Corriente updates Mirador (October 04, 2004)

Vancouver — A new resource estimate for the Mirador copper-gold project in southeastern Ecuador augurs well for Corriente Resources (CTQ-T), which plans to build a 20,000-to-25,000-tonne-per-day operation.

The updated estimate, completed by engineering firm AMEC, is based on 90 drill holes totalling more than 24,000 metres. Results are reported to a depth of about 500 metres below surface.

The project now has an indicated resource of 262 million tonnes grading 0.69% copper and 0.21 gram gold per tonne, plus 216 million tonnes grading 0.62% copper and 0.18 gram gold in the inferred category. Both estimates are based on a cutoff grade of 0.5% copper and include hypogene as well as supergene mineralization in the porphyry system.

Using a higher cutoff of 0.65% copper, the indicated resource is pegged at 147 million tonnes grading 0.78% copper and 0.23 gram gold, while the inferred figure slips to 58 million tonnes of 0.77% copper and 0.02 gram gold.

A feasibility study is in progress and should be completed by year-end.

Metallurgical studies indicate that a concentrate of 30% copper is recoverable, with a 90% recovery rate.

Initial exploration of Mirador, in 2000, led to the discovery of a large copper-gold porphyry system. Within the same “Corriente copper belt” are two other significant copper deposits: San Carlos and Panantza.

In 1999, Corriente signed an agreement with Billiton, now BHP Billiton (BHP-N), whereby Corriente could earn a 70% interest in projects within the newly discovered copper porphyry belt. Subsequently, Corriente acquired a 100% interest in the projects when BHP Billiton allowed its participating interest to drop to a 2% net smelter return royalty in 2002-03.

Corriente has 45.1 million shares outstanding and trades in the range of $3-3.50.