International Enexco Limited
TSX VENTURE : IEC

International Enexco Limited

August 17, 2009 09:00 ET

Positive Pre-Feasibility Study Received and 136% Increase to Measured & Indicated Copper Resource at International Enexco's Contact Copper Project, Nevada

VANCOUVER, BRITISH COLUMBIA--(Marketwire - Aug. 17, 2009) - Arnold Armstrong, President and CEO of International Enexco Ltd. (TSX VENTURE:IEC) (the "Company") announced today that the Company has received a Positive Pre-Feasibility Study (PFS), in accordance with Canadian National instrument 43-101, Standards of Disclosure for Mineral Projects ("NI 43-101"), for its 100%-owned Contact Copper Project in northeast Elko County, Nevada.

The NI 43-101 compliant study was prepared on Enexco's behalf by Gustavson Associates, LLC of Lakewood, Colorado, an independent engineering consulting group. The PFS includes an update to the Independent Mineral Resource Estimate by Caracle Creek International Consulting, Inc. that was filed on Sedar on July 18, 2006. The PFS details the project producing 21.9 million pounds per year of high purity cathode copper from heap leaching and solvent extraction-electrowinning (SX/EW) over a 7 year period at a cash cost of $0.97/lb. The initial capital cost is estimated at $83 million, including a contingency of 20%. If developed, the project will have an after-tax net present value (NPV) at 10% discount rate of $9.7 million, an internal rate of return (IRR) of 13.2%, and a payback period of 4.6 years at a copper price of $2.25/lb.

While the PFS concludes the project is economically feasible, the recommendations include an additional drilling program to improve the economics and advance the project to the feasibility level. Analysis shows that a 50% increase in the reserves, or 16 million additional measured and indicated tons, would add 4 years to the project's life and increase the IRR to 20.6%. Enexco is planning to drill an additional 36,000 feet at Contact that will focus on the 50 million ton inferred resource as well as several other identified target areas.

The updated Mineral Resource was estimated using a three dimensional block model and ordinary kriging and contains 481 million pounds (213,214,000 Measured and 267,787,000 Indicated) of copper (89.6 million tons at 0.27% Cu) and 305 million pounds of copper in the Inferred category (50.0 million tons at 0.31% Cu), based on a 0.10% Cu cut-off grade. The updated estimate follows 2 years of drilling by Enexco, in which 106,000 feet of core in 115 holes were added to the project's data base. The updated figures represent an increase in copper, up by 136% within the Measured and Indicated categories from the 2006 report.



Mineral Resource Estimate reported at 0.10% Cu cut-off.
--------------------------------------------------------
--------------------------------------------------------
Copper
--------------------
Category Tons Cu (%) Pounds Cu
--------------------------------------------------------
--------------------------------------------------------
Measured 37,650,000 0.283 213,059,000
--------------------------------------------------------
Indicated 51,901,000 0.258 267,638,000
--------------------------------------------------------
Measured+Indicated 89,551,000 0.268 480,697,000
--------------------------------------------------------
Inferred 50,520,000 0.302 304,842,000
--------------------------------------------------------
--------------------------------------------------------


The mineable portion of copper reserves is designated as 17.7 million tons at 0.31% Cu proven and 15.9 million tons at 0.27% Cu probable, totaling 33.6 million tons of 0.29% Cu or 197 million pounds of Cu proven and probable reserves. No inferred resources were used in either the production schedule or economic analysis in the PFS.



Mineral Reserve Estimate reported at 0.10% Cu cut-off.
--------------------------------------------------------
--------------------------------------------------------
Copper
--------------------
Category Tons Cu(%) Pounds Cu
--------------------------------------------------------
--------------------------------------------------------
Proven 17,705,000 0.312 110,312,000
--------------------------------------------------------
Probable 15,872,000 0.272 86,419,000
--------------------------------------------------------
Proven+Probable 33,578,000 0.293 196,731,000
--------------------------------------------------------
--------------------------------------------------------


For the PFS, Gustavson developed a 7 year mine plan and production schedule based on an open pit mine producing 4.6 million tons of ore per year at an overall 2.4:1 stripping ratio. Column tests confirmed the copper, which is dominantly in oxide form, is amenable to leaching with sulfuric acid, with a net overall recovery of 76% at a minus-1" crush size. Gustavson examined alternatives for mining and crushing, and concluded in-pit crushing and conveying provided the best advantages in capital and operating costs in handling ore to the leach pad. The SX/EW plant is designed on capacity of 60 tons per day of cathodes, which are expected to meet specifications for marketing as high purity copper. Net production from the operation is estimated at 150 million pounds of copper over the 7 year life of mine.

Arnold Armstrong, President & CEO, commented today that:

"The completion of the PFS represents a significant milestone for the Contact Copper Project and Enexco. Although there have been drastic changes in the economy and copper prices, we believe the PFS gives us the foundation for a viable project and room to improve with further work. We plan to begin the recommended drilling program this fall and continue with the permitting and engineering studies that will lead us to production."

A copy of the full PFS Technical Report will be filed on the SEDAR website within 45 days.

The technical content of this news was reviewed and approved by William Crowl and Terre Lane of Gustavson who are Qualified Persons (QP) as defined by Canadian National Instrument 43-101.

Forward Looking Statements:

Certain statements in this news release, including those regarding production, costs, production, economics and other statements that express expectations or estimates of future performance constitute "forward-looking statements". All statements, other than statements of historical fact, are forward-looking statements. Information concerning the interpretation of mineral resources and reserves may be deemed as forward-looking statements as such information constitutes a prediction of what might occur if and when a project is actually developed.

Forward-looking statements are necessarily based upon estimates and assumptions that, while considered reasonable by management, are inherently subject to significant uncertainties, contingencies and risks. Enexco cautions the reader that these statements involve factors that may cause actual results to differ materially from those anticipated in such forward-looking statements. Further discussion of the risks is included within the PFS, and in the Company's most recent Annual Information Form filed on SEDAR. Enexco cautions investors and others that the list of factors may not be exhaustive and should carefully consider the uncertainties and risks in any decision that may be made from the Company's forward-looking statements.

ABOUT INTERNATIONAL ENEXCO

Enexco is a Canadian based advanced exploration company headquartered in Vancouver, B.C. In addition to its 100% owned Contact Copper Resource Property, the Company is exploring other prospective areas of Nevada, and has a joint venture with Cameco Corporation (52.5%), International Enexco (30%) and AREVA (17.5%) 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.

For further information on all of Enexco's projects, visit our website at: www.enexco.ca

"Neither The TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release."

Contact Information

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