Tenke Mining Corp.

Tenke Mining Corp.

February 02, 2006 09:34 ET

Tenke Announces Initial Resource Estimate at Josemaria Project in Argentina

VANCOUVER, BRITISH COLUMBIA--(CCNMatthews - Feb. 2, 2006) - Tenke Mining Corp. ("Tenke" or the "Company") (TSX:TNK) is pleased to announce the completion of an independent resource calculation on the Josemaria copper/gold porphyry project in San Juan Province, Argentina. The property is located in the southern extension of the Maricunga Belt and in the northern continuation of the El Indio belt. Prospective features indicative of a Maricunga-style Cu-Mo-Au enriched porphyry system have been identified on the property. The Maricunga belt is an important Cu-Au district in northern Chile containing the deposits of Refugio, Aldebaran, Escondida, Lobo, Marte and La Coipa among others.

Surface sampling during the 2002-3 season established an initial target area of approximately 400 x 400m with coincident Cu-Mo-Au geochemistry. Ground magnetic data and IP-resistivity was also useful in creating a geological model and targeting drilling. Ten reverse circulation holes (3475 m) completed during the 2003-04 season were responsible for the original discovery of the Josemaria porphyry deposit. A second phase of drilling of 20 reverse circulation holes (7822 m) and 5 diamond drill core holes (2406 m) was performed in the 2004/2005 season to establish depth and size to this prospect and to provide sufficient data for an initial resource calculation. Drilling and sampling to date at Josemaria have defined a mineralized zone approximately 800 m long by 400 m wide, with significant copper/gold mineralization to depths in excess of 500 m from surface.

Tenke has an option to acquire 100% ownership of Josemaria. Josemaria is adjacent to Batidero, another mineral prospect held jointly by Tenke and TNR Gold Corp. (75% Tenke, 25% TNR). Josemaria and Batidero together form part of an emerging trend of prospective porphyry and epithermal systems. The Batidero prospect, immediately to the south of Josemaria is also being explored by Tenke and the Josemaria system of intrusives which appears to follow a WNW - ESE trend may extend onto Batidero.

An independent preliminary resource estimate, in accordance with NI 43-101, has been prepared for the Josemaria project by John Nilsson, P.Eng. of Nilsson Mine Services Ltd. and Mario Rossi, M.Sc. of Geosystems International, Inc.. The report dated January 23, 2006, estimates at a 0.30% Cu cutoff, an inferred resource of 374 million tonnes with a grade of 0.40% TCu and 0.29 g/t Au. The full report is available on www.sedar.com

Josemaria Model, Inferred Resources
TCu Cutoff Million tons TCu Grade Au Grade
(%) above TCu cutoff (%) (g/t)
0.2 692 0.33 0.25
0.3 374 0.40 0.29
0.4 131 0.52 0.35
0.5 60 0.61 0.37
0.6 26 0.70 0.38
0.7 10.2 0.80 0.38
0.8 3.7 0.89 0.37

The Josemaria resource block model was defined as a single-size block model that encompasses the area of interest. The block size chosen was 25 x 25 x 15m, intended to reflect drill hole spacing available and generally accepted practices used to model large, Cu-Au porphyry deposits. Extensive graphical validation was completed on the block model, which serves several purposes:

- Checks the reasonableness of the estimated grades, based on the kriging plan and the nearby composites.

- Checks that the estimated blocks carry envelope and oxide/sulphide codes as interpreted and modeled, and that topography has been properly accounted for.

- Checks that the general drift and the local grade trends of the block model, compared to the drift and local grade trends of the composites.

Based upon work undertaken to develop the resource estimate the following recommendations were put forward in the report:

1. Infill drill the core high grade areas and test continuity of the core mineralization to depth.

2. Perimeter drill the open areas to the southeast, west and northwest directions

3. Undertake preliminary metallurgical test work in anticipation of a preliminary economic assessment

4. Develop a geotechnical database for the deposit

5. Develop a database leading to an Acid Rock Drainage (ARD) characterization model

6. Continue exploration on adjacent properties to allow evaluation of Josemaria in the context of a regional development plan

An extensive exploration is currently underway in the area which will include further resource definition drilling at Josemaria and the drilling of 5 other nearby copper/gold porphyry targets, representing the largest exploration program to date in the Josemaria/Vicuna region.

On Behalf of the Board

Paul K. Conibear, President

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. Dr. Jones and Mr. Martinez both have many years of experience as exploration geologists and were the same team that discovered the Veladero gold deposit (12+ million ounces) in Argentina and the initial development of the Alumbrera copper/gold project. Information and results from the exploration programs carried out on Tenke's properties are 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. Mr. John Nilsson, P. Eng., of Nilsson Mine Services, has been retained as the independent engineer responsible for production of the initial resource estimate for the Josemaria property, supported by associate Mr. Mario Rossi for geologic modeling and geo-statistics. Samples are sent to ALS Chemex labs in Mendoza Argentina and 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.

Contact Information

  • Tenke Mining Corp.
    Sophia Shane
    Corporate Development
    (604) 689-7842