Antares Minerals Inc.
TSX VENTURE : ANM

Antares Minerals Inc.

February 18, 2010 09:00 ET

Antares Intersects 750.65 m Interval of 0.74% Cu (0.84% Cu EQ) at Haquira East

WATERDOWN, ONTARIO--(Marketwire - Feb. 18, 2010) - Antares Minerals Inc. ("Antares") (TSX VENTURE:ANM) is pleased to announce the results of 11 additional diamond drill holes (9,026 m) completed within or near the Haquira East deposit of the Haquira copper-molybdenum-gold project in southern Peru. These holes represent all of the previously unreported drill holes from the Haquira East area and they have been incorporated into an updated 43-101 resource estimate that is scheduled to be released prior to the February 27th commencement of the BMO 2010 Global Metals and Mining Conference (Hollywood, Florida) where Antares executives will be making one-on-one presentations to global financial institutions, international mining companies, and natural resources fund managers. The remaining unreported holes from the Haquira West portion of the project area will be reported in a separate release. Highlights from the holes reported in this release are as follows:

  • Additional long runs of copper mineralization within and along the margins of the Haquira East deposit that widen the deposit (AHAD-173) and improve the proportion of indicated versus inferred resources within the upcoming resource estimate (AHAD-174)
    • AHAD-174: 750.65 m with 0.74% Cu, 0.01% Mo and 0.063 g/t Au (0.84% Cu EQ)

 including 482.3 m with 0.81% Cu, 0.011% Mo and 0.059 g/t Au (0.91% Cu EQ)

    • Infill hole to complete the 100-m drill grid within the deposit
  • AHAD-173: 499.65 m with 0.54% Cu and 0.07 g/t Au (0.057% Cu EQ)
    • 100-m step-out from AHAD-130 along the SW margin of deposit
  • New zone of copper mineralization confirmed at the Potato Patch prospect, located between the Haquira East and Haquira West deposits; all three new holes in this area encountered significant intervals of near-surface leachable secondary Cu mineralization.
    • AHAD-121 30.85 m with 0.76% Cu
    • AHAD-122 52.00 m with 0.61% Cu
    • AHAD-163 25.90 m with 0.69% Cu
    • Near-surface leachable mineralization remains open and with good potential for increase in resources with additional drilling
    • Underlying primary mineralization also present in two of three holes with potential open to the southeast towards the Haquira East SW Extension target
  • Four drill holes at the Haquira Far East (HFE) target failed to encounter significant copper mineralization. Additional work may be warranted but target has been downgraded for now.

John Black, President and CEO of Antares Minerals Inc. commented as follows:

"The drill holes completed in late 2009 continue to increase the size and confirm the grade of the Haquira East deposit. We look forward to revealing the updated resource estimate in the very near future. It has been over a year since our current resource estimate for the Haquira East deposit was first released (November, 2008) and it was based on 33 shallow holes (4,950 m) and 22 long holes (16,800 m). Since then we have since completed an additional 13 long holes (12,275 m) with most containing long intervals of copper mineralization, including several of the best holes reported to date at the project. This represents an increase of more than 50% in number of deep holes and total drill meterage at Haquira East since the last resource estimate. The majority of the new holes have been 100 m step-out holes along the southern and eastern margins of the deposit with only three in-fill holes within the deposit. Based upon the additional drilling, improvements to the geologic model and the introduction of geologically constrained grade shells, we anticipate that the updated 43-101 resource estimate will show a significant increase in both tonnage and copper grades at Haquira East.

We are also encouraged by the emergence of a new zone of mineralization at the Potato Patch target, located between the Haquira East and Haquira West deposits. Although additional drilling will be required to define the full extent of the near-surface leachable secondary copper mineralization, this target already shows promise to partially bridge the gap between the two principal deposits currently defined at the Haquira project."

Please see figure 1 and tables 1 to 3 below for a complete summary of the new results and refer to the Antares website at www.antaresminerals.com for drill-hole location maps, cross sections and additional information about the Haquira Copper project. 

Discussion of Results

The locations of the eleven diamond drill holes (9,026 m) reported in this release are indicated on Figure 1. Four of the drill holes were drilled within or along the eastern margins of the Haquira East deposit to provide additional data for the updated 43-101 resource estimate (see Table 1 below for results). Drill hole AHAD-174 was completed as an in-fill hole to complete a gap in the 100-m drill spacing and returned better grades than predicted by the previously released interim resource estimate (November, 2008) for this area. AHAD-173 was collared 100 m to the SW of AHAD-130 and extends mineralization in this direction. Hole AHAD-168 constrains the northern margin of the Haquira East deposit and Hole AHAD-172 was drilled to the east of the deposit and did not encounter significant mineralization.

To view Figure 1. Drill Hole Location Map for Haquira East Area, please visit the following link: http://media3.marketwire.com/docs/haquirae.pdf

Figure 1 also denotes the drill holes that have been completed since the last resource update including several of the best holes reported to date at the project (see Antares press release of February 11, 2009 for additional results). The majority of the new holes have been 100-m step-out holes along the southern and eastern margins of the deposit with only three in-fill holes within the deposit.

   Table 1 - Significant drill intercepts  - Haquira East
Drill-hole from (m) to (m) Length (m) Cu% % soluble Mo% Au g/t Cu EQ(1) Comments
AHAD-168 120.40 170.35 49.95 0.70 45 0.021 0.017 0.84 0.2% Cu cut-off; mixed
including 120.40 134.60 14.20 1.12 83 0.009 0.014 1.12 0.2% Cu cut-off; secondary
TD = 510.20 m 248.75 364.50 115.75 0.38 na 0.011 0.016 0.45 0.2% Cu cut-off; primary
  390.80 406.40 15.60 0.36 na 0.003 0.019 0.36 0.2% Cu cut-off; primary
                   
AHAD-172 no significant intervals to report  
TD = 392.90 m                  
AHAD-173 171.10 182.60 11.50 0.43 17 0.004 0.018 0.43 0.2% Cu cut-off; primary
TD = 1055.35 m 239.10 265.70 26.60 0.40 15 0.015 0.017 0.50 0.2% Cu cut-off; primary
  271.40 284.30 12.90 0.49 60 0.015 0.015 0.59 0.2% Cu cut-off; secondary
  320.40 326.15 5.75 1.11 94 0.024 0.016 1.27 0.2% Cu cut-off; secondary
  338.85 350.65 11.80 0.43 90 0.008 0.007 0.43 0.2% Cu cut-off; secondary
  390.65 397.35 6.70 0.83 89 0.015 0.014 0.93 0.2% Cu cut-off; secondary
  456.25 508.50 52.25 0.45 na 0.036 0.019 0.69 0.2% Cu cut-off; primary
  531.00 543.50 12.50 0.22 na 0.013 0.006 0.31 0.2% Cu cut-off; primary
  551.80 1051.45 499.65 0.54 na 0.006 0.070 0.57 0.2% Cu cut-off; primary
                   
AHAD-174 93.00 843.65 750.65 0.74 na 0.010 0.063 0.84 0.2% Cu cut-off; all
including 93.00 115.35 22.35 0.62 68 0.005 0.051 0.64 0.2% Cu cut-off; secondary
and 353.60 835.90 482.30 0.81 na 0.011 0.059 0.91 0.2% Cu cut-off; primary
TD = 873.45 m                  

Three of the drill holes presented in this release tested the Potato Patch target, located between the Haquira East and Haquira West deposits (see Figure 1 above and Table 2 below). Previous drilling had indicated the presence of mineralization in the area and these three holes have confirmed the presence of near-surface leachable secondary copper mineralization. Additional drilling will be required to determine the extent of the near-surface leachable mineralization and also to pursue the potential for underlying primary copper sulphide mineralization as discovered below the leachable mineralization at Haquira East.

   Table 2 - Significant drill intercepts  - Potato Patch Target
Drill-hole from (m) to (m) Length (m) Cu% % soluble Mo% Au g/t Cu EQ(1) Comments
AHAD-121 34.55 65.40 30.85 0.76 66 <0.001 0.017 0.76 0.2% Cu cut-off; secondary
TD = 566.35 m                  
AHAD-122 37.35 196.20 158.85 0.42 30 0.012 0.024 0.50 0.2% Cu cut-off; all
TD = 550.85 m 37.35 89.35 52.00 0.61 52 0.006 0.024 0.61 0.2% Cu cut-off; secondary
  89.35 196.20 106.85 0.33 23 0.014 0.024 0.43 0.2% Cu cut-off; primary
                   
AHAD-163 149.60 217.90 68.30 0.61 60 0.002 0.013 0.61 0.2% Cu cut-off; all
including 149.60 175.50 25.90 0.69 94 0.002 0.008 0.69 0.2% Cu cut-off; secondary
and 183.00 217.90 34.90 0.67 35 0.002 0.018 0.67 0.2% Cu cut-off; primary
TD = 544.75 m                  

Four holes were also completed to test the Haquira Far East (HFE) target located approximately one kilometer east of the Haquira East deposit. The HFE target presents a geological setting similar to Haquira East with a large recessively weathered topographic bowl that was thought to represent a covered porphyry deposit. The four holes encountered several narrow intercepts of copper mineralization associated with narrow porphyry dikes and sills, but failed to intersect mineralization of immediate economic interest (see Table 3 below). Although further drilling may be warranted in the area in the future, this target's priority has been downgraded at this time.

   Table 3 - Significant drill intercepts  - Haquira Far East (HFE) Target
Drill-hole from (m) to (m) Length (m) Cu% % soluble Mo% Au g/t Cu EQ(1) Comments
AHAD-162 194.80 218.15 23.35 0.57 28 <0.001 0.029 0.57 0.2% Cu cut-off; primary
TD = 488.35 m                  
AHAD-164 46.15 66.90 20.75 0.45 87 0.002 0.016 0.45 0.2% Cu cut-off; secondary
TD = 263.90 m                  
AHAD-165 65.00 71.10 6.10 0.98 91 <0.001 0.012 0.98 0.2% Cu cut-off; secondary
TD = 236.80 m                  
AHAD-166 3.25 30.60 27.35 0.31 28 0.005 0.019 0.31 0.2% Cu cut-off; secondary
TD = 691.90 m 61.60 71.20 9.60 0.48 94 0.004 0.024 0.48 0.2% Cu cut-off; secondary
  74.60 80.40 5.80 0.27 93 0.001 0.010 0.27 0.2% Cu cut-off; secondary
  181.10 188.55 7.45 0.38 66 0.001 0.038 0.40 0.2% Cu cut-off; secondary
  228.75 234.80 6.05 0.37 28 0.010 0.034 0.45 0.2% Cu cut-off; primary
                   

About the Haquira Copper Project, Peru

The Haquira project is located in southern Peru and offers excellent potential for an initial low-strip, low-cost SX-EW copper operation with a subsequent transition to a higher grade primary porphyry copper-molybdenum mill/concentrator operation. The project is located contiguous to, and immediately south of, Xstrata Copper's Las Bambas Cu-Au project and consists of two blocks of property optioned under separate agreements as well as additional concessions acquired by Antares for a total of 20,635 hectares of area. Antares has an option agreement with Minera Phelps Dodge del Peru S.A.C. to acquire a 100% interest in the original Haquira project by completing optional payments totalling US$15 million over a five-year period (see Antares press release dated March 17, 2005). A total of US$10 million has been paid to date with the remaining US$5.0 million due on or before March 4, 2010. Antares also has an option agreement with Minera del Suroeste S.A.C. (MISOSA), a wholly owned subsidiary of Hochschild Mining PLC, whereby Antares can acquire up to a 60% interest in the Cristo de los Andes project, located contiguous to, and immediately south of the Haquira project (see Antares press release dated April 28, 2008).

Antares has announced an updated resource estimate (October 9, 2007) and Preliminary Economic Assessment (May 14, 2008) for the near-surface, SX-EW amenable portion of the Haquira project. Mineralization at Haquira occurs within two deposits (Haquira East and Haquira West) with a combined indicated resource of 133.7 million tonnes at 0.53% total Cu with an additional inferred resource of 43.6 million tonnes at 0.44% total Cu (0.3% total Cu cut-off, leachable secondary copper sulphide and oxide mineralization only). This resource is projected to support a 50,000 t/d SX/EW heap leach operation that will produce an average of 109 million lbs of copper cathode for 11 years of mine life. The capital cost to construct the operation is estimated at US$301 million with a projected IRR of 26.9% and an NPV of US$224 million utilizing a copper price of US$2.00/lb and a discount rate of 8%.

Antares has also recently announced the first interim resource estimate for the underlying primary Cu-Mo-Au mineralization at the Haquira East zone based upon drill holes up to AHAD-120 (November 24, 2008). The Haquira East primary mineralization includes an indicated resource of 147.9 million tonnes at 0.57% Cu and 0.015% Mo, an inferred resource to a depth of 700m of 205.2 million tonnes at 0.56% Cu and 0.014% Mo and an additional inferred resource below 700 m depth of 99.4 million tonnes at 0.46% Cu and 0.008% Mo. Mineralization remains open to depth and several directions laterally. Additional drill holes that have been released after the completion of the interim resource calculation include hole AHAD-159 which intersected 937 m of 1.14% Cu, 0.034% Mo and 0.1 g/t Au – the best hole completed at Haquira to date.

About Antares

Antares is a successful mineral exploration company with highly experienced technical and management teams. The Company is focused on precious- and base-metal exploration properties in Latin America that can be quickly and cost-effectively advanced to the discovery and production stage. In addition to the Haquira Project in Peru, Antares is also currently exploring the Rio Grande (Cu-Au porphyry) project in Salta Province of NW Argentina in a 50/50 option/joint-venture basis with Pachamama Resources Ltd., a spin-off from Mansfield Minerals Inc.

For further information: please visit our website at www.antaresminerals.com.

1  CuEQ = Copper Equivalent is calculated for intervals dominated by primary mineralization using US$1.50/lb Cu, US$500/oz Au, and US$10.00/lb Mo and is not adjusted for metallurgical recoveries as these remain uncertain. Metallurgical recoveries and net smelter returns are assumed to be 100%. The formula used is as follows: CuEQ = Cu% + (Au g/t x 10.72/22.05) + (Mo% x 10.00/1.50). Copper Equivalent contributions from Au and Mo only occur if the grade of Au exceeds 0.03 g/t and/or the grade of Mo exceeds 0.01% and if the interval is dominated by primary sulphide mineralization.

All of Antares' exploration programs and pertinent disclosure of a technical or scientific nature are prepared by, or prepared under the direct supervision of John Black, Antares' President, who serves as the qualified person (QP) under the definitions of National Instrument 43-101.

Antares' security, chain of custody and quality control is described on their website and can be reviewed at:
http://www.antaresminerals.com/bestpractices/samplingmethodologies

Mineral resources do not have demonstrated economic viability and future in-fill drilling and scoping, pre-feasibility and feasibility studies will determine what percentage of the inferred resource can be placed into the mineable category. Antares is not aware of any environmental, permitting, legal, title, taxation, socio-political, marketing or other issue which may materially affect this estimate of mineral resources.

Certain disclosure in this release, including management's assessment of Antares' plans and projects, constitutes forward-looking statements that are subject to numerous risks, uncertainties and other factors relating to Antares' operation as a mineral exploration company that may cause future results to differ materially from those expressed or implied. Readers are cautioned not to place undue reliance on forward-looking statements.

The TSX Venture Exchange does not accept responsibility for the adequacy or accuracy of this release.

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