NEVADA AND THE WESTERN STATES — International Taurus checks out Lyon copper property

As part of International Taurus Resources’ (ITS-V) new management focus, the company recently acquired the Lyon copper-magnetite project in Nevada, on which it is now performing due diligence.

In mid-April, the Vancouver-based junior signed an agreement to acquire a 100% interest in the Lyon project from Cyprus Metals Exploration, a wholly-owned subsidiary of Cyprus Amax Minerals (CYM-N). Under the terms of the agreement, Taurus will make cash and stock payments to Cyprus totalling US$3.25 million and spend US$4 million on exploration at Lyon over three years. Cyprus retains a 51% back-in right, which is exercisable by paying Taurus 150% of its investment in the project. A 4% net smelter return royalty has also been tacked on, payable to Cyprus and diversified major USX (X-N), the underlying title holder of the Lyon property.

Taurus recently arranged a $1-million financing that will partially fund the company’s 1998 exploration programs and help to pay for the acquisition of several new mineral properties. The financing was in the form of a non-brokered private placement of 817,000 units at $1.30 each. Each unit consists of two shares and one-half of a warrant.

Taurus has also initiated its due diligence field program, which will test the gold content of the copper mineralization as well as determine the engineering parameters required for an underground mining operation at the Lyon site.

The company intends to assay ten holes for gold content. A detailed economic study will also be conducted to determine the cost of a 3,500 ton-per-day plant, and Taurus expects to start a diamond-drilling program later this summer.

There are two types of mineralization at Lyon: copper-magnetite mineralization, hosted in skarn and intermediate intrusive rocks, that is amenable to open-pit mining; and deeper, high-grade copper-magnetite mineralization hosted within skarns found along the margin of an intrusive.

Mineralization at the Lyon deposit can be divided into six zones: the North and South porphyries, and the Northwest, East, E-2 and Southwest skarns.

Preliminary resource estimates, based on a total of 358 holes put down by Cyprus, are as follows: 138 million tons grading 0.71% copper, 27% magnetite and 0.001 oz. gold per ton in the North porphyry; and 203 million tons grading 0.36% copper, 31% magnetite and 0.001 oz. gold in the South porphyry.

Taurus is primarily interested in the high-grade copper skarns in the Northwest, East and E-2 deposits. These zones are only partially defined by a total of 44 holes, some of which are spaced as much as 250 ft. apart. Most of the previous drilling focused on the porphyries and did not thoroughly evaluate the skarns.

The Northwest zone is estimated to contain 3 million tons grading 3.45% copper. It is an underground resource with no magnetite and undetermined gold values that

represents a lens of silicate skarn measuring roughly 400 ft. by 500 ft. by 60 ft. The mineralized body

dips about 45 to the northwest

and remains open at depth and along strike. Mineralization starts at 700 ft. below surface, and is open at depth.

Some significant copper intercepts from the Northwest zone include: 173 ft.

grading 4.5% copper, 58 ft. grading 5% copper and 60 ft. grading 6.4% copper.

The East skarn is an underground resource believed to comprise 7.1 million tons grading 3.35% copper, 23.6% magnetite and 0.01 oz. gold. It is characterized by a series of gently dipping copper-magnetite lenses found 1,600 ft. below the surface. Based on current data, at least four lenses up to 150 ft. in thickness are contained within an area measuring 500 ft. by 1,500 ft.

Significant intercepts from the East zone include 63 ft. grading 6.59% copper, 49 ft. grading 4% copper and 111 ft. grading 3.31% copper.

Mineralization in the E-2 skarn has been estimated at 2 million tons grading 3.6% copper, 27.9% magnetite and 0.02 oz. gold. This resource was defined by seven holes that were drilled over an area measuring 1,000 ft. by 500 ft.

and starting at a depth of 900 ft.

Significant intersections from the E-2 zone include 120 ft. grading 2.22% copper, 160 ft. grading 2.39% copper and 115 ft. grading 4.21% copper.

The E-2 zone represents a sheet-like body of copper-magnetite skarn which strikes northerly and dips 50 to 75 to the west. The margins of the copper-magnetite mineralization have yet to be defined and the company estimates that over 80% of the skarn horizon remains untested.

Detailed aeromagnetics have yet to be flown over the property. The company believes a magnetic survey will prove effective in defining the mineralized horizons because of the abundance of magnetite in the skarns.

Metallurgical work performed to date indicates copper recovery of greater than 90% and the ability to produce a concentrate grading 25% copper. Iron recovery from magnetite was pegged at 67% using magnetic separation methods.

Insufficient work has been conducted to forecast gold recovery from the skarns.

Geotechnical data indicates that the ground conditions in the East and E-2 zones are excellent, whereas somewhat less favorable conditions exist in the Northwest zone.