International Enexco Limited
TSX VENTURE : IEC

International Enexco Limited

May 31, 2006 09:00 ET

International Enexco Releases Independent Mineral Resource for the Contact Copper-Silver Project, Elko County, Nevada

VANCOUVER, BRITISH COLUMBIA--(CCNMatthews - May 31, 2006) - International Enexco Limited ("Enexco") (TSX VENTURE:IEC) announced today, results of an Independent Mineral Resource Estimate for its 100% owned Contact Copper-Silver Project, located 80 kilometres north of Wells, Elko County Nevada. The Contact property is approximately 230 miles (370 km) from the RTZ / Kennecott Copper Smelter in Salt Lake City Utah. The project has excellent infrastructure including road access, power and water.

An independent Mineral Resource Estimate was prepared by Caracle Creek International Consulting Inc. (CCIC) based in Sudbury, Ontario. The Mineral Resource, quoted below, was calculated using 0.2% and 0.5% Cu cut-offs and by capping copper grades at 20% Cu and silver grades at 225 g/t Ag.



0.2% Copper Cut-off
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Copper Silver
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Category Tonnes Cu (%) Pounds Cu Ag (g/t) Ounces Ag
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Indicated 3,068,826 0.66 44,923,610 4.15 409,263
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Inferred 6,567,401 1.73 250,311,949 8.35 1,763,967
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0.5% Copper Cut-off
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Copper Silver
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Category Tonnes Cu (%) Pounds Cu Ag (g/t) Ounces Ag
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Indicated 1,796,667 0.89 35,371,480 5.66 326,772
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Inferred 4,969,941 2.17 237,817,370 10.60 1,694,328
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The above Indicated and Inferred Mineral Resource Estimates were calculated using ordinary Kriging methods and conform to the National Instrument 43-101 Standards of Disclosure for Mineral Projects. According to CCIC, excellent potential exists to upgrade the resource categories and significantly expand tonnage along strike, down-dip, and between individual zones. The Mineral Resource Estimate reported herein is not a mineral reserve and, as such, does not demonstrate economic viability.

The Contact Deposit, also referred to as the Banner Zone, consists of 3 principal vein systems that strike east-northeast and dip between 40 degrees and 50 degrees toward the southeast. Based on the density of sampling, the vein systems were modelled as 31 distinct mineralized zones which extend 1500 metres along strike, 900 meters down-dip, and approximately 650 metres below surface. Eighty percent of the Inferred material and 100% of the Indicated material lies within approximately 350 metres of surface. Most of the historic reverse circulation and diamond drill holes were drilled on section lines between 30 and 60 metres. Sampling was completed using an average of 1.0 metre sample interval.

CCIC personnel completed a site visit in March 2006. A re-sampling program of all available sample pulps greater than 1.0% copper was completed. The sample pulps were submitted to Inspectorate Laboratories in Reno, Nevada and the results show excellent correlation to historic results.

The mineral deposits in the Contact Project area occur principally within metasomatized alteration zones proximal to the contact between Jurassic granodiorite rocks and Palaeozoic sedimentary rocks. Copper is the principal commodity, along with silver, gold, and molybdenum.

Mr. Arnold Armstrong stated that: "We are very encouraged by the results of the Independent Mineral Resource Estimate as it confirms the presence of a sizable, potentially very economic copper/silver resource inside one of the world's most mining friendly regions." He added that: "The Contact Property shows excellent promise to increase in size and value through additional drilling."

The above Mineral Resource Estimate was prepared under the overall direction and responsibility of Qualified Person, Scott Jobin-Bevans, Ph.D., P.Geo.. Details of the Estimate are contained in a report produced in accordance with the guidelines set out in National Instrument 43-101, companion policy NI43-101CP and Form 43-101F1. A copy of the report will be filed on SEDAR within 45 days.

International Enexco is a Canadian based advanced exploration company head quartered in Vancouver, B.C. In addition to its 100% owned Contact Copper-Silver Resource Property, International Enexco also has a strategic alliance with Cameco Corporation (35%) and UEM Inc. (35%) to jointly develop the Mann Lake Uranium Project located in the prolific Athabasca Basin, Saskatchewan. Cameco is the operator of the Mann Lake Uranium Project and has recently completed a two hole (612 m & 517 m) drill program. Assays from the Cameco drill program will be released in an upcoming press release as soon as they are received.

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

Contact Information

  • International Enexco Limited
    G. Arnold Armstrong
    President
    (604) 683-7361
    (604) 662-3231 (FAX)
    www.enexco.ca