Zaruma Resources: Economic Feasibility of Luz del Cobre Confirmed



    TORONTO, April 27 /CNW/ - Zaruma Resources Inc., (TSX-ZMR) is pleased to
report the successful completion of four months of additional geological
modelling and metallurgical testing since the filing of the Technical Report
on the feasibility of the wholly owned Luz del Cobre copper project, San
Antonio, Sonora, Mexico, on November 10, 2006. Glencore International AG
actively participated in the additional studies, under a Memorandum of
Understanding signed in June 2006, whereby they undertook to finance the
capital cost of the project, thereby obtaining the right to purchase the
copper production at prevailing London Metal Exchange prices.
    The ore body was methodically re-examined, section by section, to
determine whether the geological interpretation and the model of the deposit
created in 2006 was correct in all details. Some new aspects were revealed,
including the fact that the ore body is open ended to the South, which is not
included in the reserves, and that there exists some material at the bottom of
the pit, which has a lower than average leach recovery.
    New trenches were opened up in near surface oxidized copper
mineralization, and historic underground workings were re-opened, geologically
mapped and sampled. Six more column leach tests of oxidized and mixed material
from different locations in the ore body, plus bottle roll tests and 307
sequential copper analysis tests of drill pulps from the 2006 verification
drilling and from current surface and underground samples were carried out.
The column tests in 2006 were done on composite samples of the two main types
of ore. The current tests were to prove the recovery factor on each of the
separate types of ore.
    Applying the additional geological information and the copper recoveries
expected under operating conditions of 75% for the oxidized ore, 80% for the
mixed oxidized-secondary sulphide ore and 70% for the lower portion of the
northern pit which contains some primary copper sulphides in mixed ore,
Qualified Person and Independent Consultant Eugene Puritch, P.Eng., of P&E
Mining Consultants Inc. of Brampton, Ontario completed a revised reserve
estimate for Luz del Cobre as tabulated below. The estimate is for reserves
contained within an optimized pit design using the current 24 month trailing
average price of US$2.51 per pound of copper and a cash cost per pound,
including royalties, of US$0.95 as described in the Technical Report filed in
November 2006:

    
    -------------------------------------------------------------------------
                                                    Cut-Off
    Proven and Probable      Metric   Mined Grade    Grade      Contained Cu
    Reserves                 Tonnes      %Cu         % Cu        lbs x 10(6)
    -------------------------------------------------------------------------
    Oxide Ore              1,038,000     0.67        0.252         15.3
    -------------------------------------------------------------------------
    Mixed Sulphide/Oxide
     Ore                   2,414,000     1.07        0.236         57.0
    -------------------------------------------------------------------------
    Mixed Ore North Pit
     lower level             835,000     1.19        0.270         21.9
    -------------------------------------------------------------------------
    Total                  4,287,000     1.00                      94.2
    -------------------------------------------------------------------------
    

    The November 2006 Technical Report estimated 4.425 million tonnes of ore
with an average grade of 1.012 % Cu and contained copper of 98.7 million
pounds, based on a copper price of US$2.235 and the same cash cost of
production. The 2006 Technical Report calculated the pre-tax net operational
cash flow to average US$19.4 million per year, with a project capital cost of
US$24.4 million and an estimated time to first production of 12-15 months from
the date an engineering, procurement and construction management contract is
awarded.
    The additional information collected over the past four months has
confirmed the parameters used in the 2006 Technical Report calculations, and
will be useful for operational mine planning, but has not changed the overall
plan for the project, to produce 15 million pounds of cathode copper per year
for at least five years, through an open pit mining, heap leach, solvent
extraction, electro-winning operation.
    Although the deposit is still open ended on the south side, an expansion
of reserves at this time would not alter the mine plan or the economic
feasibility conclusion for the project. About 1,000 metres west of Luz del
Cobre, exploration last year successfully delineated a previously undefined
oxide copper target zone, which could add significantly to the life of the Luz
del Cobre project.
    The successful completion of this re-examination of the economic
feasibility of the project will now permit discussion of the financing
agreements to resume.
    Zaruma Resources Inc. is a pre-production mineral exploration company
listed on The Toronto and Frankfurt Stock Exchanges (symbol: ZMR). Common
shares outstanding: 102,781,912.

    This News Release contains forward-looking statements which are typically
preceded by, followed by or include the words "believes", "expects",
"anticipates", "estimates", "intends", "plans" or similar expressions.
Forward-looking statements are not guarantees of future performance as they
involve risks, uncertainties and assumptions, including, but not limited to
securing additional funding to continue its development programs.





For further information:

For further information: Zaruma Resources Inc., 20 Toronto Street, 12th
Floor, Toronto ON, M5C 2B8, Canada, Fax: (416) 367-3638, info@zaruma.com,
www.zaruma.com; Dr. Thomas Utter, President and CEO, Tel.: (416) 777-1781,
thomas.utter@zaruma.com; Frank van de Water, CFO and Secretary, Tel.: (416)
869-0772, fvandewater@on.aibn.com

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