Asarco drilling at Butte Highlands

Drilling on the Nevin Hill zone at the Butte Highlands property near Butte, Mont., has now tested the deposit over a 1,000-ft. strike length and to a depth of greater than 1,400 ft.

Asarco (NYSE) has concentrated its efforts on infill drilling at Nevin Hill since it took over management of the exploration program this summer. Asarco can earn a 51% interest from Orvana Minerals (TSE) by funding the project to a production decision and paying US$8 million.

Orvana, Asarco and previous operators have drilled 23 holes, all of which returned gold mineralization in a steeply dipping skarn horizon. The grade thicknesses from the recent drilling are consistent with past results.

Some of the better intervals include a 13.5-ft. intersection grading 0.54 oz. gold per ton in hole 94-3 and a 27.5-ft. intersection grading 0.26 oz. in 94-16. The new results are not as impressive as some of the values encountered in previous programs, including a 46-ft. intersection grading 0.32 oz. in hole 93-12 and a 63-ft. intersection grading 0.52 oz. in 89-1. Previous estimates by Orvana indicate an inferred geologic resource of more than 2 million tons grading 0.3-0.6 oz.

Asarco’s infill drilling results are as follows:

Hole Interval Width Gold Zone

(ft.) (ft.) (oz./ton)

94-2 1,046 -1,053 7.0 0.18 hangingwall

1,083 -1,084.5 1.5 0.19 ” ”

1,102 -1,107 5.0 0.14 ” ”

1,240 -1,275 35.0 0.20 middle

94-3 1,129.3 -1,141 11.7 0.25 hangingwall

1,163.4 -1,169 20.6 0.13 hangingwall

1,312 -1,325.5 13.5 0.54 middle

1,425 -1,430 5.0 0.18 lower

1,430 -1,434 4.0 no re.covery

1,434 -1,437 3.0 0.59 lower

94-16 1,319 -1,347 28.0 0.10 hangingwall

94-17 1,295.5 -1,323 27.5 0.26 hangingwall

94-9 889 -892 3.0 0.17 hangingwall

900 -903.5 3.5 0.18 hangingwall