Corriente eyes Ecuadoran copper-gold porphyry

Junior Corriente Resources (CTQ-T) has located a copper-gold porphyry at the Mirador prospect in southeastern Ecuador.

Using a lightweight mobile drill, the company drilled more than 40 holes into the prospect and encountered a leached cap, abundant silicification and intrusive brecciation.

The most significant values were encountered in hole 35, which cut 263 metres grading 0.82% copper and 0.33 gram gold per tonne, starting at a depth of 40 metres.

Also encouraging were holes 31 and 33. The former cut 123 metres of 0.75% copper and 0.25 gram gold, whereas the latter hit 231 metres of 0.64% copper and 0.25 gram gold.

Corriente located the highest grades within an area measuring 600 by 800 metres, though mineralization remains open to the east and northwest. In the high-grade zone, mineralized intervals averaged 130 metres in length in 24 holes grading 0.79% copper-equivalent.

“Results to date indicate a large tonnage of relatively high-grade primary copper mineralization which contains a good gold credit,” says David Lowell, who is managing the exploration program. He adds that the deposit is amenable to open-pit mining, as the higher grades generally coincide with intrusive breccias.

The deposit remains open at depth below 300 metres.

Corriente and Lowell are exploring Mirador and several other porphyry prospects outlined by Billiton in the 880-sq.-km Rio Zamora region, near the Peruvian border.

Corriente can earn a 70% interest in any one of the prospects by completing a feasibility study and issuing 1.8 million units to Billiton before May 31, 2003. Each unit consists of a share and a share purchase warrant.

Lowell, through his company, Lowell Mineral Exploration, can earn a 10% stake of Corriente’s interest by managing the exploration for at least three years. Billiton retains a back-in right for a 70% interest in the project by supplying production finanacing. Alternatively, it can maintain its 30% interest or dilute to a 15% net profits interest.

Earlier in the year, Corriente completed 16 holes (2,300 metres) at the Warintza target. In the process, it intersected significant high-grade mineralization greater than 1% copper in a supergene chalcocite blanket. Primary sulphide mineralization was generally lower, though higher-grade zones were located.

The junior will also evaluate the San Carlos target, where Billiton has outlined an inferred resource of 400 million tonnes grading 0.7%, as well as the Sutzu prospect.

In all, Corriente expects to spend US$1.5 million on drilling in the area this year.