Norsemont releases resource estimate for Constancia

Vancouver – An independent resource estimate has been prepared for Norsemont Mining’s (NOM-V, NOMFF-O) Constancia copper-molybdenum-silver porphyry project in southern Peru.

The report estimates an inferred resource of 103.9 million tonnes grading 0.537% copper, 0.014% moly, and 3.9 grams silver per tonne, or 0.67% copper-equivalent at a cutoff grade of 0.2% copper, as well as an indicated resource of 57.7 million tonnes grading 0.589% copper, 0.015% moly and 4.1 grams silver, or 0.73% copper-equivalent at the same cutoff grade. This resource estimate for the Constancia and San Jose zones is not broken down into supergene and hypogene mineralization.

The Constancia project is located about 600 km southeast of Lima, within the emerging Yauri-Andahuaylas metallogenic belt, which hosts a number of large copper-gold-moly deposits (Los Chancas and Antapaccay) and copper skarn deposits (Tintaya and Las Bambas) operated by other companies active in the region. The property is road-accessible and within 60 km of a railroad.

The Constancia project was initially explored by a joint venture between Rio Tinto (RTP-N) and Mitsui of Japan, but initial results didn’t meet Rio Tinto’s stringent criteria, given low metal prices at the time. Norsemont optioned the project from Rio Tinto in early 2005, and can earn up to a 70% interest by project expenditures, cash payments and issuing common stock. Mitsui retains a 30% interest.

The new resource estimate is based on 95 diamond drill holes totaling 24,994 metres completed by Rio Tinto/Mitsui and Norsemont to the end of August, 2006. Of this total, Norsemont had drilled 72 holes while Rio Tinto had drilled 23 holes.

Norsemont is continuing a 100-metre step-out drilling program to expand the deposit to the south, east and west. While the current focus is on the Constancia zone, follow-up drilling is proposed for other targets, including potential extensions of the San Jose and Constancia zones, along with various geophysical and geochemical anomalies.

Metallurgical test-work is also planned for this month, focused on comparing heap-leaching to conventional milling and flotation to determine the optimal processing scenario for the project.