Constellation Copper cuts thick high-grade zinc and copper

Constellation Copper (CCU-T) has cut an average of 129 metres grading 0.34% copper and 5.85% zinc in three holes at its Terrazas property, 40 km north of Chihuahua, Mexico.

One of the holes, which tested the eastern edge of the Terrazas deposit, cut 138 metres grading 7.46% zinc and 0.38% copper beginning at 22 metres down hole.

Two other holes, in the Cerro la Verde area, ended in mineralization because the drill was not capable of drilling deeper. One of these holes cut 111 metres grading 0.28% copper and 6.4% zinc, and the other hit 138 metres grading 0.36% copper and 3.83% zinc. The holes will be deepened.

One hole, that was drilled to twin a previous reverse-circulation hole, also ended in mineralization at 100 metres, after cutting 42 metres grading 0.33% copper and 4.5% zinc. A second hole (04-11) was drilled adjacent to this, and managed to continue through the mineralization to a total depth of 318 metres.

Assays are pending for hole 04-11. However, oxide mineralization was cut, followed by massive sulphide zones (pyrite, sphalerite and chalcopyrite) at depths below 300 metres.

Four holes, two of which tested the northwestern margin of the skarn deposit, failed to hit significant mineralization.

In 2002, the measured and indicated resource within the garnet skarn was estimated at 79.5 million tonnes grading 0.3% copper and 0.4% zinc.

A pre-feasibility study, completed in 2002, suggested a mine-life of 11 years at a production rate of 39.7 million pounds cathode copper and 59.5 million pounds zinc per year. Cash costs were estimated at US53 per pound of copper and US34 per pound of zinc.

The north-south rail line between Chihuahua, Mex. and El Paso, Texas, is about 2 km to the west of the property. In addition, a high-voltage power line traverses the area.

Drilling is on-going to define the resource. A feasibility study should be completed by the end of this year.

Constellation, through its wholly-owned subsidiary, Minera Terrazas, is acquiring a 100% interest in the Terrazas deposit from Minera Rio Tinto. The latter retains a 1.5% net sales revenue royalty (which may increase to 2% depending on the copper price).