Lumina Copper gets Regalito resource estimate

Vancouver – An independent mineral resource estimate on Lumina Copper’s (LCC-T) Regalito project has shown it as one of the larger leachable copper deposits in Chile.

The study, NI43-101 compliant and audited by AMEC, outlines a measured and indicated resource of 628 million tonnes grading 0.43% copper plus an additional 131 million tonnes at 0.41% copper of inferred resource, utilizing a 0.25% copper cutoff grade and a US$1.00 per pound price.

The estimate encompasses both near surface oxide and the supergene copper mineralization, and is based on almost 40,000-metres of drilling in 183 holes. Deeper, primary sulphide mineralization in the deposit remains largely unexplored.

Bottle-roll metallurgical testing of both oxide and sulphide copper mineralized material recovered from drilling confirms earlier results, demonstrating high leachability. Leachability refers to the dissolution of copper into solution through either sulphuric acid (for oxide mineralization) or bacterial treatment (for secondary sulphide mineralization).

A second phase of copper leachability testing, recently commenced, has eight large-diameter core holes extracting sample material for a bulk column test. The program, under supervision by SGS Lakefield, is seeing crushing and screening of material from the core, and treatment in bulk columns scheduled to run until mid-2005. The data will form the basis of a pre-feasibility study on a commercial-scale copper leaching operation at Regalito. The proposed operation would see onsite, cathode copper production, with no concentrate shipments to a smelter. Bypassing of concentrate shipping costs positively impacts prospective economics at such projects, allowing lower-grade copper deposits to be targeted.

In late-2003, Lumina Copper entered into an option to acquire 100% of Regalito. The agreement calls for payments of US$900,000 over eight years and coverage of maintenance costs. Additional cash payments are triggered if copper prices remain above US$1.00 per pound for a calendar year. A variable 1-3% NSR will be applied to production, dependent on copper prices.

Lumina Copper, with 15 million shares outstanding, has a market capitalization of about $84 million at its recent trading level of $5.60 per share.