Western Copper resumes drilling at Penasquito

Vancouver — Western Copper Holdings (WTC-T) has resumed drilling at its 100% owned Penasquito silver-gold-lead-zinc property in Zacatecas state, Mexico.

One drill rig is currently spinning and a second rig will be added in about 10 days. The 7,000-meter program will focus on the area between holes WC-23 (282 metres averaging 0.54 gram gold, 38 grams silver, 0.20% lead and 0.87% zinc) and WC-24 (250 metres averaging 0.44 gram gold, 49 grams silver 1.08% lead and 2.35% zinc). Both of these holes were collared northeast of Chile Colorado.

Diamond drilling to date at Chile Colorado has delineated a mineralized zone that extends for over 500 meters in an east-west direction and 350 meters in a north-south direction. The zone of strongest mineralization, including the high-grade silver mineralization in hole MHC-4 (37.2 meters averaging 38.1 oz. silver per ton), covers a surface area that measures 450-by-300 metres with an average thickness of 300 meters. This mineralized zone is open on both the east and west ends and at depth.

In addition, Western Copper states that SNC Lavalin is preparing a geological resource at Chile Colorado based on 33 holes. Metallurgical work including heavy media tests on the Chile Colorado and Azul breccia mineralization are ongoing. The junior states that it is also reviewing all geophysical information using new drill data to assist with interpretation.

In other news, Western Copper recently inked a deal with Cordilleras Silver Mines LDC, a wholly-owned subsidiary of Apex Silver Mines (SIL-X) whereby Apex stands to earn a 70% interest in the property.

According to the agreement, Apex is required to make all option and tax payments on the property through March 2005 (this works out to US$1.1 million in total). Apex can earn an additional 10 percent by arranging financing to place the property into commercial production. In addition, Apex is required to pay Western Copper US$10,000 in 2002, US$15,000 on January 1, 2003 and US$20,000 on January 1, 2004. Once vested, Apex and Western Copper will incorporate a Mexican subsidiary and operate the project as a joint venture. Western Copper will initially be the operator on the property.

The San Jeronimo prospect is located 20 km south of the city of Zacatecas within a strongly mineralized zone known as the Faja de Plata. Prior to Western Copper ‘s acquisition of San Jeronimo in 1998, the property had never been drilled. Mapping, sampling and limited drilling by Western Copper along the 2.5 km-long Loreto vein system have demonstrated potential for both high-grade and bulk-mineable vein-stockwork silver mineralization.