Sinchao step-out hits 189 metres of 2.02% copper

Vancouver – A step-out hole at its namesake property extended the project’s strike length with a solid copper intersection for Sinchao Metals (SMZ-V).

Hole 37 returned the strongest copper grades on the project to date: 2.02% copper, 1.07 grams gold per tonne, and 11.3 grams silver per tonne over 188.6 metres, starting 220 metres downhole. The core revealed silicified dacite and breccia over its entire length.

Previous results from recent drilling at Sinchao have returned similarly long intersections but have not shown the same strength of grade. Drilling has been primarily oriented along two northeast-southwest sections. Hole 37 now marks the western-most end of the more northern section. Some 275 metres northeast along section is hole 35, which returned 266 metres grading 0.37% copper, 0.3 gram gold, and 8.9 gram silver from 234 metres depth. A further 300 metres northeast strike sits hole 11, which cut 194 metres averaging 0.43% copper, 0.69 gram gold, and 17.1 gram silver from 77 metres depth.

Marking the western end of the section of hole some 150 metres to the south is hole 34, which cored 342 metres grading 0.44% copper, 0.32 gram gold, and 6.1 grams silver from 100 metres downhole. Moving 220 metres northeast along section is hole 31, which cut 144 metres grading 0.28% copper, 0.25 gram gold, and 2.9 grams silver from surface followed by a 27-metre interval grading 0.47% copper, 0.43 gram gold, and 6.5 grams silver from 348 metres depth. And marking the eastern end of the section, another 400 metres along strike, is hole 12 that returned 161 metres of 0.81% copper, 0.71 gram gold, and 37.1 grams silver from 144 metres depth.

With the latest results mineralization at Sinchao has been identified over 750 metres of strike, across widths up to 300 metres, and to depths reaching 450 metres. Mineralization remains open along strike in both directions.

Sinchao Metals was spun out of Andean American Mining (AAG-V) in early 2006 to focus on the Sinchao copper-gold-silver property in Cajamarca province, northern Peru. Andean American had held the site since 1996, completing over 8,000 metres of drilling by 1999. Despite encouraging results the project was put on hold because of low metal prices. After expanding the project’s land position in 2005 Andean American spun out Sinchao Metals, which has since focused on exploring two of the project’s four mineralized zones: the Skarn and Breccia zones.

Sinchao Metals has three drill rigs turning at its property, advancing a 10,000-metre drill program. Sinchao Metals plans to define mineralization at Skarn and Breccia in sufficient detail to estimate an inferred resource at the end of the program.

Sinchao Metals gained a penny on the news to close at 33. The company has a 52-week trading range of 20.5 to $1.05 and has 70.1 million shares issued.