Manhattan feasibility on schedule (March 07, 2002)

Vancouver A review of the mineral inventory at Manhattan Minerals‘ (MAN-T) TG-1 deposit on the Tambo Grande property in northern Peru has resulted in a 5% jump in contained copper in the sulphide part and a 4% drop in contained gold in the oxide portion.

Roscoe Postle Associates completed the review and estimate of the mineral resources based on diamond drilling programs completed between May 1999 and May 2000. The latest study pegs the indicated resource for the base metal component of the deposit at 56.16 million tonnes grading 1.6% copper, 1% zinc, 0.5 gram gold and 26 gram silver per tonne, using a 0.75% copper equivalent cut-off. Some 3.3 million tonnes lie in the inferred category grading 1.5% copper, 0.8% zinc, 0.4 gram gold and 18 grams silver. The results show a 5% increase in contained copper, including a 9% jump in the indicated resource. Total contained zinc dropped by about 1%.

The oxide gold portion of the deposit now hosts an indicated resource of 7.96 million tonnes grading 3.6 grams gold and 62 grams silver, using a 1-gram-gold cutoff. Some 725,000 tonnes grading 3.4 grams gold and 62 grams silver are pegged in the inferred category. The calculation shows a 4% drop in total contained gold. Of the decline, 1% is due to lower volume, and 3% is due to a more conservative approach to intervals where drill core was not recovered.

Manhattan remains on schedule to complete its feasibility and environmental impact studies by mid-year. During the first quarter of the year, the company is completing fieldwork for the baseline analysis and infrastructure design. Marine and terrestrial biology studies, along with river, tailings, and waste dump engineering studies have already been complete. Mine planning and process engineering are slated for completion by the end of the month, along with process water balance studies. Operating and capital cost estimates are now underway.

Next month, the company plans on focussing on the social and economic portions of the environmental impact study, along with management, mitigation, and contingency planning.

Last year, Manhattan raised $5.4 million to complete a draft environmental impact statement, as well as for community relations activities around the property.

The company ran into local problems in 2001 when a politically motivated group vandalised its project facilities near the town of Tambo Grande. The junior is put the blame on a group whose aim is to disrupt government and industrial activities heading into the Peruvian election. The disruptions subsequently force a delay to Manhattan’s objective of completing its feasibility study on the TG-1 deposit, originally expected by June 2001.

Tambo Grande hosts the TG-1 oxide gold deposit, the TG-1 and TG-3 sulphide deposits. The company is also exploring the B-5 zone and other geophysical anomalies on the property.

TG-3 lies 500 metres south of TG-1 and consists of two distinct mounds, or lobes, of mineralization. The northern lobe is richer in zinc and contains 20 million tonnes grading 0.9% copper, 2.7% zinc, 0.8 gram gold and 35 grams silver, based on a cutoff grade of 1% copper-equivalent. The copper-enriched southern lobe hosts 48 million tonnes grading 1.1% copper, 1.1% zinc, 0.9 gram gold and 25 grams silver at a cutoff grade of 1% copper-equivalent.

Manhattan is earning a 75% stake in Tambo Grande, which consists of 10 concessions measuring 100 sq. km. The company also has a 100% interest in the 737-sq.-km Lancones concessions and an option to earn up to a 100% interest in the 32-sq.-km Papayo joint-venture lands. The Lancones land package adjoins Tambo Grande mainly to the south and partially to the east and north. The Papayo concessions, which include the B-5 anomaly, are to the south. Manhattan can earn an initial 51% interest in Papayo by spending $5 million on exploration over five years and paying $250,000.