Chariot pulls 92 metres of 2.27% copper from Marcona

Vancouver – The latest holes drilled by Chariot Resources (CHD-T) have returned positive results from two zones that lie within the proposed boundary of the Mina Justa main pit at the company’s 70%-held Marcona copper project in Peru.

Among the highlights of the recent drilling was a 92-metre intersection grading 2.27% copper (starting at 202 metres), and including 22 metres at 5.19% copper (starting at 254 meters).

Other notable results include: 74 metres grading 2.18% copper (starting at 250 metres), including 18 metres at 3.21% copper; 22 metres of 2.98% copper, including 18 metres of 3.44% copper; 50 metres of 1.72% copper; 44 metres of 1.48% copper; and 46 metres of 2.51% copper, including 10 metres of 5% copper.

The aforementioned results are from the HG sulphide zone, which has both copper oxide and copper sulphide mineralization, with both types often occurring in the same drill hole.

Drilling also tested the Northern Oxide zone, which hosts copper oxide mineralization from surface to a depth of about 200 metres. This zone forms part of the proposed starter pit of the Mina Justa project.

One of the recent holes drilled at the Northern oxide zone returned 18 metres of 1.05% copper (starting at 34 metres), including 8 metres of 1.81% copper; and 26 metres of 1.29% copper, including 10 metres of 2.56% copper. Another near-surface hole from this zone intersected 40 metres of 1.47% copper, including 16 metres of 2.38% copper, and 62 metres of 1.35% copper (starting at 122 metres), including 18 metres of 2.56% copper. A third hole returned 28 metres grading 0.84% copper.

In May of this year, Chariot released an independent scoping study for the Mina Justa pit at the Marcona property. Initial production would come from a heap-leach mine that would produce copper cathode from a solvent extraction-electrowinning (SX-EW) plant. This phase of operations would produce an estimated 60,000 tonnes of copper cathode annually for each of the first five years, after which a concentrator would treat sulphide mineralization to produce an estimated 58,200 tonnes per year of copper in concentrates.

The preliminary study was based on a resource of 142 million tonnes of 0.82% copper that would support a 13.5-year mine life. Initial capital costs were estimated at US$236 million, which includes US$178 million for the leach operation (including contingency) and US$58 million of pre-production costs. Cash costs are projected to average US$0.69 per lb. of copper produced over the mine life.

Chariot notes that the project has exceptional infrastructure and good potential for expansion at several satellite pits, as well as through underground mining of copper sulphide mineralization. A formal feasibility study is under way, along with the preparation of an Environmental Impact Study. If all goes as planned, production could begin in the first half of 2009.