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Sinchao Metals Announces an Initial Resource Estimate of 237 Million Tonnes grading 0.47% Copper and 0.49 g/t Gold at the Sinchao Property, Peru
Thursday October 30, 8:30 am ET
VANCOUVER, BRITISH COLUMBIA--(Marketwire - Oct. 30, 2008) - Sinchao Metals Corp. (TSX VENTURE:
SMZ -
News) is pleased to announce that it has received a NI 43-101 compliant resource estimate from Discover Geological Consultants Inc., authored by Qualified Person Victor Jaramillo, P. Geo., for the Sinchao Project.
The Inferred Resource estimates by cut-off are:Cut-Off Tonnes Copper Gold SilverCu% Au g/t Millions % g/t g/t0.13 0.07 416 0.36 0.33 9.20.23 0.15 376 0.38 0.36 9.90.27 0.24 237 0.47 0.49 12.10.39 0.35 155 0.58 0.62 14.20.44 0.44 113 0.65 0.72 15.60.43 0.55 82 0.74 0.82 17.00.48 0.64 64 0.85 0.90 110.3
As an example, the 237 million tonne Inferred Resource contains an estimated 3.73 million ounces of gold, 2.45 billion pounds of copper and 92 million ounces of silver, or 4.04 billion pounds of copper grading 0.77% copper equivalent based on US$600/oz gold, US$1.50/lb copper and US$8/oz silver. This Inferred Resource is within a larger inferred resource of 416 million tonnes grading 0.36% copper, 0.33 g/t gold and 9.3 g/t silver (containing an estimated 4.4 million ounces of gold, 3.3 billion pounds of copper and 124 million ounces of silver).
"We are pleased to receive this initial resource estimate, which confirms our belief that the Sinchao Property has the potential to host a significant copper-gold deposit," said President Andrew Gourlay. "The fact that the mineralization is still open in all directions is particularly encouraging in that the mineralizing system is larger than anticipated and there is plenty of room to expand the resource."
The mineralization is hosted by the Breccia and Skarn Zones, where all diamond drill holes completed to date have encountered copper-gold mineralization. The mineralization has now been identified over an area of approximately 700m by 500m and to depths of 450m, and remains open in all directions. Less than 30% of the geological targets on the Sinchao Property have been drill tested. A drill program of approximately 5,000m has been proposed which will confirm the extensions of the Breccia Zone to the northwest and the Skarn Zone to the southeast.
Ten diamond drill holes, totaling 5176m, were completed in 1998 and an additional 32 diamond drill holes have been completed on the Breccia and Skarn Zones during 2007 and 2008, totaling 8155m. These 42 diamond drill were used in the resource estimate, which was completed using Datamine software. Five diamond drill holes, totaling 1338m, were completed on the eastern skarn area. The Sinchao Property has also been explored with 22 reverse circulation holes totaling 3273m, which are used to determine areas of mineralization but were not used in the resource estimate.