International Enexco Limited
TSX VENTURE : IEC

International Enexco Limited

March 17, 2008 09:54 ET

International Enexco Extends Oxide Copper With Phase 1 Drilling at Contact Copper-Silver Project, Expands Land Holdings, Adds Second Drill Rig to Expedite Planned Pre-Feasibility Study

VANCOUVER, BRITISH COLUMBIA--(Marketwire - March 17, 2008) - International Enexco Ltd. (TSX VENTURE:IEC) ("Enexco" or the "Company") Mr. Arnold Armstrong, President and CEO of International Enexco reports that results of Phase 1 infill drilling at the Company's 100%-owned Contact Copper-Silver Project in northeastern Nevada, USA, indicate broader zones of oxide copper mineralization than originally anticipated. The successful Phase 1 infill drill results suggest that an increase in net pounds of copper at Contact is likely, and that a substantial part of the resource, from surface to a depth of 250 meters, is in the form of oxide copper. Dr. William Willoughby, Manager of Engineering for the Project states, "These results lend further support to focusing the Pre-Feasibility Study on the Project as an open-pit, heap-leach operation."

An updated National Instrument 43-101 and JORC compliant mineral resource document will be published by the Company later this year. The previously reported estimates based on historical drilling were reported in an independent National Instrument 43-101 and JORC compliant Technical Report in July, 2006. At a 0.5% copper cut-off grade, the Indicated Resource was estimated to be 4.4 million tonnes with 1.35% copper and 12.2 g/t silver, plus an Inferred Resource of 6.0 million tonnes with 1.80% copper and 8.7 g/t silver, together containing an estimated 371 million pounds of copper and 3.4 million ounces of silver.

Enexco further believes there is potential to significantly expand the known copper-silver resources, specifically along the margins of the district-sized Contact intrusive body and also to depth. To this end, an additional 389 hectares (960 acres) have been acquired contiguous to the Company's existing properties in addition to another 4,200 hectares (10,360 acres) staked regionally including new strategic copper, gold, silver and molybdenum targets as outlined by International Enexco geologists.

To help expedite a planned Pre-Feasibility Study for the Contact Project, a second EF-50 diamond core drill rig was purchased by the Company for the Project and is now fully operational. This second rig will reduce by one-half the time required to complete the infill drilling necessary for upgrading the resource and allow investigations of open pit design and column leach tests to get underway earlier. The Company hopes to have the Pre-Feasibility Study completed by year end. The second drill rig will also allow Enexco to more quickly explore the newly acquired mineral claims as well as examine the deeper mineralization hit in 1972 by Phelps-Dodge in drill hole, PD-4. This hole intersected 3.7 meters of 20.7% Cu with 207 g/t Ag and 14.2 meters of 9.2% Cu with 144 g/t Ag. Gold up to 5.1 g/t and molybdenum up to 1900 ppm were also encountered in these intervals. Enexco plans a number of deep holes (greater than 750 meters) to examine targets near this high grade discovery hole. Success in this drilling could significantly increase the Contact Project copper resource.

The Contact Project is located approximately 80 kilometers north of Wells, Elko County, in northeastern Nevada. The Project is well located with respect to power and water, and lies adjacent to Nevada State Highway 93. The Phase 1 infill drill program consisted of 18 core holes totaling 5,000 metres in the eastern part of the Banner Zone, an area within the Company's 1,214 hectare (3000 acre) of primarily patented claims where most of the historical drilling was focused. In the 2006 43-101 Technical Report, resources in the Banner Zone were modeled from mineralized zones associated with quartz veins in the Jurassic-age granodiorite host rock. The Banner Zone resource model covers an area about 1500 meters long in east-west strike and dipping from 40 to 55 degrees south. Phase 1 drilling was confined to the eastern-third of this Zone.

All Phase 1 infill drill holes encountered copper mineralization consistent with the 2006 resource model and a 0.5% Cu cut-off grade. However, the drilling also encountered broader zones of oxide-dominant copper mineralization, providing further support for a bulk open pit mining and heap leaching operation.

Table 1, below, provides significant intercepts from Phase 1 infill drilling which are consistent with the 2006 resource model and a 0.5% Cu cut-off grade; Table 2 provides significant intercepts at a cut-off grade of 0.1% Cu.



Table 1: Phase 1 Infill Drilling
Significant Intercepts @ 0.5% Cu cutoff

DDH From To Meters % Cu Ag g/t
-----------------------------------------------------
EN-02 234.7 239.3 4.6 1.14 11.9
-----------------------------------------------------
EN-03 41.8 45.1 3.4 1.37 62.1
115.5 120.4 4.9 2.57 42.2
-----------------------------------------------------
EN-04 47.2 51.8 4.6 1.81 8.7
-----------------------------------------------------
EN-05 87.5 90.5 3.0 1.50 4.7
-----------------------------------------------------
EN-06 93.0 99.1 6.1 1.37 6.9
146.3 150.9 4.6 1.46 11.7
-----------------------------------------------------
EN-08 1.5 4.0 2.5 3.20 29.0
57.9 65.5 7.6 1.11 9.7
-----------------------------------------------------
EN-10 152.4 157.0 4.6 1.98 36.5
-----------------------------------------------------
EN-11 112.8 118.9 6.1 2.74 26.4
-----------------------------------------------------
EN-13 158.5 172.2 13.7 1.10 10.9
-----------------------------------------------------
EN-15 48.8 53.3 4.6 1.21 24.9
77.1 87.8 10.7 1.82 21.6
-----------------------------------------------------
EN-16 201.2 205.7 4.6 1.84 24.3
-----------------------------------------------------

Table 2: Phase 1 Infill Drilling
Significant Intercepts @ 0.1% Cu cutoff

DDH From To Meters % Cu
-------------------------------------------
EN-01 214.9 221.0 6.1 0.29
-------------------------------------------
EN-02 80.2 102.1 21.9 0.22
116.4 152.4 36.0 0.35
213.4 245.4 32.0 0.29
-------------------------------------------
EN-03 18.6 27.4 8.8 0.30
38.1 46.6 8.5 0.58
71.3 126.5 55.2 0.31
-------------------------------------------
EN-04 0.0 70.1 70.1 0.31
152.4 173.7 21.3 0.30
-------------------------------------------
EN-05 85.3 97.5 12.2 0.51
-------------------------------------------
EN-06 18.3 39.6 21.3 0.12
68.6 161.5 93.0 0.34
240.8 246.9 6.1 0.40
-------------------------------------------
EN-07 8.5 18.3 9.8 0.33
94.5 126.5 32.0 0.33
146.3 152.4 6.1 0.46
-------------------------------------------
EN-08 1.5 65.5 64.0 0.45
172.2 181.7 9.4 0.45
-------------------------------------------
EN-09 121.9 131.1 9.1 0.24
211.8 234.7 22.9 0.22
-------------------------------------------
EN-10 22.9 32.0 9.1 0.33
152.4 166.1 13.7 0.72
237.7 259.1 21.3 0.25
277.4 283.5 6.1 0.47
-------------------------------------------
EN-11 27.4 74.7 47.2 0.13
93.0 155.4 62.5 0.42
-------------------------------------------
EN-12 93.0 99.1 6.1 0.56
205.7 222.5 16.8 0.17
256.0 262.1 6.1 0.28
-------------------------------------------
EN-13 25.9 89.9 64.0 0.13
137.2 196.6 59.4 0.36
234.7 288.0 53.3 0.24
-------------------------------------------
EN-14 3.0 9.1 6.1 0.42
61.0 115.8 54.9 0.12
144.8 150.9 6.1 0.25
201.2 207.3 6.1 0.32
-------------------------------------------
EN-15 48.8 96.9 48.2 0.63
200.1 210.6 10.5 0.31
-------------------------------------------
EN-16 4.6 15.2 10.7 0.42
64.0 114.3 50.3 0.14
179.8 205.7 25.9 0.44
268.2 283.5 15.2 0.30
-------------------------------------------
EN-17 9.1 18.3 9.1 0.35
91.4 118.9 27.4 0.32
-------------------------------------------
EN-18 80.8 146.3 65.5 0.12
-------------------------------------------


The Contact project is under the supervision of International Enexco's Manager of Engineering, Dr. William Willoughby, PE, who is a Qualified Person as defined in Canadian National Instrument 43-101, and is responsible for the preparation of the technical information in this News Release.

All intervals reported within this news release are drill core which has been transported and logged at Enexco's core logging facility located in Filer Idaho, where it is split, bagged and transported to American Assay Laboratories sample preparation facility in Elko, Nevada. Analyses were performed at AAL's facility in Sparks, Nevada. A Quality Assurance and Quality Control Protocol is in place in which blanks and standards are inserted into the sample stream and check assays are performed by ACME Analytical Laboratories Ltd. in Vancouver, B.C.

As of this publication, International Enexco Ltd. has 21,053,077 shares outstanding (23,495,927 fully diluted) and approximately CDN $16 million in working capital.

ABOUT INTERNATIONAL ENEXCO

Enexco is a Canadian based advanced exploration company headquartered in Vancouver, B.C. In addition to its 100% owned Contact Copper-Silver Resource Property, the Company also has a strategic alliance with Cameco Corporation (35%), International Enexco (30%) and UEM Inc. (35%) to jointly develop the High-Grade Mann Lake Uranium Project located in the Athabasca Basin in Saskatchewan. Cameco is operator of the Mann Lake Uranium Project.

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

Contact Information

  • International Enexco Limited
    Paul McKenzie
    Director
    (604) 669-8368
    (604) 642-2629 (FAX)
    Website: www.enexco.ca