209 - 475 Howe Street
OCTOBER 18, 2004
NEWS RELEASE- LARGE IP ANOMALY FOUND ON COPAQUIRE CU-MO PORPHYRY PROPERTY
The company is pleased to announce completion
of an induced polarization-resistivity survey on its Copaquire Copper-Molybdenum
property consisting of four east-west lines spaced approximately 1 km
apart and trending west from the adjacent Collahuasi mine property a distance
of 1.5 to 2 km. A strong chargeability anomaly has been found which increases
in magnitude to the west and especially southwest and is accompanied by
moderate to high resistivity. The 1433 ha Copaquire property is located
20 kilometers west of the mega-copper-molybdenum Collahuasi Mine but at
lower elevations (3500-3900m) and workable year around. The company has
the option to earn a 100 percent interest in the property over a four
The property has been drilled and surface sampled by
major mining companies in 1977 and 1993 but remarkably has not received
serious attention in recent times. In 1977 five 250m holes were drilled
coincident with the southernmost IP line just completed by the company.
Grades reported were in the range of 0.1% to 0.2 % MoS2 in sections 95m
to 250m thick accompanied by copper at .04% to .12 %. Prior chip sampling
of leached outcrop in the vicinity of and up to 700m north and 300m south
of this line of holes gave values ranging from 1075m with weighted average
grade of 0.21% Mo to 300m grading 0.1% Mo. The drill holes in combination
with the surface chip sampling and the new IP survey leads management
to consider 0.5 to 1.3 billion tons as the target potential for this zone.
Further surface work and diamond drilling will be carried out to establish
grade and tonnage as this is, indeed, a compelling target.
The 1993 drilling in a more copper rich part of the system,
about 2 km northeast of the above target, indicated the presence, below
an intensely leached capping, of significant secondary sulphides over
an area of 1.25 million square metres and vertical depth of 350m. The
better holes bottomed in secondary sulphides and assayed in the range
of 0.3% to 0.6% copper. This target is open to the west of the 1993 drilling,
where the Companies IP survey records increasing chargeability values.
This area also merits a substantial drill program.
In summary, the company has acquired a property of great merit to add to its large portfolio of Chilean copper and gold property holdings and plans to proceed with exploration as soon as possible.
Terence Walker, MSc. P.Geo.
Robert A Young and Associates 604 682 5123