Tiomin extends oxide zone at Cerro Colorado

Tiomin Resources (TIO-T) has released results from several new holes drilled at its Cerro Colorado porphyry copper project in Panama.

The latest holes are part an ongoing 3,000-metre program designed to confirm and test the extent of an oxide layer overlying a primary sulphide body hosting 1.4 billion tonnes grading 0.78% copper. Of the 11 holes recently completed, four were drilled in known mineralization, where resources are estimated at 60 million tonnes grading 0.72% copper; the remainder tested for mineralized extensions to the north. Results are available from nine holes, with assays for the remainder still pending.

Copper grades ranged from 0.43% to 1.75% over core lengths of 12 to 60 metres.

Leachable copper values (chalcocite and oxides) ranged from 0.3% to 1.37% — chalcopyrite accounts for the difference.

Highlights include the following:

* hole 276, which intersected two separate zones, including 12 metres (from 54 to 66 metres) grading 1.75% copper and 60.5 metres (from 111 to 171.5 metres) grading 1.44% copper;

* hole 275, which hit 60 metres (from 63 to 123 metres) grading 0.95% copper; * hole 279, which returned 0.43% copper over 12 metres (from 126 to 138 metres) and 0.78% copper over 54 metres (from 171 to 225 metres); and * hole 282, which yielded 0.96% copper over 37.8 metres (from 31.2 to 69 metres).

The company will combine the recent drill results with previous data to complete the first portion of a feasibility study, which is expected in October.

The investigation is determining the economic viability of a 2-stage production

schedule at Cerro Colorado. The first stage would see a solvent extraction-electrowinning plant erected to process the near-surface leachable chalcocite-oxide material, whereas the second stage would involve conventional milling of material mined from the underlying sulphide body.

Copper production from oxide material is anticipated to be 40 to 55 million lb. per year, which, based on a preliminary resource calculations, translates into a mine life of more than 13 years. Initiation of the second phase would occur in the fifth or sixth year of the project, and is expected to add an extra 500 million lb. of copper to yearly output.

California-based Kvaenrner Metals, an independent consulting firm, is supervising the feasibility study for Tiomin. The company is being assisted by several other consultants, each of which is focusing on individual aspects, with Kvaerner acting as co-ordinator.