Drilling Report
Immediate Release 4th April 2006
COPPER RESOURCES CORPORATION
NEW MINERAL RESOURCE ESTIMATE REPORTED TO JORC-STANDARD AND AN EXCITING
EXPLORATION TARGET IS HIGHLIGHTED AT 5.1% KINSENDA DEPOSIT
LONDON, United Kingdom - 4 April 2006.
FinOre Mining Consultants ("FinOre") of Perth, Australia have completed a new
Mineral Resource estimate that upgrades previous estimates by Minière de
Kinsenda et Musoshi sral ("MMK"), a 75%-owned Congolese (DRC) subsidiary of
Copper Resources Corporation (AIM: CRC.L) ("CRC"), to "Measured and Indicated",
as follows:
Category Tonnes of Ore Cu% Cu Metal
Measured 13,080,000 4.8% 632,000
Indicated 4.060,000 5.8% 234,500
Measured and Indicated 17,140,000 5.1% 866,500
The new FinOre Mineral Resource estimate is an important improvement in the
Kinsenda resource picture because the earlier MMK estimates were not reported
in accordance with the JORC or SAMREC Codes.
In addition, FinOre has identified a significant exploration target,
immediately to the south and southwest of the known Kinsenda resource, where
drilling has intersected mineralization in a down faulted block. FinOre
considers that this exploration target could contain between 10-15 million
tonnes at a range of grades of 3% - 7% copper (0.3m tonnes to 1.0m tonnes of
copper metal). It is important to note that this target area is still
conceptual in nature and MMK will need to undertake further drilling to test
the potential of this significant target. Two drill holes in the target area
to-date show the highest grade intersections of the entire Kinsenda deposit,
8.3% and 8.5% copper having true widths up to 6m.
Christopher Jordinson, CRC Chief Executive Officer stated: "The upgrade in the
classification of Kinsenda resources to the Measured and Indicated categories
and the simultaneous identification of the major new block exploration target
is exciting news for CRC as it could potentially double the life of the
Kinsenda mine at currently planned mining rates, or could allow a large
increase in planned production."
The FinOre Mineral Resource estimate has been reported according to the
Australasian JORC and South African SAMREC Codes and is therefore suitable for
public reporting. It was completed under the overall supervision and direction
of Mr Gerry Fahey, who is a Competent Person under the JORC and SAMREC Codes,
and who consents to the inclusion in this press release of the matters based on
this information in the form and context in which they appear. In addition, the
following Competent Persons were involved in preparing the FinOre estimate:
--Mr Richard Holmes, FinOre Senior Consultant, responsible for the resource
estimation and statistical analysis.
--Dr Simon Dorling, CSA Senior Consultant responsible for the site visit
due-diligence and geological interpretation work.
--Mr Lynn Widenbar, Widenbar and Associates responsible for variography
studies.
FinOre, CSA and Widenbar and Associates are not shareholder in CRC or any
associated party.
Copper Resources Nabarro Wells & Co. Westhouse GTH
Corporation
Securities Communications
Mitchell Alland Keith Smith Richard Morrison Toby Hall
Executive Vice
Chairman
+44 (0) +44 (0) +44(0) +44 (0)
77 4801 8690 20 7710 7400 20 7601 6100 20 7153 8035
BACKGROUND: THE KINSENDA PROJECT FEASIBILITY STUDY
The FinOre Mineral Resource estimate complements the recently prepared
independent Feasibility Study by Mineral Engineering Technical Services Pty Ltd
(METS), which concluded that operations at Kinsenda can be restarted within 18
months at an estimated capital cost of US$38 million. The projected financial
return to CRC is highly favourable with an estimated IRR of 67% and NPV of
US$143 million, at an assumed long term copper price of US$1.25/lb and a
discount rate of 10%. The high financial rate of return reflects the extremely
high grade of Kinsenda's reserves coupled with the project's low capital costs.
The Feasibility Study assumes an annual treatment of 1.2 million tonnes of ore,
resulting in production of 54,000 tonnes per annum of contained copper in the
form of a rich, 45% concentrate at an average total cash operating cost of
US$0.68/lb. The Kinsenda deposit will permit 13 years of operations at full
capacity based on the current reserves.
The Kinsenda and Musoshi deposits were mined from 1968-1983 by a Japanese
mining consortium, then by Canadian management on behalf of the Zairian
government from 1983-1987, and subsequently by Gecamines, a Congolese state
mining company. Kinsenda and Musoshi are both currently flooded and require
dewatering prior to restarting operations. A third property, at Lubembe, is a
green field exploration play with high potential.
The remaining 25% of MMK not owned by CRC is held 20% by SODIMICO, a state
company, and 5% by the Forrest Group, the largest private business in Katanga
and one of the largest in the DRC with diversified operations including
mining, engineering, con-struc-tion, and cement. Operating successfully in the
DRC since 1922, the Forrest Group has extensive operational and management
experience in the country that will support and facilitate CRC's effort in
developing the properties.
The Feasibility Study was prepared by METS, a Perth-based (Australia) mining
engineering consultancy firm that is not a shareholder in CRC or any associated
party. It has been prepared on a professional basis using qualified and
experienced engineers working in accordance with CRC's scope of work. METS's
studies are recognized and accepted by financial institutions working in the
resource sector.