Explorator Resources Inc.
TSX VENTURE : EXO

Explorator Resources Inc.

November 24, 2010 18:22 ET

Explorator Resources Updates on Drilling Activity at El Espino

TORONTO, ONTARIO--(Marketwire - Nov. 24, 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 drilling completed at El Espino, Chile during the third quarter, 2010.

A total of 8,033 meters was completed in 34 holes during the third quarter, with 18 holes in the core Rachel Zone, 11 in the Portuguesas-Pirata Zone, 1 at Ravanales, 2 at Pichanilla and 2 in the Chon Chon Zone. The diamond drill program for 2010 is currently budgeted to include a total of 23,189 meters in 102 holes.

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 in adjacent zones. Key intervals from recent drilling include:

  • PXE-436 (Portugesas): 92 meters at 0.70% Cu and 0.28 g/t Au (sulphides);
  • PXE-437 (Rachel): 35 meters at 2.63% Cu and 0.24 g/t Au (oxides) and 60 meters at 0.86% Cu and 0.33 g/t Au (sulphides);
  • PXE-443 (Rachel): 56 meters at 0.71% Cu and 0.26 g/t Au (sulphides);
  • PXE-463 (Rachel): 34 meters at 1.58% Cu and 0.20 g/t Au (sulphides) and 26 meters at 2.29% Cu and 0.07 g/t Au (sulphides); and
  • PXE-454 (Rachel): 28 meters at 0.66% Cu and 0.84 g/t Au (oxides)

Drilling highlights are discussed below and separated into various Zones within the El Espino project. All significant drill hole intersections are set out in the table at the end of this release.

RACHEL

Holes PXE 440, PXE 442 and PXE 461 demonstrate good correlation of mineralized mantos with the adjacent holes drilled previously in the NE part of the Rachel Zone. Holes PXE 435 and PXE 460 confirm the continuation of stacked mantos (4 mantos in hole PXE 435 and 5 mantos in hole PXE 460) in the SE part of the Rachel Zone.

New holes on the western edge of the Rachel Zone are located close to a fault which marks the boundary of the Rachel Zone and this fault may also be a mineralizing feeder structure. Hole PXE 437 intersected 35m at 2.68%Cu, 0.24g/tAu in oxides and 60m at 0.86%Cu and 0.33g/tAu in sulphides), and hole PXE 438 intersected 63.5m at 0.67%Cu and 0.10g/tAu.

Holes PXE 439, PXE 441 and PXE 446 are poorly mineralized and mark the western limit of the Rachel Zone, while hole PXE 443 (4m at 0.63%Cu, 1.70g/tAu and 36m at 1.02%Cu, 0.38g/tAu) is within the western edge of this zone. As indicated, hole PXE 443 has a high gold content and is adjacent to the Chon Chon- La Viuda-Portuguesas gold rich zones.

Hole PXE 445 (11m at 0.57%Cu, 0.10g/tAu) and particularly hole PXE 463 (34m at 1.58%Cu, 0.20g/tAu and 26m at 2.29%Cu, 0.07g/tAu) demonstrate a southern extension of the Rachel Zone mantos and likely continuation of mineralization towards the higher grade Pichanilla Zone.

PICHANILLA

Hole PXE 454 (26m at 0.66%Cu, 0.84g/tAu) demonstrates an eastern extension of the Pichanilla mineralized zone and has a significant gold and copper grades. Hole PXE 456 (12m at 0.57%Cu, 0.03g/tAu) extends the Pichanilla zone to the south.

RAVANALES

Hole PXE 465 intersected shallow oxide and mixed copper mineralization, which is typical of the near surface and outcropping manto mineralization at Ravanales.

CHON CHON

Hole PXE 464 (10m at 1.16%Cu, 0.73g/tAu) intersected significant gold mineralisation in the copper oxide zone, which is typical of the gold bearing Chon Chon Zone.

PORTUGUESAS

Hole PXE 436 (19m at 0.67%Cu, 0.50g/tAu oxides and 92m at 0.70%Cu, 0.28g/tAu sulphides) extends the sub-vertical zone of shear hosted mineralization in this zone to the southwest, while holes PXE 433 and PXE 462 confirm continuity of the Portuguesas Zone to the northeast.

PIRATA

Holes drilled in the Pirata Zone have variable results. Hole PXE 453 (2.7m at 0.99%Cu, 4.29g/tAu intersected a zone of copper-gold mineralization probably related to the Pirata fault. This extends the known zone of mineralization at Pirata to the southwest.

2010 PLANNED DRILLING

Drilling is continuing in the Rachel, Pichanilla and Portuguesas-Pirata Zones to add confidence to existing resources and to test for extensions.

UPDATED RESOURCE CALCULATION AND UPDATED SCOPING STUDY

An internal updated resource calculation of the El Espino deposit is now underway at Explorator Chile and will be incorporated into the updated scoping study scheduled for completion in Q4, 2010, which will be followed thereafter by an NI 43-101 compliant Technical Report prepared by Explorator Resources Inc.

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 of 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) has 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 $850/oz.) and also noted good potential for further resource expansion. 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 expected to be adequate to fund continued exploration and evaluation through to the end of 2010.

REGULATORY FOOTNOTE

Mr. Michael Schuler was in charge of exploration activities at Explorator SCM and is the "Qualified Person" as defined under the National Instrument 43-101 and is responsible for reviewing the technical disclosure in this news release. All analytical work has been completed by ACME Analytical Laboratories of Santiago in Chile; ACME is a respected international analytical service which is accredited with NATA and complies with standards of ISO 9001:2000 and ISO17025:1999. They employ a variety of international standards for quality control purposes. Samples are transported from the project to the ACME laboratory in Santiago by ACME personnel in an ACME Truck. All analytical testing is performed utilizing a variety of industry standard analytical techniques, including: (1) ACME Analytical Code Au-G6 (Au 30g fire assay with AAS finish), (2) ACME analytical code Au- G6GRAV (Au 30g fire assay with a gravity finish), (3) ACME analytical code 7D (23 element analysis using a four acid digestion and ICP-AS analysis). All diamond drill core is geologically logged, cut in half using a diamond saw and sampled by Company geologists in one (1) to three (3) meter sample intervals depending on visual grade estimates; the archive portion of the sample is securely stored at the company's core shed adjacent to the office in the town of Illapel. The Company has a QA/QC program consisting of utilizing standards, duplicate and blank samples and laboratory cross-checks and routinely repeats sample analysis.

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 "Appendix A - Drill Hole Location - El Espino Project - July - September 2010", please visit the following link:

http://media3.marketwire.com/docs/explrtr_map_1.pdf

To view "Appendix B - ANEXO No. 2 - Intervalos Significativos", please visit the following link:

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

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