Chariot soars on Marcona drilling (April 25, 2005)

The first batch of 15 holes sunk by Chariot Resources (CHD-T) has returned some impressive copper grades from the Mina Justa prospect on the recently optioned Marcona project in southern Peru.

All of the holes were collared on the High Grade (HG) sulphide target, with each returning significant copper oxide or copper sulphide mineralization (or a combination of the two). In general, copper oxide mineralization at Mina Justa overlies copper sulphide mineralization.

The sulphide intersections include:

• Hole 5 50 metres (beginning 182 metres below surface) running 3% copper, including 28 metres of 4.9% copper; 30 metres (from 236 metres) of 2.3% copper, including 8 metres of 6.5% copper; and 26 metres (from 282 metres) averaging 1.5% copper, including 12 metres at 2.6% copper;
• Hole 6 — 116 metres (from 214 m) at 2.55% copper, 26 metres (from 304 m) of 5.8% copper;
• Hole 8 — 64 metres (from 248 m) grading 3.4% copper, including 46 metres (from 258 m) of 4.3% copper;
• Hole 9 — encountered 90 metres at 1.57% Cu (from 258 metres to 348 metres), including a higher grade intercept of 38 metres at 2.29% Cu (from 290 metres to 328 metres);
• Hole 10 — 32 metres (from 286 m) at 2.2% copper, 10 metres (from 286 m) of 3.2% copper;
• Hole 11 — 38 metres (from 252 m) of 2.1% copper, including 14 metres (from 268 m) of 4.35% copper;
• Hole 14 — 20 metres (from 414 m) of 4.2% copper, including 10 metres of 5.9% copper; and
• Hole 15 — 102 metres (from 318 m) of 1.5% copper, including 16 metres (form 366 m) of 2.4% copper.

Selected intersections of oxide mineralization include:

• Hole 1 — 24 metres (from 254 m) grading 1.3% copper;
• Hole 3 — 20 metres (from 178 m) of 0.5% copper;
• Hole 8 — 42 metres (from surface) averaging 0.6% copper, and 12 metres (from 116 m) of 0.7% copper;
• Hole 10 returned 22 metres (from 108 m) of 0.4% copper, 12 metres (from 136 m) of 0.7% copper, 12 metres (from 192 m) of 0.6%, and 12 metres (from 228 m) of 0.8% copper.

All of the holes were oriented to grid north with an inclination of minus 70 degrees. Chariot says that those holes yielding high-grade sulphide mineralization usually contain copper oxide grades of 0.5-0.7%; the reverse is not generally true.

The HG sulphide target currently measures 400 metres by 300 metres, and is up to 46 metres in thickness. The zone remains open to the north, south, and west.

The first round of holes is part of a 37,000-metre drilling program aimed at increasing resources at Marcona. Drilling continues on the HG sulphide target and the Splay and Oxide Gaps targets. In all, the property is home to 20 targets outside the main deposit that have the potential to add up to 368 million tonnes to the resource base.

The Mina Justa prospect contains the property’s existing inferred resource, which totals 218.3 million tonnes grading 0.8% copper, or 1.75 million tonnes of contained copper. The mineralization occurs in at least three separate zones hosted by volcano-sedimentary rocks in a northeast-trending, southeast-dipping fault system.

Chariot owns 70% of the project; Korean Resources Corp., the agency responsible for securing resources for all of Korea’s major industries, and LG-Nikko Copper, a division of LG Cable, share the remainder. LG has also agreed to off-take 90% of Marcona’s cathode production and 70% of its concentrate production (T.N.M., Apr. 11-17/05).

Shares in Chariot were 7.5, or more than 28%, higher at 34 in late-afternoon trading in Toronto following the news on April 25.