Lumina Copper Corp.
TSX VENTURE : LCC

Lumina Copper Corp.

January 06, 2011 08:32 ET

Lumina Intersects 244 Meters Grading 1.36% Copper Equivalent, Including 102 Meters Grading 1.99% Copper Equivalent at Taca Taca-Announces Significant Expansion of Drill Program

VANCOUVER, BRITISH COLUMBIA--(Marketwire - Jan. 6, 2011) - Lumina Copper Corp. (TSX VENTURE:LCC) (the "Company") is pleased to announce the results of three of the first four holes drilled as part of its 2010 drilling program at its 100% owned Taca Taca copper/molybdenum/gold deposit located in Salta province, Argentina. The results are highlighted by hole TTBJ01-10 that intersected 244 meters grading 0.77% copper, 0.17g/t gold and 0.033% molybdenum (1.36% copper equivalent(1)) including 102 meters grading 1.31% copper, 0.19 g/t gold and 0.038% molybdenum (1.99% copper equivalent(1)). 

These results, in conjunction with previous drilling completed by Rio Tinto in 2008, suggest that a previously unknown zone of higher grade mineralization may be emerging within the existing mineral resource. This zone is open to the north. To date, 3,353 meters of drilling has been completed with the drill rig currently drilling the fifth hole of the program. The drill program has yet to identify a deeper higher grade copper target. 

Details of the relevant intercepts from the three holes are shown in the table below, the assay results from hole TTBJ04-10 are pending. A map showing the location of the new results in relation to historical drilling and the more recent Rio Tinto drilling is attached to this news release.  To view the map, please go to the following link: http://media3.marketwire.com/docs/l15.pdf.

Hole No. From Meters To
Meters
Interval Meters Cu% Au g/t Mo% CuEq(1)%
TTBJ01-10 288 532 244 0.77 0.17 0.033 1.36
including 288 390 102 1.31 0.19 0.038 1.99
and 324 366 42 1.82 0.18 0.052 2.65
               
TTBJ02-10 320 611 291 0.37 0.12 0.012 0.67
including 382 442 60 0.61 0.16 0.016 0.99
               
TTBJ03-10 278 514 236 0.49 0.19 0.016 0.90
including 278 452 174 0.57 0.28 0.017 1.10
and 304 352 48 0.67 0.28 0.018 1.21
(1) Copper equivalent calculated using US$2.00/lb Cu, US$800/oz Au and US$12.00/lb Mo and is not adjusted for metallurgical recoveries as these remain uncertain. The formula used is as follows: CuEQ = Cu% + (Au g/t x 25.72 / 22.05) + (Mo% x 264.55 / 22.05).

Based upon these results, the Company has decided to significantly expand the drill program and to initiate comprehensive engineering and metallurgical studies on the project. The 2011 drill program will include 43,000 meters of drilling designed to fully evaluate the extent of the newly identified high grade zone. The metallurgical study will expand on the initial work completed in early 2010 while the engineering program will include a comprehensive mine plan, pit slope analysis, hydrogeological studies, process engineering and design as well as infrastructure layout, power, water supply and transportation studies. The drill program, metallurgy and engineering studies are expected to be completed by the end of 2011.

The Taca Taca copper/gold/molybdenum project, comprising approximately 2,500 hectares, is located in the Puna region of north western Argentina in Salta Province, approximately 230 kilometres west of the provincial capital of Salta and 90 kilometres east of the world's largest copper mine, Escondida. 

On October 9, 2008, the Company announced it had received an independent National Instrument 43-101 ("NI 43-101") compliant mineral resource estimate for the project that at a 0.4% copper equivalent cut-off contained inferred mineral resources of 841 million tonnes grading 0.64% copper equivalent, containing 8.71 billion pounds of copper, 2.97 million ounces of gold and 333.70 million pounds of molybdenum(2).

Additional information on Taca Taca, including the NI 43-101 technical report "Amended Taca Taca Technical Report" dated January 22, 2010 by Robert Sim, P.Geo., can be found on the Company's website (www.luminacopper.com) and on SEDAR (www.sedar.com).

Leo Hathaway, P.Geo., Vice President, Exploration and the Qualified Person as defined by NI 43-101 for the Taca Taca project has reviewed and approved the content of this press release.

(2) The copper equivalent cut off grade used in the calculation of the mineral resource estimate was determined using US$1.50 / lb copper, US$600 / oz gold and US$6.00 / lb molybdenum and was not adjusted for metallurgical recoveries as these remain uncertain. The formula used in the calculation was as follows: CuEQ = Cu% + (Au g/t x 0.583) + (Mo% x 6).

LUMINA COPPER CORP.  

David Strang, President & CEO

CAUTION REGARDING FORWARD LOOKING STATEMENTS: This news release contains "forward-looking statements" within the meaning of the United States Private Securities Litigation Reform Act of 1995 and applicable Canadian securities legislation. Forward-looking statements include, but are not limited to, statements with respect to the future price of gold, copper and molybdenum, the timing of exploration activities, the estimation of mineral reserves and mineral resources, the results of drilling, estimated future capital and operating costs, future stripping ratios, projected mineral recovery rates and Lumina Copper's commitment to, and plans for developing any of its projects. Generally, these forward-looking statements can be identified by the use of forward-looking terminology such as "plans", "expects" or "does not expect", "is expected", "budget", "scheduled", "estimates", "forecasts", "intends", "anticipates" or "does not anticipate", or "believes", or variations of such words and phrases or state that certain actions, events or results "may", "can", "could", "would", "might" or "will be taken", "occur" or "be achieved". Forward-looking statements are subject to known and unknown risks, uncertainties and other factors that may cause the actual results, level of activity, performance or achievements of Lumina Copper to be materially different from those expressed or implied by such forward-looking statements, including but not limited to: risks related to the exploration and potential development of the Company's projects, including without limitation Taca Taca, risks related to international operations, the actual results of current exploration activities, conclusions of economic evaluations, changes in project parameters as plans continue to be refined, future prices of gold, copper and molybdenum, as well as those factors discussed in the sections relating to risk factors of our business filed in Lumina Copper's required securities filings on SEDAR. Although Lumina Copper has attempted to identify important factors that could cause actual results to differ materially from those contained in forward-looking statements, there may be other factors that cause results to be materially different from those anticipated, described, estimated, assessed or intended.  There can be no assurance that any forward-looking statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. Accordingly, readers should not place undue reliance on forward-looking statements. Lumina Copper does not undertake to update any forward-looking statements that are incorporated by reference herein, except in accordance with applicable securities laws.

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