Antares Minerals Inc.

Antares Minerals Inc.

September 27, 2005 09:15 ET

Antares Provides Update on Haquira SX-EW Copper Project in Southern Peru

WATERDOWN, ONTARIO--(CCNMatthews - Sept. 27, 2005) - Antares Minerals Inc. (TSX VENTURE:ANM) ("Antares") is pleased to provide an update on exploration plans for the Haquira SX-EW copper project in southern Peru and to announce that the independent 43-101 Technical Report for the Haquira project has been approved by the TSX Venture Exchange and is now available on SEDAR and on the Antares website (

The Haquira 43-101 Technical Report estimates an inferred mineral resource, at a 0.3% total copper cut-off grade, of 120.5 million tonnes grading 0.49% copper amenable to SX-EW processing (secondary copper sulphides and oxides only, see press release dated July 13, 2005).

Haquira Project - Exploration Plan

Antares plans to complete a phase one drilling program at Haquira in November-December 2005 that will consist of approximately 35-40 drill holes for a total of approximately 6000 m. A drilling contract has been signed with AK Drilling International S.A. that will provide a minimum of two drill rigs with the capability of both reverse circulation and diamond core drilling. The phase one drilling will have three objectives: 1) extend the known mineralization, 2) demonstrate continuity within the known mineralization (allowing calculation of optimal spacing for infill drilling), and 3) collection of material for metallurgical testing. Pending the successful outcome of phase one drilling, a second and larger phase of drilling is planned for 2006.

All formal surface access agreements with local communities have been obtained to conduct exploration at Haquira. A Category C environmental permit application has been presented to allow for construction of 128 drill platforms for the phase one and subsequent phase two drilling programs. Antares anticipates the approval of the environmental permit in early November.

John Black, President of Antares Minerals Inc. commented as follows:

"The Haquira project currently hosts an inferred resource of more than 1.3 billion lbs of copper that offers potential for a low-strip, low-cost SX-EW copper operation, particularly given synergies with the nearby Las Bambas project of Xstrata Copper. The resource is open in several directions and we are excited to be approaching the start of drilling to see how much larger this deposit will become."

Haquira 43-101 Technical Report and resource estimate

The Haquira Independent 43-101 Technical Report was prepared by Chlumsky, Armbrust, and Meyer L.L.C., ("CAM") of Denver, Colorado, USA and was based upon 85 drill holes (11,350 m) completed by Minera Phelps Dodge de Peru S.A.C. in 2001-2003.

The CAM report estimates an inferred mineral resource, at a 0.3% total copper cut-off grade, of 120.5 million tonnes grading 0.49% copper amenable to SX-EW processing (secondary copper sulphides and oxides) and 89.2 million tonnes grading 0.43% copper amenable to flotation/concentrate processing (primary copper sulphides) for a total of 209.7 million tonnes grading 0.46% copper (see Table 1 below). Resource estimates for secondary copper sulphides and oxides at a 0.2% total copper cut-off grade are also shown in the Table 1. All resources at Haquira are currently classified as inferred mineral resources due to the relatively wide average spacing of 200 m between drill holes.

Table 1 - Inferred Mineral Resource Estimate Haquira Project
Grade (1) Grade Contained Cu(2)
Mineralization Type (% Cu Total) Tonnes (% Cu Total) (billion lbs.)
Secondary Oxide and 0.3 100,809,000 0.486
Mixed Oxide -
Secondary Sulphide 0.2 148,710,000 0.409
Secondary Sulphide 0.3 19,704,000 0.518
0.2 32,594,000 0.408
Total Secondary
Sulphide and Oxide 0.3 120,513,000 0.491 1.30
(amenable to SX-EW
processing) 0.2 181,304,000 0.409 1.63

Primary Sulphide 0.3 89,185,000 0.426 0.84

Total - All
Mineralization 0.3 209,698,000 0.464 2.14

Haquira Project

Antares can acquire a 100% interest in the Haquira project from Minera Phelps Dodge del Peru S.A.C. ("Phelps Dodge") by completing optional payments totalling US$15 million over a five-year period. In addition, once a feasibility study is completed on Haquira, Antares will be obligated to make an additional payment to Phelps Dodge equal to US$0.01 for each pound of copper in excess of 2.2 billion pounds that is calculated as part of the leachable mineral resource. Antares has also issued 1.5 million warrants to Phelps Dodge. Each warrant is exercisable for one share of Antares stock. Half of the warrants are exercisable at CDN$1.25 for a period of one year and the other half are exercisable a CDN$1.50 for a period of two years.

The project is located approximately 75 km to the southwest of Cuzco in the emerging Andahuaylas-Yauri copper-gold porphyry/skarn belt that hosts the Tintaya copper-gold skarn mine (BHP Billiton), the Las Chancas copper-gold porphyry deposit (Southern Peru Copper Corp.), the Las Bambas copper-gold skarn deposits (Xstrata), as well as numerous other copper-gold-molybdenum porphyry and skarn occurrences. The Haquira project is contiguous with, and immediately to the south of, the Las Bambas district where Xstrata Copper has committed to invest US$121 million. Additional information about the Haquira SX-EW copper project is available on the Antares website at

About Antares Minerals Inc.

Antares is a relatively new mineral exploration company with highly experienced technical and management teams. The company is focused on gold and copper exploration properties in Latin America that can be quickly and cost-effectively advanced to the discovery and production stage. In addition to the Haquira Project in Peru with Minera Phelps Dodge del Peru S.A.C., Antares is also currently exploring the Rio Grande (Cu-Au porphyry), Desierto (Au-Ag epithermal veins), and Catua (exotic Cu with potential for buried, supergene-enriched Cu porphyry) projects in Salta and Jujuy Provinces of NW Argentina in option/joint-venture agreements with Mansfield Minerals Inc.

All of Antares' exploration programs and pertinent disclosure of a technical or scientific nature are prepared by or prepared under the direct supervision of John Black, Antares' President, who serves as the qualified person (QP) under the definitions of National Instrument 43-101.

Mineral resources do not have demonstrated economic viability and future in-fill drilling and scoping, pre-feasibility and feasibility studies will determine what percentage of the inferred resource can be placed into the mineable category. Antares is not aware of any environmental, permitting, legal, title, taxation, socio-political, marketing or other issues which may materially affect this estimate of mineral resources.

Certain disclosure in this release, including management's assessment of Antares' plans and projects, constitutes forward-looking statements that are subject to numerous risks, uncertainties and other factors relating to Antares' operation as a mineral exploration company that may cause future results to differ materially from those expressed or implied. Readers are cautioned not to place undue reliance on forward-looking statements.


1 The cut-off grades utilized for this communication were chosen to match those utilized at other similar stage projects and operating mines in Latin America.

2 The term "contained copper" refers to the total in situ amount of copper contained within the resource estimate and not the amount of copper that may be ultimately recovered during mining and processing.

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

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