Norsemont Mining Inc.
OTC Bulletin Board : NOMFF

Norsemont Mining Inc.

March 28, 2007 09:01 ET

Norsemont Reports 133% Increase in Inferred Copper Resource at Constancia Deposit in Peru

VANCOUVER, BRITISH COLUMBIA--(CCNMatthews - March 28, 2007) - Norsemont Mining Inc. ("Norsemont" or "the Company") (TSX VENTURE:NOM) (OTCBB:NOMFF)(FRANKFURT:N8S) (WKN: A0DQKK) (ISIN: CA6565291045) is pleased to announce results of an Updated Resource Estimate on the Constancia Copper-Molybdenum-Silver Porphyry Deposit in southern Peru.

An independent Mineral Resource estimate has been completed on the Constancia and San Jose Zones of the Constancia Deposit in Southern Peru by Snowden Mining Industry Consultants Inc. ("Snowden"). The report estimates an Indicated Resource of 70.0 million tonnes grading 0.53% copper, 0.013% molybdenum and 4.0 g/t silver (0.65% Cu-Equivalent) at a cutoff grade of 0.2% copper and an Inferred Resource of 250.2 million tonnes grading 0.51% copper, 0.013% molybdenum and 4.5 g/t silver (0.64% Cu-Equivalent) at a cutoff grade of 0.2% copper (Table 1). The estimate for the Constancia Deposit also contains small amounts of gold and zinc, which has not been reported in the Resource table.

Copper equivalent values are estimated using long-term metal prices including: copper US$1.20 per lb, molybdenum US$8.00 per lb, and silver US$7.50 per oz. Adjustment factors to account for differences in relative metallurgical recoveries will depend upon the completion of definitive metallurgical testing. Cu-Equivalent equals Cu (%) plus Mo (%) times (8.00/1.20) plus Ag (g/t) times 0.24/(1.20x22.05). Metallurgical recoveries and net smelter returns are assumed to be 100%.

Based on the March 2007 Resource estimate, the Indicated Resources contain approximately 818 million pounds of copper, 20.1 million pounds of molybdenum and 9.0 million ounces of silver at a 0.2% copper cutoff, and the Inferred Resources contain approximately 2.81 billion pounds of copper, 71.7 million pounds of molybdenum and 36.2 million ounces of silver (see Table 2). The March 2007 Resource estimate, therefore, displays an increase of approximately 9.7% in contained copper in the Indicated category and approximately 133% in contained copper in the Inferred category relative to the initial estimate reported in October 2006.

Composited assay data were capped to between 0.0298% Mo and 0.0880% Mo for molybdenum (five of eight estimation domains). Silver grade data from only one of the eight estimation domains required capping (24.5 g/t Ag). No capping was applied to the copper data.

The resource estimate for the Constancia Deposit was generated using geological solids modeled by Atticus & Associates. Copper, molybdenum and silver grades were interpolated into a block model using ordinary kriging, with copper as the primary element. Table 1 includes Resources from the San Jose and Constancia Zones. Resource classification was based on a combination of drill spacing, kriging variance, and confidence in geological and grade continuity.

Table 1: Resource Estimate, Constancia Project, March 27, 2007

Cut-off Copper Molybdenum Silver
Grade Tonnes Grade Grade Grade
(% Cu) (Million) (% Cu) (% Mo) (g/t Ag)
Indicated Resources
0.5 33.1 0.72 0.013 4.7
0.4 46.8 0.64 0.013 4.4
0.3 62.0 0.57 0.013 4.1
0.25 67.5 0.54 0.013 4.0
0.2 70.0 0.53 0.013 4.0
Inferred Resources
0.5 94.9 0.78 0.014 5.6
0.4 142.9 0.67 0.014 5.2
0.3 199.2 0.58 0.014 4.8
0.25 230.8 0.54 0.013 4.6
0.2 250.2 0.51 0.013 4.5

Table 2: Contained Metal (0.2% Cu cut-off), Constancia Project,
March 27, 2007

Resource Copper Molybdenum Silver
Category (million lbs) (million lbs) (million oz)
Indicated 818 20.1 9.0
Inferred 2,813 71.7 36.2

The Constancia Project is located between the Tintaya Mine and the Las Bambas copper deposit of Xstrata PLC in Southern Peru. Norsemont Mining is earning up to 70% of the Constancia Project from Rio Tinto by way of project expenditures, cash payments and the issue of common stock, the details of which can be found on the company's website ( Mitsui Mining retains a 30% interest in the project.

"I am very pleased to see such a large increase in our resource base in this, our second resource estimate in 6 months," said Robert W. Baxter, President of Norsemont Mining Inc. "We continue to expand the extent of the deposit on 100 metre step out drill holes between the Constancia and San Jose Zones. We believe that although we have defined the limits on the south, east and northern parts of the deposit it remains open to the west, north-west and south west as well as at depth beneath the known mineralization. We currently have one diamond drill rig on site, working two shifts per day; however, we are scheduled for the arrival of an additional drill rigs next quarter. The current focus is the area between the Constancia Zone and Jose zones where drilling continues to intercept significant mineralization; however, there are a number of other targets including the recent drill intercept of 38.7 metres @ 1.69% Cu in CO-07-109, which is located approximately 900 metres north of the San Jose Zone. These targets warrant additional drilling during 2007."

"This resource clearly demonstrates that the Constancia deposit is a large, well defined copper deposit which remains open to expansion and is now one of the most advanced exploration copper projects in Peru. We look forward to advancing the project through our ongoing studies. The Company commenced a metallurgical trade-off study in late October which is focused on heap leaching versus milling and flotation, with preliminary results to be reported shortly. I remain confident that given the strong outlook for copper prices over the next 5 years, and beyond, that the Constancia deposit with this updated resource estimate will prove to be a significant development project for Norsemont in Peru."

"We continue to be impressed by the significant results our team is achieving at the Constancia Deposit," said Marc E. Levy, Norsemont CEO and Chairman. "The tremendous growth in the size of the deposit exceeds my expectations and I am extremely encouraged by this updated resource estimate."

Independent geologist Dr. Warwick S. Board, MAusIMM, Pr.Sci.Nat. and a Qualified Person as defined by National Instrument (NI) 43-101, was responsible for the Mineral Resource estimate dated March 27, 2007. Dr. Board has read and approved the contents of this news release. The Resource estimate has components of both Indicated and Inferred Mineral Resources, consistent with the CIM definitions referred to in NI 43-101. This estimate will be filed in a Technical Report compliant with NI 43-101 on SEDAR within 45 days. Mineral Resources which are not Mineral Reserves do not have demonstrated economic viability. Norsemont is not aware of any environmental, permitting, legal, title, taxation, socio-political, marketing or other issues which may materially affect its estimate of mineral resources.

Quality Control

The Resource estimate is based upon 128 diamond drill holes totaling 36,771.5 metres completed by Rio Tinto and Norsemont through to the end of December 2006. Norsemont has completed 104 holes and Rio Tinto had previously drilled 24 holes that are included in this Resource estimation.

The core from Rio Tinto's 2004 drilling was sent to and analysed at ALS Chemex Laboratories in Lima for copper, molybdenum, gold and silver. Core samples were cut with a diamond saw, with one-half of the core placed in sealed bags, and shipped to ALS Chemex Assay Labs in Lima, Peru. The Rio Tinto program includes an extensive quality control program for assaying which includes the systematic use of standards, blanks, and field duplicate samples. Secondary laboratories are also used for check assaying. Drill core was sampled each 2m after logging. Some sample length changes were made when lithological or mineralogical boundaries where important and sample lengths met those boundaries. In general, contacts between high grade and low grade samples (visually estimated) correspond with the sample boundaries. In some visually determined low copper grade intervals, sample length was increased to 3-metres. Half core was sampled after it was symmetrically cut with a core saw.

The drilling program and geological studies during 2005 and 2006 at the Constancia project for Norsemont were supervised by Dr. Thomas A. Henricksen, P. Geo., and Robert Baxter, Norsemont's Qualified Person as defined by NI 43-101, who has reviewed and approved the information contained in this news release. Core samples are cut with a diamond saw, with one-half of the core placed in sealed bags, and shipped to ALS Chemex Assay Labs in Lima, Peru. The program includes an extensive quality control program for assaying which includes the systematic use of standards, blanks, and field duplicate samples.

A plan map with drill hole locations and the resource outline is available on Norsemont's website at Other geological data including cross sections will be made available with the NI 43-101 Technical Report which is to be posted on SEDAR within 45 days of this press release.

Conference Call

Norsemont Mining will hold an investor conference call on Tuesday April 3, at 11:00 a.m. Pacific Time. Marc E. Levy, CEO and Robert (Bob) Baxter, President, will review the updated resource estimate and Norsemont's plans to develop the Constancia deposit with analysts and investors. Following their remarks there will be a question and answer session.

To join the call reference "Norsemont" or "Resource Estimate Update" after you dial:

Toll Free in North America: 1-800-525-6384

International: 780-409-1668

To access a replay of the call until 11:00 a.m. (PT) on April 6, 2007:

Toll Free in North America: 1-888-567-0782

International: 402-220-2884

Pass Code: 4192440

About Norsemont Mining

Norsemont Mining is a well structured, well financed exploration company working in the America's, with a focus on Peru. The Company is currently drilling the Constancia Copper-Molybdenum-Silver Deposit, joint ventured from Rio Tinto.


Robert W. Baxter, President

Norsemont Mining Inc.

We seek Safe Harbor.

The TSX Venture Exchange has reviewed this release.

Contact Information