Manhattan feasibility on schedule (March 18, 2002)

Vancouver — A review of the mineral inventory at the TG-1 deposit on the Tambo Grande property in northern Peru has resulted in a 5% jump in contained copper in the sulphide part and a 4% drop in contained gold in the oxide portion.

Manhattan Minerals (MAN-T) reports that the latest estimates are based on diamond drilling between May 1999 and May 2000.

The indicated resource for the base metal component is now estimated at 56.16 million tonnes grading 1.6% copper and 1% zinc, plus 0.5 gram gold and 26 grams silver per tonne, using a cutoff grade of 0.75% copper-equivalent. Some 3.3 million tonnes lie in the inferred category grading 1.5% copper, 0.8% zinc, 0.4 gram gold and 18 grams silver. The results show a 5% increase in contained copper, including a 9% jump in the indicated resource. Total contained zinc dropped by about 1%.

The oxide gold portion of the deposit now hosts an indicated resource of 7.96 million tonnes grading 3.6 grams gold and 62 grams silver, using a cutoff of 1 gram gold. Some 725,000 tonnes grading 3.4 grams gold and 62 grams silver are in the inferred category. The calculation shows a 4% drop in total contained gold.

Manhattan remains on schedule to complete its feasibility and environmental impact studies by mid-year. In the first quarter, it carried out fieldwork for the baseline analysis and infrastructure design. The work entailed marine and terrestrial biology studies, along with river, tailings, and waste dump engineering studies. Mine planning and process engineering are slated for completion by the end of the month, along with process water balance studies. Estimates for operating and capital costs are pending.

The company will next focus on the social and economic portions of the environmental impact study, along with management, mitigation and contingency planning.

Last year, Manhattan raised $5.4 million to complete a draft environmental impact statement.

The company ran into local problems in 2001 when a politically motivated group vandalized its project facilities near the town of Tambo Grande. The junior blamed a group whose aim was to disrupt government and industrial activities heading into the Peruvian election. The disruptions delayed the feasibility study of the TG-1 deposit, which was originally expected by June 2001.

Tambo Grande hosts the TG-1 oxide gold deposit and the TG-1 and TG-3 sulphide deposits. The company is also exploring the B-5 zone and other geophysical anomalies.

TG-3 lies 500 metres south of TG-1 and consists of two distinct mounds, or lobes, of mineralization. The northern lobe is richer in zinc and contains 20 million tonnes grading 0.9% copper, 2.7% zinc, 0.8 gram gold and 35 grams silver, based on a cutoff grade of 1% copper-equivalent. The copper-enriched southern lobe hosts 48 million tonnes grading 1.1% copper, 1.1% zinc, 0.9 gram gold and 25 grams silver at a cutoff of 1% copper-equivalent.

Manhattan is earning a 75% stake in Tambo Grande, which consists of 10 concessions. The company also has a 100% interest in the 737-sq.-km Lancones concessions and an option to earn up to a 100% interest in the 32-sq.-km Papayo joint-venture lands. The Lancones land package adjoins Tambo Grande mainly to the south and partially to the east and north. The Papayo concessions, which include the B-5 anomaly, are to the south. Manhattan can earn an initial 51% interest in Papayo by spending $5 million on exploration over five years and paying $250,000.