Blaine, WA: Tamerlane Ventures Inc. (TAM: TSX-V) is pleased to announce that the Company has optioned the Los Pinos copper deposit, which is located in the Coastal Cordillera of southern Peru. The concessions comprise: Los Pinos No. 1 (area of 600 hectares), Los Pinos No. 6 (area of 90 hectares) and El Pino (area of 100 hectares).
Tamerlane will pay the vendors a total of US$1,000,000 in staged payments as follows: US$300,000 on signature; US$250,000 six months after signature; US$250,000 twelve months after signature and US$200,000 eighteen months after signature. A finder’s fee of US$50,000 and 50,000 shares of Tamerlane will be paid.
The Los Pinos deposit is an oxide copper deposit developed on a porphyry system. The deposit consists of three mineralized zones: oxide, mixed oxide/sulphide, and sulphide. The deposit has the potential for open pit mining, heap leaching followed by solvent extraction/electrowinning (SX/EW) to recover the copper. Metallurgical testing has shown that the deposit is amenable to run-of-mine heap leaching (ref: Pincock, Allen & Holt, 1994, Evaluation of Los Pinos Project). The deposit geologically is similar to Cerro Verde in Peru and in size similar to Carlota in Arizona.
In 1994, Pincock, Allen & Holt (PAH) carried out an evaluation of the Los Pinos Project for Asarco Inc. PAH’s report summarized the resource modeling methodology, resource estimate, mine plans, and mineable reserves. Capital and operating costs were reviewed and mine plans were generated. PAH provided data for ASARCO Inc. to incorporate into a prefeasibility-level evaluation of the project. The historical resource estimated by PAH in 1994 was 63,191,000 tonnes with an average grade of 0.36% total copper at a cut-off grade of 0.22% copper. A mine plan and production schedule demonstrated mining 3.6 million tonnes per year for 10 years at an average grade of 0.40% copper with a strip ratio of 1 to 1 producing approximately 25 million pounds of cathode copper per year. The copper price used in the 1994 study was US$0.90 per pound compared to US$3.00 per pound at present. The PAH feasibility data is outdated and should not be relied on.
Significant opportunity exists to verify and expand the historical resource with more drilling and refinement of the mine plan. The historical resource reported by PAH has not been verified by an NI 43-101 Qualified Person and should not be relied on. Tamerlane plans to carry out a US$1.0 million in-fill drilling program on the Los Pinos property on receipt of a drilling permit, which will be applied for within the next 90 days. The results will provide input for an NI 43-101 compliant Technical Report and the basis for an updated feasibility study.
The technical content of this press release has been reviewed by Mr. Ross Burns, P.Geo., LG, President & CEO of the Company, who is designated as a Qualified Person with the ability and authority to verify the authenticity and validity of the data.
Ross Burns, President & CEO, said: “We are pleased that we have acquired this exciting oxide copper porphyry deposit. Our objective is to develop Tamerlane into a significant base metal producer. The copper project adds to our zinc-lead assets. The Pine Point project in the Northwest Territories is progressing on schedule. An NI 43-101 compliant reserve and resource estimate, and the results of the feasibility study are expected to be released in the near future. We anticipate that we will commence mining on the R-190 deposit at the Pine Point zinc-lead deposit in 2008 subject to positive feasibility results and debt financing the project.”
“Ross F. Burns”
President & CEO
For further information, please contact:
Brent Jones, Manager of Investor Relations
Phone: (360) 332-4653
Fax: (360) 332-4652
The TSX Venture Exchange has not reviewed and does not accept responsibility for the adequacy or accuracy of the contents of this press release.
Caution Concerning Forward-Looking Information
This press release contains forward-looking information within the meaning of applicable securities laws. We use words such as “may”, “will”, “should”, “anticipate”, “plan”, “expect”, “believe”, “estimate” and similar terminology to identify forward-looking information. It is based on assumptions, estimates, opinions and analysis made by management in light of its experience, current conditions and its expectations of future developments as well as other factors which it believes to be reasonable and relevant. Forward-looking information involves known and unknown risks, uncertainties and other factors that may cause our actual results to differ materially from those expressed or implied in the forward-looking statements and accordingly, readers should not place undue reliance on those statements. Risks and uncertainties that may cause actual results to vary include but are not limited to the speculative nature of mineral exploration and development, including the uncertainty of reserve and resource estimates; operational and technical difficulties; the availability to the Company of suitable financing alternatives; fluctuations in zinc, lead and other resource prices; changes to and compliance with applicable laws and regulations, including environmental laws and obtaining requisite permits; political, economic and other risks arising from our activities; fluctuations in foreign exchange rates; as well as other risks and uncertainties which are more fully described in our annual and quarterly Management’s Discussion and Analysis and in other filings made by us with Canadian securities regulatory authorities and available at www.sedar.com.