Apoquindo posts strong copper intercepts at Zafranal in Peru

Drilling in February at Apoquindo Minerals‘ (AQM-V) Zafranal copper-gold porphyry project 90 km northwest of the city of Arequipa in southern Peru has returned an intercept of 118 metres grading 1% copper and 0.09 gram gold, including 47 metres of 2.01% copper and 0.13 gram gold.

Hole ZFDDH10-007 was a 100-metre step-out north of hole ZFRC04-007, the westernmost mineralized hole identified by Teck Resources (TCK.B-T, TCK-N) during its 2004-2005 drill campaign. Teck’s hole returned 72 metres cutting 1.09% copper and 0.24 gram gold.

Zafranal lies in the northwestern extension of the Southern Peru Copper Porphyry Belt. Drilling through early February was focused on a 1.2 km segment of the 3.5-plus km east-west trending Main Zone; one of six porphyry copper-gold targets at the Zafranal project. Step-outs to the west of ZFDDH10-007 and ZFRC04-007 have been completed and assay results are pending.

The results sent Apoquindo shares up 4¢ or 4.9% to 86¢ apiece in mid-morning trading in Toronto. (The stock has traded between 22¢ and $1.10 per share over the last year.)

In the meantime, hole ZFRC10-047 intersected 171 metres of 0.53% copper and 0.04 gram gold, including 45 metres of 1.04% copper and 0.07 gram gold. Both holes expand the Main Zone. Other results come from hole ZFRC10-48, which cut 39 metres of 0.77% copper and 0.07 gram gold and hole ZFRC10-049, which returned 45 metres of 0.51% copper and 0.06 gram gold. Hole ZFDDH10-011 intersected 57.9 metres of 0.43% copper and 0.09 gram gold and 156.5 metres of 0.49% copper and 0.11 gram gold.

So far drilling has demonstrated that the best copper results come from an enriched blanket defined over a 1200 metre by 250 metre area with a thickness of about 100metres. This east-west trending area averages about 0.9% copper, consisting primarily of chalcocite and covellite replacing chalcopyrite.

This year Apoquindo plans to drill 40,000 metres in a program that will include grid drilling the Main Zone, testing the east and west extensions of the Main Zone, deep drilling on the Main Zone, and testing several of the satellite targets.

In addition to Zafranal, there are several other prospective porphyry copper-gold prospects (Sicera Sur, Sicera Norte and Campanero) that have been identified within the Zafranal property boundary. Very little exploration has been conducted on them to date.

Teck first discovered Zafranal in early 2003 as part of an exploration program within the northern segment of the Southern Peru Porphyry Copper Belt. Teck’s exploration efforts included detailed mapping, rock sampling, 5 km of AMT geophysical surveying over four lines, and orientation EM geophysical surveying. Between 2004 and 2005 Teck drilled 36 holes totaling 11,805 metres.

The main deposit was drilled at wide drill spacings of 250metres-400 metres. Limited diamond drilling returned higher copper grades than RC drilling in the same location.

Apoquindo can acquire an initial 51% interest in the Zafranal copper-gold porphyry project from Teck, subject to Teck’s right to earn-back to a 60% interest. The agreement also provides options for Apoquindo to increase its interest to 60% and to 100% if Teck does not exercise its earn-back right.