Far West expands Candelaria copper zones (January 21, 2005)

Vancouver – The remainder of Far West Mining’s (FWM-V) 2004 drill results from its joint-ventured Candelaria project, in northern Chile, offered further indication of a significant mineralized system.

Eight step-out drill holes testing lateral extension of previously encountered mineralized zones, at Target 4a3, all saw intercepts of both manto and stockwork-style copper mineralization in the IOCG (iron-oxide copper-gold) environment.

The latest results from the reverse circulation (RC) drill program saw variable grades and thicknesses. Hole 4a3-04-020, a 100-metre easterly step-out from previous RC hole 4a3-04-001, cut 62 metres (from 70-metres depth) of stockwork mineralization grading 0.52% copper within apparent zones of hydrothermal breccia. Within the mineralized interval, a 12-metre section of manto-style mineralization grading 1.36% copper was returned from the lower portion of the hole.

A number of narrow (4-10 metre) manto-stockwork intervals, grading over 1% copper, were encountered in the larger mineralized area at Target 4a3. Far West expects to recommence drilling next month, focused on delineating a large IOCG system.

Target 4a3 is a 10-square-km anomaly identified through a Falcon airborne gravity-gradiometric-magnetic survey.

In late-2004 the company completed its 70% earn-in on the 4a Target area from BHP Billiton (BHP-N) who’ve elected not to contribute to continued exploration, believing the project does not meet its technical size criteria. Upon BHP’s interest being diluted to 10%, through further Far West expenditures, it will be converted to a 2% NSR (net smelter return).

The company initially entered into the agreement with BHP Billiton in 2002-03 to explore for IOCG deposits in the Candelaria Copper Belt (Chilean Iron Belt) of northern Chile. The joint venture has utilized BHP Billiton’s proprietary Falcon airborne system, identifying numerous targets for follow-up exploration.

Recent drilling of other targets in the area produced mixed results.

Far West will also recommence exploration on Target 4c, where initial RC drilling in 2003 encountered 60 metres averaging 2.47% copper. The target is situated about 15 km east of Anglo American’s (AAUK-Q) Mantoverde mine with reported reserves of 350 million tonnes at 0.7% copper.

Far West has 47.6 million shares outstanding and has recently traded in the $1.60 per share range giving the issue a $76 million market capitalization.