Los Andes upgrades Vizcachitas

Vancouver – The last time The Northern Miner caught up with Los Andes Copper (LA-V) they were dealing with a core-box eating goatherd at their Vizcachitas property about 130 km north of Santiago, Chile. In the interim they have not only shepherded the goats away, but released two resources estimates, the most recent of which substantially upgraded the indicated copper-molybdenum sulphide resource.

In 2007 Los Andes reported 245 million indicated tonnes grading 0.43% copper and 0.015% molybdenum and 805 million inferred tonnes grading 0.35% copper and 0.013% moly at a 0.30% copper equivalent cut-off.

But with 62 more drill holes completed and 17,500 metres of core drilled this year, Los Andes has been able to upgrade the indicated resource to 515 million tonnes grading 0.34% copper and 0.011% moly. The inferred resource has dropped to 572 million tonnes grading 0.34% copper and 0.012% moly, a decrease, the company says, largely a result of a pit-shell it applied to the latest resource estimate.

The upgraded indicated resource translates into a 90% increase of contained copper and 54% increase of contained moly.

With drilling ongoing, Los Andes says a final resource estimate is on the way and that the upgraded resource will be part of a scoping study slated for completion this fall.

Los Andes, formerly known as GHG Resources, acquired Vizcachitas from Global Copper (GLQ-T) February 8, 2007 after paying-out US$10.4 million and issuing 6.2 million shares and 3.9 million share purchase warrants exercisable for three years at US$1.00.

Prior to Global Copper, General Minerals owned the property and completed a pre-feasibility study in 1998, only to scrap the project due to low copper prices. The largest of three operations General Minerals considered in the study outlined a 20 year open-pit mine focusing on the sulphide resource at Vizcachitas and producing 74,000 tonnes of fine copper a year.

With copper at US$1.00 per lb. Global Copper estimated a net present value of US$201 million, an IRR of 20% and a payback period of 3.7 years. Including operating, transportation, smelting and refining costs, Global Copper also estimated it could produce copper at 60US per lb.

Currently the ownership of the Vizcachitas property falls under three categories. Los Andes owns 100% of 5,000 hectares of outer concessions. Inside these it owns 51% of the San Jose property and is currently on the last leg of US$5million payments over four years started in 2005 to gain a 100% interest of the adjacent Mena properties.

Vizcachitas is part of a copper-molybdenum porphyry system, with a 3 km north-south and 1.5 km east-west alteration zone.

On news of the resource upgrade Los Andes’ share price was down 4 to 46 at presstime. It has 79 million shares issued.