Large resource at Lumina’s Regalito

Vancouver — An independent estimate suggests Lumina Copper‘s (LCC-T) Regalito project has an indicated resource of 628 million tonnes grading 0.43% copper and an inferred resource of 131 million tonnes grading 0.41% copper.

In arriving at the calculations, AMEC used a cutoff grade of 0.25% copper and a copper price of US$1 per lb.

Bottle-roll metallurgical testing of both oxide and sulphide material demonstrates high leachability.

Lumina Copper intends to carry out a prefeasibility study. The proposed operation would see copper cathode produced on site, with no concentrates shipped for smelting.

Regalito is an Andean-type porphyry copper deposit associated with a cluster of dacitic porphyry intrusions and hydrothermal-contact breccias, and exhibits typical potassic and phyllic alteration. The dacites intrude Paleozoic granites and are associated with the regional, northeast-trending Caserones Fault. The predominant copper mineral is chalcocite in the supergene enrichment zone at Regalito. Mineralization in the hypogene zone consists of pyrite and chalcopyrite with minor bornite and molybdenite.

In late-2003, Lumina Copper entered into an option to acquire the Regalito project. The agreement calls for payments of US$900,000 over eight years. Additional cash payments are required if copper prices remain above US$1 per lb. A variable 1-3% net smelter return royalty will be applied to production, depending on copper prices.

Lumina has a total of 10 copper projects in Chile, Peru, Argentina and Canada.

The company’s outstanding shares total 15 million, and the stock recently traded at $5.60.