Tenke Mining Corp.

Tenke Mining Corp.

March 23, 2005 10:46 ET

Tenke Announces Acquisition of Rights to the Paramillos Copper/Gold Project


NEWS RELEASE TRANSMITTED BY CCNMatthews

FOR: TENKE MINING CORP.

TSX SYMBOL: TNK

MARCH 23, 2005 - 10:46 ET

Tenke Announces Acquisition of Rights to the
Paramillos Copper/Gold Project

VANCOUVER, BRITISH COLUMBIA--(CCNMatthews - March 23, 2005) - Tenke
Mining Corp. (TSX:TNK) -

NOT FOR DISTRIBUTION TO UNITED STATES NEWSWIRE SERVICES OR DISSEMINATION
IN THE UNITED STATES

Tenke Mining Corp. (the "Company") is pleased to announce it has signed
an agreement with Minera del Oeste ("MIDO") to acquire controlling
interest in the Paramillos Project in Mendoza Province, Argentina. The
project consists of 2 separate mineral right packages in close proximity
- Paramillos Norte and Sur, totaling approximately 45 km2 of mineral
concessions.

The Paramillos Project is located in the foothills of the Andes at an
elevation of about 2900 m.a.s.l. with good access from a provincial
highway north of the city of Mendoza. The Paramillos Project is an
advanced copper/gold exploration target at low altitude which can be
worked year round. The project also furthers the Company's strategy to
expand its copper/gold project development in Mendoza Province in
addition to its porphyry projects under drilling in San Juan.

Exploration and drilling under a United Nations program in the 1960's
has shown that the Paramillos Project has the potential for large scale
copper oxide and copper/gold/molybdenum sulphide mineralization. The
district forms part of a series of Tertiary porphyries and the
properties consist of several different mineralized sectors including

- The Paramillos Sur copper/moly porphyry, with breccias from the same
volcanic complex.

- The Paramillos Norte sector containing gold veins, breccia pipes and
secondary copper mineralization with enriched zones.

Paramillos Sur is partially covered by colluvium, with a central outcrop
of Triassic sediments and an intrusive of Tertiary age. UN exploration
consisted of

- detailed mapping, extensive rock-chip, stream-sediment and soil
geochemistry,

- 39 line kilometers of IP geophysics and

- a widely spaced scout drill program consisting of 25 diamond
drillholes for 5905 m at an approximate spacing of 300 m.

Drilling encountered a leached cap and secondary-sulfide mineralization.
Secondary copper mineralization was reported as chalcocite mixed with
pyrite and chalcopyrite. The UN (R. Romani) calculated an inferred
mineral resource (not 43-101 compliant) for Paramillos Sur quoting an
average grade of 0.58 % copper. A later report by others indicated a
significant portion of the mineralization was leachable. Due to a lack
of information the Company has not been able to verify the UN
calculations, assays or the split between oxides and sulphides however
the Company has now obtained access to the remaining cores and
authorization to obtain assays and other valuable information.

Paramillos Norte's copper and gold potential was assessed by the UN
through a program of:

- Detailed mapping, rock-chip, stream-sediment and soil geochemistry.

- 90 km of I.P and 29 km of ground magnetic geophysics

- 17 diamond drillholes for a total of 2527 m of core drilling

Previous exploration reported a 2 km x 2 km diatreme complex with
numerous breccias with magnetite, pyrite and chalcopyrite. Occurrence of
gold was reported in peripheral vein systems. UN drilling encountered
secondary-sulfide mineralization and one drill hole intersected a
leached zone overlying secondary enrichment with higher grade copper
values. Some gold assaying was done on Paramillos Norte core but results
have not been confirmed by the Company.

Since the property was explored through the UN program it has been tied
up in property ownership disputes. Recently the main property ownership
issue was substantially resolved through several decrees by the
government of Mendoza. The Company has finalized its agreements with the
confirmed mineral rights owner - MIDO. There are a limited number of
property title issues remaining which are expected to be resolved
consistent with the decrees.

Under the terms of the agreement with MIDO, the Company can earn an 80 %
undivided interest in the Paramillos Project through back end loaded
annual exploration expenditures aggregating to US $2.3 million over 7
years, payments to MIDO of $US 783,000 over 5 years and the issuance of
500,000 warrants of the Company at an exercise price of $Cdn 4.85/share,
valid for 5 years. In the event the warrants are not exercised and the
Company is still advancing the project, a one time cash payment to MIDO
of $US 1 million is payable in the 6th year. The Company has the
opportunity to purchase the remaining 20 % to hold 100 % of the property
for an additional payment of $US 13 million to MIDO who will also retain
a 3 % net profits interest. The foregoing is subject to all requisite
regulatory approvals.

The Company plans to immediately commence review work of previous
exploration data and to organize re-logging and re-assaying of available
core. Initial field work is expected to commence in the second quarter
with confirmatory geologic mapping and geochemical surveys, followed by
IP/Resistivity and MAG geophysics ahead of drilling on both Paramillos
Norte and Sur later this year.

Tenke's exploration programs in Argentina are carried out under the
direction and management of J. Patricio Jones, PhD. and Ricardo
Martinez, MSc. (Geology). Dr. Jones holds a Master of Science degree in
geology from Witwatersrand University and a Doctorate from La Plata
University. Information and results from the exploration programs
carried out on Tenke's properties is reviewed by Mr. Paul K. Conibear,
P.Eng., President of Tenke Mining Corp., who is an appropriately
qualified person as defined by National Instrument 43-101. Samples are
sent to ALS Chemex labs in Santiago, Chile, for analysis using
conventional ICP methods with multi-acid digestion. A 50 gram fire assay
with AA (atomic absorption) finish is run on all samples for gold. A
series of blanks are routinely introduced with each batch of samples.
Quality controls include preparation and analysis statistics performed
to industry standards. All copper assays above 1% Cu are re-assayed
using atomic absorption methods.

ON BEHALF OF THE BOARD

Paul Conibear, President

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Contact Information

  • FOR FURTHER INFORMATION PLEASE CONTACT:
    Tenke Mining Corp.
    Sophia Shane
    Corporate Development
    (604) 689-7842
    www.tenke.com