Explorator Resources Inc.
TSX VENTURE : EXO

Explorator Resources Inc.

June 22, 2010 08:30 ET

Explorator Resources Reports on Drilling at El Espino-Results Include 40m of 3.20% Cu and 0.54g/t Au From 151 Meters

TORONTO, ONTARIO--(Marketwire - June 22, 2010) - Explorator Resources Inc. ("Explorator" or the "Company") (TSX VENTURE:EXO) through its subsidiary Explorator SCM ("Explorator Chile", 51% owned by Sociedad Punta del Cobre S.A. and 49% owned by Explorator) continues to intersect copper and gold rich horizons in the Rachel area of the El Espino project, where the most important of the near surface copper-gold resources discovered to date are located.

The diamond drill program for 2010, which is underway, includes a total of 20,425 meters in 95 holes. A total of 4,483 meters of diamond drilling in 19 holes and 60 meters of RC drilling in 1 hole was completed in the first quarter of 2010. Of these, 19 were drilled in the Rachel Zone and one was drilled in the Chon Chon Zone, (see plan at end of release).

The drilling continues to result in better definition of contiguous zones of copper-gold mineralisation within the stacked mantos of the Rachel Zone. Of particular note are the following previously unreported intercepts:

  • PXE-385: 7m of 1.26% Cu and 0.15 g/t Au, from 121 meters, sulfide
  • PXE-385: 40m of 3.20% Cu and 0.54 g/t Au, from 151 meters, sulfide 
  • PXE-388: 5m of 1.46% Cu and 0.20 g/t Au, from 153 meters, sulfide
  • PXE-388: 7m of 1.36% Cu and 0.26 g/t Au, from 170 meters, sulfide
  • PXE-397: 7m of 1.70% Cu and 2.20 g/t Au, from 58 meters, oxide
  • PXE-398: 11m of 1.47% Cu and 0.30 g/t Au, from 117 meters, sulfide
  • PXE-399: 8m of 0.90% Cu and 0.31 g/t Au, from 156 meters, sulfide
  • PXE-400: 22m of 0.75% Cu and 0.29 g/t Au, from 202 meters, sulfide, with of 11m @ 1.24% Cu and 0.51 g/tAu
  • PXE-405: 51m of 0.47% Cu and 0.22 g/t Au, from 0 meters, oxide
  • PXE-405: 81m of 0.72% Cu and 0.54 g/t Au, from 51 meters, sulfide
  • PXE-410: 25m of 0.64% Cu and 0.11 g/t Au, from 62 meters, sulfide
  • PXE-411: 14m of 0.87% Cu and 0.07 g/t Au, from 118 meters, sulfide

All significant drill hole intersections are set out in the table at the end of this release.

The following drill hole assay results are pending and will be included in the next release. They are PXE-402, PXE-404, PXE-406, PXE-409 AND PXE-413.

RACHEL ZONE

The high grade intersection in PXE-385 (40 m of 3.20% Cu and 0.54 g/t Au, from 151 meters) is part of a zone of high grade mineralization which strikes roughly north-north-west. Previously reported high grade intersections in adjacent drill holes include:

  • MXE-262 50 m to the south (97 m of 1.05% Cu and 0.05 g/t Au from 122 m)
  • MXE-153 40 m to the west (78 m of 0.97 % Cu and 0.10 g/t Au from 126 m)
  • MXE-246 50 m to the north (51 m of 1.30% Cu and 0.12 g/t Au from 109 m)
  • MXE-262 60 m to the northwest (51 m of 1.15% Cu and 0.11 g/t Au from 140 m)

Drill hole PXE-388 is located 50 m east of MXE-262 and encountered strong to intense pyrite-epidotemagnetite alteration with narrow high grade copper-gold intersections. Drill hole PXE-389 was stopped by drilling problems just above the main manto target.

Four diamond drill holes (PXE-403, 405, 407, and 408) were drilled in south central Rachel in and along the margins of the Rachel Breccia Zone. PXE-403 collared in the Rachel Breccia Zone and was stopped in breccias at 41.5, because of drilling difficulties. Drill hole PXE-405 and PXE-407 targeted the mineralization along the western margin of the Rachel Breccia zone and intersected significant mineralization from surface. Of note is the sulfide intersection in PXE-405 which returned a sulfide intersection of 81 m 0.72% Cu and 0.54 g/t Au from 51 m including 1 m of 1.13% Cu and 36.6 g/t Au and 24 m of 1.11% Cu and 0.11 g/t Au. Hole PXE-408 was drilled in the eastern margin of the Rachel Breccia zone and encountered numerous narrow zones of mineralization interpreted as faulted fragments of mineralized mantos.

Drill Holes PXE-377 and PXE 390 are located along the eastern margin of central Rachel. They encountered only narrow low to medium grade mineralized intervals indicating that mineralization is decreasing in an eastward direction. Drill Hole PXE- 401 is on the southeastern margin of the Rachel zone. It was stopped by drilling problems at 209.9 short of the main target (manto M4). It encountered strong pyrite, epidote and actinolite alteration with generally low copper gold values.

Drill holes PXE-386, PXE-399 and PXE-400 were drilled in south central Rachel near the possible northeast extension of the Pirata zone. Significant mineralization was encountered in the upper manto horizons (M1 – M3) including gold rich near surface sulfide mineralization.

RACHEL GOLD ZONE

Drilling in 2009 intersected gold mineralization in 9 holes at depths of between 180 to 300 meters in the Rachel zone below the copper-gold mantos. This zone is located along the north-east extension of the Portugesas fault. Mineralisation is associated with a stockwork of coarse grained calcite veins in volcanic rocks below a capping siltstone unit. The highest gold grades are generally in veins with free gold and little or no sulphide or specularite. This zone is currently defined over an area of 150m x 300m, from sections 7250 to 7400N and is open to the north and east.

Because ground conditions caused drilling difficulties, only 2 of the 5 holes drilled in the area in the first quarter of 2010 reached the Rachel Gold zone. Drill hole PXE-411 encountered minor scattered calcite veins with gold mineralization. The best intersection was 2 m of 0.00% Cu and 4.36 g/t Au from 319 m, one meter above the bottom of the hole at 322 m. Drill hole PXE-397 bottomed in a calcite vein in the lower manto when drill rods twisted off. The bottom sample consisting of calcite vein from 254.0 to 254.9 returned values of 0.61% Cu, and 3.64 g/t Au. Previously reported hole PXE 329 (44.8m at 8.09g/t Au) also bottomed in gold mineralization due to drilling problems.

CHON CHON ZONE

Drill hole PXE-387 was drilled in southeast Chon Chon and intersected narrow intervals of oxide and mixed mineralization. The most significant interval in this hole (7.7 m of 0.50% Cu and 0.16 g/t Au) correlates stratigraphically with the high grade gold-copper intersection in MXE-063 which is 45 m to the northwest of PXE-387.

2010 PLANNED DRILLING

Drilling is programmed to begin further testing of the Portugesas and Pirata zones, including testing for extensions of mineralization to the south-west of previous drilling. Subsequent drilling is also planned on the Pichinilla area to the South East of the property which remains open in strike at depth.

UPDATED RESOURCE CALCULATION

An internal updated resource calculation of the Rachel Zone of the El Espino deposit is now underway and will be incorporated into the updated scoping study scheduled for Q3, 2010.

OTHER INFORMATION:

A copy of the release, as well as other information related to the Company, is available on the Company's web site at www.explorator.ca and on SEDAR at www.sedar.com.

EXPLORATOR RESOURCES INC.

David O'Connor Vice President, Exploration

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) 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 $0.97/lb, net of gold credits (based on a gold price of $850/oz.) and also noted good potential for further resource expansion. Sociedad Punta del Cobre S.A. ("SPC") acquired the remaining 51% of the Project in March 2009 in return for an investment of up to US$18.5 million, with US$7.0 million used to exercise the option to purchase agreement on the Project and the remaining funds directed at the continued exploration and evaluation activities.

REGULATORY FOOTNOTE

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 ACME Analytical Laboratories of Santiago in Chile. ACME 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 ACME laboratory in Santiago by ACME personnel in an ACME Truck. All analytical testing is performed utilizing a variety of industry standard analytical techniques, including: (1) ACME Analytical Code Au-G6 (Au 30g fire assay with AAS finish), (2) ACME analytical code Au-G6GRAV (Au 30g fire assay with a gravity finish), (3) ACME analytical code 7D (23 element analysis using a four acid digestion and ICP-AS analysis). 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 a QA/QC program consisting of utilizing standards, duplicate and blank samples and laboratory cross-checks and routinely repeats sample analysis.

FORWARD-LOOKING STATEMENTS

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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Contact Information

  • Explorator Resources Inc.
    David O'Connor
    Vice President Exploration
    +56 98 255-9071
    or
    Explorator Resources Inc.
    David Prins
    President & CEO
    +56 2 793-4925
    www.explorator.ca