Antares Minerals Inc.

Antares Minerals Inc.

July 13, 2005 08:30 ET

Independent Mineral Resource Estimate Indicates Inferred Resource of 2.1 Billion lbs Copper at Antare's Haquira Copper Project in Southern Peru

WATERDOWN, ONTARIO--(CCNMatthews - July 13, 2005) - Antares Minerals Inc. (TSX VENTURE:ANM) ("Antares") is pleased to announce the completion of an independent NI 43-101 compliant mineral resource estimate for the Haquira project in southern Peru. The estimate was prepared by Chlumsky, Armbrust, and Meyer L.L.C., ("CAM") of Denver, Colorado, USA and was based upon 85 drill holes (11,350 m) completed by Minera Phelps Dodge de Peru S.A.C. in 2001-2003.

The CAM report estimates an inferred mineral resource, at a 0.3% total copper cutoff grade, of 120.5 million tonnes grading 0.49% copper amenable to SX-EW processing (secondary copper sulphides and oxides) and 89.2 million tonnes grading 0.43% copper amenable to flotation/concentrate processing (primary copper sulphides) for a total of 209.7 million tonnes grading 0.46% copper (see Table 1 below). Resource estimates for secondary copper sulphides and oxides at a 0.2% total copper cutoff grade are also shown in the Table 1. All resources at Haquira are currently classified as inferred mineral resources due to the relatively wide average spacing of 200 m between drill holes.

Table 1 - Inferred Mineral Resource Estimate Haquira Project
Cutoff Contained
Grade (1) Grade Cu (2)
Mineralisation Type (% Cu Total) Tonnes (% Cu Total) (billion lbs.)
Secondary Oxide and 0.3 100,809,000 0.486
Mixed Oxide
- Secondary
Sulphide 0.2 148,710,000 0.409
Secondary Sulphide 0.3 19,704,000 0.518
0.2 32,594,000 0.408
Total Secondary
and Oxide 0.3 120,513,000 0.491 1.30
(amenable to SX-EW
processing) 0.2 181,304,000 0.409 1.63

Primary Sulphide 0.3 89,185,000 0.426 0.84

Total - All
Mineralisation 0.3 209,698,000 0.464 2.14

John Black, President of Antares Minerals Inc. commented as follows:

"We are excited to report an initial resource estimate of over one billion pounds of leachable copper (3) at Haquira, a new copper discovery immediately adjacent to Xstrata's Las Bambas copper-gold project. The near surface, copper-oxide and secondary copper-sulphide mineralisation at Haquira offers potential for a low-strip, low-cost SX-EW operation, particularly given synergies with the nearby Las Bambas project. The secondary and primary copper resources remain open laterally, the primary copper suphides are open at depth and there are additional untested targets on the property.

We plan to complete a drilling campaign in the second half of 2005 to delineate additional resources and to obtain bulk samples of mineralized material for metallurgical testing."

Haquira Project

Antares can acquire a 100% interest in the Haquira project from Minera Phelps Dodge del Peru S.A.C. ("Phelps Dodge") by completing optional payments totaling US$15 million over a five-year period. In addition, once a feasibility study is completed on Haquira, Antares will be obligated to make an additional payment to Phelps Dodge equal to US$0.01 for each pound of copper in excess of 2.2 billion pounds that is calculated as part of the leachable mineral resource. Antares has also issued 1.5 million warrants to Phelps Dodge. Each warrant is exercisable for one share of Antares stock. Half of the warrants are exercisable at CDN$1.25 for a period of one year and the other half are exercisable a CDN$1.50 for a period of two years.

Phelps Dodge recently discovered the Haquira Project (4,600 ha). Haquira hosts a large porphyry copper deposit with well-developed copper-oxide and secondary copper-sulphide mineralisation overlying primary copper-sulphide mineralisation. The project is located approximately 75 km to the southwest of Cuzco in the emerging Andahuaylas-Yauri copper-gold porphyry/skarn belt that hosts the Tintaya copper-gold skarn mine (BHP Billiton), the Las Chancas copper-gold porphyry deposit (Southern Peru Copper Corp.), the Las Bambas copper-gold skarn deposits (Xstrata), as well as numerous other copper-gold-molybdenum porphyry and skarn occurrences. The Haquira project is contiguous with, and immediately to the south of, the Las Bambas district where Xstrata Copper has committed to invest US$121 million.

Copper mineralisation at Haquira occurs within quartzites and siltstones of the Cretaceous Soraya Formation and a Tertiary porphyry dike swarm. Phelps Dodge drilled 85 holes (11,350 m) with an approximate spacing of 200 m between drill holes. Mineralisation remains open in several directions. The mineralised zones are oxidized to depths varying from several tens of m to more than 200 m deep. Secondary copper mineralisation consists primarily of black and green copper-oxide minerals with lesser amounts of secondary chalcocite near the base of oxidation. The underlying primary mineralisation has not been well explored and consists of stockwork quartz-chalcopyrite-pyrite-molybdenite veins and disseminated sulphides. Sequential leach-copper analyses for most of the mineralised intervals have been completed by Phelps Dodge at the Cerro Verde Mine analytical laboratory and at the SGS laboratory in Lima, Peru to evaluate the leachability of copper-oxide and secondary copper-sulphide mineralisation. These analytical results indicate the mineralisation is amenable to conventional SX-EW processing.

Mineral Resource Estimate

Mr. George A. Armbrust, PhD, CPG, Principal Geologist with CAM, and Mr. Robert Sandefur, P.E., Senior Geostatistician with CAM, both of whom are Qualified Persons as defined by National Instrument 43-101, carried out the resource estimate summarized in this press release. This estimate will be filed as a part of a Technical Report, compliant with National Instrument 43-101, to be posted on SEDAR within 30 days.

The mineral resource estimate prepared by CAM utilized an inverse distance squared block model based upon assay results from 11,350 m (7,921 m reverse circulation, 3,429 m drill core) of drilling in 85 drill holes completed by Phelps Dodge in four drill campaigns during 2001-2003. Assays were compiled into 5-meter bench composites with individual composite values capped at 1.8% total copper to avoid undue influence by local higher grades. The average spacing of drill holes in the mineralised zones at Haquira is 200 m and the average length of all 85 drill holes is 134 m with only 10 holes exceeding 200 m in depth. To assure that adjacent mineralised holes did not spread mineralisation below short holes where no data was available, CAM artificially added 100m of barren material below each hole. In some cases this may have unduly restricted the resource estimate, particularly for the primary copper sulphide resource.

Antares has validated the Phelps Dodge data by re-assaying 127 samples selected from the Phelps Dodge drilling to represent the grade, mineralisation style and geometric ranges of the deposit. CAM has also reviewed the well-documented QA/QC, data compilation and data verification procedures utilized by Phelps Dodge at the Haquira project and verified that these procedures meet industry standards.

Mineral resources do not have demonstrated economic viability and future in-fill drilling and scoping, pre-feasibility and feasibility studies will determine what percentage of the inferred resource can be placed into the mineable category. Antares is not aware of any environmental, permitting, legal, title, taxation, socio-political, marketing or other issues which may materially affect this estimate of mineral resources.

About Antares Minerals Inc.

Antares is a recently reorganized mineral exploration company with highly experienced technical and management teams. The Company is focused on gold and copper exploration properties in Latin America that can be quickly and cost-effectively advanced to the discovery and production stage. In addition to the Haquira Project in Peru with Phelps Dodge, Antares is also currently exploring the Rio Grande (Cu-Au porphyry), Desierto (Au-Ag epithermal veins), and Catua (exotic Cu with potential for buried, supergene-enriched Cu porphyry) projects in Salta and Jujuy Provinces of NW Argentina in option-joint venture agreements with Mansfield Minerals Inc.

All of Antare's exploration programs and pertinent disclosure of a technical or scientific nature are prepared by or prepared under the direct supervision of John Black, Antare's President, who serves as the qualified person (QP) under the definitions of National Instrument 43-101.

Certain disclosure in this release, including management's assessment of Antare's plans and projects, constitutes forward-looking statements that are subject to numerous risks, uncertainties and other factors relating to Antare's operation as a mineral exploration company that may cause future results to differ materially from those expressed or implied. Readers are cautioned not to place undue reliance on forward-looking statements.


(1) The cutoff grades utilized for this communication were chosen to match those utilized at other similar stage projects and operating mines in Latin America.

(2) The term "contained copper" refers to the total in situ amount of copper contained within the resource estimate and not the amount of copper that may be ultimately recovered during mining and processing.

(3) The term "leachable copper" refers to copper that can dissolved into a solution of dilute sulfuric acid (oxide mineralization) and bacteria (secondary sulphide mineralisation) allowing the use of lower cost solvent extraction and electrowinning technology (SX-EW) as opposed to the higher cost flotation-concentration and smelting technology traditionally utilized for primary copper sulphide mineralisation.

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

Contact Information

  • Antares Minerals Inc.
    John Black
    (720) 514-9036 office
    (303) 618-7797 international cellular
    Antares Minerals Inc.
    Mark Wayne
    (403) 705-4968 office