.13 1.01 1.18
----------------------------------------------------------------------------
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Haquira East and West Secondary Cu Mineral Resources (CAM Oct 2007)
- 0.3% Cu cut-off
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Resource Tonnes Cu Eq Cu lbs Cu lbs Cu Eq(1)
Classification (millions) (1) % % (billions) (billions)
----------------------------------------------------------------------------
Indicated 133.7 0.53 0.53 1.55 1.55
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Inferred 43.6 0.44 0.44 0.43 0.43
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Also contains significant higher grade material - primary sulphide resources at
a cut-off of 0.7% Cu are:
- Indicated Resource - 22.9 mt at 0.79% Cu, 0.022% Mo, 0.068 g/t Au, 2.21 g/t Ag
(0.99% Cu Eq1)
- Inferred Resource - 48.8 mt at 0.84% Cu, 0.023% Mo, 0.072 g/t Au, 2.27 g/t Ag
(1.05% Cu Eq1)
John Black, President and CEO of Antares Minerals Inc. commented as follows:
"We are very pleased to present the first interim resource estimate for the
significant new Haquira East porphyry Cu-Mo-Au discovery. The delineation of a
large volume of primary Cu-Mo-Au sulphide mineralization at Haquira East
represents a major advance in the Haquira project. We have increased the amount
of in-situ copper equivalent at Haquira by fourfold and there is now a very good
opportunity to evaluate the potential for a staged copper mining operation with
early, low CAPEX, SX-EW copper leaching paving the way for the subsequent
development of the larger volume of primary Cu-Mo-Au sulphide mineralization."
"The Haquira East zone remains open to depth and as well as laterally to the
northwest and southeast. We hope to continue to increase the size and grade of
the deposit and look forward to reporting additional drilling results in the
near future. Antares is strong financially with approximately C$20 million in
working capital. We are currently taking measures to optimize our financial burn
rate to allow completion of key objectives yet also ensure our ability to
protect the value of our assets and persevere in the currently difficult market
conditions."
Please see Tables 2-4 below for more complete summaries of the resource estimate
and refer to the Antares website at www.antaresminerals.com for drill-hole
location maps, geological cross-sections, resource model sections and additional
information about the Haquira Copper project.
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Table 2. Haquira East Primary Copper Sulphide Mineral Resources
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Indicated Mineral Resources
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Cut-off Tonnes Cu Eq(1)% Cu% Mo% Au g/t Ag g/t Cu lbs Cu Eq(1) lbs
Cu % (thousands) (billions) (billions)
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0.7 22,890 0.99 0.79 0.022 0.068 2.21 0.40 0.50
----------------------------------------------------------------------------
0.6 54,655 0.88 0.71 0.019 0.062 2.04 0.86 1.06
----------------------------------------------------------------------------
0.5 100,734 0.79 0.63 0.017 0.058 1.87 1.40 1.75
----------------------------------------------------------------------------
0.4 132,961 0.74 0.59 0.016 0.055 1.72 1.73 2.16
----------------------------------------------------------------------------
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0.3 147,888 0.71 0.57 0.015 0.054 1.63 1.86 2.31
----------------------------------------------------------------------------
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0.2 154,712 0.69 0.55 0.015 0.053 1.59 1.88 2.35
----------------------------------------------------------------------------
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Inferred Mineral Resources to 700 m depth
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Cut-off Tonnes Cu Eq(1)% Cu% Mo% Au g/t Ag g/t Cu lbs Cu Eq(1) lbs
Cu % (thousands) (billions) (billions)
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0.7 48,815 1.05 0.84 0.023 0.072 2.27 0.90 1.13
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0.6 78,472 0.95 0.77 0.020 0.068 2.15 1.33 1.65
----------------------------------------------------------------------------
0.5 115,522 0.87 0.70 0.018 0.063 1.98 1.78 2.21
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0.4 153,917 0.79 0.64 0.016 0.059 1.79 2.17 2.68
----------------------------------------------------------------------------
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0.3 205,214 0.69 0.56 0.014 0.055 1.56 2.53 3.13
----------------------------------------------------------------------------
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0.2 276,760 0.59 0.48 0.012 0.048 1.33 2.93 3.62
----------------------------------------------------------------------------
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Inferred Mineral Resources below 700 m depth
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Cut-off Tonnes Cu Eq(1)% Cu% Mo% Au g/t Ag g/t Cu lbs Cu Eq(1) lbs
Cu % (thousands) (billions) (billions)
----------------------------------------------------------------------------
0.7 4,600 0.89 0.79 0.010 0.050 1.68 0.08 0.09
----------------------------------------------------------------------------
0.6 12,577 0.78 0.69 0.009 0.043 1.51 0.19 0.22
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0.5 29,091 0.70 0.61 0.009 0.038 1.37 0.39 0.45
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0.4 62,903 0.60 0.52 0.009 0.032 1.20 0.72 0.84
----------------------------------------------------------------------------
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0.3 99,382 0.54 0.46 0.008 0.031 1.13 1.01 1.18
----------------------------------------------------------------------------
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0.2 127,587 0.48 0.41 0.007 0.030 1.07 1.15 1.35
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(1) CuEQ = Copper Equivalent is calculated for intervals dominated by
primary mineralization using US$1.50/lb Cu, US$500/oz Au, US$10/oz Ag
and US$10.00/lb Mo and is not adjusted for metallurgical recoveries as
these remain uncertain. Metallurgical recoveries and net smelter returns
are assumed to be 100%. The formula used is as follows: CuEQ = Cu% +
(Au g/t x 0.4862) + (Mo% x 10.00/1.50) + (Ag g/t x 0.0077). Copper
Equivalent contributions are only applied to primary sulphide
mineralization.
An updated NI 43-101 Technical Report on the Haquira Project will be available
within 45 days on SEDAR at www.sedar.com. Mineral resources do not have any
demonstrated economic viability and future in-fill drilling and scoping,
pre-feasibility, and feasibility studies will determine what percentage of the
inferred and indicated resources can be placed into the mineable category.
Antares Minerals Inc is not aware of any environmental, permitting, legal,
title, taxation, socio-political, marketing or other issues which may materially
affect this estimate of mineral resources.
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Table 3. Haquira East Secondary Copper Mineral Resources
----------------------------------------------------------------------------
This Resource Estimate Previous Resource Estimate
Tetra Tech - Nov 2008 CAM - Oct 2007 (same area)
----------------------------------------------------------------------------
Indicated Mineral Resource Indicated Mineral Resource
----------------------------------------------------------------------------
Cut-off Tonnes Grade Cu lbs Cut-off Tonnes Grade Cu lbs
Cu % (thousands) Cu% (billions) Cu% (thousands) Cu% (billions)
----------------------------------------------------------------------------
0.5 26,601 0.68 0.40 0.5 21,649 0.71 0.34
----------------------------------------------------------------------------
0.4 40,699 0.60 0.54 0.4 32,687 0.62 0.45
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0.3 57,849 0.53 0.68 0.3 42,425 0.56 0.52
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0.2 66,575 0.49 0.72 0.2 56,004 0.49 0.61
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Inferred Mineral Resource Inferred Mineral Resource
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Cut-off Tonnes Grade Cu lbs Cut-off Tonnes Grade Cu lbs
Cu % (thousands) Cu% (billions) Cu% (thousands) Cu% (billions)
----------------------------------------------------------------------------
0.5 5,401 0.60 0.07 0.5 9,256 0.63 0.13
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0.4 8,944 0.54 0.11 0.4 18,160 0.54 0.22
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0.3 17,027 0.45 0.17 0.3 28,434 0.47 0.29
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0.2 21,950 0.38 0.18 0.2 40,715 0.41 0.37
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Discussion of Results
The Haquira East mineralized zone occurs beneath a small cirque along the north
flank of a prominent hill of quartzite. The mineralization does not crop out and
is covered by a lens of soil and colluvium that varies from several metres up to
as much as 80 metres thick. The mineralization is associated with a monzonite
porphyry intrusive body that occurs as a stock in the deeper central portion of
the zone and abruptly changes to a dike and sill swarm both laterally and
vertically upward. Copper sulphide mineralization (chalcopyrite and bornite with
low total pyrite content) occurs principally within the monzonite porphyry or
immediately overlying reactive siltsone units within a wall rock sequence
dominated by quartzite. Supergene weathering has produced a zone of secondary
copper mineralization that varies from 0-60 m thick over the main zone of
primary copper sulphide mineralization. Supergene mineralization at the Haquira
East zone is most commonly characterized by the development of in situ secondary
copper oxides with only minor enrichment of copper grade. Supergene weathering
and enrichment processes extend to greater depths in the surrounding quartzite
dominant wall rocks and supergene copper mineralization can extend well beyond
the horizontal limits of the main zone of primary copper sulphide
mineralization.
The Haquira East resource estimate is based on a total of 55 drill holes (21,750
m) including 33 shallow holes (to 250 m for a total of 4,950 m) drilled
initially to delineate the leachable secondary copper zone and an additional 22
deeper holes (to 1200m for a total of 16,800 m) drilled in 2007-08 to delimit
the underlying primary sulphide Cu-Mo-Au mineralization. The holes have been
drilled on a grid with approximately 100m spacing between holes and with the
majority of the holes drilled to the NE (055 degrees) at an inclination of -80
degrees.
The resource estimate was prepared by the mineral resource and mining division
of Tetra Tech Inc, an industry leading international engineering firm, utilizing
standard industry software (GEMCOM) and resource estimation methodology (whole
block kriging). The mineral resource estimates for primary sulphide
mineralization at Haquira East are presented in Table 1 at a range of copper
cut-off values. Copper mineralization at Haquira East begins immediately beneath
a thin veneer of 5-80 m of colluvial cover and extends to depths of more than
1000 m. Mineral resources at depths of more than 700 m beneath the surface have
been classified as Inferred Resources and noted separately from Inferred
Resources that occur at less than 700 m below the surface.
The previous Haquira project resource estimate prepared by Chlumsky, Armbrust,
and Meyer L.L.C., ("CAM") of Denver, Colorado (see press releases of October 9,
2007) focused on the near-surface, leachable secondary copper mineralization of
both the Haquira East and Haquira West zones but also reported a small amount of
underlying primary resource based on a limited amount of shallow drilling. The
previously reported primary resource for the Haquira East area (at a 0.3% Cu
cut-off and the same area as this new resource estimate) consisted of an
Indicated Resource of 28.4 million tonnes at 0.47% Cu and an additional Inferred
Resource of 49.4 million tonnes of 0.42% Cu.
The Mineral Resource estimates for the near-surface cap of secondary copper
mineralization at Haquira East are presented in Table 3. This table also
provides a comparison with results for the same area from the previous Resource
Estimate completed by CAM (CAM 2007, see press release of October 9, 2007). The
CAM 2007 and Tetra Tech 2008 (this press release) resource estimates for the
secondary copper mineralization at Haquira East are in very close agreement. The
principal difference is that a greater percentage of Mineral Resources are now
classified as Indicated Resource due to greater drill-hole density in the new
model.
Table 4 below provides a summary of the currently defined Mineral Resources for
the Haquira project at a cut-off of 0.3% total copper.
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Table 4. Mineral Resource Summary Haquira Project
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Primary Sulphide Mineral Resources (Tetra Tech Nov 2008) - 0.3% Cu cut-off
Haquira East zone
----------------------------------------------------------------------------
Resource Tonnes Cu Eq(1) Cu Mo Au Ag
Classification (millions) % % % g/t g/t
----------------------------------------------------------------------------
Indicated 147.9 0.71 0.57 0.015 0.054 1.63
----------------------------------------------------------------------------
Inferred less
than 700m 205.2 0.69 0.56 0.014 0.055 1.56
----------------------------------------------------------------------------
Inferred greater
than 700m 99.4 0.54 0.46 0.008 0.031 1.13
----------------------------------------------------------------------------
----------------------------------------------------------------------------
Secondary Copper Mineral Resources (CAM Oct 2007) - 0.3% Cu cut-off
Haquira East and Haquira West zones
----------------------------------------------------------------------------
Resource Tonnes Cu Eq(1) Cu
Classification (millions) % %
----------------------------------------------------------------------------
Indicated 133.7 0.53 0.53
----------------------------------------------------------------------------
Inferred 43.6 0.44 0.44
----------------------------------------------------------------------------
----------------------------------------------------------------------------
Primary Sulfide Mineral Resources (Tetra Tech Nov 2008) - 0.3% Cu cut-off
Haquira East zone
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Cu Eq(1)
Resource Tonnes Cu lbs Mo lbs Au oz Ag oz lbs
Classification (millions)(billions)(millions)(thousands)(millions)(billions)
----------------------------------------------------------------------------
Indicated 147.9 1.86 48.92 257 7.8 2.31
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Inferred less
than 700m 205.2 2.53 63.35 363 10.3 3.13
----------------------------------------------------------------------------
Inferred greater
than 700m 2.3 1.01 17.53 99 3.6 1.18
----------------------------------------------------------------------------
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Secondary Copper Mineral Resources (CAM Oct 2007) - 0.3% Cu cut-off
Haquira East and Haquira West zones
----------------------------------------------------------------------------
Resource Tonnes Cu lbs Cu Eq(1) lbs
Classification (millions)(billions) (billions)
----------------------------------------------------------------------------
Indicated 133.7 1.55 1.55
----------------------------------------------------------------------------
Inferred 43.6 0.43 0.43
----------------------------------------------------------------------------
(1) CuEQ = Copper Equivalent is calculated for intervals dominated by
primary mineralization using US$1.50/lb Cu, US$500/oz Au, US$10/oz Ag
and US$10.00/lb Mo and is not adjusted for metallurgical recoveries as
these remain uncertain. Metallurgical recoveries and net smelter returns
are assumed to be 100%. The formula used is as follows: CuEQ = Cu% +
(Au g/t x 0.4862) + (Mo% x 10.00/1.50) + (Ag g/t x 0.0077). Copper
Equivalent contributions are only applied to primary sulphide
mineralization.
Qualified Persons
Antares Minerals Inc. has retained Tetra Tech of Golden, Colorado and Aker
Kaverner of Tucson, Arizona as the co-lead contractors to complete a
pre-feasibility study for the Haquira Cu-Mo-Au project. The mineral resource
estimate presented here for the Haquira East portion of the project was
completed by or under the direction of John Rozelle, PG, Tetra Tech's Mineral
Resource Division Principal Geologist and an independent Qualified Person as set
forth by NI 43-101.
All of Antares' exploration programs and pertinent disclosure of a technical or
scientific nature are prepared by, or prepared under the direct supervision of
John Black, Antares' President and CEO, who serves as the qualified person (QP)
under the definitions of National Instrument 43-101. Antares' security, chain of
custody and quality control procedures are described on their website under the
section on best practices - sampling methodologies.
About the Haquira Copper Project, Peru
The Haquira project offers potential for a low-strip, low-cost SX-EW operation
in southern Peru as well as a good opportunity for an underlying higher grade
primary porphyry copper-molybdenum deposit. The project is located contiguous
to, and immediately south of, Xstrata Copper's Las Bambas Cu-Au project. Antares
has an option agreement with Minera Phelps Dodge del Peru S.A.C. to acquire a
100% interest in the Haquira project by completing optional payments totalling
US$15 million over a five-year period (see Antares press release dated March 17,
2005). A total of US$6.5 million has been paid to date with the remaining US$8.5
million due as a payment of US$3.5 million on or before March 04, 2009 and a
final payment of US$5.0 million on or before March 4, 2010. Additional
information about the Haquira project is available on our website at
www.antaresminerals.com.
Antares has previously announced an updated resource estimate (October 09, 2007)
and Preliminary Economic Assessment (May 14, 2008) for the near-surface, SX-EW
amenable portion of the Haquira project. Haquira hosts an indicated resource of
133.7 million tonnes at 0.53% total Cu with an additional inferred resource of
43.6 million tonnes at 0.44% total Cu (0.3% total Cu cut-off, leachable
secondary copper sulphide and oxide mineralization only). This resource is
projected to support a 50,000 t/d SX/EW heap leach operation that will produce
an average of 109 million lbs of copper cathode for 11 years of mine life. The
capital cost to construct the operation is estimated at US$301 million with a
projected IRR of 26.9% and an NPV of US$224 million utilizing a copper price of
US$2.00/lb and a discount rate of 8%.
About Antares
Antares is a successful mineral exploration company with a highly experienced
technical and management team. The Company is focused on precious- and
base-metal exploration properties in Latin America that can be quickly and
cost-effectively advanced to the discovery and production stage. In addition to
the Haquira Project in Peru, Antares is also currently exploring the Rio Grande
(Cu-Au porphyry) project in Salta Province of NW Argentina in a 50/50
option/joint-venture agreement with Mansfield Minerals Inc.
(1) CuEQ = Copper Equivalent is calculated for intervals dominated by primary
mineralization using US$1.50/lb Cu, US$500/oz Au, US$10/oz Ag and US$10.00/lb Mo
and is not adjusted for metallurgical recoveries as these remain uncertain.
Metallurgical recoveries and net smelter returns are assumed to be 100%. The
formula used is as follows: CuEQ = Cu% + (Au g/t x 0.4862) + (Mo% x 10.00/1.50)
+ (Ag g/t x 0.0077). Copper Equivalent contributions are only applied to primary
sulphide mineralization.
All of Antares' exploration programs and pertinent disclosure of a technical or
scientific nature are prepared by, or prepared under the direct supervision of
John Black, Antares' President, who serves as the qualified person (QP) under
the definitions of National Instrument 43-101.
Antares' security, chain of custody and quality control is described on their
website under the section on best practices - sampling methodologies.
Mineral resources do not have demonstrated economic viability and future in-fill
drilling and scoping, pre-feasibility and feasibility studies will determine
what percentage of the inferred resource can be placed into the mineable
category. Antares is not aware of any environmental, permitting, legal, title,
taxation, socio-political, marketing or other issue which may materially affect
this estimate of mineral resources.
Certain disclosure in this release, including management's assessment of
Antares' plans and projects, constitutes forward-looking statements that are
subject to numerous risks, uncertainties and other factors relating to Antares'
operation as a mineral exploration 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.
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