Quaterra expands copper zone at MacArthur (February 07, 2008)

It’s been more than 30 years since the MacArthur porphyry copper system in the world-class copper district of Lyon County in western Nevada was seriously evaluated.

Now Quaterra Resources (QTA-V) is making up for lost time.

New drilling results from the periphery of its 100%-owned MacArthur oxide deposit, 8 km north of Yerington, indicate that Quaterra can more comfortably back up its claims that the property’s copper oxide mineral potential lies well beyond the present outline of the MacArthur pit.

The mine was closed in 1998 due to low copper prices, but the oxide deposit contains an historic resource of 29 million tons (26.3 million tonnes) grading 0.28% copper, including 13 million tons (11.8 million tonnes) of 0.40% copper. (Anaconda Gold (ANX-V) conducted a shallow drilling campaign in 1971 and 1972 to test the mineralization to depths of 61 metres below surface.)

Results from Quaterra’s 70-hole drill program in the last three months of 2007 have now expanded the copper zone to the north of the MacArthur pit, pushing it an additional 457 metres to the west. The mineralization can be traced for nearly 1,524 metres to the west and southwest from Hole C-7 to Hole C-16.

Highlights from the drilling include Hole 27-R, with 35 metres of 0.30% total copper beginning at a depth of 59 metres; Hole 23R, with 7.6 metres of 1.25% copper starting at 103 metres; and Hole 4bR, with 28.9 metres of 0.57% copper beginning at 92.9 metres.

Of particular interest, however, is a new zone Quaterra has found that was not included in the historic resource. This is of predominantly chalcocite mineralization about 6-21 metres below the existing MacArthur oxide copper deposit, and which remains open to extension both to the north and west where it may connect with the north zone mineralization described earlier.

Highlights from this zone include Hole QMT-10 on the northeastern edge of the pit containing 62 metres of 0.42% copper starting at 39 metres, including a 23-metre intercept averaging 0.78% copper from 41 metres to 65 metres. Holes QME-79R and QME 80R, meanwhile, drilled 365 metres and 518 metres respectively east of the pit, each intersected 12-18 metres of more than 0.30% copper.

Quaterra’s shares on the TSX Venture Exchange closed at $3.90, down 10, on a trading volume of 589,220.

Its stock has a 52-week trading range of $1.98 and $4.18, and the company has about 83.7 million shares outstanding.