Peru Copper sees Toromocho continue to grow

Vancouver – An updated resource estimate has further boosted the size of Peru Copper’s (PCR-T, CUP-X) Toromocho project, located in the Morococha district of central Peru, about 140 km east of Lima.

The calculation, prepared by Independent Mining Consultants, has the measured and indicated resource now standing at over 1.8 billion tonnes grading 0.47% copper, 0.016% molybdenum and 6.8 grams silver per tonne (giving a 0.68% copper equivalent grade) using a copper equivalent cut-off of 0.27%. The estimate is a more than 16% increase over the calculated resource from April-2005, and is based on over 116,000 metres of drilling.

A central core containing a measured and indicated resource of 967 million tonnes of 0.6% copper (0.88% copper equivalent) was also reviewed, using a higher copper equivalent cut-off of 0.6%. The core zone also grades 0.023% molybdenum and 8.1 grams silver.

Based on the latest resource figures, Peru Copper’s preliminary development plans foresee a mine-life of over 33 years with estimated annual mill throughput of 54 million tonnes, producing an average of 221,000 tonnes (487 million pounds) of copper in concentrate per year.

The main Toromocho orebody is situated as a topographic high, affording the proposed project a very low estimated stripping ratio of 0.35:1.

The deposit is underlain by multiple intrusions, which have cut anticlinally folded limestones to forming skarn and hydrothermal breccia pipe structures. Copper mineralization is complex, but predominantly hosted in the intrusive breccias. Concentric metal zonations are evident at the deposit with a central zone containing disseminated copper and molybdenum, surrounded by lead-zinc veins, in turn ringed by more distal lead-silver vein systems.

Peru Copper, through its subsidiary Minera Peru Copper Syndicate, optioned the property from Peruvian state-owned Centromin in mid-2003. Since its acquisition, the company has completed over 86,000 metres of drilling, metallurgical studies and initiated feasibility-level studies. Metallurgical testing indicates the material is amenable to standard processing and flotation, with average copper recoveries of 87% and producing an average 26.5% copper concentrate. The company is concurrently testing and evaluating hydrometallurgical processes to treat Toromocho ore.

Drilling is expected to wrap by late-2005, leading to another resource update and the completion of a pre-feasibility study.

Shares of Peru Copper have recently rallied to the $1.95-level, near the upper end of its 52-week trading range of $1.10-$2.03. The company posts a $183-million market capitalization given its 94 million shares outstanding.