Cogitore Resources Inc.
TSX VENTURE : WOO

Cogitore Resources Inc.

December 12, 2008 10:21 ET

Cogitore Resources Inc. Files Estrades Project Feasibility Study

TORONTO, ONTARIO--(Marketwire - Dec. 12, 2008) - COGITORE Resources Inc. (the "Company") (TSX VENTURE:WOO) announces that it has filed on SEDAR the feasibility study by engineering firm GENIVAR on the company's 100% owned Estrades Mining Lease in northwestern Quebec. The study is in the form of a NI43-101 compliant Technical Report and consists of an exhaustive evaluation of all costs involved with rehabilitating the former producing Estrades mine, mining ore zones to a depth of 415 metres, trucking the ore to a custom mill, producing and smelting three base metal concentrates, and analysing costs of reclamation work at the end of mining operations.

Following a positive scoping study completed in 2006 by Met-Chem Canada Inc., the Company completed some critical in-fill drilling and then commissioned a NI43-101 compliant independent resource calculation, which was delivered by Scott-Wilson RPA in late 2006. Given the encouraging results of the resource calculations, and in light of then prevailing zinc prices and also of existing underground and surface infrastructure, the Company commissioned GENIVAR to undertake detailed metallurgical tests and a full feasibility study on the Estrades project. Total Indicated Ressources on the Main and Central Zones are now established by GENIVAR at 709,000 tonnes grading 9.8% zinc, 0.8% copper, 0.9% lead, 5.0 g/t gold and 163 g/t silver. GENIVAR's mining plan involves a mining reserve of 451,900 tonnes grading 9.8% zinc, 1.0% copper, 1.0% lead, 5.3 g/t gold and 169 g/t silver to be mined from the Main and Central zones, including development mineralization and appropriate dilution. The ore would be mined by long hole mining techniques in the former producing area and by shrinkage stoping in all new areas. The key economic parameters used for the study are shown in the Technical Report.

As detailed in our press release of May 30, 2008, the financial and sensitivity analysis prepared by GENIVAR showed that the project had interesting economic potential but is extremely sensitive to the exchange rate and to metal prices, especially to the price of zinc. After reviewing the results, the Board and management of the Company determined that the deposit could become a very valuable asset in the future but also concluded that it was not in the best interests of Company shareholders to move ahead with the project. Indeed the price of zinc has fallen from $0.90 at the time of the announcement to approximately $0.50 today. As mentioned, however, given the detailed engineering work done by GENIVAR and issuance of a government Certificate of Authorization, the Company is in a good position to resume the study and the project could move ahead quickly if warranted. The Company will continue monitoring zinc prices and the availability of nearby custom milling facilities.

In the mean time, the Company will focus its efforts in the area on exploring for additional deposits of the Estrades-type, namely volcanogenic massive sulphide deposits with high precious metal contents. In that respect, the adjoining Caribou Property was acquired in 2007 and promising coincident targets were identified this past winter (see press release of May 28, 2008). The Company's winter drill program on the Caribou project will begin in January 2009.

The feasibility study is available at www.sedar.com, and will be posted shortly on the Company's website at www.cogitore.com.

Work is carried out by the personnel of Cogitore Resources Inc., under the supervision of Gerald Riverin, PhD, P.Geo. He is a qualified person (as defined by National Instrument 43-101) and has more than 30 years of experience in VMS exploration.

The Company has developed a strategic focus on base metal exploration in prospective areas that also feature infrastructure favourable for mining development. Accordingly, it will focus its work in the Abitibi Belt of Quebec and Ontario, and in the Central Belt of Newfoundland.

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

Contact Information

  • Cogitore Resources Inc.
    Gerald Riverin
    President & CEO
    819-764-6666
    or
    Cogitore Resources Inc.
    Louis Morin
    Director Investor Relations
    514-591-3988
    www.cogitore.com