Far West Mining Ltd.

Far West Mining Ltd.

June 01, 2005 16:42 ET

Far West Mining Ltd. Provides Update on Exploration Projects in Chile, Argentina and Australia

VANCOUVER, BRITISH COLUMBIA--(CCNMatthews - June 1, 2005) - Far West Mining Ltd. (TSX VENTURE:FWM) is pleased to provide an update on its exploration projects in Chile, Argentina and Australia.

Candelaria Project / Chile

4a3 Target - Santo Domingo Area

The third drilling campaign to be carried out on the 4a3 Target, which commenced on April 27, has just been completed. A total of 21 holes (5,982m) were drilled to test the potential of the Target to host large tonnage manto or chimney style (feeder zone) Iron Oxide Copper/Gold (IOCG) deposits. The holes were drilled in close proximity to interpreted and mapped intersections of major faults with coincident FALCON™ magnetic and gravity/gravimetric signatures.

As previously reported, the FALCON™ survey carried out in the Santo Domingo district has outlined a 6km square area that is believed by management to have the potential to host Candelaria (470 Mt 0.95% Cu) and/or Punta del Cobre (120 Mt 1.50% Cu) style IOCG mineralization.

Drilling carried out in the 4a3 Target area prior to the commencement of the recent program comprised 21 holes (6,510m), which intersected stockwork/breccia and strata-bound manto style mineralization of variable grade and thickness for over three kilometres along strike and peripheral to the Santo Domingo fault. Previously announced encouraging results covering stockwork and manto style mineralised intersections were reported in Far West's news release of April 21, 2005 which is available on the company's website.

Drilling and exposed mineralization in the 4a3 Target area confirms the presence of a large copper bearing IOCG system. Prior drilling results indicate that the stockwork/breccias and mantos are better developed and mineralized close to the prominent east-west Santo Domingo fault where it is intersected by northwest structures. In the latest program similar structures parallel to the major Santo Domingo fault were tested to the north and to the south, where interpreted northwest structures cross-cut cut the major east-west lineaments.

Assay results have been received for the first eight holes drilled in the recent campaign with encouraging results being obtained in two of the holes. Drill hole 4a3-022 located 3.5 km southeast of the historic Santo Domingo mining area intersected stacked manto style IOCG mineralization while drill hole 4a3-024 located in the Santo Domingo East area, intersected stockwork and possible manto type mineralization.

Drill hole 4a3-022 averaged 0.81% Cu over 56m from 14 to 70m, with the best interval running 1.33% Cu over 18m from 26 to 44m. A 22m interval at depth (186 - 208m) graded 0.72% Cu. Drill hole 4a3-024 - intersected a section from 40 - 104m grading 0.53% Cu.

Six holes were drilled at the close of the program to test the structural continuity of the mineralization intersected in hole 4a3-022. Additional holes were planned but not drilled because the drill had to be surrendered owing to a prior commitment made by the drilling contractor to another client. Further drilling in the 4a3 Target area is contingent on continued encouraging results.

It is anticipated that the balance of the assay results for the holes drilled in the recent program will be available in mid to late June.

Ownership Status

As announced at the Company's AGM held on May 5, 2005 in Calgary, BHP Billiton confirmed by way of written notice that it has elected to accelerate dilution in its ownership of the Candelaria Project properties. As a result of the accelerated dilution, Far West Mining's ownership interest has now been increased to 100%, while BHP Billiton's interest has been converted to a 2% Net Smelter Return royalty, in respect of all properties involved in the Candelaria Project, which includes those properties comprising the 4a and 4c Target Area joint ventures.

It is anticipated that a formal royalty agreement will be executed between the parties before the end of June 2005. A process to register the royalty against land and mineral titles in Chile is underway as is a process of transferring from BHP Billiton to Far West Mining a 100% ownership in all of the land and mineral claims comprising the Candelaria Project, including 4a and 4c Target Area claims as well as the 4a3 Target Area claims comprising the Santo Domingo district referenced above.

The decision by BHP Billiton to terminate its interest in the Candelaria Project was made on the basis that the results do not meet the BHP Billiton internal criteria for continued participation. BHP Billiton will only participate in those projects which, in their view, have the potential to generate a "World Class" base metal deposit.

Georgetown Project / Australia

On May 18, 2005 Far West executed a contract with Fugro Airborne Surveys Pty. Inc. to carry out a 7,817 line km airborne electromagnetic/magnetic survey over the Georgetown properties. The survey is expected to commence sometime during the month of July of this year.

The Georgetown Project area is believed to have the potential to host BHT style mineral deposits such as Broken Hill (280Mt 10.0% Pb, 8.5% Zn, 150 g/t Ag) and Cannington (45Mt 11.9% Pb, 4.8% Zn, 520% Ag).

Farallon Negro Project / Argentina

Processing of the FALCON™ airborne survey data, collected recently in the Catamarca Province of northwest Argentina, is currently being processed by BHP Billiton's FALCON™ technical team in Australia. Data is expected to be available for target selection by Far West and BHP Billiton staff by the end of June or early July. It is anticipated that ground geophysical surveys to further define the airborne targets will be carried out during the summer months.

The areas surveyed (7,270 sq km), which are blanketed by post mineral cover, lie to the north and south of the district hosting the Bajo de la Alumbrera (752Mt @ 0.51% Cu & 0.67 g/t Au) and the Agua Rica (802Mt @ 0.61% Cu & 0.23 g/t Au) deposits.

Far West is an international mineral exploration company engaged in the evaluation, acquisition, exploration and development of mining properties with current operations in Chile, Argentina and Australia in collaboration with its exploration strategic alliance partner BHP Billiton.

The in-house qualified persons responsible for the Projects are Robert E. Hindson, P. Eng., Chief Executive Officer, President and a director of the Company, and Patricio Varas, P. Geo. Vice-President and a director of the Company, both of whom have reviewed and approved the contents of this news release.


Robert E. Hindson, P.Eng., President and C.E.O.

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

Contact Information

  • Far West Mining Ltd.
    Robert Hindson
    President & C.E.O.
    (604) 602-9144
    Far West Mining Ltd.
    Patricio Varas
    Vice President
    (604) 602-9144