EXPLORATION ROUNDUP — Noranda intersects massive sulphides in Brazil — Apparent multiple mineralized zones encountered at depth

The first three holes drilled by the Brazilian subsidiary of Noranda (NOR-T) at the Aripuana property in northern Mato Grosso state have intersected multiple zones of zinc-lead mineralization.

Two holes confirmed high-grade zinc-lead zones near surface, and a third tested down-plunge from mineralization previously drilled by Ambrex Mining (AMBX-C). Noranda is earning a 70% share in the project from Ambrex and joint-venture partners St. Genevive Resources (SGV-T) and Ourominas Minerals (OMI-T).

The first shallow hole encountered 5.4 metres of massive sulphides with grades of 18.6% zinc, 3.98% lead, 138 grams silver and 0.4 gram gold per tonne. The second, drilled a short distance away, cut 6.2 metres grading 11.1% zinc, 5.23% lead, 217 grams silver and 0.2 gram gold per tonne. Copper ran 0.02% in the first hole and was not detected in samples from the second.

The down-plunge hole intersected 10 zones of massive to disseminated sulphides over 191 metres core length. The longest intersection in the deep zones was a 27.8-metre intersection grading 3.42% zinc, 1.06% lead, 0.03% copper and 13.8 grams silver per tonne. Another, of 23.6 metres, graded 3.72% zinc, 1.02% lead, 0.03% copper and 14.9% silver. Narrower intersections — 0.3 to 12.8 metres long — had zinc grades ranging from 2.77% to 12.69%, all with some lead, copper and silver.

Below the 191 metres for which assays have been released, another 34 metres of core carried disseminated and stringer sulphides. This area was sampled, but assays have not yet been released.

Noranda has two drills on site now and has hired a third drill for the present phase of work, which is in transit; it takes several days to move a drill and crew to Mato Grosso from southern Brazil.

Under the terms of its agreement, Noranda is earning its 70% share by spending $28.9 million over five years. Once Noranda has earned in, Ambrex would retain 14.7%, Ourominas 9%, and St. Genevive 6.3%; all these interests would be held through Brazilian subsidiaries.