Explorator Resources Inc.

Explorator Resources Inc.

November 26, 2009 16:05 ET

Explorator Reports Third Quarter 2009 Results

TORONTO, ONTARIO--(Marketwire - Nov. 26, 2009) - Explorator Resources Inc. ("Explorator" or the "Company")(TSX VENTURE:EXO) reports its financial results for the three and nine month period ended September 30, 2009. Set out herein are the highlights and an excerpt from the MD&A for the three and nine month period ended September 30, 2009.


- Ongoing 14,000 metre drilling program delivers promising results at
El Espino:
- Program targeting closer drill spacing of previously defined mineralized
areas and expanding deposit at depth, where the deposit remains open.
Initial drilling focused on Rachel and Chon Chon prospects.
- Initial Chon Chon drill holes targeted a high-grade gold zone discovered
by previous drilling. The drill holes intersected anomalous gold in the
stratigraphically controlled horizon which hosts the high grade gold but
failed to return high-grade gold values. The results demonstrate the
erratic nature of high grade gold mineralization at Chon Chon.
- Initial Rachel area drill holes were designed to confirm and extend the
resources outlined by previous drilling campaigns. The results support
the resource model utilized by Micon International Limited in the latest
resource estimate. Of interest is the near surface high-grade
mineralization in MXE-330 and MXE-331, which could have a positive
impact on project economics.
- Drilling ongoing, with further results released as available.

- Company strengthens team: In early November, 2009, the Company announced the appointment of Walter Segsworth and Richard Colterjohn, as directors. Both individuals have considerable public company experience in the mining sector. Mr. Segsworth also brings considerable mining sector operating experience to the Company, including roles as President and COO of Homestake Mining Company and President and CEO of Westmin Resources Ltd. Mr. Colterjohn has extensive experience in the financing of mining companies, as an investment banker, director and active investor.

- Recent private placement increases Company treasury to $5.5 million: In early November 2009, the Company completed a $4.4 million private placement of Units consisting of 1 common share and 1 warrant. Each Unit was priced at $0.40/share, with each warrant exercisable into 1 common share at a price of $0.50 for a period of 24 months from closing. The investors consisted of Mr. Segsworth, affiliates of Glencoban Capital Management Inc. (of which Mr. Colterjohn is a Managing Partner), SPC and certain other investors.

- Other Projects: In addition to its investment in El Espino, Company management continues to evaluate additional potential investment opportunities.

- Earnings: Q3 2009 loss of CDN$172,181 ($0.003 loss per share basic).

Extract from the Company's Management Discussion and Analysis:

SPC Investment in Explorator Chile:

On March 19, 2009, Explorator completed a previously announced agreement with Sociedad Punta del Cobre S.A. ("SPC") pursuant to which SPC acquired a 51% interest in Explorator Chile in exchange for a payment of US$17 million (the "Agreement"). Under the terms of the Agreement, SPC made a capital contribution of US$10 million to Explorator Chile at the end of March 2009 and will make a further capital contribution of US$7 million to Explorator Chile within 18 months of the execution of a definitive capital contribution agreement for the shares, representing a 51% interest in Explorator Chile. Additionally, the Agreement requires SPC to provide additional funds (up to US$1.5 million) that would be required to carry out a bankable feasibility study with respect to the El Espino Project. Explorator will retain a royalty of US$0.10 per ton of ore that may be processed from the El Espino project.

Of the initial SPC US$10 million capital contribution into Explorator Chile, US$7.0 million was used in March 2009 to complete its acquisition of a 100% interest in the El Espino Copper-Gold Project. The remaining US$3.0 million of SPC's initial capital contribution and SPC's required further capital contributions of up to US$8.5 million will be used to finance the continued exploration and evaluation of the El Espino Project. The Company currently anticipates that this funding should be adequate to meet project expenditures until the end of 2010.

Other Information:

The interim Financial Statements and Management Discussion and Analysis, as well as other information related to the Company are available on the Company's web site at www.explorator.ca and on SEDAR at www.sedar.com.


David O'Connor, President

About Explorator Resources

Explorator Resources is a Canadian-based mining exploration company with a 49% interest in the El Espino Copper-Gold Project in Chile (the "Project"). The Project lies within the prolific copper-gold mineral area of the Cordillera de la Costa, 240 km. north of Santiago, and is central to an important cluster of "Candelaria-style" copper-gold deposits. A National Instrument 43-101 compliant preliminary assessment (see press release dated May 11, 2009) has defined the potential for an average annual payable production of 77 million pounds of copper and 40,000 ounces of gold over a 19 year mine life (life-of-mine payable production of 1.467 billion lbs copper and 755,000 oz. gold) at an average cash cost of $1.06/lb, net of gold credits (based on a gold price of $680/oz.) and also noted good potential for further resource expansion. Sociedad Punta del Cobre S.A. ("SPC") acquired 51% of the Project in March 2009 in return for an investment of US$17.0 million (plus US$1.5 million as needed to complete a bankable feasibility study), with US$7.0 million used to exercise the option to purchase agreement on the Project and the balance expected to be adequate to meet project expenditures until the end of 2010.


Mr. Michael Schuler, in charge of exploration at Explorator SCM is the "Qualified Person" as defined under the National Instrument 43-101 and is responsible for the scientific and technical work on Explorator SCM's exploration program and is responsible for reviewing the technical disclosure in this news release. All analytical work has been completed by ALS Chemex of La Serena in Chile; ALS Chemex is a respected international analytical service which is accredited with NATA and complies with standards of ISO 9001:2000 and ISO17025:1999. They employ a variety of international standards for quality control purposes. Samples are transported from the project to the ALS Chemex laboratory in La Serena by Company personnel or a reputable commercial carrier. All analytical testing is performed utilizing a variety of industry standard analytical techniques, including: (1) ALS Analytical Code Au-ICP22 (Au 50g fire assay with ICP-AES finish), (2) ALS analytical code AuGRA22 (Au 50g fire assay with a gravity finish), (3) ALS analytical code ME-ICP61 (33 element analysis using a four acid digestion and ICP-AES analysis), (4) ALS analytical code Cu-AA62 (ore grade copper analysis using a four acid digestion and an AAS finish. All diamond drill core is geologically logged, cut in half using a diamond saw and sampled by Company geologists in one (1) to three (3) meter sample intervals depending on visual grade estimates; the archive portion of the sample is securely stored at the company's core shed adjacent to the office in the town of Illapel. The Company has initiated a QA/QC program consisting of utilizing standards, duplicate and blank samples and laboratory cross-checks and routinely repeats sample analysis.


Certain statements contained in this news release may contain forward-looking information within the meaning of Canadian securities laws. Such forward-looking information are identified by words such as "estimates", "intends", "expects", "believes", "may", "will" and included, without limitation, statements regarding the company's plan of business operations, production levels and costs, potential contractual arrangements and the delivery of equipment, receipt of working capital, anticipated revenues, mineral reserve and mineral resource estimates, and projected expenditures. There can be no assurance that such statements will prove to be accurate; actual results and future events could differ materially from such statements. Factors that could cause actual results to differ materially include, among others, metal prices, risks inherent in the mining industry, financing risks, labour risks, uncertainty of mineral reserve and resource estimates, equipment and supply risks, regulatory risks and environmental concerns. Most of these factors are outside the control of the company. Investors are cautioned not to put undue reliance on forward-looking information. Except as otherwise required by applicable securities statutes or regulation, the company expressly disclaims any intent or obligation to update publicly forward-looking information, whether as a result of new information, future events or otherwise.


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