Antares’ Haquira Grows To 11B Lbs. Copper

VANCOUVER — A new resource estimate for Antares Minerals’ (ANM-V) Haquira copper-molybdenum- gold project in southern Peru has lifted the project’s contained copper count above 11 billion lbs., and pushed Antares’ share price to a new 52-week high.

The new resource significantly increases tonnages and grades, compared to previous estimates. It was delayed by two weeks to incorporate the final results of Antares’ 2009 drill program at Haquira.

In the top layer of secondary copper mineralization, Haquira is now home to 215 million measured and indicated tonnes grading 0.466% copper, plus 72.2 million inferred tonnes averaging 0.41% copper. The leachable copper deposit grew only slightly, in terms of size and grade.

The real boost came in the deeper zone of primary copper-moly-gold-silver mineralization. Haquira’s primary deposit now stands at 354.6 million measured and indicated tonnes grading 0.628% copper, 0.014% molybdenum, 0.044 gram gold per tonne, and 1.79 grams silver per tonne. Inferred resources add 333.7 million tonnes grading 0.535% copper, 0.009% molybdenum, 0.032 gram gold, and 1.491 grams silver.

Compared to the last estimate, from late 2008, the primary resource at Haquira has grown substantially. Measured and indicated tonnes increased by 140% while the copper grade climbed 10%, increasing the contained copper count by 164% to 4.91 billion lbs. copper.

Based on 299 drill holes totaling almost 76,000 metres, the in situ copper count at Haquira has reached 11.7 billion lbs., a 38% increase.

Antares already completed a preliminary economic assessment (PEA) for Haquira but it only contemplated developing a leach operation for the secondary mineralization, with copper recovered through a solvent extraction-electrowinning (SX-EW) plant. That assessment already returned positive results: a 50,000-tonne-per-day open-pit operation could produce 109 million lbs. copper annually for 11 years. For initial capital expenditures of US$301 million Antares could produce a pound of copper for US$1.09. And based on a copper price of US$2 per lb., the mine could generate a 25.9% after-tax internal rate of return, enabling payback in less than three years.

Now the company is evaluating the potential to develop a two-stage operation at Haquira, wherein the mine commences as a copper leaching, SX-EW operation and then transitions into a larger scale, milling operation that processes primary mineralization and recovers copper, gold and molybdenum through flotation. The company is aiming to complete the new PEA before mid-year.

The estimate includes the Haquira East and West deposits and the nearby Potato Patch zone, but it did not incorporate results from the recently discovered Cristo de los Andes prospect. The latest results from the new zone, which sits 10 km south of Haquira East and West, expanded its strike to 600 metres and its width to 300 metres.

Hole 15 returned 31.7 metres grading 2.02% copper and 0.19 gram gold from surface, followed by 29 metres of 1.41% copper and 0.104 gram gold from 142 metres depth. Hole 13 hit 52.5 metres averaging 2% copper and 0.05 gram gold from 25 metres downhole. And hole 9 cut 19.3 metres grading 1.19% copper, 0.034 gram gold, and 0.017% molybdenum from 60 metres depth, the returned 25 metres of 1.45% copper, 0.103 gram gold, and 0.03% moly from 119 metres downhole, and finally hit 47.1 metres of 0.59% copper at 208 metres depth.

The zone defined to date comprises leachable secondary mineralization. Several recent holes, though, have also intersected primary sulphide mineralization at depth.

Antares’ share price gained 24¢ in two days following news of the expanded Haquira resource to reach $2.14, a new 52-week high. In March 2009, the recession had pushed the company’s share price to just 75¢. Antares has 61 million shares outstanding.