International Enexco Updates Progress at Contact Copper Project, NV
VANCOUVER, BRITISH COLUMBIA -- (Marketwire) -- 11/16/11 -- International Enexco Ltd. (TSX VENTURE: IEC)(OTCQX: IEXCF)(FRANKFURT: IE6) (the 'Company' or 'Enexco') is pleased to update its shareholders on the progress at its 100%-owned Contact Copper Project in Elko County, Nevada, where, as recently announced on September 26, 2011, the Company completed the acquisition of adjoining land from Allied Nevada Gold Corp. ('Allied Nevada'). The acquisition more than doubles the Company's holdings in the district to approximately 13,000 acres. With the acquisition, Enexco sees potential for additional resources and reserves, and has scheduled a $1 million expansion drilling program to begin this fall. The Company is reviewing work towards a feasibility study on the project.
To view the Contact Copper Project photo click on: http://media3.marketwire.com/docs/11161.jpg
About the Contact Copper Project
The Contact Copper Project is a copper oxide project located in northeastern Elko County, Nevada. Low cost SX-EW recovery will be used to produce cathode copper on site. An updated Pre-feasibility Study (PFS) was completed in 2010 by Gustavson Associates that showed positive economics at a base case copper price of $2.25/lb. The project as outlined is targeted to produce 25 million pounds per year of cathode copper over a mine life of 9.5 years. Overall copper recovery is projected at 76%. Capital cost from the PFS is $86 million, with production targeted for 2014 at an average operating cost of $0.93/lb of copper. After-tax cash flow analysis for the base case shows a 20.2% IRR and NPV of $44 million at a 10% discount rate.
From the PFS, Proven and Probable Mineral Reserves for the oxide copper project total 54.1 million tons grading 0.29% Cu. The Reserves were determined from Measured and Indicated Mineral Resources of 135 million tons of 0.26% Cu. Excluded from the project base case economics is an Inferred Mineral Resource of 53.5 million tons of 0.27% Cu. The Resources and Reserves were calculated with NI 43-101 guidelines using a base case copper price of $2.25/lb and a cut-off grade of 0.10% Cu. All Resources and Reserves reported in the PFS were limited to Enexco' s pre-acquisition property holdings, and included limitations on reserves due to property constraints on the mine design.
----------------------------------------------------------------------------
Category Tons Cu (%) Pounds Cu
----------------------------------------------------------------------------
Reserves
----------------------------------------------------------------------------
Proven 27,011,000 0.305% 164,701,000
----------------------------------------------------------------------------
Probable 27,138,000 0.280% 152,199,000
----------------------------------------------------------------------------
Total P&P 54,149,000 0.293% 316,899,000
----------------------------------------------------------------------------
Resources
----------------------------------------------------------------------------
Measured 52,976,000 0.282% 298,397,000
----------------------------------------------------------------------------
Indicated 82,233,000 0.251% 413,413,000
----------------------------------------------------------------------------
Total M&I 135,209,000 0.263% 711,810,000
----------------------------------------------------------------------------
Inferred 53,490,000 0.272% 291,368,000
----------------------------------------------------------------------------
Resources from Oct. 2010 NI 43-101 PFS update
Resources and Reserves reported at 0.10% Cu cut-off
Additional information on the project, including geology, resources and reserves, can be found on the company's website at http://www.enexco.ca/s/contact_copper.asp and in the NI 43-101 Technical Report Pre-feasibility Study Update for the Contact Copper Project, Elko County, Nevada as posted on SEDAR.
Previous Drilling
The Resources and Reserves in the PFS were derived from drilling done by Enexco between 2006 and 2010, along with previous drilling by companies Golden Phoenix Minerals, Inc., Phelps Dodge Corporation and Calta Resources, Ltd. Total drilling by all four companies in the district amounts to 237,700 feet (72,450 metres ) in 268 drill holes, of which 92% were core and 8% were reverse circulation. Enexco's drilling represents 60% of the total footage, amounting to 142,000 feet (43,281 metres) in 156 core holes. These holes were drilled on Enexco's property before the acquisition. Of the 96,000 feet (29,261 meters) in pre-Enexco drilling, only 14,000 feet (4267 metres) in 17 holes fall outside of the PFS resource model on land acquired from Allied Nevada. In addition, Allied Nevada in 2010 drilled 4 holes (CON10-001 to CON10-004) on its property at the eastern end of the PFS reserves. In 2010, Enexco drilled one hole, EN-149, just beyond the eastern limits of the PFS resource model.
East Expansion
The PFS reserves fall within a plan area elongated 4,000 feet (1220 metres) east-west by 1,500 feet (457 metres) north-south. As seen in the accompanying map, the eastern end of the area was restricted by land ownership. The mine design terminated eastward due to depth of mineralization and the presence of property boundaries to the north and south. The acquisition allows the mine design to expand to full economic depth eastward. Within the 1500 feet (457 metres) east from the end of the PFS reserves, Enexco drilled 8 holes, as listed in the table below. Additional drilling is needed to in-fill this area and potentially extend it eastward beyond the furthest east hole, EN-149, which carries an intercept of 185 feet (56.4 metres) of 0.25% Cu. To expand the resource and upgrade it to Measured and Indicated categories, the Company plans 20,000 feet (6,096 metres) of drilling at a total cost of $1 million. Drilling for the expansion program is scheduled this fall.
To view the Contact East Expansion Area - Drill Hole Location Map click on: http://media3.marketwire.com/docs/11162.jpg
Contact East Extension Area - Intervals above 0.10% Cu
----------------------------------------------------------------------------
ENEXCO 2007-2010 From To Length Length Copper
Drill Hole # (ft) (ft) (ft) (m) %
----------------------------------------------------------------------------
EN-134 330 410 80 24.4 0.15
--------------------------------------------------------
455 477 22 6.7 0.82
----------------------------------------------------------------------------
EN-135 25 60 35 10.7 0.13
----------------------------------------------------------------------------
125 210 85 25.9 0.15
--------------------------------------------------------
275 360 85 25.9 0.19
----------------------------------------------------------------------------
EN-147 77 210 133 40.5 0.30
--------------------------------------------------------
350 370 20 6.1 0.18
--------------------------------------------------------
470 535 65 19.8 0.23
--------------------------------------------------------
655 675 20 6.1 0.54
----------------------------------------------------------------------------
EN-149 0 185 185 56.4 0.25
--------------------------------------------------------
215 270 55 16.8 0.16
--------------------------------------------------------
300 320 20 6.1 0.13
--------------------------------------------------------
390 415 25 7.6 0.11
--------------------------------------------------------
540 560 20 6.1 0.13
----------------------------------------------------------------------------
EN-150 125 145 20 6.1 0.34
--------------------------------------------------------
270 305 35 10.7 0.19
--------------------------------------------------------
495 565 70 21.3 0.22
--------------------------------------------------------
665 685 20 6.1 0.46
----------------------------------------------------------------------------
EN-151 360 385 25 7.6 1.40
----------------------------------------------------------------------------
EN-152 180 200 20 6.1 0.14
--------------------------------------------------------
320 340 20 6.1 0.65
--------------------------------------------------------
395 425 30 9.1 0.25
----------------------------------------------------------------------------
EN-153 100 145 45 13.7 0.16
--------------------------------------------------------
160 200 40 12.2 0.20
--------------------------------------------------------
265 300 35 10.7 0.17
--------------------------------------------------------
440 545 105 32.0 0.19
--------------------------------------------------------
565 585 20 6.1 0.23
----------------------------------------------------------------------------
----------------------------------------------------------------------------
ALLIED NEVADA 2010 From To Length Length Copper
Drill Hole # (ft) (ft) (ft) (m) %
----------------------------------------------------------------------------
CON10-001 215 240 25 7.6 0.31
----------------------------------------------------------------------------
CON10-002 no reportable intercepts
----------------------------------------------------------------------------
CON10-003 no reportable intercepts
----------------------------------------------------------------------------
CON10-004 40 60 20 6.1 0.20
----------------------------------------------------------------------------
----------------------------------------------------------------------------
CALTA pre-1973 From To Length Length Copper
Drill Hole # (ft) (ft) (ft) (m) %
----------------------------------------------------------------------------
N-02 130 150 20 6.1 0.17
--------------------------------------------------------
320 340 20 6.1 0.11
--------------------------------------------------------
400 420 20 6.1 0.72
--------------------------------------------------------
665 685 20 6.1 0.75
----------------------------------------------------------------------------
N-03 40 55 15 4.6 0.350
--------------------------------------------------------
508 518 10 3.1 0.245
--------------------------------------------------------
605 631 26 7.9 0.516
----------------------------------------------------------------------------
N-06 331 361 30 9.1 0.49
--------------------------------------------------------
392 415 23 7.0 0.20
--------------------------------------------------------
435 455 20 6.1 0.13
--------------------------------------------------------
603 627 24 7.3 0.20
----------------------------------------------------------------------------
N-11 222 228 6 1.8 0.64
--------------------------------------------------------
474 500 26 7.9 0.16
----------------------------------------------------------------------------
portions of Calta holes unassayed
Other Targets
With the acquisition, the Company is also assessing targets for future exploration. Among these are areas with surface exposures of copper oxide mineralization, west and south of the PFS reserves, as well as deeper targets for copper sulfides below the PFS reserves and elsewhere on the property. Information on these targets is available on the Company's website. The Company's immediate plans are to continue to focus on advancing the copper oxide project toward production while continuing to add information and prioritize targets for longer term exploration and future drilling.
The Contact Copper Project is under the supervision of Dr. William Willoughby, PE, a Qualified Person as defined in Canadian National Instrument 43-101, who is responsible for the preparation of the technical information in this news release. Assay procedures for intervals reported are described in NI 43-101 Technical Report Pre-feasibility Study Update for the Contact Copper Project, Elko County, Nevada as posted on SEDAR and on the Company's website. Assay intervals listed under Allied Nevada are as provided in data from Allied Nevada and have not been verified.
About International Enexco Ltd.
International Enexco Ltd. is a North American exploration and development company focused on the feasibility stage Contact Copper Project in northern Nevada. The Company also pursues gold and silver exploration in Idaho and Nevada, and is advancing the Mann Lake Uranium Project located in Saskatchewan's prolific Athabasca basin. This project is a joint venture with Cameco as operator and Areva-two of the world's largest uranium companies.
On behalf of the Board of Directors, I look forward to keeping you updated with our corporate developments.
G. Arnold Armstrong, President & CEO
Certain information regarding the Company including management's assessment of future plans and operations, may constitute forward-looking statements under applicable securities laws and necessarily involve risks associated with mining exploration and development, volatility of prices, currency fluctuations, imprecision of resource estimates, environmental and permitting risks, access to labour and services, competition from other companies and ability to access sufficient capital. As a consequence, actual results may differ materially from those anticipated in the forward-looking statements. A feasibility study has not been completed and there is no certainty the disclosed targets will be reached nor that the proposed operations will be economically viable. We seek safe harbour.
The TSX Venture Exchange or its Regulation Services Provider have not reviewed and do not accept responsibility for the adequacy or accuracy of the contents of this news release, which has been prepared by management.
Contacts:
International Enexco Limited
Spiros Cacos
1 604 669 8368
1 604 662 3231 (FAX)
info@enexco.ca
www.enexco.ca