Encouraging intervals and copper grades in underlying sulphide zone, including 148 metres of 1.04%, 86 metres of 1.40% and 72 metres of 1.50%
TORONTO, ONTARIO -- (Marketwire) -- 12/12/08 -- Centenario Copper Corporation ("Centenario" or the "Company") (TSX: CCT) is pleased to announce the results from reverse circulation (RC) and diamond (DD) drill programs on its China Sur Project on the Pelusa property, located 150 metres southeast of the China deposit and 6 km west of the Company's Franke Project in Region II, Chile. The drill programs were undertaken during first, second and third quarter of 2008.
The drill programs consisted of 74 RC holes, totaling 12,774 metres and 25 DD holes, totaling 7,022 metres. The RC holes were drilled in a 50 m by 50 m grid along a north-northwest structural system that starts adjacent to the southeastern limit of the existing China deposit and extends to the south-southeast, to the southern border of the Pelusa Property. The mineralized area drilled to date extends for around 800 metres in length, and has a width that averages between 100 and 150 metres. Most of the target area is located in a flat covered area that outcrops only in the southern border, and did not return strong geochemical and geophysical anomaly readings. RC drill holes were inclined to cut the structural system, and intervals are in around 50% true widths. The follow-up DD drill program was conducted to better assess the controls for the deposition of copper mineralization, reinforce the geological and resource models, and to obtain material for use in future oxide and sulphide metallurgical test work.
The drill program has delineated an area of widespread copper (oxide and sulphide) mineralization with copper grades similar to the China deposit. Carbonate (C03) grades are roughly similar to the China deposit in the northern two-thirds of the deposit (the "North Zone") and higher than those found at the Franke deposit in the southern part (the "South Zone"), indicating that acid consumption in copper extraction should be moderate in the North Zone but high in the South Zone.
China Sur Leachable zone:
The leachable zone consists of mostly oxide material, with some localized areas of mixed and secondary sulphide mineralization. Leachable mineralization generally continues to a depth of around 80 to 100 metres. Highlights include the following intervals:
North Zone:
- RCCHS-73: 72 metres @ 0.79% CuT, 3.8% CO3, from 22 metres
- RCCHS-01: 65 metres @ 0.77% CuT, 4.9% CO3, from 7 metres
- RCCHS-55: 64 metres @ 0.74% CuT, 0.7% CO3, from 20 metres
- DDHCHS-11: 68 metres @ 0.68% CuT, 4.0% CO3, from 24 metres
- RCCHS-03: 62 metres @ 0.61% CuT, 5.6% CO3, from 78 metres
- DDHCHS-08: 40 metres @ 0.84% CuT, 2.3% CO3, from 46 metres
- DDHCHS-19: 32 metres @ 0.90% CuT, 4.2% CO3, from 40 metres
South Zone:
- RCCHS-48: 56 metres @ 1.18% CuT, 6.4% CO3, from 22 metres
- RCCHS-64: 46 metres @ 1.03% CuT, 11.9% CO3, from 32 metres
- RCCHS-50: 52 metres @ 0.67% CuT, 7.8% CO3, from 20 metres
- RCCHS-52: 64 metres @ 0.55% CuT, 7.8% CO3, from 8 metres
China Sur Primary sulphide zone:
Below the Leachable zone, mineralization transitions into primary sulphides, which have been drilled as deep as 400 metres, and which remain open at depth. Drilling has encountered a number of long intervals of higher grade primary sulphide mineralization, particularly in the South Zone. Highlights include the following intervals:
North Zone:
- RCCHS-67: 72 metres @ 1.50% CuT, from 80 metres
- DDHCHS-22: 94 metres @ 0.81% CuT, from 72 metres
- RCCHS-09: 126 metres @ 0.52% CuT, from 60 metres
- RCCHS-04: 104 metres @ 0.56% CuT, from 86 metres
- RCCHS-56: 40 metres @ 0.92% CuT, from 120 metres
- RCCHS-93: 52 metres @ 0.81% CuT, from 180 metres
South Zone:
- RCCHS-68: 86 metres @ 1.40% CuT, from 74 metres
- DDHCHS-02: 148 metres @ 1.04% CuT, from 98 metres
- DDHCHS-23: 194 metres @ 0.72% CuT, from 160 metres
- RCCHS-58: 110 metres @ 0.79% CuT, from 70 metres
- RCCHS-41: 78 metres @ 0.96% CuT, from 88 metres
- RCCHS-13: 196 metres @ 0.43% CuT, from 84 metres
- RCCHS-01: 168 metres @ 0.41% CuT, from 94 metres
- DDHCHS-07: 88 metres @ 0.65% CuT, from 72 metres
- DDHCHS-06: 48 metres @ 0.91% CuT, from 106 metres
- DDHCHS-93: 52 metres @ 0.81% CuT, from 180 metres
- DDHCHS-15: 50 metres @ 0.81% CuT, from 216metres
Richard Colterjohn, President and CEO of Centenario commented: "The Pelusa Property continues to demonstrate its potential to be an integral part of our growth strategy. The similarity of the of the oxide zone copper grades and the majority of the carbonate grades to that of the contiguous China deposit give us strong early encouragement for the potential to develop additional feed for the nearby Franke processing plant. Furthermore, the grades of the underlying sulphides are economically interesting, particularly should they be combined with tonnage from other nearby third party deposits. As a blind discovery, it is also strong evidence of the continued potential of this large property, much of which we have yet to evaluate."
China Sur Copper mineralization is controlled by a NNW vertical structural system and is strongly associated with specularite and calcite. Mineralization is emplaced on a volcanic andesitic package with subvolcanic intrusions of "ocoite" (coarse porphyritic andesite). Hypogenic alteration produces specularite - Cu sulphides - calcite breccias, with K Feldspar common at depth, especially in veinlets. Chlorite and epidote normally surround the mineralized bodies. Typical associations between Cu - Fe - C03 - K Felspar define an Iron Ore-Copper-Gold ("IOCG") type deposit, although the deposit does not contain gold or silver. Copper mineralization is typically represented by malachite and minor chrysocolla in the oxide zone, chalcocite in the secondary sulphides zone and chalcopyrite, minor bornite and traces of pyrite in the primary sulphides. Copper grades are typically concentrated in the hydrothermal Fe-Cu-Calcite breccias.
The China Sur target has been divided into two zones, a North Zone, which encompasses approximately 550 metres of strike length on surface, and a South Zone, which encompasses a strike length of about 300 metres and continues to the southern boundary of the Pelusa Property. The table below sets out, by Zone, the arithmetic grade averages for all intercepts with a copper grade above a 0.2% CuT cut-off. The "Metres" heading represents the average intercept length, with some holes containing more than 1 intercept:
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OXIDES (0.2% CUT-OFF)
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CHINA SUR METRES CuT% CuS% CO3% SOLUB.
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NORTH ZONE 30 0.52 0.35 2.96 64
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SOUTH ZONE 31 0.56 0.43 7.18 68
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SULPHIDES (0.2% CUT-OFF)
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CHINA SUR METRES CuT% CuS% CO3% SOLUB.
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NORTH ZONE 36 0.55 0.04 2.99 7
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SOUTH ZONE 51 0.63 0.04 3.70 7
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The oxide intervals have an overall average length, while sulphide intercepts average 44 metres in length. The two zones exhibit a modest variability in copper grade, with the South Zone being slightly higher grade in both oxides and sulphides. However, the North and South zones exhibit very different carbonate profiles, particularly in oxides, with the North Zone averaging less than 3.0% CO3, and the South Zone averaging over 7.0% CO3. The overall copper grade profile of China Sur is quite similar to that of the China deposit, located immediately to the north of the China Sur target. However, while the North Zone carbonate grade is broadly similar to that of China, the South Zone carbonate level is significantly higher.
A summary of all drill hole assays is attached at the end of this report, together with the China Sur Project location map. The table of oxide intercepts includes mixed and secondary sulphides which are believed to be leachable, and which are found locally in several limited parts of the deposit. The sulphides table reflects only primary sulphide mineralization.
The dimensions and copper grades of the mineralized areas suggest encouraging potential for additional leachable material for processing at the nearby Franke plant, as well as the development of a primary sulphide resource. Future activities will be directed at defining the tonnages, grades and metallurgical behavior of the mineralization, including the following activities:
- Geologic Model and Preliminary Resource Estimation
- Metallurgical testing of leachable material (oxides, mixed, secondary sulphides)
- Flotation and crushing tests of primary sulphide material
Quality Control and Quality Assurance:
All RC holes were sampled on a 2 meters continuous basis, with samples riffle split on site and one quarter sent to the ALS Chemex laboratory in La Serena. A half sample was stored at a Company facility for reference. Samples were regularly collected by a truck belonging to ALS Chemex and transported to the laboratory. Samples were prepared using the following standard protocol: drying, crushing to better than 95% passing 2 mm, splitting and pulverizing a 200 g subsample to 95% passing 0.106 mm. All samples were analyzed for CuT, CuS and CO3. A full QA/QC program, involving insertion of appropriate fine and coarse blanks, standards and field and lab duplicates was employed with acceptable results.
Individuals involved in the conduct of the China Sur drilling and assaying program and interpretation of the results herein have considerable experience in such matters. Roman Flores, Exploration Manager of Centenario's Chilean subsidiaries, a geologist with more than 33 years experience, was responsible for the design and execution of the drilling programs and related exploration activities. Tom Henricksen, a consultant with more than 36 years of experience, is the Qualified Person for the purposes of NI 43-101 and takes responsibility for the technical information contained herein. Mr. Henricksen has visited the property and has reviewed and approved the information contained herein in this press release.
Other Information
Additional information related to the Company is available for viewing on SEDAR at www.sedar.com and at the Company's website at www.centenariocopper.com.
CENTENARIO COPPER CORPORATION
Richard Colterjohn, President and CEO
About Centenario Copper Corporation:
The Company was founded in 2004 with the goal of becoming a mid-tier copper producer and consolidator, active in regions of low sovereign risk. Centenario currently operates exclusively in Regions II and III of Chile. The Company intends to achieve its goal through the acquisition and development of advanced, mid-sized copper projects. It then plans to enhance the scale and value of its principal projects through the roll-up of smaller satellite copper resources which exist regionally around the principal projects.
The Franke Property, located in Region II, is currently in construction and is projected to produce 30,000 tonnes of cathode copper per year, starting in early 2009. On the nearby Pelusa Property, a fast track evaluation of various copper targets is underway. The Company believes that the Pelusa Property is highly prospective for developing additional leachable copper resources for processing at the Franke plant. The Pan de Azucar Property, located 45 km. from the Franke Property, is currently being evaluated as a possible nucleus for a second property cluster. The Company continues to evaluate other "in region" clustering opportunities which could reinforce its existing property portfolio.
Copies of NI 43-101 Technical Reports are posted on SEDAR and on the Company's web site. For more information, please visit the Company's website at www.centenariocopper.com.
CAUTIONARY STATEMENT: This News Release includes certain "forward-looking statements". All statements other than statements of historical fact, included in this release, including, without limitation, statements regarding future plans and objectives of Centenario Copper Corporation, are forward-looking statements that involve various risks and uncertainties. There can be no assurance that such statements will prove to be accurate and actual results and future events could differ materially from those anticipated in such statements. Important factors that could cause actual results to differ materially from Centenario's expectations are the risks detailed herein and from time to time in the filings made by Centenario Copper Corporation with securities regulators.
APPENDIX 1: CHINA SUR - NORTH ZONE DRILLING RESULTS (INTERCEPTS ABOVE 0.2%
CuT):
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CHINA SUR PROJECT - NORTH AREA
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CuT CuS CO3 Solub. Length
HOLE From To Metres % % % % m ORE ZONE
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6.9 72 65.1 0.77 0.66 4.92 79.2 OXIDE
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DDHCHS-01 Incl. 34 60 26 1.14 1.01 7.54 87.4 132.1 OXIDE
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78 92 14 0.41 0.04 2.92 10.6 SS/SP
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DDHCHS-03 No mineralization of 118
interest
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24 86 62 0.35 0.25 2.55 60.8 OXIDE
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86 190 104 0.56 0.03 3.32 7.8 SS/SP
DDHCHS-04 ----------------------------------------------- 250 -----------
Incl. 86 118 32 1.39 0.07 4.88 6.0 SS/SP
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200 216 16 0.34 0.02 2.72 5.9 PR. SULPH.
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48 82 34 0.34 0.18 2.74 57.6 OXIDE
DDHCHS-05 ----------------------------------------------- 250 -----------
98 172 74 0.56 0.02 4.38 4.2 PR. SULPH.
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54 108 54 0.46 0.30 1.01 66.6 OXIDE
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DDHCHS-06 108 156 48 0.91 0.09 4.23 9.2 180 SS/SP
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Incl. 108 144 36 1.03 0.10 4.20 9.1 SS/SP
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46 86 40 0.84 0.54 2.33 67.4 OXIDE
DDHCHS-08 ----------------------------------------------- 150 -----------
86 124 38 0.70 0.05 3.58 7.0 SS/SP
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50 74 24 0.93 0.77 3.06 79.2 OXIDE
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76 142 66 0.57 0.03 4.70 6.6 PS/SS
DDHCHS-09 ----------------------------------------------- 240 -----------
158 192 34 0.39 0.01 2.28 2.9 PR. SULPH.
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204 238 34 0.41 0.01 0.90 3.1 PR. SULPH.
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24 92 68 0.65 0.54 4.02 78.3 OXIDE
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DDHCHS-11 92 138 46 0.50 0.03 1.62 6.5 260 PS/SS
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156 260 104 0.42 0.02 2.51 4.8 PR. SULPH.
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34 90 56 0.56 0.41 2.95 70.5 OXIDE
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96 140 44 0.53 0.04 1.09 9.4 PR. SULPH.
DDHCHS-12 ----------------------------------------------- 279.8 -----------
182 224 42 0.42 0.01 1.61 3.4 PR.
