Norsemont Mining Inc. (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 kilometres south east, respectively, of the Constancia Project's planned first mine development.
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).
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".