Corriente expands Warintza

Vancouver — In the southeast portion of Ecuador, near the border with Peru, Corriente Resources (CTQ-T) is continuing its quest to fully evaluate a number of porphyry-copper bodies, most of which were discovered by Billiton in the mid-1990s.

The latest round of drilling at the Warintza prospect has outlined a zone of mineralization grading greater than 0.5% copper over a 350-by-800-metre area. Highlights from the 4,100-metre program include:

• Hole 17 — 10 metres grading 0.77% copper from 60 metres down-hole,
• Hole 20 — 30 metres grading 0.77% copper from 42 metres down-hole,
• Hole 21 — 33 metres grading 0.74% copper from 142 metres down-hole,
• Hole 22 — 70 metres grading 0.88% copper from 157 metres down-hole,
• Hole 23 — 50 metres grading 0.96% copper from 95 metres down-hole,
• Hole 24 — 27 metres grading 0.87% copper and 0.12 gram gold per tonne from 47 metres down-hole,
• Hole 25 — 68 metres grading 0.8% copper from 21 metres down-hole and 195 metres grading 0.61% copper from 99 metres down-hole,
• Hole 30 — 41 metres grading 0.61% copper from 182 metres down-hole,
• Hole 31 — 16 metres grading 1.05% copper from 75 metres down-hole and 69 metres grading 0.64% copper from 163 metres down-hole,
• Hole 32 — 186 metres grading 0.89% copper and 0.11 gram gold from 45 metres down-hole, and
• Hole 33 — 91 metres grading 0.69% copper from 179 metres down-hole.

Most of the zone is overlain by a high-grade, copper-enriched blanket that averages 1% copper equivalent over 30-to-60 metres of thickness. The company is currently preparing drill sites at Warintza East and Warintza West, which are part of a major cluster of copper porphyry bodies that occur over a 4-km area.

Corriente holds the large project through two separate but similar agreements with Billiton — one in October 1999 and the other in April 2000. Under each agreement, Corriente must complete a feasibility study on any one of several projects in order 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.

Upon completion of a feasibility study, Billiton will have three options: maintain its 30% interest; retain a 70% back-in right by providing production financing; or dilute to a 15% net profit interest.

Noted geologist David Lowell, who is associated with the Pierina discovery in Peru and the Escondida discovery in Chile, holds 10% of Corriente’s interest through his Chilean-based company, Lowell Mineral Exploration. He is managing the exploration program for Corriente.