International Enexco Drill Program Update for Contact Copper Project, Nevada
VANCOUVER, BRITISH COLUMBIA -- (Marketwire) -- 01/16/12 -- International Enexco Ltd. (TSX VENTURE: IEC)(OTCQX: IEXCF)(FRANKFURT: IE6) (the 'Company' or 'Enexco') is pleased to provide this update on its 20,000 feet (6,100 metres) drill program at its Contact Copper Project, situated in northeast Elko County, Nevada. The Company has been utilizing two contract drill rigs on the property since beginning the program in November 2011. The program has been designed to upgrade resources and test exploration potential east of the current reserve base. To date in the program, 25 reverse circulation holes and 4 core holes have been completed for total of 14,277 feet (4,351 metres) of drilling. Assay results are expected in the first quarter of 2012. Upon completion of the drill program, the Company anticipates undertaking an update on its Mineral Resource and Reserve Estimate.
About the Contact Copper Project
The Contact Copper Project is a copper oxide project located in Elko County, Nevada, that is planned to use low cost SX-EW recovery to produce cathode copper on site. A positive updated Pre-feasibility Study (PFS) was completed in 2010 by Gustavson Associates. Proven and Probable Mineral Reserves in the PFS total 54.1 million tons grading 0.29% Cu. The Reserves were determined from Measured and Indicated Mineral Resources of 135 million tons of 0.26% Cu. The Resources and Reserves were determined using a copper price of $2.25/lb and a cut-off grade of 0.10% Cu. In October, 2011, the Company announced closing the acquisition of property adjoining the project. All Resources and Reserves were limited to the Company's pre-acquisition holdings.
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Category Tons Cu (%) Pounds Cu
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Reserves
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Proven 27,011,000 0.305% 164,701,000
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Probable 27,138,000 0.280% 152,199,000
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Total P&P 54,149,000 0.293% 316,899,000
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Resources
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Measured 52,976,000 0.282% 298,397,000
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Indicated 82,233,000 0.251% 413,413,000
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Total M&I 135,209,000 0.263% 711,810,000
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Inferred 53,490,000 0.272% 291,368,000
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(i)Resources and Reserves from Oct. 2010 NI 43-101 PFS Update
Additional information on the project can be found on the Company's website at http://www.enexco.ca/s/contact_copper.asp and in the NI 43-101 Technical Report Pre-feasibility Study Update for the Contact Copper Project, Elko County, Nevada as posted on SEDAR.
East Expansion
The PFS reserves fall within a plan area elongated 4,000 feet (1220 metres) east-west by 1,500 feet (457 metres) north-south. As seen in the accompanying map, the eastern end of the reserve outline was limited by the Company's pre-acquisition ownership. The additional land from the acquisition allows the mine design to expand to full economic depth and laterally. Within the 1500 feet (457 metres) east of the reserve outline, the Company had drilled 8 previous holes. Additional drilling is needed to in-fill this area and test exploration potential beyond the furthest east hole, EN-149, which carries an intercept of 185 feet (56.4 metres) of 0.25% Cu. To achieve these objectives, the Company commenced a 20,000 feet (6,100 metres) drill program on November 16 2011.
To view 'Contact East Expansion Area - Drill Hole Location Map', please visit the following link: http://media3.marketwire.com/docs/iec-0116-map.jpg.
Qualified Person
William Willoughby, Ph.D., P.E. is the Company's Qualified Person for the purposes of National Instrument 43-101 and has prepared or supervised the preparation of the disclosure of any scientific and technical information contained in this news release.
About International Enexco Ltd.
International Enexco Ltd is a North American exploration and development company focused on the feasibility stage Contact Copper Project in northern Nevada. The Company also pursues gold and silver exploration in Idaho and Nevada, and is advancing the Mann Lake Uranium Project located in Saskatchewan's prolific Athabasca basin. This project is a joint venture with Cameco as operator and Areva - two of the world's largest uranium companies.
On behalf of the Board of Directors, I look forward to keeping you updated with our corporate developments.
G. Arnold Armstrong, President & CEO
Certain information regarding the Company including management's assessment of future plans and operations, may constitute forward-looking statements under applicable securities laws and necessarily involve risks associated with mining exploration and development, volatility of prices, currency fluctuations, imprecision of resource estimates, environmental and permitting risks, access to labour and services, competition from other companies and ability to access sufficient capital. As a consequence, actual results may differ materially from those anticipated in the forward-looking statements. A feasibility study has not been completed and there is no certainty the disclosed targets will be reached nor that the proposed operations will be economically viable. We seek safe harbour.
The TSX Venture Exchange or its Regulation Services Provider have not reviewed and do not accept responsibility for the adequacy or accuracy of the contents of this news release, which has been prepared by management.
Contacts:
International Enexco Limited
Spiros Cacos
Corporate Development
+1 604 669 8368
+1 604 662 3231 (FAX)
info@enexco.ca
www.enexco.ca
