Western Copper drills Penasquito

Having raised enough funds in a private placement, Western Copper Holdings (WTC-T) is preparing to launch a drilling program at its Penasquito lead-zinc-silver property near Zacetecas, Mexico.

Covering 32.5 sq. km of the historical Concepcion del Oro district, Penasquito is underlain by a massive mineralizing system that sits 30 metres below alluvium. Polymetallic mineralization occurs as veins, stockworks and disseminations in Cretaceous sandstones.

In 1994, Kennecott, a unit of Rio Tinto (RTP-N), began systematically exploring the property before selling it to Western Copper four years later. Western Copper subsequently dealt an option to Peru-based Mauricio Hochschild & Cia, which went on to spend more than US$1 million before also walking away in the following spring.

The upcoming program will entail 6,000 metres and focus on the Chile Colorado zone, where Kennecott and Mauricio yielded their best results. The zone is rich in silver, zinc and lead, and sits at the southern edge of a breccia pipe.

Combined, the companies sank 19 holes into Chile Colorado to outline mineralization over an area measuring 500 metres long by 350 metres wide, extending to 300 metres below surface. Highlights include: hole WC-3, which returned 99.2 metres (starting at 153 metres) grading 2.48% zinc, 2.15% lead, 189 grams silver and 0.38 gram gold per tonne; and hole MHC-4, which intersected 37.2 metres (also starting at 153 metres) grading 6.37% zinc, 1.02% lead, 1,186 grams silver and 0.98 gram gold.

Hole MHC-4 was drilled 50 metres north and 200 metres west of WC-3.

Mineralization remains open in several directions.

Western Copper issued 2.7 million units at 65 each to raise $1.8 million. A unit consists of a share and half a warrant, with a full warrant entitling the holder to buy another share within two years at 80 or $1.

Toronto-based Northern Securities received 162,929 warrants in exchange for managing the placement. The warrants can be exchanged for units within two years, at 65 each.