More copper hits at Zafranal for AQM Copper

Vancouver – Newly renamed AQM Copper (AQM-V) continues to pull long copper intercepts from its Zafranal project in the first drill program at the Peruvian property since 2005.

AQM is working through a 40,000-metre drill program at Zafranal that is aimed primarily on grid testing the Main zone but also includes expansion drilling along strike and at depth and drill-testing several satellite targets. The Main zone strikes for 3.5 km, though since May drills have been focused on the central 2 km of strike.

The latest results from Zafranal include 358.8 metres grading 0.7% copper and 0.11 gram gold per tonne, starting 128 metres down hole 46 and including 91.5 metres averaging 1.1% copper. Hole 46 was collared 100 metres northeast of hole 29, which previously returned 256 metres grading 0.44% copper. The hit in hole 46 leaves the zone open at depth, as the hole ended in mineralization, and extends the area of higher-grade secondary enrichment mineralization to the east.

A 212.7-metres intercept in hole 38 grading 0.52% copper stretched the higher-grade zone to the south.

Hole 32, collared near the centre of the Main zone, cut 152 metres grading 0.58% copper and 0.06 gram gold from 158 metres depth. Nearby, hole 51 returned 225 metres carrying 0.53% copper and 0.11 gram gold from 152 metres downhole.

In another set of results from early June AQM extended the Main zone to the south and east with hole 36, which hit 200 metres grading 0.63% copper and 0.15 gram gold from 92 metres depth. Closer to the centre of the zone hole 43 returned 182 metres of 0.39% copper and 0.07 gram gold; just to the west hole 45 cut 54 metres grading 1.02% copper and 0.05 gram gold, starting 63 metres downhole.

AQM is earning a 51% interest in the property from Teck Resources (TCK.B-T, TCK-N), which discovered mineralization at Zafranal in 2003. In 2004 and 2005 Teck completed 36 drill holes, which indicated that the best copper mineralization sits within a secondary enrichment blanket stretching 1.2 km along strike, across 250 metres width, and averaging 100 metres in thickness. AQM says this area carries an average grade of approximately 0.9% copper, stemming from replacement of chalcopyrite by chalcocite and covellite.

The enrichment zone lies within an east-west trending, funnel-shaped zone of phyllic alteration hosted in a strongly foliated volcano-sedimentary unit. The alteration zone appears to carry a consistent zonation patter, with a leached zone atop an immature secondary enrichment blanket covering a little-explored hypogene sulphide zone at depth.

With the drill program advancing well on the Main zone, AQM recently starting drilling at the first satellite targets included in the 2010 exploration plan. One rig will complete eight holes at the Sicera Sur target and then complete five holes at Sicera Norte.

Sicera Sur is 6.5 km west of the Main zone and is marked by an area of phyllic alteration showing well-developed leached capping. The target area sits along an east-west structural trend that includes the Main zone. An initial sampling effort returned promising copper grades, potentially indicative of a secondary enrichment blanket. Roughly 3 km to the north is Sicera Norte, which has seen very limited exploration as AQM only recently purchased the ground; Teck did not have control over Sicera Norte.

Zafranal is located 90 km northwest of the city of Arequipa in southern Peru and is accessed via a 42-km dirt road off of the Panamerican highway.

AQM can earn a 51% stake in Zafranal by making cash payments totaling US$5 million, issuing 1.5 million shares, and spending US$7.5 million on exploration over four years. At any time prior to AQM achieving its 51% earn-in Teck can elect to back in for a 60% interest by making a cash payment of US$2 million and incurring additional exploration expenditures based on AQM’s contributions to date. If Teck does not exercise its back-in right, AQM can increase its ownership to 60% or 100% through various payments.

AQM Copper is a new name for the company; it was known previously as Apoquindo Minerals. Its ticker has not changed.

On news of its latest Zafranal drill results AQM’s share price gained 2¢ to close at 75¢. The company has a 52-week trading range of 50¢ to $1.10 and has 97 million shares outstanding.