Share Issued and Outstanding: 53,829,578
TORONTO and LIMA, Peru, Oct. 10 /CNW/ - Norsemont Mining Inc. ("the
Company") (TSX: NOM, BVL: NOM) today announced that the Company has made a
major new discovery at the Company's 100-percent controlled Constancia
copper-molybdenum-silver project in south-eastern Peru. The Pampacancha
anomaly has been discovered approximately 2.7 kilometres south-east of the
Constancia - San Jose deposit and lies within an area over which the Company
controls 100 percent of the mineral rights.
The Company has completed a ground geophysical survey (magnetics and IP)
over the Pampacancha project and has conducted stream and rock-chip sampling
over a 27 square kilometre area. Results from the ground geophysical survey
indicate the presence of a number of strongly magnetic bodies with coincident
The Pampacancha prospect area is comprised of outcrops of limestone
intruded by dioritic and lesser monzonite intrusives where both magnetite and
garnet skarns are developed near their contacts. Outcropping copper oxides in
skarn bodies highlight the potential for significant copper mineralisation.
In addition, the Company has conducted stream sediment sampling over a
catchment area of approximately 27 square kilometres. Of the 32 samples taken
in a catchment area over 90 percent of the samples were recovered from active
streams and the results indicated the presence of anomalous copper, molybdenum
and gold, with gold grades as high as 7.43 grams per tonne. A total of 42
percent of these samples reported gold values greater than 1.0 grams per tonne
Au in an area of 2 kilometres by 4 kilometres.
Based on these encouraging results, the Company has taken approximately
350 rock-chip samples over the Pampacancha project. Assay results from these
rock-chips indicate anomalously high grades of gold, silver and copper, with
individual samples reporting up to 39 gram per tonne gold, 1,200 grams per
tonne silver and 6 percent copper.
Commenting, Norsemont's CEO Patrick Evans said: "We are very encouraged
by the Pamacancha discovery, which supports our previous guidance that we
expect to be able to grow our global resource at the Constancia project
significantly. Based on our current resource, the Constancia project is
already widely recognised as Peru's premier independent copper-moly-silver
project. A key strategic benefit enjoyed by Norsemont is the current ownership
over extensive surface rights which have been purchased by the Company over
the past year. This provides the Company with considerable flexibility in
regard to access and the location of the planned surface infrastructure for
the first mine at Constancia."
Although the Company controls 100 percent of the mineral rights at
Pampacancha, approximately 150 artisanal miners are currently present on the
property where they are mining high grade gold (in excess of one ounce per
tonne) from surface trenches and pits extending up to approximately 30 metres
in depth. The presence of these artisanal miners has had only limited impact
on the Company's ability to continue with exploration at Pampacancha. However,
their activities are illegal and it is expected that the local law enforcement
will intervene to curtail their activities.
While the Company's current exploration program is focussed on completing
the infill drilling on the Constancia - San Jose deposit, which is currently
the subject of an independent definitive feasibility study, a limited drill
program at Pampacancha is expected to provide useful information on the
geological structure, size and grade of the Pampacancha discovery. Results
from the drill program will be released when available. Maps showing the
results of the stream sediment, geophysical and rock chip sampling programs
will be posted to the Company's website in due course.
About Norsemont Mining
Norsemont Mining is a Canadian mineral exploration and development
company focused on the 100 percent-controlled Constancia Cu-Mo-Ag-Au deposit
in southern Peru.
The Constancia Project currently has a 43-101 compliant indicated
resource of 256.3M tonnes at 0.5% Cu (2.85 Billion lbs Cu) and an inferred
resource of 156.5M tonnes at 0.33% Cu (1.14 Billion lbs Cu). A recently
completed scoping study anticipates a project producing in excess of 90,000
tonnes of copper annually. The study indicates the project has a net present
value of $530 million and an internal rate of return of 25.3 percent. The
following long-term commodity price assumptions were used in the study: copper
$1.80 per pound, molybdenum $12 per pound and silver $11 per ounce. The full
study, dated December 11, 2007, and titled "Preliminary Assessment of the
Constancia Project, Department of Cusco, Peru" is available for viewing on
SEDAR. Mineral resources that are not mineral reserves do not have
demonstrated economic viability.
The technical information provided in this press release was reviewed and
approved by Robert. W. Baxter (MAusIMM), the President and a director of the
Company and a qualified person for the purposes of National Instrument 43-101.
For further information:
For further information: Patrick Evans, Norsemont Mining, Phone: (416)
670-5114, E-Mail: firstname.lastname@example.org, Web Site: www.norsemont.com