Western Copper grows Carmacks oxide resource (January 21, 2008)

Vancouver — A new resource estimate for Western Copper’s (WRN-T, WCPCF-O) Carmacks copper project in the Yukon has added over 9,000 tonnes of contained copper to the project, which already has a positive feasibility study in hand.

Since the last resource estimate, which came out in April as part of the feasibility, Western Copper resumed exploration and drilled an additional 64 holes at Carmacks in zones 1, 4, and 7, which fall inside the open-pit boundaries. The new resource estimate adds 1.6 million tonnes of measured and indicated oxide tonnage that lend 9,750 tonnes contained copper to the project’s measured and indicated deposit.

The new estimate pegs measured and indicated oxide resources at 12 million tonnes grading 1.06% copper (0.86% oxide), 0.46 gram gold per tonne and 4.6 grams silver, as well as 90,000 inferred tonnes grading 0.73% copper (0.53% oxide), 0.13 gram gold, and 1.8 grams silver.

In the sulphide category, Carmacks hosts 4.3 million tonnes grading 0.75% copper (0.03% oxide), 0.21 gram gold and 2.3 gram silver as measured and indicated resources, and 4 million tonnes averaging 0.71% copper (0.01% oxide), 0.18 gram gold and 1.9 gram silver in the inferred category.

Measured and indicated sulphide mineralization decreased because the location of the oxide-sulphide boundary was reinterpreted.

In April, the Carmacks feasibility study concluded the project could be developed for a total initial capital investment of $144 million. The project would become an open-pit mine with an acid heap leach followed by solvent extraction and electrowinning. A 6-year mine life would produce a total of 94,000 tonnes copper cathode. The project’s net present value was pegged at $123 million; the study predicted a 15.7% internal rate of return, with initial capital payback realized in 3.9 years.

The feasibility study did not consider recovery of precious metals or copper from the sulphide zones. In addition, there is still potential for expansion at Carmacks.

Drilling continues at the project. Results from infill drilling in Zones 12 and 13, which lie to the south of the main pit area, imply that the two zones are continuous. While near-surface oxide mineralization is irregular, and less pervasive than in Zone 1, shallow sulphide mineralization is also consistently present. Copper is hosted in moderately mineralized amphibolites gneiss in early Jurassic granodiorite. Western Copper plans to prepare oxide and sulphide resource estimates for the two zones combined.

In August, the company announced the discovery of Zone 14, located some 600 metres east of Zone 12. The discovery hole, no. 130, intersected 1.39% copper over 8.8 metres. Three additional holes into the zone returned longer, lower-grade intersections. Hole 140 cut 16.4 metres of 1.04% copper, from 144 metres depth, while hole 141 returned 0.23% copper over 80 metres from 152 metres. The zone dips shallowly to the east, and mineralization occurs as narrow high-grade intervals at the western edge of the zone, transitioning to lower grades in the east, where it remains open.

Western Copper is a spinoff from Western Silver, which was acquired by Glamis Gold before Goldcorp (G-T, GG-N) swallowed Glamis. Western Copper holds four other exploration-stage properties: the Casino copper-gold-molybdenum deposit, also in the Yukon; the Hushamu copper-gold project on Vancouver Island; the Redstone copper-gold property in the Northwest Territories; and the Sierra Almoloya joint venture, a Mexican silver project.

Western Copper moved up just 3 on news of the increased Carmacks resource, to close at $1.24. The company has traded in a 52-week range of $1.05-2.68 and has 72.8 million shares issued.