Corriente drills deeper

Corriente Resources (CTQ-T) has tabled encouraging drill results from a 7,500-metre program at the Mirador copper prospect in southeastern Ecuador.

The first batch of 13 holes yielded five intersections from the main area of copper mineralization. This zone is defined by the aggregate of holes that averaged more than 0.5% copper over 100 metres. Results are as follows:

Hole M27, collared on the eastern margin of the high-grade zone, cut 0.16% copper from the surface to a depth of 124 metres. This was followed by a 282-metre interval that averaged 0.8% copper and 0.16 gram gold per tonne, starting at a down-hole depth of 124 metres. An additional 33 metres assayed 0.3% copper and 0.13 gram gold.

Hole M-29, collared 400 metres southwest of hole M-27, cut 0.04% copper from the surface to a depth of 164 metres. This was immediately followed by a 75-metre intersection that averaged 0.54% copper and 0.16 gram gold. Another interval, starting at a depth of 239 metres, cut 218 metres grading 0.38% copper and 0.11 gram gold.

Hole M-38, collared 250 metres southwest of hole M-29, intersected 0.2% copper and 0.8 gram gold from the surface to a depth of 297 metres. This was immediately followed by a 156-metre section of 0.59% copper, 0.12 gram gold and 0.014% molybdenite. Another 33 metres, grading 0.36% copper, 0.12 gram gold, followed.

Hole M-44, collared 250 metres north of hole M-38, cut 0.3% copper and 0.23 gram gold starting from surface to a depth of 36 metres. This was followed by a 292-metre interval of 0.71% copper and 0.27 gram gold. An additional, 12-metre section averaged 0.45% copper and 0.22 gram gold, while still another averaged 0.58% copper and 0.28 gram gold starting at a depth of 340 metres.

Hole M-45, collared about 100 metres north of hole M-44, intersected 14 metres grading 0.14% copper from the surface. This was followed by a 12-metre interval of 1.1% copper and a 277-metre interval that ran 0.06% copper. This hole is reported to have intersected a post-mineralized dyke.

The remaining eight holes — M-3, 23, 28, 34, 37, 39, 40 and 43 — cut lower-grade mineralization outside of the main mineralized zone. Highlights are as follows:

Hole 34 intersected 113 metres grading 0.29% copper and 0.8 gram gold starting from the surface. This was followed by 21 metres grading 0.56% copper and 0.24 gram gold, and finally 296 metres grading 0.44% copper and 0.17 gram gold.

Hole 37 intersected 400 metres grading 0.29% copper and 0.12 gram gold starting from surface.

Hole 43 intersected 399 metres grading 0.32% copper and 0.1 gram gold starting from the surface.

The last few holes intersected grades of 0.01-0.21% copper over 258-401 metres.

All holes were drilled vertically, except for M-28 and M-39, which were sunk to the southeast at an angle of minus 70.

Drilling is ongoing with a series of deeper holes that are designed to test for higher-grade mineralization at depth within the core of the deposit. Several holes will also target the north and west side of the Mirador deposit, to determine if the main envelope of mineralization extends in those directions. This area is north of hole M-2, which intersected 159 metres grading 0.68% copper and 0.13 gram gold below the shallow leach cap.

When drilling at Mirador is completed, the company will shift its focus to the Warintza deposit. Drilling there will target the high-grade secondary copper blanket that was discovered last spring during scout drilling. Hole W-01 cut 82 metres grading 1.37% copper, whereas hole W-07 cut 95 metres grading 1.2% copper. In addition, Corriente will target outlying copper-moly anomalies in a reconnaissance program.

Situated near the Peruvian border, the Corriente copper belt hosts several copper porphyry bodies that were discovered by Billiton in the mid-1990s. Corriente signed two separate agreements with Billiton, in October 1999 and April 2000. The deals are similar and require Corriente to complete a feasibility study on any one of the projects to earn a 70% interest in the joint venture. The deals also require Corriente to issue Billiton up to 2.35 million units (the final number of units depends on which prospects are included). Each unit consists of a share and a share purchase warrant. On completion of the feasibility study, Billiton has three options: maintain its 30% interest; retain a 70% back-in by providing production financing; or dilute to a 15% net profits interest.