Mirador Feasibility Drilling Underway

Vancouver — Corriente Resources (CTQ-T) has commenced feasibility drilling at its Mirador copper-gold deposit in southeastern Ecuador.

Corriente will drill 16 drill holes and complete a new reserve calculation at Mirador. This will be incorporated into the final feasibility study which is expected to be completed in mid-2004.

In addition to the feasibility drill program, Corriente has outlined ten exploration drill holes at the recently discovered Mirador North zone. This zone is situated three km to the northwest. The Mirador North program will focus on delineating high-grade copper resources.

The junior is currently evaluating two power-supply proposals for Mirador. The first is a dedicated ‘run of river’ development near the project area that could supply the Mirador power requirements for a cost of $0.05 per kw and the second is an energy spot market option that would provide power at a forecast price of $0.06 per kw. Corriente plans to decide on one of these options during the first quarter of next year.

Once the Mirador drilling has been completed, Corriente will focus its attention on the Northern area of the copper belt. This campaign will test a series of porphyry targets in the vicinity of the Panantza and San Carlos deposits. Drilling is expected to continue through 2004.

In other, news, Corriente has granted Lowell Mineral Exploration an option to acquire a 100% interest in the Warintza project, also in Ecuador. The option agreement allows for up to a six-month due diligence period to conduct a review of the Warintza project. If exercised, Lowell Mineral Exploration will swap its 10% interest in the Corriente concessions in Ecuador, (including Mirador, Panantza and San Carlos) in exchange for a 100% interest in the Warintza project.

Corriente controls a 100% interest in over 700 sq. km area in southeastern Ecuador. So far, the company has outlined three copper and copper-gold porphyry deposits; Mirador, Panantza and San Carlos, as well as six additional copper and copper-gold exploration targets. BHP Billiton (BHP-N) holds a 2% Net Smelter Royalty interest in these three projects.

In March, a preliminary assessment of the Mirador project determined that the deposit was capable of supporting a 20,000-tonne-per-day open-pit operation. Based on inferred resource of 98 million tonnes grading 0.78% copper and 0.22 gram gold per tonne in the northern portion of the deposit. Total Resources are pegged at 182 million tonnes averaging 0.76% copper and 0.22 gram gold.

This operation offered a pre-tax net present value (at a 10% discount) of US$153 million and a pre-tax internal rate of return of 30%, based on a copper price of US80 per lb. and a gold price of US$325 per oz. Total capital cost ring in at US$134 million.

Corriente recently closed a bought deal financing for a gross proceeds of $11.87 million. The junior sold a total of 4.75 million units where each unit consisted of one common share and one-quarter of one share purchase warrant. Each whole share purchase warrant can be exercised at a price of $3.00 for a period of 18 months, subject to the right of Corriente to accelerate the expiry of the warrants if its common shares trade above $4.00 for twenty consecutive trading days. The underwriting syndicate for the offering was led by Sprott Securities and included Loewen, Ondaatje, McCutcheon.

When this transaction is added to the company’s current cash reserves, Corriente has about $18 million in its coffers. The money will be used to accelerate exploration activities and for general corporate purposes.