Chariot cuts high-grade copper at Mina Justa (March 20, 2006)

Vancouver — Initial feasibility drilling by Chariot Resources (CHD-T, CHDSF-O) on the Mina Justa deposit at its Marcona copper project, in the coastal region of southwestern Peru, has encountered high-grade mineralization.

Drill testing of a proposed starter pit in the Northern Oxide zone returned grades of up to 0.95% copper over 95 metres, including 12 metres of 5.1% copper. A number of other oxide mineralized intercepts, ranging from 6 to 96 metres, averaged from 0.5-2.5% copper. The company is evaluating expanding the planned starter pit and will increase its drilling program in the area.

Drilling on the HS Sulphide zone also returned high-grade copper values. Hole MJV-06-039 intersected 138 metres of oxide and sulphide mineralization, including 24 metres of 0.65% oxide copper, and a 114-metre sulphide mineralized intercept grading 3.1% copper including a high-grade, 12-metre section averaging 10.7% copper.

Chariot’s 2006 feasibility study will include about 34,000 metres of core drilling, ongoing metallurgical testing and environmental studies. In late 2005, a revised resource estimate at Mina Justa reviewed 132.4 million indicated tonnes grading 0.74% total copper, using a 0.2% copper cutoff grade. Additional inferred resources of 279.7 million tonnes at 0.57% copper were also tabled.

The company holds 70% interest in the Marcona copper project, with the remainder held by joint-venture partners Korea Resources and LG Nikko Copper that also have long-term offtake for future production from the planned operation. The partners acquired Marcona from subsidiaries of Rio Tinto (RTP-N) and from Shougang Hierro Peru for US$20.5 million plus a further US$13 million due in early 2007. Up to an additional US$10 million is payable at a later date upon a decision to proceed with a mine at the project and with an increase in the inferred resource base.

From 2001 to 2003, Rio Tinto drilled almost 31,000 metres in 103 holes at Mina Justa, identifying two copper mineralized zones. The Main zone was traced from surface over 1,700 metres of strike to a depth of 500 metres (it remains open) and the Upper zone, intersected along dip from surface to 250 metres depth across 1,100 metres of downdip extension. Both zones exhibit similar geometry, as curved-to-flattened bowl-like features dipping to the east-southeast. Copper oxide mineralization is prevalent in the upper 200 metres of the zones, grading into sulphides at depth. Mineralization at Marcona is categorized as hydrothermal iron-oxide copper gold (IOCG).

With 194 million shares outstanding, Chariot posts an $87-million market capitalization based on its recent trading price of 45 per share. Amerigo Resources (ARG-T, ARGOF-O) recently increased its holding in Chariot to 19.2% with the purchase of 25.6 million shares and 11.5 million warrants from Rio Tinto subsidiary QIT-Fer et Titane.