Quadra Mining Ltd.
TSX : QUA

Quadra Mining Ltd.

January 16, 2007 09:00 ET

Quadra Mining Announces Discovery of Significant New Sulphide Copper Zone at Sierra Gorda

VANCOUVER, BRITISH COLUMBIA--(CCNMatthews - Jan. 16, 2007) - Quadra Mining Ltd. ("Quadra" or "Company") (TSX:QUA) is pleased to announce assay results from several holes drilled in late 2006 on its 100% owned Sierra Gorda project in Chile.

During the third quarter of 2006 Quadra initiated a diamond drill program to test the concept of deep sulphide mineralization based on historical data, geophysics and the mapping and modelling completed earlier in the year.

On November 8th, 2006 it was announced that significant copper and gold grades had been encountered over substantial intervals in hole QSG-6-281. Since that time, Quadra has completed additional holes that spatially extend the mineralized zone.

Paul Blythe, President & CEO says, "The grade and extent of mineralization identified in this campaign is very encouraging. We have always felt that Sierra Gorda had the possibility of providing us with a major project. These results have moved us from looking at an oxide heap-leach project to looking at a larger project that would encompass both heap leaching and primary sulphide production. Clearly there is more work to be done in understanding and defining the mineralization through additional drilling. We are currently developing a plan and strategy to move Sierra Gorda forward as expeditiously as possible."

Assay results from the deep holes all of which were inclined (all -60 degrees except hole 298, which was -70 degrees), are summarized as follows. A drill hole location map for these zones can be found on the company website on the Sierra Gorda project page.



-------------------------------------------------------------------------
Average Grade within
Total Depth the Intersection
Drill Hole of Hole (m) From (m) To (m) Length (m) Cu% Mo% Au (g/t)
--------------------------------------------------------------------------
281 ZONE
--------------------------------------------------------------------------
QSG06-278 736 218 736 518 0.49 0.014 0.11
including 502 736 234 0.64 0.020 0.14
--------------------------------------------------------------------------
QSG-6-281 580 242 580 338 1.05 0.014 0.20
less
than
including 294 394 100 1.40 0.005 0.11
including 406 580 174 1.05 0.017 0.31
--------------------------------------------------------------------------
less
than
QSG06-286 550 152 550 398 0.21 0.005 0.03
less
than
including 442 550 108 0.37 0.005 0.04
--------------------------------------------------------------------------
QSG06-292 787 174 787 613 0.60 0.008 0.05
including 374 458 84 1.00 0.006 0.04
including 474 502 28 0.99 0.011 0.05
--------------------------------------------------------------------------
less
than
QSG06-293 700 514 700 186 0.44 0.005 0.02
less
than
including 636 700 64 0.60 0.005 0.03
--------------------------------------------------------------------------
less
than
QSG06-297 714 434 714 280 0.45 0.005 0.03
less
than
including 468 502 34 1.05 0.005 0.05
--------------------------------------------------------------------------
QSG06-298 702 76 702 626 0.53 0.011 0.10
including 244 322 78 0.80 0.010 0.09
including 510 702 192 0.56 0.017 0.15
--------------------------------------------------------------------------
CATALINA ZONE
--------------------------------------------------------------------------
QSG06-283 984 516 842 326 0.60 0.098 0.07
including 718 836 118 0.97 0.190 0.10
--------------------------------------------------------------------------
ISABELLA NORTE ZONE
--------------------------------------------------------------------------
less
than
QSG06-285 402 6 402 396 0.42 0.013 NA
including 146 228 82 1.07 0.011 NA
--------------------------------------------------------------------------


The "281 Zone" appears to be part of one mineralizing system, open to depth and along strike. This zone is characterized by disseminated and vein controlled chalchopyrite-pyrite mineralization hosted in andesitic volcanic rocks with strong biotite-magnetite alteration. The style of alteration and mineralization and the length of the intervals support the idea that there is substantial new zone of classical porphyry copper mineralization in the 281 Zone. In addition to the 281 Zone, two other zones with known copper mineralization were drill tested:

Isabella Norte

Hole 285 encountered 82 meters of 1.07 percent Cu from 146 to 228 metres down hole. This is part of a new zone of chalcopyrite mineralization discovered beneath the Isabella Norte zone where leachable copper resources had been found in 2004 and 2005. In this zone, pyrite-chalcopyrite mineralization is hosted in strong quartz-sericite-pyrite alteration in andesite.

Catalina

Hole 283 encountered 326 metres of 0.60 percent Cu with 0.098 percent Mo and 0.07 grams Au/t including 118 meters of 0.97 percent Cu, 0.19 percent Mo and 0.10 grams Au/t. The hole was drilled beneath known mineralization identified by the project's previous owner and operator Outokumpu Oyj. The mineralization cuts a complex zone of porphyry and multi-stage breccias which are typical of the Catalina zone. Mineralization in the Catalina area appears to be contiguous with the "281 zone".

Based on the information available, the Company currently believes that further drilling to define the extent of the mineralization in all of these zones is warranted. Quadra recently purchased two separate properties contiguous to the Sierra Gorda project and is pursuing opportunities for the purchase of water rights in the region.

Background

The Sierra Gorda project is located in Region II, in northern Chile. The project is situated in the Atacama Desert, 140 km northeast of the port city of Antofagasta, and 4 km north of the town of Sierra Gorda, which lies on the highway and rail line connecting Antofagasta and Calama. The project comprises eight contiguous properties that cover an area of approximately 23 km2 in a region that has hosted a number of other significant copper mines and resources including BHP Billiton's Spence project 10 km to the northeast, Antofagasta Holdings PLC's El Tesoro mine approximately 15 km to the southeast and the Lomas Bayas and Mantos Blancos mines to the southwest.

The 2006 program completed 18,387 metres of drilling in 174 holes and included a balance of 11,476 metres of reverse circulation and 6,911 metres of core. The deep sulphide drill program was carried out between November and December 2006. The drill contractor was Harris and Cia., based in Antofagasta, Chile. Mr. Patrick Fahey, Registered Geo. (ASBOG), Arizona, is VP, Exploration for Quadra and is the Qualified Person for the project.

All assays were performed by Andes Analytical Assays Ltda. of Santiago, Chile which is registered to ISO 9001:2000. Assay quality control/quality assurance for copper and molybdenum has been reviewed by Gary Lustig, P. Geo., G. N. Lustig Consulting Ltd. an independent Qualified Person as defined by National Instrument 43-101, and has been found to meet industry standards for accuracy, precision and lack of contamination.

ABOUT QUADRA MINING LTD. (TSX:QUA)

Quadra is a British Columbia corporation based in Vancouver and is a mining company whose principal asset is the Robinson Mine in Nevada. The Company has a goal of becoming a mid-tier base metals development and operating company with interests in a number of advanced exploration, development and producing properties.

This Press Release may contain "forward-looking information" that is based on Quadra's current expectations, estimates, forecasts and projections. This forward-looking information includes, among other things, statements with respect to Quadra's business strategy, plans, outlook and copper, gold and molybdenum production Generally, this forward-looking information can be identified by the use of forward-looking terminology such as, "expect", "plan", "should" and similar expressions. Forward-looking information is subject to known and unknown risks, uncertainties and other factors that may cause Quadra's actual results, level of activity, performance or achievements to be materially different from those expressed or implied by such forward-looking information.. A discussion of these and other factors that may affect Quadra's actual results, performance, achievements or financial position is contained in the filings by Quadra with the Canadian provincial securities regulatory authorities, including Quadra's AIF. These and other factors should be considered carefully and readers should not place undue reliance on such forward-looking information. Quadra disclaims any intent or obligations to update or revise publicly any forward-looking statements whether as a result of new information, estimates or options, future events or results or otherwise.

Contact Information

  • Quadra Mining Ltd. - Media & Investor Contact
    Paul Blythe
    President and Chief Executive Officer
    (604) 689-8550, Ext. 100
    or
    Quadra Mining Ltd. - Media & Investor Contact
    Sophie Taylor
    Manager, Investor Relations
    (604) 689-8550, Ext. 110
    Email: sophietaylor@quadramining.com
    Website: www.quadramining.com