Norsemont Mining Awards the Definitive Feasibility Study for the Constancia Cu-Mo-Ag Porphyry Project, Southern Peru



    Shares Issued and Outstanding: 38,477,878
    TSX: NOM
    BVL: NOM

    VANCOUVER and LIMA, PERU, Dec. 20 /CNW/ - Norsemont Mining Inc. ("the
Company") (TSX: NOM, BVL: NOM) today announced that following the successful
conclusion of the NI 43-101 compliant independent preliminary economic
assessment for the Constancia copper-molybdenum-silver porphyry project in
southern Peru, the Company is initiating an independent Definitive Feasibility
Study (DFS) and has selected GRD Minproc and Knight Piesold to conduct the
DFS. Selection of the DFS team was based on technical, project management and
economic merits.
    Mr. Bob Baxter, President and COO of Norsemont Mining said: "The Company
has selected strong, internationally recognized engineering consultants who
will provide solid local and international support. The DFS team has
considerable experience in Peru, which adds to our confidence."
    The recently completed Constancia scoping study focused on three
operating scenarios: a 30,000 tonne per day (t/d) stand-alone case (SA), a
30,000 t/d expandable to 55,000 t/d case (EX), and a 55,000 t/d stand-alone
case. Based on the current resource, the corresponding life of mine (LOM) for
the 30,000 t/d and 55,000 t/d stand alone cases are 20 and 12 years,
respectively.
    Estimated production for the 55,000 t/d case is approximately
112,218 tonnes per year of copper recovered over the first five years, with a
LOM annual average production of 90,411 tonnes. For the 30,000 t/d case
estimated production is 72,814 tonnes per year of copper recovered during the
first five years, with a LOM annual average of 53,598 tonnes.
    Cash operating costs net of credits are estimated at $0.74 per lb over
the 20-year project life for the 30,000 t/d case and $0.67 per lb over the
12-year project life for the 55,000 t/d case. Capital expenditure estimates
(inclusive of a 25 percent contingency) for the three operating scenarios are
US$605.6M, US$617.3M and US$739.7M, respectively.
    Based on a discount rate of 8 percent, the Constancia project's Internal
Rate of Return (IRR), Net Present Value (NPV) and corresponding payback for
the three operating scenarios are as follows:

    
    -------------------------------------------------------------------------
    Description        30,000 t/d SA      30,000 t/d EX      55,000 t/d
                   ----------------------------------------------------------
                                 With               With               With
                      Without     25%    Without     25%    Without     25%
                    Contingency  Cont.    Cont.     Cont.    Cont.     Cont.
    -------------------------------------------------------------------------
    NPV @ 8%        $473M     $404M    $467M     $396M    $618M     $530M
    -------------------------------------------------------------------------
    IRR                26.7%     21.4%    26.1%     20.9%    31.8%     25.3%
    -------------------------------------------------------------------------
    Payback          4 years   5 years  4 years   5 years  3 years   4 years
    -------------------------------------------------------------------------
    Note:  The cash flow values presented account for post tax and royalty
           payments and are based on long-term price assumptions of $1.80 per
           lb Cu, $12 per lb Mo, and $11 per oz Ag.
    

    The Constancia DFS will commence in January, 2008.

    About Norsemont Mining

    Norsemont Mining is a Canadian mineral exploration and development
company focused on the Constancia Cu-Mo-Ag deposit in southern Peru. Norsemont
currently controls an undivided 64% interest in the Constancia Project, which
interest is set to increase to 81% in the event that Rio Tinto does not
exercise a claw-back right prior to January 31, 2008. Norsemont can then
acquire the remaining 19% interest in Constancia by March 31, 2008 through a
payment of US$8M to Rio Tinto. The Constancia Project has a 43-101 compliant
indicated resource of 70M tonnes (0.8 Billion lbs Cu) and an inferred resource
of 250M tonnes (2.8 Billion lbs Cu).





For further information:

For further information: Patrick Evans, Norsemont Mining, Phone: (416)
670-5114, E-Mail: investors@norsemont.com, Web Site: www.norsemont.com

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