Toromocho continues to grow

Vancouver — An updated resource estimate has further boosted the size of Peru Copper‘s (PCR-T, CUP-X) Toromocho project located in the Morococha district of central Peru, about 140 km east of Lima.

The calculation, prepared by Independent Mining Consultants, shows measured and indicated resource standing at over 1.8 billion tonnes grading 0.47% copper, 0.016% molybdenum and 6.8 grams silver per tonne (all giving a 0.68% copper equivalent grade) using a copper equivalent cutoff of 0.27%. Based on over 116,000 metres of drilling, the estimate is more than a 16% increase over the calculated resource from April 2005.

A central core containing a measured and indicated resource of 967 million tonnes of 0.6% copper (0.88% copper equivalent) was also reviewed, using a higher copper equivalent cutoff of 0.6%. The core zone also grades 0.023% molybdenum and 8.1 grams silver.

Based on the latest resource figures, Peru Copper’s preliminary development plans foresee a mine life of over 33 years with estimated annual mill throughput of 54 million tonnes of ore, producing an average of 221,000 tonnes (487 million lbs.) copper concentrate per year.

The main Toromocho orebody is situated as a topographic high, affording the proposed project a very low estimated stripping ratio of 0.35:1.

Underlying the deposit are multiple intrusions, which have cut anticlinally folded limestones forming skarn and hydrothermal breccia pipe structures. Copper mineralization is complex, but predominantly hosted in the intrusive breccias. Concentric metal zones are evident: a central zone containing disseminated copper and molybdenum is surrounded by lead-zinc veins, which, in turn, is ringed by distal lead-silver vein systems.

Peru Copper, through its subsidiary Minera Peru Copper Syndicate, optioned the property from Peruvian state-owned Centromin in mid-2003. Since its acquisition, the company has completed over 86,000 metres of drilling and has undertaken metallurgical and feasibility studies. Metallurgical testing indicates the material is amenable to standard processing and flotation, with average copper recoveries of 87% and producing an average 26.5% copper concentrate. The company is concurrently testing and evaluating hydrometallurgical processes to treat Toromocho ore.

Drilling is expected to wrap up by late 2005, leading to another resource update and the completion of a prefeasibility study.

Shares of Peru Copper have recently rallied to the $1.95 level, near the upper end of its 52-week trading range of $1.10-$2.03. The company posts a $183-million market capitalization given its 94 million shares outstanding.