International Enexco Limited
TSX VENTURE : IEC

International Enexco Limited

January 10, 2007 09:00 ET

Three Phases of Development and Expansion Drilling Commence on International Enexco's Contact Copper-Silver Project, Nevada

Mel Klohn Joins International Enexco's Board of Directors

VANCOUVER, BRITISH COLUMBIA--(CCNMatthews - Jan. 10, 2007) - International Enexco Limited (TSX VENTURE:IEC) ("Enexco" or the "Company") announced today that it has commenced phase one of a planned three-phase drilling program on its 100% owned Contact Copper-Silver Project, located 80 kilometres (km) north of Wells in Elko County, Nevada. The project is approximately 230 miles (370 km) by paved road from the Kennecott (RTZ) Utah Copper Smelter located 26 miles southwest of Salt Lake City. The Contact Project has excellent infrastructure including road access, high voltage power and water.

The purpose of Phase One and Phase Two of the planned three-phase drilling program is to upgrade the Estimated Mineral Resources on the Contact Project from the Indicated and Inferred resource categories to Measured and Indicated. This drilling will allow an updated Resource Estimate and enable Enexco to initiate a Pre-Feasibility Study and commence with the permitting and environmental processes required prior to pre-production and production.

Previous estimates were reported in an independent NI 43-101 and JORC compliant mineral resource document in July, 2006. At a copper cut-off grade of 0.2%, the Contact Project was estimated to have an Indicated Resource of 6.27 million tonnes with 1.06% copper and 9.34 g/t silver, plus an Inferred Resource of 8.32 million tonnes with 1.40% copper with 6.92 g/t silver, together containing an estimated 403 million pounds of copper and 3.7 million ounces of silver. At a copper cut-off grade of 0.5%, the Indicated Resource was estimated to be 4.44 million tonnes with 1.35% copper and 12.20 g/t silver, plus an Inferred Resource of 6.00 million tonnes with 1.80% copper and 8.71 g/t silver, together containing an estimated 371 million pounds of copper and 3.4 million ounces of silver.

Based on previously reported resource estimates and copper grades, including allowing for possible future discounts to current copper prices, consultants to Enexco suggest that the Contact Project could become a highly profitable, long term producing operation.

Phase One drilling will consist of an estimated 6,000 metres (m) of mostly in-fill diamond drilling on the eastern half of the Contact property, Phase Two is expected to drill another 6,000m on the western half of the property. Enexco hopes to complete the Phase One drilling by late March, 2007, and will report the drill assay results as soon as they are available after completion of the drilling.

Phase Three drilling will consist largely of exploratory and expansion drilling and will commence after the first two drill programs are complete. The initial Phase Three drill holes will test high-grade mineralization intersected by drilling done in the late 1970s at depth beneath the currently known shallow high-grade copper resource area. As an example, an old Phelps Dodge drill hole, PD-4, hit several zones of deep high-grade copper including 3.66m @ 20.75% Cu plus 207 g/t Ag at 561.4m depth and 14.0m @ 9.17% Cu (including 2.8m @ 29.0% Cu) plus 144 g/t Ag at 656.5m depth. The mineralization in this hole is also associated with potentially significant amounts of gold (up to 5.1 g/t) and molybdenum (up to 1900 ppm). This deeper mineralization was never followed up and has the potential to markedly increase both the total tonnes and the overall grade of the Contact Copper-Silver Project.

Mr. Arnold Armstrong, President and CEO of International Enexco Limited, stated that:

"Upcoming Exploratory drilling at our Contact Property in Nevada has the potential to significantly increase the project in both size and grade. However despite the significant upside potential we are taking all necessary steps to bring the property's current indicated and inferred estimated resource into production in a timely, environmentally responsible and economic manner for the benefit of all shareholders."

Enexco believes that production from the Contact Project is possible by late 2009. A full time project manager has been onsite for the last 6 months preparing drill pads, improving roads, establishing office and housing structures and establishing secure core storage facilities. Other qualified personnel including a permitting and environmental procedure specialist are in the process of being hired by the Company.

Upon closing Brokered and Non-Brokered Financings on January 5th of this year Enexco now has 16,674,651 shares outstanding (24,562,057 shares fully diluted) and approximately $16.6 million in working capital.

Mann Lake Uranium Project

Other commitments by Enexco for 2007 include an upcoming drill program on the Company's Mann Lake Uranium Consortium Property in the Athabasca Basin, Saskatchewan (35% Cameco Corporation, 30% Enexco, and 35% UEM Ltd.). Cameco, the world's largest publicly traded uranium company, serves as the project operator and has approved a 300% increase in the 2007 exploration budget over the 2006 budget. Upcoming drilling at Mann Lake will explore areas offsetting last years drilling successes where basement hosted eU3O8 grades of 7.12% over 0.25m and 5.53% over 0.4m were discovered within 12m of the unconformity. Enexco's high-grade discovery is located 20km northeast of Cameco's Millennium deposit and 25km southwest of their McArthur River Mine, the largest high-grade uranium deposit in the world. Other targets to be drilled at Mann Lake in 2007 include other areas along the UTEM / EM37 Conductor. Enexco will update shareholders in a subsequent press release when drilling commences at Mann Lake. Interested shareholders can, in the interim, learn more about the project by viewing a PowerPoint presentation on Enexco's website at www.enexco.ca.

Mel Klohn Joins Board of Directors

In other news International Enexco is very pleased to announce that Mr. Mel Klohn has joined its Board of Directors. Mr. Klohn is an ideal addition to the Enexco Board in light of his combined knowledge and expertise in uranium and base and precious metals exploration and development. Mr. Klohn is a Washington State Licensed Geologist (LPGeo), a member of the Society of Economic Geologists (SEG), the Society for Mining, Metallurgy and Exploration (SME), the Canadian Institute of Mining, Metallurgy and Petroleum (CIM) and is a Qualified Person (QP) as defined by Canadian National Instrument 43-101. Mr. Klohn is a senior-level consultant for various international mid-tier and junior company clients and currently serves as Exploration Vice President for Aura Gold Inc. He previously served 10 years as Exploration Vice President and Project Manager for Yamana Gold Inc. and 25 years with Exxon Corporation as a Professional Minerals Geologist in various field, staff and research positions. He holds BSc and MSc degrees in geology from the University of Oregon.

Mr. Armstrong, President and CEO of International Enexco, adds:

"I, along with the rest of International Enexco's Board of Directors and our shareholders, welcome Mr. Klohn and look forward to working with him in making International Enexco a successful and profitable company."

ABOUT INTERNATIONAL ENEXCO LIMITED

Enexco is a Canadian based advanced exploration company headquartered in Vancouver, B.C. In addition to its 100% owned Contact Copper-Silver Resource Property, the Company also has a strategic alliance with Cameco Corporation (35%), UEM Inc. (35%) and Enexco (30%) to jointly develop the Mann Lake Uranium Project located in the prolific Athabasca Basin in Saskatchewan. Cameco is the operator of the Mann Lake Uranium Project.

For further information on all of Enexco's projects call Investor Relations at 604-669-8368, or visit our website at: www.enexco.ca.

The securities being offered have not been registered under the U.S. Securities Act of 1933, as amended, and may not be offered or sold in the United States in the absence of registration or an applicable exemption from the registration requirements. This press release does not constitute an offer to sell or the solicitation of an offer to purchase securities in the United States.

The TSX Venture has not reviewed and 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)
    Website: www.enexco.ca