Centenario Copper Corporation
TSX : CCT

Centenario Copper Corporation

February 21, 2008 16:01 ET

Centenario Reports Initial Pan de Azucar Inferred Mineral Resource of 35.8 million Tonnes, Grading 0.47% Copper, 0.20 g/t Gold, 2.1 g/t Silver and 0.011% Molybdenum

Aggressive $7.6 million second phase program planned

TORONTO, ONTARIO--(Marketwire - Feb. 21, 2008) - Centenario Copper Corporation ("Centenario", or the "Company") (TSX:CCT) is pleased to announce an initial inferred mineral resource estimate on its Pan de Azucar property held under option, located in Region III of Chile, 45 km. from its wholly owned Franke Property. This mineral resource estimate follows an initial drilling program on the Carrizalillo Hill area of the property, undertaken during the third quarter of 2007 and for which initial assays have previously been reported (see CCT New Release 07-02 dated November 12, 2007). The mineral resource estimate has been prepared by Geovectra SA, a Santiago, Chile based geological consulting services firm. Centenario has also retained Tom Henricksen, a consulting geologist, to prepare a Resource Stage NI 43-101 Technical Report for the Pan de Azucar property. Mr. Henricksen has reviewed and approved the mineral resource estimate contained herein. The complete NI 43-101 Technical Report will be filed on SEDAR and CCT's web site within 45 days of this release.

The initial mineral resource estimate includes a total 35.8 million tonnes of inferred resources at an average grade of 0.47% CuT (total copper), 0.20 g/t Au, 2.1 g/t Ag and 0.011% Mo. It includes the Carrizalillo Hill East and Carrizalillo Hill West zones, identified in the initial drilling campaign and is composed of oxide, mixed, secondary and primary sulphide zones. The mineral resource has been classified entirely as inferred, due to the wide spaced drilling conducted to date.

Richard Colterjohn, President and CEO of Centenario commented: "The tonnage and copper equivalent grades contained in this initial resource are highly encouraging and confirm the large potential that could exist in the Pan de Azucar Project. The first drilling program was restricted to only a small portion of the prospective ground on the property and there is very clear potential to increase the resource significantly. Both zones remain open at depth and to the north and the Carrizalillo West zone also remains open to the west. We have also identified many other priority targets which we plan to test as part of an aggressive second phase drilling program."

"I am particularly proud of our exploration team, which now has achieved its second major exploration discovery in as many years, following on from our discovery at the China target on the Pelusa Property in late 2006. With the discovery at Pan de Azucar, we have now added a third leg to the Centenario story, which could provide a key driver of our growth once we have successfully commissioned our Franke processing plant. We continue to believe that this region has tremendous potential and are constantly striving to translate our first mover advantage into additional opportunities for our shareholders."

Initial drilling program and resource estimate:

An RC drilling program comprising a total of 34 holes for 6,098 meters was drilled on the Carrizalillo Hill area during the latter part of 2007. The initial assay results from this drill program have been previously reported by Centenario. The initial program was successful in encountering widespread Cu-Au-Ag-Mo mineralization, which remains open to the north and at depth and the system is also open to the west under cover.

Following the release of the initial assay results, Centenario undertook additional assaying for silver and molybdenum content for a number of intervals that had not been assayed during the initial assaying. In addition, the Company retained Geovectra SA, a Chilean based geological consulting services firm, to prepare a preliminary geological model and inferred mineral resource estimate for the portion of the Carrizalillo Hill area covered by the initial drilling program. Centenario also retained Tom Henricksen, a consulting geologist, to prepare a Resource Stage NI 43-101 Technical Report for the Pan de Azucar property. Mr. Henricksen has reviewed and endorsed the mineral resource calculation contained herein.

Geologic information indicates the presence of two apparently north-south trends of mineralization which have been named Carrizalillo Hill East and Carrizalillo Hill West. Carrizalillo Hill East trend is a contact zone between andesitic volcanics and a monzodiorite, showing intercepts of higher grade gold and copper mineralization within a background of lower grade material. Carrizalillo Hill West trend has a strong hydrothermal signature, with quartz-sericite, potassic alteration and silicification, with Cu and Mo and Au readings, suggesting the possible presence of a porphyry type system to the west under cover. In both cases, the mineralization seems to have a strong projection in depth.

According to the current drilling data, the mineralized zones of both Carrizalillo Hill East and West, are included in a roughly elliptical surface area of 650 by 400 meters, down to a depth of about 200 meters. This is not believed to be the final depth for the system, since many holes ended in mineralized material and there is historical information on the Mina Vieja de Carrizalillo, located to the immediate north of the Carrizalillo East zone, believed to have been mined by pirquineros up to a depth of 450 meters, and to a depth of around 350 meters in the Fabiola mine, located to the immediate south. For the purposes of the current inferred resource estimation, mineralization at depth was projected only up to the depth of the mineralized intervals shown by the drill holes.

Geological interpretation was performed on 9 cross sections generally 50 meters apart, incorporating ore zones (oxide, mixed, secondary and primary sulfide) and laterally delimited by geologic contacts or structures/faults, including material with similar lithology and/or hydrothermal alteration. The geological interpretation was based on Cu and Au intercepts, while the Mo and Ag values were considered related to the copper mineralization, sharing the same polygons. The geologic features interpreted on section were orthogonally extruded half-way to the previous and next section in order to generate the solids for the mineralized zones and a 5x5x5 meter grid was then overprinted to the model and each cell was estimated by using inverse distance squared, to a maximum distance of 100 meters from individual drill holes.

The resource calculation, based on various total copper cut-off grades, is set out in the table below:



---------------------------------------------------------------------------
Pan de Azucar - Inferred Resource
(0.2% CuT cut-off)

Tonnage CuT CuS Au Ag Mo In Situ Cu
----------------------------------------------------------
k mt % % g/t g/t % mt

East Zone:
Oxides(a) 9,615 0.48 0.24 0.24 2.0 0.007 46,187
Sulphides(b) 12,331 0.57 0.04 0.31 2.2 0.007 70,788
----------------------------------------------------------
Total East 21,946 0.53 0.13 0.28 2.1 0.007 60,010

West Zone:
Oxides(a) 4,661 0.33 0.19 0.05 2.0 0.003 15,421
Sulphides(b) 9,234 0.39 0.02 0.09 2.1 0.023 36,128
----------------------------------------------------------
Total East 13,895 0.37 0.08 0.08 2.1 0.016 29,182

East + West:
Oxides(a) 14,277 0.43 0.22 0.18 2.0 0.005 61,608
Sulphides(b) 21,565 0.50 0.03 0.21 2.1 0.014 106,916
----------------------------------------------------------
Total East + West 35,842 0.47 0.11 0.20 2.1 0.011 168,524
----------------------------------------------------------
----------------------------------------------------------
---------------------------------------------------------------------------
(a) Oxides equals Oxides plus mixed where oxide is dominant above sulphides
(b) Sulphides equals Secondary and primary sulphides
---------------------------------------------------------------------------


The inferred mineral resources estimated on the drilled areas of the Carrizalillo Hill project totals 35.8 million tonnes at 0.47% CuT, 0.20 g/t Au, 2.1 g/t Ag and 0.011% Mo.

The oxide and oxide dominant mixed ore, representing the potentially leachable portion of the resource is 14.3 million tonnes at 0.43% CuT and 0.22% CuS (soluble copper) (the other minerals are typically not extractable in the leaching process). The low apparent solubility ratio is due to the presence of near surface limonitic material and black oxides, and the use of a cold assay method which typically understates the recoveries from these types of material. Metallurgical test work is planned for the next phase of exploration which will give a more reliable estimation of expected leachable recoveries of the oxide material. The oxide ore generally contains a low level of CO3 (averaging about 0.4%), indicating low acid consumption during processing. The secondary and primary sulphides, representing the potentially flotable portion of the resources, total 21.6 million tonnes at 0.50% CuT, 0.21 g/t Au, 2.1 g/t Ag. and 0.014% Mo.

The overall copper and gold grades of the East zone are higher than in the West zone, driven principally by the influence of the high grade mineralization intercepted in holes 2-4 (hole 2: 124 metres @ 1.16% CuT and 0.71 g/t Au; hole 3: 160 metres grading 1.30% CuT and 0.87 g/t Au; hole 4: 96 metres grading 0.79% CuT and 0.59 g/t Au) and which are currently interpreted to represent high grade ore shoots over an area of approximately 150 metres in diameter. These ore shoots were drilled to a depth of approximately 200 metres and no allowance is included in this resource for any potential extension to depth. The geological nature and vertical extent of these shoots is not yet fully understood, but will be further evaluated in the next drilling phase. The mineralization in the East zone generally starts at or near surface.

While the West zone generally contains lower copper and gold grades, it also contains variable but potentially economically interesting molybdenum grades, particularly at depth (e.g. hole 19 which included 92 metres of 0.48% CuT, 0.09 g/t Au and 0.129% MO, from 108 metres). Unlike the East zone, much of the West zone is leached at surface, and the Cu-Au-Ag-Mo mineralization is strongly associated with NNW trending silicification (with magnetite) and potassic alteration. Argyllic alteration over prints sericitic alteration and becomes potassic at depth, where grades increase. Management believes that this type of alteration and type of mineralization indicate the potential for a porphyry system located at depth and to the west. This potential will be tested in the next phase of drilling.

Proposed second stage program:

The Company announces an aggressive next phase of exploration at Pan de Azucar with a planned budget of $7.6 million, which includes 50,000 metres of RC (39,000 metres) and diamond (11,000 metres) drilling. The Company has identified a number of priority drilling targets that will be evaluated, including:

- Carrizalillo Hill East: Follow up drilling of the high grade ore shoots to depth and extension drilling to the north;

- Carrizalillo Hill West: Follow up drilling at depth and to the north, where the system remains open;

- West P de A: This area is located immediately to the west of Carrizalillo Hill West and a number of wide spaced holes will test the porphyry potential that is believed to lie under cover;

- East P de A; North P de A; Southwest P de A: These 3 areas have returned strong geochemical showings, and each will be tested with wide spaced drill holes; and

- Fabiola: Centenario recent brought this area under option. It contains numerous artisanal shafts and workings, over a surface area of approximately 200 by 300 metres, and which are believed to extend at depth to as much as 350 metres. This area is open to the west, under cover. The area will initially be drill tested on a 100 metre grid.

A map showing each of these priority targets is attached to this press release and will be available on the Company's web site.

In addition, the proposed program includes initial metallurgical test work on both oxide and sulphide material, as well as other early evaluation studies. A flow rate sustainability test will also be undertaken on 2 water wells located on the Pan de Azucar property. These wells were permitted for a combined flow rate of 55 lps. Recent water permitting amendments will require Centenario to demonstrate that these wells can sustain this water flow rate over a test period in order to be able to exploit them.

A summary of the proposed Stage 2 Program is set out in the table below:



---------------------------------------
Pan de Azucar 2nd Stage Program
(US$ 000's)

Metres US$000
--------------------
Drilling - RC 39,000 $3,713
Drilling - DDH 11,000 $1,964
--------------------
Total Drilling 50,000 $5,676
Modelling $357
Metallurgy $357
Water Studies $202
Scoping Study $327
Property Payments $497
Other $197
--------
Total 2nd Stage Program $7,614
---------------------------------------


For further information on the Pan de Azucar property and drill plan map, please refer to the Company's web site at www.centenariocopper.com or review the Prospectus dated October 12, 2007 on SEDAR at www.sedar.com.

All technical personnel involved in the development and evaluation of the technical information contained herein have extensive experience in early stage project evaluation. Roman Flores, Exploration Manager of Centenario's Chilean subsidiaries, a geologist with more than 33 years experience, was responsible for the supervision of all the geologic model and resource estimation process. The geologic model and the resource estimation was conducted by Geovectra S.A., a specialized, Santiago Chile based mining consulting company, using the geological information from the Company. Mr. Jozsef Ambrus, a principal of Geovectra, was responsible for the development of the resource model, and is a geologist with 38 years of experience.

Tom Henricksen, a consultant to Geovectra S.A., and with more than 36 years of experience, is the Qualified Person for the purposes of NI 43-101, has visited the property and reviewed and approved the information contained herein in this press release. The complete Resource Stage NI 43-101 Technical Report will be filed on SEDAR and available on the Company's web site within 45 days of this release.

CENTENARIO COPPER CORPORATION

"Richard Colterjohn"

Richard Colterjohn, President and CEO

About Centenario Copper Corporation:

The Company was founded in 2004 with the goal of becoming a mid-tier copper producer and consolidator, active in low risk regions. Centenario currently operates exclusively in Regions II and III of Chile. The Company intends to achieve its goal through the acquisition and development of advanced, mid-sized copper projects and enhance the scale and value of its principal projects through the roll-up of smaller regional satellite copper resources.

The Franke Property, located in Region II, is currently in construction and is projected to produce 30,000 tonnes of cathode copper per year, starting in December 2008. On the nearby Pelusa Property, a fast track evaluation of various copper targets is underway. The Company believes that the Pelusa Property is highly prospective for developing additional leachable copper resources and is evaluating possible production scenarios, including processing at the Franke plant. The Pan de Azucar Property, located 45 km. from the Franke Property, is currently being evaluated as a possible nucleus for a second property cluster. The Company continues to evaluate other "in region" clustering opportunities which could reinforce its existing property portfolio.

Copies of NI 43-101 Technical Reports on the Franke Property and the Pelusa Property are posted on SEDAR and on the Company's web site www.centenariocopper.com.

CAUTIONARY STATEMENT: No stock exchange, securities commission or other regulatory authority has approved of disapproved the information contained herein. This News Release includes certain "forward-looking statements". All statements other than statements of historical fact, included in this release, including, without limitation, statements regarding future plans and objectives of Centenario Copper Corporation, are forward-looking statements that involve various risks and uncertainties. There can be no assurance that such statements will prove to be accurate and actual results and future events could differ materially from those anticipated in such statements. Important factors that could cause actual results to differ materially from Centenario's expectations are the risks detailed herein and from time to time in the filings made by Centenario Copper Corporation with securities regulators.

To view Figure 1, the Pan de Azucar Project - Priority Targets, please click on the following link:

http://media3.marketwire.com/docs/pda.pdf

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