Explorator Resources Inc.
TSX VENTURE : EXO

Explorator Resources Inc.

August 30, 2010 17:00 ET

Explorator Resources Reports on Drilling at El Espino-Results Continue to Add Confidence to Existing Resource Model and Extend Mineralization Beyond Previous Limit Boundaries

TORONTO, ONTARIO--(Marketwire - Aug. 30, 2010) - Explorator Resources Inc. ("Explorator" or the "Company") (TSX VENTURE:EXO) through its subsidiary Explorator SCM ("Explorator Chile", 51% owned by Sociedad Punta del Cobre S.A. and 49% owned by Explorator) reports results of an ongoing drilling campaign at the El Espino project in Chile.

The diamond drill program for 2010 is currently budgeted to include a total of 20,425 meters in 95 holes. A total of 4,966 meters of diamond drilling in 23 holes were completed in the second quarter of 2010. Of these, 22 were drilled in the Rachel Zone and one was drilled in the La Viuda Zone, (see plan at end of release).

The drilling continues to result in better definition of contiguous zones of copper-gold mineralization within the stacked mantos of the Rachel Zone and has identified additional mineralization beyond the previous boundaries. Drilling highlights are broken out below into various areas within the Rachel Zone. All significant drill hole intersections are set out in the table at the end of this release.

CENTRAL RACHEL

Three additional holes, PXE-425, PXE-426 and PXE-429, were drilled in central Rachel. PXE-425 was designed to test of the all the mantos and the deep Rachel Gold Zone but was lost at 119 meters due to drilling related problems. 

Drill hole PXE-426 was completed to a depth of 377.3 m where it was stopped by poor drilling conditions. The upper mantos were intersected with thicknesses and grades similar to those in adjacent holes, confirming the continuity of mineralization in these mantos. It also intercepted the Rachel Gold Zone 110 metres west of the high grade gold intersection in PXE-329 (27 metres of 11.99 g/t Au). From 273 meters to the hole bottom at 377.3 meters, PXE-426 encountered volcanic breccias hosting scattered calcite veins up to 2 meters thick, with only trace amounts of sulphide, and bottomed in a gold bearing calcite vein. The interval from 314.6 meters to 377.3 meters returned 62.6 meters of 0.94 g/t Au. as indicated below. This result demonstrates that the Rachel Gold Zone has a vertical extend of greater than 100 meters.

  • PXE‐426: 46m of 0.67% Cu and 0.25 g/t Au, from 118 meters, sulphide, with 17m of 1.02% Cu and 0.22g/t Au
  • PXE‐426: 35m of 0.53% Cu and 0.10 g/t Au, from 238 meters, sulphide, with 15m of 0.80% Cu and 0.11 g/t Au
  • PXE‐426: 63m of 0.00% Cu and 0.94 g/t Au, from 315 meters, sulphide, with 21m of 0.00% Cu and 1.87 g/t Au

Drill hole PXE-429 is located in a down dropped block in south central Rachel east. It encountered moderate to high grade intersections in all expected mantos from 93 to 264 metres. The hole failed to reach the deeper M6 manto because of drilling problems.

  • PXE‐429: 45m of 1.03% Cu and 0.15 g/t Au of sulphide, from 93 meters
  • PXE‐429: 116m of 0.58% Cu and 0.1 g/t Au of sulphide, from 150 meters, with 14m of 1.15% Cu and 0.29 g/t Au

NORTHWEST RACHEL ZONE

Three drill holes, PXE-421, PXE-422 and PXE-423 targeted a north-northwest trending zone of mineralization which runs along the western margin of the Rachel zone. Mineralization in this zone is generally confined to the deeper mantos. All 3 drill holes intersected significant mineralization in multiple mantos.

  • PXE‐421: 88m of 0.58% Cu and 0.09 g/t Au of sulphide, from 120 meters, with 25m of 0.86% Cu and 0.13 g/t Au
  • PXE‐422: 48m of 0.58% Cu and 0.05 g/t Au of sulphide, from 200 meters, with 8m of 1.37% Cu and 0.06 g/t Au
  • PXE‐423: 43m of 0.87% Cu and 0.33 g/t Au of sulphide, from 213 meters, with 5m of 3.36% Cu and 0.57g/t Au

The Northwest Rachel Zone is only partially defined. It extends at least 300 meters to the north-northwest and has an east-west extent of greater than 50 meters.

SOUTHWEST RACHEL ZONE

Four drill holes, PXE-404, PXE-406, PXE-427 and PXE-428, were designed to test the gold rich high grade mineralization along the western margin of the Rachel Breccia Zone. This target is important as the mineralization starts at surface. Drill hole PXE-404 was lost at 19 meters due to bad ground conditions. Drill hole PXE-406, PXE-427 and PXE-428 all reached target depth and confirmed the presence of high-grade gold rich mineralization in this area. 

  • PXE‐406: 39m of 0.63% Cu and 0.13 g/t Au of oxide, from 4 meters, with 12m of 0.92% Cu and 0.24 g/t Au
  • PXE-406: 35m of 0.51% Cu and 0.03 g/t Au of sulphide, from 43 meters
  • PXE‐427: 33m of 1.96% Cu and 0.58 g/t Au of sulphide, from 74 meters, with 17m of 3.23% Cu and 1.01 g/t Au
  • PXE‐428: 41m of 0.73% Cu and 0.21 g/t Au of sulphide, from 59 meters, with 18m of 1.36% Cu and 0.37 g/t Au

Two holes, PXE-430 and PXE-431 were drilled into the up-dip projection of the Rachel mantos along the boundary of Rachel with La Viuda. Both holes encountered well developed mineralization.

  • PXE-430: 27m of 1.13% Cu and 0.45 g/t Au of sulphide, from 130 meters
  • PXE‐431: 58m of 0.90% Cu and 0.22 g/t Au of oxide, from 94 meters, with 25m of 1.81% Cu and 0.33 g/t Au

SOUTHEAST RACHEL

Drill holes PXE-402 and PXE-409 tested for eastward extensions of mineralization in south Rachel. The holes encountered strong epidote-actinolite-pyrite alteration but only minor low grade copper-gold mineralization. These results confirm the eastern boundary of the copper-gold resources in this area.

LA VIUDA

One hole, PXE-432, was drilled at La Viuda to test a northeast trending set of steeply dipping calcite specularite calcite veins exposed in old mine workings. It 432 intersected several parallel sets of veins separated by variably altered and mineralized andesitic volcanic rocks. 

  • PXE‐432: 20m of 1.18% Cu and 0.97 g/t Au of oxide, from 34 meters, with 10m of 2.04% Cu and 1.86 g/t Au

The results are consistent with northeast trending parallel sets of sub vertical veins. The zone of veining is 50 to 70 m wide within which there are up to 3 zones consisting of multiple close spaced veins. These zones are in the range of 2 to 20 meters wide and have been traced along strike for 150 meters. 

2010 PLANNED DRILLING

Drilling is programmed to begin further testing of the Portugesas and Pirata zones, including testing for extensions of mineralization to the south-west of previous drilling. Subsequent drilling is also planned on the Pichinilla area to the South East of the property which remains open in strike at depth.

UPDATED RESOURCE CALCULATION

An internal updated resource calculation of the Rachel Zone of the El Espino deposit is now underway and will be incorporated into the updated scoping study scheduled for mid Q4, 2010.

OTHER INFORMATION:

A copy of the release, as well as other information related to the Company, is available on the Company's web site at www.explorator.ca and on SEDAR at www.sedar.com

EXPLORATOR RESOURCES INC.

David O'Connor, Vice President, Exploration

ABOUT EXPLORATOR RESOURCES:

Explorator Resources is a Canadian-based mining exploration company with a 49% interest in the El Espino Copper-Gold Project in Chile (the "Project"). The Project lies within the prolific copper-gold mineral area of the Cordillera de la Costa, 240 km. north of Santiago, and is central to an important cluster of "Candelaria-style" copper-gold deposits. A National Instrument 43-101 compliant Preliminary Assessment (see press release dated May 11, 2009) defined the potential for an average annual payable production of 77 million pounds of copper and 40,000 ounces of gold over a 19 year mine life (life-of-mine payable production of 1.467 billion lbs copper and 755,000 oz. gold) at an average cash cost for the base case of $1.06/lb, net of gold credits (based on a gold price of $680/oz.) and a cash cost of US$0.97/lb net of gold credits based on a gold price of US$850/oz. Good potential for further resource expansion was also noted. Sociedad Punta del Cobre S.A. ("SPC") acquired the remaining 51% of the Project in March 2009 in return for an investment of up to US$18.5 million, with US$7.0 million used to exercise the option to purchase agreement on the Project and the remaining funds directed at the continued exploration and evaluation activities.

REGULATORY FOOTNOTE

Mr. Michael Schuler, in charge of exploration at Explorator SCM is the "Qualified Person" as defined under the National Instrument 43-101 and is responsible for the scientific and technical work on Explorator SCM's exploration program and is responsible for reviewing the technical disclosure in this news release.

FORWARD-LOOKING STATEMENTS

Certain statements contained in this news release may contain forward-looking information within the meaning of Canadian securities laws. Such forward-looking information are identified by words such as "estimates", "intends", "expects", "believes", "may", "will" and included, without limitation, statements regarding the company's plan of business operations, production levels and costs, potential contractual arrangements and the delivery of equipment, receipt of working capital, anticipated revenues, mineral reserve and mineral resource estimates, and projected expenditures. There can be no assurance that such statements will prove to be accurate; actual results and future events could differ materially from such statements. Factors that could cause actual results to differ materially include, among others, metal prices, risks inherent in the mining industry, financing risks, labour risks, uncertainty of mineral reserve and resource estimates, equipment and supply risks, regulatory risks and environmental concerns. Most of these factors are outside the control of the company. Investors are cautioned not to put undue reliance on forward-looking information. Except as otherwise required by applicable securities statutes or regulation, the company expressly disclaims any intent or obligation to update publicly forward-looking information, whether as a result of new information, future events or otherwise.

To view the map associated with this press release, click the following link:

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

To view the tables associated with this press release, click the following link:

http://media3.marketwire.com/docs/exotables830.pdf.

NEITHER THE TSX VENTURE EXCHANGE NOR ITS REGULATION SERVICES PROVIDER (AS THAT TERM IS DEFINED IN THE POLICIES OF THE TSX VENTURE EXCHANGE) ACCEPTS RESPONSIBILITY FOR THE ADEQUACY OR ACCURACY OF THIS RELEASE.

Contact Information

  • Explorator Resources Inc.
    David O'Connor
    Vice President Exploration
    +56 98 255-9071
    or
    Explorator Resources Inc.
    David Prins
    President & CEO
    +56 2 793-4925
    www.explorator.ca