EXPLORATION 1997 — Minera Rayrock hits high grade at Catalina

Exploration aimed at testing areas between known deposits has paid off handsomely for Minera Rayrock (MRN.A-T), a Toronto-based junior which recently discovered a high-grade copper orebody at its producing Ivan mine in Chile.

The oxidized orebody, dubbed Catalina, was intersected by several drill holes, including one that returned 4.5% copper over 92 metres. It was discovered earlier this year during a surface exploration program aimed at testing areas between the Zar pit and the Zarina zone.

The deposit was traced for 100 metres along a northwest-southeast strike and remains open on strike and at depth.

David Hutton, vice-president, says the deposit is estimated to host 400,000 tonnes of material grading 3% copper, or about 25 million lb. of contained copper. As an added bonus, the ore is expected to be accessible through the Zar pit extension or from the underground Ivan mine.

In 1996, Minera Rayrock produced 22 million lb. copper at the Ivan mine, up from 19.4 million lb. in the previouis year. Copper sales were also higher, at US$24.8 million, compared with US$21.7 million in 1995. Cash costs fell to 63 cents from 73 cents per lb. Costs are expected to fall further this year through reductions in costs associated with the solvent

extraction-electrowinning circuit.

The Ivan mine is expected to turn out 24.6 million lb. of the red metal this year. About half this amount has been hedged at levels of about US$1.