Teck Cominco sees big copper resource at Quebrada Blanca

Vancouver – Base metals giant Teck Cominco (TCK.B-T, TCK-N) has tabled a major new zone of copper-molybdenum mineralization at its 76.5%-owned Quebrada Blanca mine in northern Chile, beneath the current orebody at the deposit.

An inferred resource of 1.03 billion tonnes grading 0.5% copper and 0.02% molybdenum — roughly 11 billion contained lbs. copper and 450 million contained lbs. molybdenum has been reviewed in a hypogene zone (primary sulphide) underlying the enriched supergene ore currently being mined by open pit operations.

“Of the over one billion tonnes of new resource, we have identified a higher grade zone in the bottom of the existing enriched sulphide (supergene) pit that contains approximately 300 million tonnes grading 0.55% copper and 0.020% molybdenum,” states Don Lindsay, Teck Cominco president and CEO in the news release. “That portion of the deposit could provide a substantial starter pit for a five to 10 year period that would benefit from having been largely pre-stripped by on-going mining of the supergene ore body.”

The resource tally is based on 36 holes drilled on roughly 200-metre centres with block models and preliminary pit optimization studies using metal prices of US$1.50 per lb. copper and US$10.00 per lb. molybdenum, and a 0.3% copper cut-off grade.

During his presentation at the recent Prospectors and Developers Association of Canada convention in Toronto, Lindsay stated, “virtually every one of the 36 holes we have drilled into the primary mineralization have ended in ore grade mineralization, so the potential for expanding this resource is outstanding. A doubling of this resource is certainly not a stretch to contemplate.”

Teck Cominco acquired the interest in Quebrada Blanca through its friendly $4.1-billion takeover of Aur Resource in mid-2007. Aur’s production portfolio also included 90% of the Andacollo open-pit copper mine in central Chile and the Duck Pond underground copper-zinc mine in central Newfoundland.

Don Lindsay said that while some questioned the company’s wisdom in paying such a price for Aur, Teck Cominco had the knowledge of some of its past drilling — prior to mine development at Quebrada Blanca and several of Aur’s drill holes indicating ore-grade mineralization in the deeper hypogene zone.

Teck Cominco’s president and CEO is also enthused by the fact the new zone at Quebrada Blanca sits in a brownfields environment with existing infrastructure. He reviewed a potential mine life of more than 20 years based on the new zone that would also have a significant molybdenum by-product credit.

In 2007 the mine produced 183 million lbs. (83,000 tonnes) of cathode copper.

The remaining interest in Quebrada Blanca is held by 13.5% by Inversiones Mineras, a Chilean private company, and 10% by the Chilean state-owned Empresa Nacional de Minera.