International Enexco Announces an Increase of 49% to 1.06 Billion Pounds of Copper in Measured & Indicated Resources at Its Contact Copper Project, Nevada
VANCOUVER, BRITISH COLUMBIA -- (Marketwire) -- 10/10/12 -- International Enexco Ltd. (TSX VENTURE: IEC)(OTCQX: IEXCF)(FRANKFURT: IE6) (the "Company" or "Enexco") is pleased to announce an updated mineral resource estimate has been completed for its 100%-owned Contact Copper Project in northeast Nevada. Measured plus Indicated resources contain an estimated 1.06 billion pounds of copper, an increase of 49% over the previous estimate.
Mineral Resource Estimate reported at 0.10% Copper cut-off
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Copper Pounds
Category Tons (%) Copper
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Measured 58,977,000 0.26 306,680,000
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Indicated 156,733,000 0.24 752,318,000
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Measured + Indicated 215,710,000 0.25 1,058,998,000
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Inferred 70,921,000 0.24 340,421,000
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-- An increase of 49% in the Measured & Indicated copper resources to 1.06
billion pounds; and
-- An increase of 17% in the Inferred copper resource, to 329 million
pounds; also at a 0.10% copper cut-off.
The updated mineral resource estimate incorporates results from 42,418 feet (12,932 meters) of drilling following a significant land acquisition from Allied Nevada Gold Corp. in 2011. The study updates a previous mineral resource estimate in the 2010 NI 43-101 Technical Report Pre-feasibility Study Update for the Contact Copper Project, Elko County, Nevada, USA. The details of updated mineral resource estimate are provided in the accompanying tables.
"The substantial increase in copper resources at our Contact Copper Project validates the work we have done in property acquisition and drilling," commented Arnold Armstrong, President & CEO of Enexco. "We are very pleased with the updated resource figures and the progress we have made in advancing the project to a feasibility study. Our drill programs have produced steady and significant increases in the resources at Contact since 2007, and we still have exploration targets on the property to test by drilling."
Mineral Resource Estimate at selected cut-offs
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Cut-off Tonnage Copper
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Resource ----------------------------------------------------
Category Copper % Tons % Pounds
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Measured 0.10 58,977,000 0.26 306,680,000
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0.125 45,376,000 0.31 281,331,000
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0.15 36,281,000 0.35 253,967,000
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0.20 25,162,000 0.43 216,393,000
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0.30 13,977,000 0.58 162,133,000
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Indicated 0.10 156,733,000 0.24 752,318,000
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0.125 118,604,000 0.29 687,903,000
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0.15 92,409,000 0.33 609,899,000
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0.20 58,768,000 0.42 493,651,000
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0.30 28,195,000 0.61 343,979,000
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Total Measured &
Indicated 0.10 215,710,000 0.25 1,058,999,000
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0.125 163,980,000 0.30 969,234,000
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0.15 128,690,000 0.34 863,866,000
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0.20 83,930,000 0.42 710,044,000
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0.30 42,172,000 0.60 506,112,000
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Inferred 0.10 70,921,000 0.24 340,421,000
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0.125 53,680,000 0.28 300,608,000
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0.15 45,842,000 0.31 284,220,000
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0.20 30,506,000 0.37 225,744,000
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0.30 13,296,000 0.55 146,256,000
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Notes: Mineral Resources have been classified according to "CIM Standards on
Mineral Resources and Reserves: Definitions and Guidelines" (December 2005).
Mineral Resources are not Mineral Reserves and do not have demonstrated
economic viability. There is no certainty that all or any part of Mineral
Resources will be converted into Mineral Reserves. Mineral Resources cited
are global totals. It cannot be assumed that all or any part of an Inferred
Resource will be upgraded to an Indicated Resource, or that an Indicated
Mineral Resource will be upgraded to a Measured Resource, as a result of
continued exploration. Cut-offs used are not based on specific economic
conditions and are for comparison only. Mineral resource tonnages and
contained metal quantities have been rounded to reflect accuracy of the
estimate and the numbers may not sum due to rounding.
The copper mineralization at the Contact Copper Project is comprised of multiple high grade veins within an envelope of lower grade mineralization within granodiorite. A single stage indicator approach was selected to model high grade zones. Copper grades were estimated from the drill hole data base, with assays capped at 10% Cu, using an inverse distance squared (ID-2) algorithm and dynamic anisotropy derived from geostatistical analysis. The resource was categorized into measured, indicated and inferred categories based on cumulative frequency distribution of estimation variance of the resulting block estimates. The mineral resources are global estimates and are unconstrained within the block model for the resources estimate.
The updated estimate uses results from 42,418 feet (12,932 meters) of drilling in 82 holes which commenced following the acquisition of 8,400 acres of adjoining mining claims in the district from Allied Nevada Gold Corp in 2011. The updated resource estimate is based on a database that now consists of 254,998 feet (77,743 meters) of drilling in 329 core and reverse circulation drill holes.
A NI 43-101-compliant Technical Report detailing the Updated Resource Estimate will be filed within 45 days of the date of this release. The report will be available at www.sedar.com. This report will supersede the PFS2010 and will not be updating the sections related to an advanced mineral exploration project. Enexco is currently working towards a feasibility study for the Contact Copper Project.
William Willoughby, PhD., P.E. is the Qualified Person with Enexco responsible for the content of this news release. The Qualified Persons for the updated mineral resource estimate for the Contact Copper Project are Terre Lane, Principal Mining Engineer and QP, MMSA-QP and Zachary J. Black, E.I.T., Resource Geologist and QP SME-RM No. 4156858RM of 3L Resources, Ltd., Denver, Colorado.
About the Contact Copper Project
The Contact Copper Project is a copper oxide project located in Elko County, Nevada, that is planned to use low cost SX-EW recovery to produce copper cathode on site. Additional information is available on Enexco's website at http://www.enexco.ca and in the October, 2010 NI 43-101 Technical Report Pre-feasibility Study Update for the Contact Copper Project, Elko County, Nevada as posted on Sedar.
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
604 669 8368
604 642 3691 (FAX)
info@enexco.ca
www.enexco.ca