Norsemont Mining Provides Constancia Update

Additional high grade copper-gold intercepts including 99.25 metres @ 1.43% Cu Eq, 30.30 metres @ 1.34% Cu Eq, 40.9m @ 1.12% Cu Eq and 9.8m @ 3.25% Cu Eq.

New gold-silver target reports 3m @ 8.34 g/t Au and 7m @1.74 g/t Au from surface

 

Constancia First Mine environmental permitting on track

 

Constancia First Mine Optimisation Study on track

 

Scoping Study on the Pampacancha Resource initiated

 

Shares Issued and Outstanding: 82,634,863

 

TSX: NOM

 

BVL: NOM

 

TORONTO, ON and LIMA, Peru, Nov. 15 /PRNewswire/ – Norsemont Mining Inc. (“the Company”) (TSX: NOM, BVL: NOM) today announced the results of ongoing exploration drilling at the Company’s Chilloroya South and the Pampacancha discoveries, located approx. 5 kilometres south and 2.5 kilometres south east, respectively, of the Constancia Project’s planned first mine development (“Phase 1 Mine”).

 

Commenting, Norsemont President and COO Mr. Robert Baxter said: “Ourexploration program at Pampacancha is reaching a new level as we continue to intercept high grade copper-gold mineralisation in areas that have previously demonstrated no significant geophysical anomalies. In addition, below the high grade copper-gold skarn intercepts in hole PO-10-035 we have encountered high grade molybdenum in vein structures in conjunction with chalcopyrite and magnetite veins indicating proximity to a potassic centre. We have also discovered a new zone of gold and silver mineralisation located approximately 1km NNE of the Pampacancha main body. Mineralisation at this new discovery is located within re-crystallized limestones. We had previously detected gold in stream sediments draining these limestones up to 3 km NW and 1 km to the SE of this hole location. We are only beginning to understand the potential in the third dimension and expect that the upcoming Titan 24 program will generate further exciting drill targets”.

 

Norsemont is also pleased to announce that SRK Vancouver has been engaged to conduct a scoping study on the Pampacancha resource where we expect to be able to exploit the high grade copper-gold and molybdenum mineralisation by open-pit and underground methods. It is anticipated that the scoping study will be completed by Q2 2011.

 

Norsemont is also pleased to announce that further drilling is currently underway at the bonanza gold Chilloroya South “Skarn Target 1” and the Chilloroya South “Target 3”. Drilling at Chilloroya South has previously confirmed the potential for a very large porphyry-style copper-gold system. The Titan 24 geophysical program is expected to provide additional drill targets as the Company continues to define the mineralisation at Chilloroya South.

 

At Pampacancha, accumulated meterage from 2008 to date totals 17,550.45m, with only 10,324.25m (40 holes) targeting the Main Body. The Main Body covers an area of approximately 1,000m NS-NW direction and 300-400m wide. Drilling in Sector 1, at the southern part of the Main Body, continues to report high-grade Cu-Mo-Au intercepts. Selected results:

 

Hole PO-10-035, located 150m SW of hole PR-08-008, returned 99.25m (from 10m to 109.25m depth) averaging 0.88% Cu, 455ppm Mo and 0.40g/t Au (1.43% Cu-Eq). Hole PO-10-031, drilled north from the same platform as hole PO-10-035, intercepted 33m (from 70m to 103m) with 0.86% Cu, 137ppm Mo and 0.41g/t Au (1.25% Cu-Eq).

 

Hole PO-10-034, located 180m NE from hole PO-10-031, intercepted 22.05m (from 50m to 72.05m) averaging 0.79% Cu, 147ppm Mo and 0.33g/t Au (1.12% Cu-Eq). This hole ended in mineralization.

 

Drilling in Sector 2, also reported significant intercepts. Hole PO-10-033, located 230m NE from hole PR-08-008 returned 30.30m (from 22m to 52.30m) averaging 1.02% Cu, 147ppm Mo and 0.28g/t Au (1.34 Cu-Eq).

 

An additional 2,500m of diamond drilling is planned to be completed during 2010, especially in the central and northern sectors of the Pampacancha Main Body (Sectors 2 and 3).

 

Hole PR-10-027, was drilled about 1km NNE from the northern edge of the Main Body and targeted a gold-silver bearing, manto-type replacement in limestones, where surface sampling returned up to 33 g/t Au and 1,208g/t Ag. This prospective area defines roughly a NS-oriented corridor of about 1.4km and about 400m wide, where surficial evidence of gold-silver mineralisation is widespread in the limestones. Assays reported the first 7m averaging 9.77g/t Ag and 1.74 g/t Au, with a 3m vein intercepted from 106m to 109m reporting 8.34 g/t Au. These anomalous results indicate the presence of precious metal mineralization at depth. Additional exploratory drilling will resume once the necessary drill permits are obtained.

 

At Chiloroya South, three additional diamond holes, currently totalling 695.30m, have been completed at the Skarn Target 1, including a twin of hole SR-10-013, which reported 3m with 242.5g/t Au (September 2010 News Release). Assay results from these holes are pending.

 

Drilling at the Chilloroya South porphyry “Target 3” resumed this month, with one UDR rig that has the capacity to drill to depths of 1 kilometre.

 

Mr. Baxter commented further: “Based on the encouraging results obtained at Pampacancha and Chiloroya South, we have decided to increase drilling in these two areas, bringing to site three additional diamond rigs that will start operations before the end of November. This brings the total number of diamond drill rigs on site to six”.

 

Significant intervals from the current drill program are reported in the table below:

 

HOLE_IDLength StartEnd COG” Cu %” Mo AgAu Pb %Zn %CuEq% ppmgptgpt

 

PO-10-020 28.80 85.20 114.00 0.1 0.88 194 4.69 0.35 0.01 0.02 1.25 including 20.15 85.20 105.35 0.5 1.22 257 6.3 0.48 0.01 0.03 1.72 and 17.70 85.20 102.90 1 1.29 204 6.77 0.50 0.01 0.03 1.78

 

PO-10-021 -90 80.00 36.00 116.00 0.1 0.26 66 2.2 0.14 0.00 0.03 0.41 including 40.00 58.00 98.00 0.2 0.39 116 3.4 0.20 0.01 0.03 0.61 14.00 128.00 142.00 0.1 0.49 11 4.22 0.12 0.01 1.47 0.61 18.55 224.00 242.55 0.1 0.93 2 10.99 0.36 0.06 0.31 1.23 including 9.35 233.20 242.55 0.5 1.76 1 17.99 0.69 0.01 0.21 2.33 14.00 252.00 266.00 0.1 0.15 15 2.24 0.11 0.01 0.05 0.24

 

PO-10-022 6.90 13.10 20.00 0.06 49 5.62 1.12 0.21 0.97

 

PO-10-024 43.50 76.50 120.00 0.1 0.57 137 2.49 0.29 0.04 0.08 0.85including 25.50 76.50 102.00 0.2 0.78 205 2.17 0.40 0.00 0.02 1.17 and 6.84 79.15 86.00 1.0 1.89 637 3.83 0.83 0.00 0.02 2.82

 

PO-10-026 28.80 12.40 41.20 0.1 0.94 375 15.09 0.26 0.02 0.08 1.47 including 11.10 12.40 23.50 0.3 1.25 16 19.26 0.30 0.02 0.06 1.60 also 7.20 34.00 41.20 1.0 1.48 489 20.13 0.42 0.01 0.04 2.22

 

PO-10-027 2.00 70.00 72.00 0.06 9 9.50 6.55 0.98 1.95

 

PO-10-028 16.50 5.85 22.35 0.2 1.12 19 5.55 0.27 0.00 0.73 1.34 14.00 176.00 190.00 0.1 0.20 148 1.01 0.05 0.00 0.01 0.33 6.00 224.00 230.00 0.1 0.23 44 1.33 0.04 0.00 0.01 0.30

 

PO-10-029 10.55 33.00 43.55 0.1 0.22 254 12.22 0.47 0.18 0.43 0.76

 

PO-10-031 75.00 32.00 107.00 0.1 0.48 167 3.94 0.26 0.03 0.06 0.78 including 33.00 70.00 103.00 0.2 0.86 137 6.02 0.41 0.01 0.06 1.25 and 23.00 80.00 103.00 0.4 1.13 88 5.27 0.40 0.01 0.03 1.47 also 20.25 82.75 103.00 0.5 1.22 26 5.54 0.43 0.01 0.02 1.54 40.90 115.00 155.90 0.1 0.81 109 4.86 0.35 0.03 0.07 1.12 including 33.00 119.00 152.00 0.2 0.97 133 5.84 0.43 0.04 0.08 1.36 also 19.50 132.50 152.00 0.5 1.33 225 3.84 0.60 0.01 0.02 1.87 and 9.80 132.50 142.30 1.0 2.33 415 4.96 1.04 0.00 0.02 3.25 11.85 172.15 184.00 0.3 0.24 55 5.34 0.07 0.03 0.03 0.36

 

PO-10-033 30.30 22.00 52.30 0.1 1.02 147 7.22 0.28 0.00 0.02 1.34 including 16.30 36.00 52.30 0.2 1.81 203 12.25 0.48 0.00 0.03 2.32 and 12.75 37.90 50.65 1.0 2.07 241 12.85 0.54 0.00 0.04 2.65 2.00 126.35 128.35 0.03 3 8.50 10.52 0.30 0.24

 

PO-10-034 27.65 44.40 72.05 0.1 0.66 128 3.84 0.27 0.00 0.03 0.93 including 22.05 50.00 72.05 0.2 0.79 147 4.42 0.33 0.01 0.03 1.12 also 17.50 52.35 69.85 0.4 0.92 173 4.79 0.40 0.01 0.03 1.30 PO-10-035 99.25 10.00 109.25 0.1 0.88 455 2.66 0.40 0.02 0.08 1.43 including 83.75 25.50 109.25 0.2 0.99 468 2.73 0.45 0.02 0.07 1.58 and 80.90 25.50 106.40 0.3 1.01 477 2.68 0.39 0.02 0.07 1.57 also 57.60 48.80 106.40 0.4 1.27 656 3.03 0.48 0.02 0.08 2.00 28.35 48.80 77.15 1.0 1.59 651 2.69 0.55 0.01 0.02 2.36

 

PR-10-023 6.00 154.00 160.00 0.1 0.28 2 14.55 0.02 0.03 0.04 0.43

 

PR-10-024 105.00 97.00 202.00 0.02 4 4.49 0.34 0.19 0.44

 

PR-10-025 48.00 166.00 214.00 0.2 0.22 14 2.83 0.15 0.01 0.05 0.34 12.00 178.00 190.00 0.3 0.34 17 3.45 0.17 0.01 0.03 0.49 21.00 259.00 280.00 0.1 0.57 1 16.68 0.80 0.02 0.07 1.19 including 18.00 262.00 280.00 0.3 0.59 1 16.2 0.67 0.01 0.06 1.13

 

PR-10-026 19.00 0.00 19.00 0.1 0.81 67 12.8 0.24 0.02 0.09 1.10 9.00 4.00 13.00 0.2 1.60 112 24.93 0.45 0.04 0.17 2.15

 

Note 1: Copper equivalent values (CuEq) are estimated using long-term metal prices including: copper US$2.00 per lb, molybdenum US$13.00 per lb, silver US$12 per oz and gold US$ 800 per oz.

 

Constancia Phase 1 Mine Permitting

 

Progress on the approval of the Environmental and Social Impact Assessment (ESIA) continues with no further observations identified by the Ministry of Energy and Mines Peru. Final approval of the ESIA is expected during the current quarter.

 

Constancia Mine Optimisation Study

 

The Phase 1 Mine pit optimization study has been completed showing positive results projecting a substantial increase in minable ore. The revised mine schedule, based on the new 70,000 tonne per day grinding circuit design, has also been completed. The focus is now on finalising the capital and operating costs associated with the increased throughput and redesigned grinding circuit. The final 43-101 updated feasibility study report is expected by Q1 2011.

 

In preparation for the development of the Constancia project, which will be initiated in early 2011, all off-site requirements, including detailed design activities and permitting requirements for power, the access road and port, have been initiated.

 

ABOUT NORSEMONT MINING 

 

Norsemont is a mineral exploration and development company advancing the extensive Constancia Copper-Gold project in Southern Peru. A September 2009 independent definitive feasibility study indicates that the Phase 1 Mine development at the Constancia Project has a NPV (8%) of $931.8M and an IRR of 26.9% (based on $2.75/Lb Cu) and can support a 15-year mine producing an annual average of approx. 150 million pounds of copper, 1,180 tonnes of molybdenum and 1.5 million ounces of silver. Constancia’s Phase 1 Mine has a proven and probable reserve of 277.4 million tonnes grading at 0.43% Cu, 0.012% Mo, 3.69 g/t Ag. Exploration drilling at Constancia’s satellite Pampacancha and Chilloroya South discoveries are expected to add significant tonnage to the global resource. The company’s shares are traded on the Toronto Stock Exchange under the symbol NOM, and on the Bolsa de Valores, Lima (BVL) also under the symbol NOM.

 

The technical information provided in this news release was reviewed and approved by Robert. W. Baxter (MAusIMM), the President, COO and a director of the Company and a qualified person for the purposes of National Instrument 43-101.

 

SOURCE: Norsemont Mining Inc.