Western Copper confirms continuity of Chile Colorado zone

Vancouver — Initial results from an ongoing, 6,800-metre drill program on the Penasquito silver property in Mexico have confirmed the mineral continuity of the Chile Colorado zone.

Based on results from previous drilling, owner Western Copper Holdings (WTC-T) estimates that the property measures 500 by 350 metres. The latest bout of drilling is aimed at defining reserves, and so far results from seven holes have been received.

The first three holes tested the northwestern extent of the Chile Colorado zone. Results from all seven holes are as follows:

– Hole 10 cut 176 metres grading 1.66% zinc and 0.48% lead, plus 44 grams silver and 0.32 gram gold per tonne, at a down-hole depth of 192 metres.

– Hole 11 returned 178 metres grading 1.64% zinc, 0.28% lead, 46 grams silver and 0.73 gram gold at 142 metres down-hole.

– Hole 12 cut a 226-metre section running 1.37% zinc, 0.51% lead, 25 grams silver and 0.95 gram gold at 182 metres down-hole. Included in this section was a 20-metre section of 4.77 grams gold.

– Hole 13 tested the northeastern extent of the zone and hit 168 metres grading 1.81% zinc, 0.7% lead, 85 grams silver and 1.04 grams gold at 74 metres down-hole. Within this was a (previously unknown) sulphide-matrix breccia dyke that returned 18 metres of 4.3% zinc, 3.77% lead, 252 grams silver and 1 gram gold. (Holes 22 and 23 followed up this intercept and both cut the favourable dyke. Assay results are pending.)

– Moving to the southwestern end of the zone, holes 14-16 all cut better-than-expected grades. Hole 15 returning 124 metres of 1.95% zinc, 0.58% lead, 130 grams silver and 1.25 grams gold at 196 metres down-hole; hole 14 cut 50 metres grading 3.61% zinc, 4.71% lead, 373 grams silver and 0.41 gram gold at 196 metres down-hole; and hole 16 averaged 2.38% zinc, 1.79% lead, 131 grams silver and 0.35 gram gold over 210 metres at 138 metres down-hole.

Hole 24 is currently drilling 800 metres northeast of the Chile Colorado zone and 400 metres southeast of a 1995 drill hole that cut 297 metres grading 1.1% zinc, 0.9% lead, 66 grams silver and 0.38 gram gold. At last report, the hole was at 580 metres and had cut visible lead-zinc mineralization over long intervals.

A resource calculation based on all drill results is expected shortly.

Covering 32.5 sq. km in the historical Concepcion del Oro district of Zacatecas state, the Penasquito property hosts a 9-sq.-km mineralizing system which lies 30 metres below alluvial cover. Modern-day exploration over the prospective ground began in 1994, with Kennecott, a subsidiary of mining giant Rio Tinto (rtp-n), performing geochemical and geophysical surveys and drilling 71 holes. This work led to the discovery of polymetallic mineralization rich in silver and hosted in Cretaceous sandstones at the Chile Colorado zone, two large breccia pipes and numerous, as-yet-untested anomalies.

Western Copper entered the picture in 1998 by acquiring the property as part of a deal that included eight projects scattered throughout Zacatecas, San Luis Potosi and Guanajuato states. The Dale Corman-led junior subsequently drilled nine holes on the property before dealing it to Lima, Peru-based Mauricio Hochschild & Cia in August 2000.

Last year, Western Copper reacquired its 100% stake in the project after Hochschild dropped its option to earn a 68% interest. Hochschild spent more than US$1 million on exploration, mostly at the Chile Colorado prospect, where 11 core holes were drilled. The weighted average of the mineralized intervals from 19 holes drilled at Chile Colorado by Kennecott, Western Copper and Hochschild is 0.54 gram gold and 100 grams silver per tonne, plus 0.8% lead and 1.8% zinc.