Centenario Copper Corporation
TSX : CCT

Centenario Copper Corporation

November 13, 2007 08:00 ET

Centenario Reports Franke Infill Drilling Increases Measured & Indicated Resource by 8.0 Million Tonnes (At 0.3% CuT Cut-Off)

Updated reserve and mine plan in progress

TORONTO, ONTARIO--(Marketwire - Nov. 13, 2007) - Centenario Copper Corporation ("Centenario" or the "Company") (TSX:CCT) is pleased to announce the results of a new resource calculation at its wholly owned development stage Franke project, located in the Altamira mining district of Region II of Chile, 65 km. north of the town of Diego de Alagro. An RC drilling program comprising a total of 348 vertical holes for 30,680 meters has recently been completed within the proposed Franke Pit. This program was designed to confirm previously estimated resources by increasing the drilling density, for an area roughly equivalent to the first half of the projected mine life, from approximately 50 metre centers to 25 metre centers. The results of this and previous programs, totaling 67,125 meters of drilling, have been incorporated into a new resource model, developed by GEOVECTRA S.A., a Santiago Chile based mining consulting company, and reported herein. Updated reserve and mine plans are currently in progress and expected to be completed by year end.

The 2007 drill program has been successful in confirming the overall continuity of the mineralization within the orebody, while upgrading a significant portion of the resource from the Indicated to the Measured category, leaving almost no Indicated resources within the pit planned for the first half of the mine life. The resource category distribution according to the 2006 resource model was 33% Measured, 53% Indicated and 14% Inferred. In contrast, in the new 2007 resource model, the distribution is 67% Measured, 24% Indicated and 9% Inferred. The tighter drill spacing in the 2007 drill program has also more clearly defined the high grade resources in the deposit, adding 2.4 million tonnes of Measured and Indicated resources at a 1.0% total copper cut-off grade. It has also better defined potential feeder structures below the current pit, adding 2.1 million tonnes at 0.96% total copper to the Inferred resource category.

Although increasing the existing resources was not the purpose of this infill and pre-production drill program, it has also resulted in a significant increase in the Measured and Indicated resources, of 8.0 million tonnes at a cut-off grade of 0.3% total copper. This represents a 17.5% increase in overall contained copper (or 47,252 tonnes of copper) at a 0.3% total copper cut-off grade. At a 1.0% total copper cut-off grade, contained copper has increased by 24.7%.

While the 2007 drill program was contained entirely within the current pit footprint, it was also directed at properly drilling down to a generally consistent lower limit of the mineralization, whereas earlier drilling had often remained open at depth, due in part to the inability to drill through various stopes. This was not a constraint of the 2007 program due to the vertical orientation of drill holes, compared to mostly angle holes employed in previous programs. As a consequence, it is expected that a significant driver in the increase in the Measured and Indicated resource is the result of the extension of parts of the ore body at depth, rather than purely as a conversion of in-pit material that was previously classified as waste. This impact will be better understood once the updated mine plan has been developed.

Richard Colterjohn, President and CEO of Centenario, commented: "We are very pleased with the impact of the 2007 program. As expected, it significantly increased our level of confidence in the Franke resource profile, with 76% of the M&I Resource now in the Measured category. The tighter drill spacing has also more clearly brought into focus the considerable volume of high grade copper resources that are known to exist at Franke. It has also increased M&I resources by a remarkable 8 million tonnes (0.3% total copper cut-off), while modestly decreasing the total copper grade. All of these factors should have a materially beneficial impact on the updated reserve and mine plan currently under development. We also plan to follow up on the potential feeder structures that have now been better defined at depth."

The revised resource calculation, based on various total copper cut-off grades, is set out in the tables below.



--------------------------------------------------------------
MEASURED RESOURCES
--------------------------------------------------------------
2006 model(1) 2007 model
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Cut-off Tonnes Tonnes
(CuT %) (kt) CuT(%) Cu (t) (kt) CuT(%) Cu (t)
--------------------------------------------------------------
1.00 4,165 1.36 56,731 7,732 1.41 108,971
--------------------------------------------------------------
0.50 11,501 0.97 112,096 23,107 0.96 220,768
--------------------------------------------------------------
0.30 12,819 0.92 117,654 28,558 0.85 243,260
--------------------------------------------------------------
0.20 13,579 0.88 119,455 29,341 0.84 245,388
--------------------------------------------------------------


--------------------------------------------------------------
INDICATED RESOURCES
--------------------------------------------------------------
2006 model 2007 model
--------------------------------------------------------------
Cut-off Tonnes Tonnes
(CuT %) (kt) CuT(%) Cu (t) (kt) CuT (%) Cu (t)
--------------------------------------------------------------
1.00 3,487 1.46 51,053 1,962 1.29 25,405
--------------------------------------------------------------
0.50 15,984 0.90 144,172 7,130 0.87 62,003
--------------------------------------------------------------
0.30 17,934 0.85 152,620 10,187 0.73 74,266
--------------------------------------------------------------
0.20 20,458 0.77 158,345 10,719 0.71 75,743
--------------------------------------------------------------


--------------------------------------------------------------
MEASURED + INDICATED RESOURCES
--------------------------------------------------------------
2006 model 2007 model
--------------------------------------------------------------
Cut-off Tonnes Tonnes
(CuT %) (kt) CuT(%) Cu (t) (kt) CuT(%) Cu (t)
--------------------------------------------------------------
1.00 7,653 1.41 107,784 9,695 1.39 134,377
--------------------------------------------------------------
0.50 27,485 0.93 256,268 30,237 0.94 282,770
--------------------------------------------------------------
0.30 30,753 0.88 270,274 38,745 0.82 317,526
--------------------------------------------------------------
0.20 34,037 0.82 277,800 40,060 0.80 321,131
--------------------------------------------------------------


--------------------------------------------------------------
INFERRED RESOURCES
--------------------------------------------------------------
2006 model 2007 model(2)
--------------------------------------------------------------
Cut-off Tonnes Tonnes
(CuT %) (kt) CuT(%) Cu (t) (kt) CuT (%) Cu (t)
--------------------------------------------------------------
1.00 1,124 2.03 22,797 1,116 1.54 17,234
--------------------------------------------------------------
0.50 3,994 1.07 42,701 2,851 1.03 29,445
--------------------------------------------------------------
0.30 4,345 1.02 44,228 3,673 0.89 32,795
--------------------------------------------------------------
0.20 5,470 0.86 46,769 3,784 0.87 33,077
--------------------------------------------------------------

(1)The 2006 model was released by GEOVECTRA in August 2006 and used by NCL
for the Feasibilty Stage mine plan.
(2)Includes 2,113 (kt) grading 0.96% CuT of feeder structures located below
the existing resources, identified in the 2007 drilling.


About 50% of the overall resources of the Franke deposit have now been infill drilled. The comparison of the distribution of the mineralization with what was forecasted by previous resource models suggests that 25x25 m is adequate drill spacing for this orebody. The remaining half of the resources are scheduled to be infill drilled during the first year of mining. A successful effort was made during this campaign in order to drill through the numerous underground stopes previously dug by "pirquineros" (artisanal miners), proving the continuity of mineralization under most of the stopes and allowing better definition of some of the potential feeder structures under the existing ore zones.

The mine dumps left behind by the "pirquineros" in the Franke area will be the first ores to be processed in the heaps upon operational start-up. In order to estimate their resources, about 100 truck loads were shipped, crushed and sampled in a custom plant facility and the results, reported separately in 2006, included 746.4 thousand tonnes grading 1.01% total copper with no cut-off grade, or 342.4 thousand tonnes grading 1.12% total copper at a 1% cut-off grade (see Franke NI 43-101 Technical Report, dated August 31, 2007). The 2007 resource calculation did not modify the dumps' grade profile, but their volumes were adjusted to the dump height provided by the new drill holes. The resource tables for 2006 and 2007 displayed above both include dump resources.

For further information on the Franke project and drill plan map showing recent drilling, please refer to the Company's web site at www.centenariocopper.com or review the Franke Project NI 43-101 Feasibility Stage Technical Report dated August 31, 2007 on SEDAR at www.sedar.com.

All RC holes were sampled on a 2 meters continuous basis, with samples riffle split on site and one quarter sent to the ALS Chemex laboratory in La Serena. A half sample was stored at a Company facility for reference. Samples were regularly collected by a truck belonging to ALS Chemex and transported to the laboratory. Samples were prepared using the following standard protocol: drying, crushing to better than 95% passing 2 mm, splitting and pulverizing a 200 g subsample to 95% passing 0.106 mm.

All samples were analyzed for Total Copper (CuT), Soluble Copper (CuSol), and Carbonate (C03). A full QA/QC program was employed, involving insertion of appropriate fine and coarse blanks, standards and field and lab duplicates, and other protocols as recommended in the Bankable Feasibility Study, with acceptable results. All drill logging, geological interpretation and database handling were performed by GEOVECTRA S.A., using its proprietary software GVMapper.

All principal geologists participating in the program have more than 30 years of relevant experience. Roman Flores, Exploration Manager of Centenario's Chilean subsidiaries, was responsible for the design and conduct of the infill and pre-production drill program. Jozsef Ambrus, a principal of Geovectra, was responsible for the development of the new resource model. Tom Henricksen, a consultant to Geovectra, the Qualified Person for the purposes of NI 43-101, has recently visited the Franke project, reviewed the methodology used in calculating the resource numbers, and approved the information contained herein in this press release.

To view the map accompanying this release please click on the following link: http://www.ccnmatthews.com/docs/cct1113.jpg

CENTENARIO COPPER CORPORATION

Richard Colterjohn, President and CEO

About Centenario Copper Corporation:

The Company was founded in 2004 with the goal of becoming a mid-tier copper producer and consolidator, active in regions of low sovereign risk. Centenario currently operates exclusively in Regions II and III of Chile. The Company intends to achieve its goal through the acquisition and development of advanced, mid-sized copper projects. It then plans to enhance the scale and value of its principal projects through the roll-up of smaller satellite copper resources which exist regionally around the principal projects.

The Franke Property, located in Region II, is currently in construction and is projected to produce 30,000 tonnes of cathode copper per year, starting in December 2008. On the nearby Pelusa Property, a fast track evaluation of various copper targets is underway with an objective of developing additional feed for the Franke processing plant. The Pan de Azucar Property, located 45 km from the Franke Property, is currently being evaluated as a possible nucleus for a second property cluster. The Company continues to evaluate other "in region" clustering opportunities which could reinforce its existing property portfolio.

Copies of NI 43-101 Technical Reports on the Franke Property and the Pelusa Property are posted on SEDAR and on the Company's web site.

CAUTIONARY STATEMENT: This News Release includes certain "forward-looking statements". All statements other than statements of historical fact, included in this release, including, without limitation, statements regarding future plans and objectives of Centenario Copper Corporation, are forward-looking statements that involve various risks and uncertainties. There can be no assurance that such statements will prove to be accurate and actual results and future events could differ materially from those anticipated in such statements. Important factors that could cause actual results to differ materially from Centenario's expectations are the risks detailed herein and from time to time in the filings made by Centenario Copper Corporation with securities regulators.

No stock exchange, securities commission or other regulatory authority has approved or disapproved the information contained herein.

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