Drilling

Results

 - Drilling

A total of 123 drill-holes for some 17,963 m have now been completed on the Haquira project (Figure 1). Antares Minerals Inc. recently completed in February 2006, a 38 drill-hole (26 reverse circulation holes, 12 diamond core holes) program totalling 6,613 m (4,189 m reverse circulation, 2,424 m drill core). This compliments the 85 drill-holes (61 reverse circulation holes, 24 diamond core holes) completed by Minera Phelps-Dodge del Peru S.A.C., in four drill campaigns between 2001 and 2003, totalling 11,350 m (7,921 m reverse circulation, 3,429 m drill core).

Drilling to date has:

1. Extended secondary copper mineralization amenable to SX-EW processing at both the Haquira West and Haquira East zones,
2. Confirmed the presence of a near-surface, high-grade secondary copper mineralization zone within the Haquira West zone, and
3. Encountered potentially significant primary copper sulphide mineralization at depth.

HIGHLIGHTS

Haquira West Zone - Extension of leachable secondary copper mineralization:

• AHAC-062        6 m of 1.79% Cu and 10 m of 1.22% Cu
• AHAC-065        14 m of 0.33% Cu, 10 m of 0.71% Cu, and 8 m of 0.38% Cu
• AHAC-066        four intervals totalling 50 m with 0.29-0.61% Cu
• AHAD-025        11.05 m of 0.40% Cu, 12.45 m of 0.75% Cu, and 17.10 m of 0.47% Cu
• AHAD-029        8.5 m of 1.16% Cu
• AHAD-030        5.95 m of 0.35% Cu and 5.80 m of 0.75% Cu
• AHAD-031        22.15 m of 2.07% Cu
• Leachable secondary copper mineralization has been extended 200-550 m to the west and southwest of the previously defined Haquira West zone. The surface area of the Haquira West zone is now approximately 1.9 square km; an increase of approximately 25%. Mineralization remains open to the west and southwest.

Haquira West Zone - Confirmation of near-surface, high-grade copper mineralization amenable to SX-EW processing at the northern end of the zone:

• AHAC-068        12 m of 8.87% Cu from 6 to 18 m depth, no recovery from 18 to 24 m, followed by 12 m of 0.58% Cu from 24 to 36 m depth
• AHAC-069        24 m of 0.84% Cu from 14-38 m depth
• AHAC-069T      56 m of 0.99% Cu from 26-82 m depth
• Combined with previous drilling by Phelps Dodge, a 700 m long by up to 200 m wide corridor of near-surface, high-grade leachable copper mineralization has been defined.

¹ The term “leachable copper” refers to copper that can dissolved into a solution of dilute sulphuric acid (oxide mineralization) and bacteria (secondary sulphide mineralization) allowing the use of lower cost solvent extraction and electrowinning technology (SX-EW) as opposed to the higher cost flotation-concentration and smelting technology traditionally utilized for primary copper sulphide mineralization.

• Leachable secondary copper mineralization has been extended approximately 200 m to the south and southeast of the previously defined Haquira East zone and may extend as far as the mineralized intercept in AHAC-077, an additional 600 m further to the south

DISCUSSION OF RESULTS

Please see Table 1 below for a summary of the drill hole results for Antares drill holes AHAD-024 to AHAD-030 (diamond) and AHAC-056 to AHAC-080 (reverse circulation). Drill holes previously completed by Phelps Dodge at Haquira are designated HAC-01 to HAC-55 (reverse circulation) and HAD-01 to HAD-23 (diamond core).  A drill-hole location map, with grade-thickness values for copper mineralization amenable to SX-EW processing is shown Figure 2.

Haquira West Zone: This zone is the larger of the two zones of leachable copper mineralization defined by Phelps Dodge at the Haquira project; with surface dimensions of approximately 1.25 by 1.25 km. At the time Phelps Dodge completed their drilling program, mineralization remained open to the northwest, west, southwest, and southeast.

Significant extensions of leachable secondary copper mineralization have been encountered to the west (AHAC-062, 6 m of 1.70% Cu and 10 m of 1.22% Cu) and particularly to the southwest (AHAC-065, AHAC-066, AHAD-025, AHAD-029, and AHAD-030). These latter holes increase the size of the zone by as much as 550 m (see secondary Cu grade-thickness map on website). Mineralization remains open in these directions and additional drilling will be completed in January. The western and south-western extensions correlate well with surface soil and rock-chip molybdenum anomalies which extend up to 500 m beyond the limit of the current drilling.

The mineralization encountered in AHAD-031 (22.15 m of 2.07% copper from 53.55-75.79 m depth) represents a 270 m extension to the west-southwest of well-mineralized drill hole AHAC-062 (6 m of 1.71% Cu and 40 m of 1.19% Cu). Mineralization remains open to the west and south of AHAD-031 in the area of additional magnetic high anomalies and surface soil anomalies of copper and molybdenum. The mineralization in AHAD-031 consists of secondary copper sulphides (chalcocite) and green copper oxides.

The current drill results appear to have closed off the Haquira West zone to the northwest (AHAC-063, 064, and 067 and AHAD-027) and to the southeast (AHAC-056, 057, and 058).

Near-surface high-grade leachable copper core to the Haquira West zone: Drill hole AHAC-068 was located within the centre of the Haquira West zone.  The hole was designed to be one of a pair of holes to provide geo-statistical data to help determine optimal future infill drill spacing. A zone of extremely high-grade copper oxide mineralization was encountered from 6-18 m depth (12 m of 8.87% Cu).  No samples were recovered between 18-24 m depth due to poor ground conditions. Recovery was re-established at 24 m and an additional 12 m of 0.58% Cu was encountered to 36 m, however poor drilling conditions resulted in termination of the hole at 40 m depth.  The drill rig was relocated approximately 10 m to the southeast and a pair of twin holes (AHAC-069 and AHAC-069T) was completed to the original planned depths. Both of these twin holes also encountered near-surface, high-grade secondary copper mineralization.

Drill holes AHAC-068, 069, and 069T have confirmed the presence and continuity of a zone of a  high-grade, near-surface leachable secondary copper mineralization in the northern portion of the Haquira West zone. The zone extends from HAC-18 through HAC-41 for a length of approximately 700 m with a width of up to 200 m. Significant drill intercepts from Phelps Dodge and Antares drilling in this zone are indicated in Table 2 below.

Haquira East Zone: Drill holes AHAC-071, 072, 074, and 076 all encountered significant leachable, secondary copper mineralization and extend the Haquira East zone approximately 200 m to the southeast with mineralized intervals ranging from 10-84 m thick containing 0.44-0.72% Cu. Three holes were drilled approximately 600 m to the south of the Haquira East zone to test for an extension of mineralization. All three holes pierced a thick sequence of leached capping and the easternmost hole, AHAC-077, encountered 18 m of secondary copper mineralization grading 0.68% Cu. These results suggest the possibility of a significant extension of the Haquira East zone to the south and southeast between holes AHAC-077 and AHAC-071.

Primary copper sulphide mineralization at depth: Many of the drill holes in the Haquira East zone bottomed in disseminated primary copper sulphide (non-leachable) mineralization with average bulk grades of 0.45-0.60% Cu (see Table 1). Drill-hole AHAC-062 at the Haquira West zone intersected 30 m of 1.18% Cu as primary copper sulphide in siltstone with local skarn development. Several Phelps Dodge drill holes also encountered primary copper sulphide mineralization including HAC-41 which bottomed at 121 m with the final 45 m containing 0.9% Cu. This primary copper sulphide mineralization is not expected to be amenable to SX-EW processing but may constitute a separate, primary copper target for future exploration. Gold and molybdenum assays are currently pending for key intervals.

Click titles to view PDFs.

Haquira – Antares Drill Hole Location Map (Figure 1)
Haquira – Antares Drilling Results (Table 1)
Haquira – Grade-Thickness Map for Secondary Cu (Figure 2)
Haquira – High-grade Cu Zone Results (Table 2)