International Enexco Ltd
Thursday, August 2nd, 2007
International Enexco Ltd announce that expansion and infill drilling operations have resumed on its 100% owned Contact Property, a copper-silver resource development property located in Elko County in northeastern Nevada.
International Enexco has taken steps to self manage current and future drill programs at Contact thereby assuring the Company of rig availability in the future, providing for greater flexibility and speed in project advancement, and helping the Company significantly reduce its drilling costs. To that end, the Company recently purchased its own diamond drill core rig with a rated capacity of 1,500 metres. Enexco’s very experienced management team is overseeing a recently recruited team of experienced drillers for Contact. The Company is pleased to announce that the rig is now in operation at Contact.
The current program represents phase two of 18,000 metres of both infill and expansion drilling which will allow the Company to upgrade the previously reported NI 43-101 resource at Contact from the Indicated and Inferred categories to the Measured and Indicated categories. Upon completion of this important step the Company expects to initiate a pre-feasibility study for the Contact Project. To further prepare and help expedite the planned pre-feasibility study, the Company completed metallurgical tests at Contact in May this year. Results of these tests indicate high copper recovery rates (91%) for the mineralized material at Contact. Other pre-production procedures are underway including an environmental impact assessment for the project and surrounding areas.
The current phase two drill program will also examine potential for very high grade copper-silver mineralization at depth beneath the Contact resource area. This deeper mineralization, discovered during a previous historical campaign but never followed up, includes 3.7 metres @ 20.8% copper plus 207 g/t silver and 14.0 metres @ 9.2% copper plus 144 g/t silver. Significant gold (up to 5.1 g/t) and molybdenum (up to 1900 ppm) are also associated with these high grade zones. The Company plans to test this high-grade mineralization at depth with a number of offset holes, offering potential to significantly expand Contact’s copper and silver resource.
Currently at Contact, the estimated Indicated Mineral Resource, at 0.2% copper cut-off grade, is 146,498,214 pounds contained copper at a grade of 1.06% and 1,884,257 ounces contained silver at a grade of 9.34 g/t, plus an Inferred Mineral Resource of 256,872,225 pounds copper at 1.40% and 1,848,962 ounces silver at 6.92 g/t. Using a 0.5% copper cutoff, the estimated Indicated Mineral Resource is 132,454,046 pounds contained copper at 1.35% and 1,742,460 ounces contained silver at 12.20 g/t, plus an Inferred Mineral Resource of 238,730,927 pounds copper at 1.80% and 1,680,920 ounces silver at 8.71 g/t.
The Contact Project has excellent infrastructure including immediate access to state and inter-state highways, high voltage power and water.