Stingray Copper Inc.
TSX : SRY
TSX : SRY.WT

Stingray Copper Inc.

September 15, 2008 09:16 ET

Stingray's Mineral Resource Update Confirms, Reclassifies and Expands Oxide Copper at El Pilar

TORONTO, ONTARIO--(Marketwire - Sept. 15, 2008) - Peter Mordaunt, CEO and Chairman of Stingray Copper Inc. ("Stingray")(TSX:SRY)(TSX:SRY.WT) is pleased to report that exploration and development work at the El Pilar Oxide Copper Project in Sonora, Mexico over the last year has resulted in an updated mineral resource. Independent Mining Consultants, Inc. ("IMC") of Tucson, Arizona developed the updated mineral resource for the El Pilar Oxide Copper Project. The new mineral resource is based on an updated mineral resource block model developed by Stingray and IMC personnel.

Table 1 summarizes the mineral resource update. At a 0.20% total copper cutoff grade, the Measured and Indicated Mineral Resource is 276.4 million tonnes at 0.31% total copper representing 1.9 billion pounds of contained copper. The Inferred Mineral Resource contains an additional 42.6 million tonnes at an average grade of 0.29% total copper representing 268 million pounds of contained copper. The estimated tonnage and grade of the Measured and Indicated Resources will form the basis for the feasibility study.



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Table 1 El Pilar Mineral Resource IMC Update
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0.25% Total Copper 0.20% Total Copper 0.15% Total Copper
Cutoff Cutoff Cutoff
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lbs lbs
Mineral Total lbs Cu Total Cu Total Cu
Resource tonnes Cu (mill- tonnes Cu (mill- tonnes Cu (mill-
Class (000's) (%) ions) (000's) (%) ions) (000's) (%) ions)
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Measured 68,777 0.366 553 87,690 0.335 646 103,819 0.311 710
Indicated 129,787 0.335 956 188,694 0.300 1,245 241,088 0.273 1,447
Total
Measured
&
Indicated
Resource 198,564 0.346 1,510 276,384 0.311 1,891 344,907 0.284 2,158
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Inferred 22,806 0.341 171 42,556 0.287 268 72,848 0.240 384
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This mineral resource meets the "reasonable prospects for economic extraction" conditions of the Canadian National Instrument 43-101 code and also the Australian JORC code. A floating cone evaluation at current spot copper prices and with reasonable operating cost and process recovery assumptions extracts in excess of 95% of the resource presented in Table 1.

Three Main Objectives of Stingray's In Fill Drill Program and Mineral Resource Update:

1) To confirm the Inferred Mineral Resource developed by Magri Consultants of Chile for Noranda/Falconbridge/Xstrata ("Normex") and confirmed by Gary Woods, P. Geo. at El Pilar. Table 2 below outlines the Inferred Mineral Resource defined in the Gary Woods 43-101 F1 Technical Report dated April, 2007 prior to Stingray initiating work at El Pilar. This resource model was the starting point for Stingray's work. Based on significant in fill drilling, Stingray was able to confirm this Inferred Mineral Resource model.



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Table 2 Noranda/Falconbridge/Xstrata
El Pilar Mineral Resource Gary Woods 43-101
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0.25% Total Copper 0.20% Total Copper 0.15% Total Copper
Cutoff Cutoff Cutoff
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lbs lbs
Mineral Total lbs Cu Total Cu Total Cu
Resource tonnes Cu (mill- tonnes Cu (mill- tonnes Cu (mill-
Class (000's) (%) ions) (000's) (%) ions) (000's) (%) ions)
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Inferred 180,047 0.365 1,448 237,922 0.331 1,736 296,220 0.300 1,959
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Total
Resource 180,047 0.365 1,448 237,922 0.331 1,736 296,220 0.300 1,959
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2) To reclassify the previous Inferred Mineral Resource to a predominately Measured and Indicated Mineral Resource which would increase the geologic confidence for use in a feasibility study. At a 0.25% and 0.20% total copper cutoff grade, Stingray's updated resource model is 90% and 87% Measured and Indicated Mineral Resource respectively (based on the updated Mineral Resource numbers).When compared to the previous Inferred Mineral Resource in Table 2, the updated reclassified Measured and Indicated Resource at both the 0.25% and 0.20% total copper cutoff is more than 100% of the previous Inferred Mineral Resource, respectively.

3) Finally, to expand the copper contained within the higher confidence mineral resource calculation. Additional drilling has resulted in the expansion of the previous Inferred Mineral Resource at a 0.25% total copper cutoff grade and a 0.20% total copper cutoff grade by 16% and 25% respectively, now principally reclassified as a Measured and Indicated Mineral Resource respectively (based on the updated Mineral Resource numbers).

In summary, the updated Mineral Resource at El Pilar has confirmed, reclassified and expanded on the previous work conducted by Magri Consultants for Normex that was verified in the 43- 101 F1 Technical Report authored by Gary Woods (April, 2007). The updated Mineral Resource, which is principally now a Measured and Indicated Mineral Resource was calculated by IMC of Tucson. This reclassification gives Stingray geoscientific confidence for the feasibility study that is ongoing. It is also worthy to note that the El Pilar Mineral Resource is still open in 2 directions and that the source for this copper mineralization has not been identified and represents a future exploration target.

Description of the Resource Model

The drill hole database available for the updated resource model consists of 255 drill holes which represent 52,809 meters of drilling. The drill hole database was provided by Stingray, and has not been audited by IMC. The highest total copper assays were examined to determine if any grade caps or cuts were warranted. It was determined that capping was not required. An interpretation of the rock types was done by Stingray personnel and incorporated into the block model. IMC reviewed and accepted the interpretation. The rock types are important for density determination, but were not directly used for block grade estimation. The copper grades of the resource blocks were estimated by kriging. Three structural zones and a copper grade zone, developed at a total copper cutoff of 0.1%, were used to control block grade estimation. A maximum of ten 5 meter drill hole composites were used to estimate grades for the 10 meter high model benches. This relatively small number of composites was used to avoid over-smoothing the block grades in the model. Bulk densities were assigned to model blocks by lithology type, based on a large amount of specific gravity tests performed by Normex. These bulk densities are also the subject of work by Metcon Research Inc. as part of the ongoing metallurgical column test work in their laboratory in Tucson, Arizona.



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Table 3 Bulk Densities
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Lithology Bulk Density Tonnes (000's)
Code Description (t/m3) Per Block
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103 OB - Overburden 2.17 8.68
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102 MZ - Monzonite 2.53 10.12
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201 CGI - Intrusive Conglomerate 2.29 9.16
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202 CGIV - Transition Conglomerate 2.28 9.12
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203 CGV - Volcanic Conglomerate 2.30 9.20
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204 Fault 2.36 9.44
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205 IBX - Incipient Breccia 2.46 9.84
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210 CGI+ v Transition Conglomerate 2.28 9.12
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A resource classification was assigned to the blocks based on a combination of the number of holes available for kriging and the kriging standard deviation. IMC examined the classification on cross sections and believes it is reasonable. Measured blocks generally correspond to the northern area of the deposit where the drill spacing is about 70m. This also corresponds to the area of the deposit where the starter pit will be located.

It is the opinion of IMC that the updated block model is adequate for feasibility level evaluations of the El Pilar Project.

Independent Mining Consultants, Inc. (IMC) of Tucson, Arizona Mining Engineer Mike Hester is the Qualified Person for the technical information in the Mineral Resource update provided herein.

Stingray is well financed to complete the feasibility study at El Pilar, with approximately $18M in the treasury. The Corporation is working to conclude a feasibility study for El Pilar by the end of Q1/09.

Website: www.stingraycopper.com



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Certain Statements presented herein may constitute "forward-looking statements". Such forward-looking statements may include potential mineralization, resources and reserves, conclusions of prefeasibility and feasibility studies, estimates of future production, capital and operating costs, prices of metals and other known and unknown risks. These and other factors and uncertainties may cause material differences from future results as expressed or implied by these forward-looking statements. These risks, uncertainties and other factors include but are not limited to the risks involved in the exploration, development and mining business.

Contact Information

  • Stingray Copper Inc.
    Steve Brunelle
    Vice President
    (416) 368-6240
    or
    Stingray Copper Inc.
    Peter Mordaunt
    CEO & Chairman
    (416) 368-6240
    Website: www.stingraycopper.com