Ann: Los Calatos Drilling Update , page-7

LOS CALATOS: DRILLING UPDATE
CONFIRMING A WORLD CLASS COPPER PROJECT
Latest drilling results from Metminco Limited?s 100% owned Los Calatos copper/molybdenum project in Peru provide further confirmation that it is indeed a world class project with intersections demonstrating mineralisation from surface to vertical depths of approximately 2000 metres.
Metminco has now received all assay data for drill holes CD-34 to CD-39 and incomplete assay data for drill hole CD-40, which is currently being drilled. Significant cumulative intersections for CD-38, CD-39 and CD-40 holes are summarised below:
? CD-38 1,158 metres @ 0.33% Cu and 165ppm Mo)
(EOH 1,457 metres) (intersection from 56 metres to 1,310 metres down hole)
? CD-39 1,242 metres @ 0.32% Cu and 269ppm Mo
(EOH 1,611 metres) (intersection from 333 metres to 1,590 metres down hole)
? CD-40 607 metres @ 0.49% Cu and 170ppm Mo 1
Including 112 metres @ 0.78% Cu and 338ppm Mo
(intersection from 328 metres to 959 metres down hole)
( 1 - drill hole in progress and assays outstanding)
These holes form part of the current Phase 3 drill program, which is designed to define the outer limits of the mineralised porphyry system at Los Calatos. Phase 3 cumulative drill results received to date are summarised in Table 1 below.
Table 1: Los Calatos Project: Summary of significant cumulative intersections. Hole ID Intercept Cu % Mo ppm
CD-24
851m
0.43%
482
CD-25
630m
0.67%
1467
CD-27
1073m
0.42%
227
CD-28
335m
0.49%
76
CD-31
1690m
0.60%
353
CD-33
373m
0.38%
328
CD-34
187m
0.38%
20
CD-35
442m
0.41%
103
CD-38
1158m
0.33%
165
CD-39
1242m
0.32%
269
CD-40
607m
0.49%
170
Los Calatos Project
The main area of interest at Los Calatos is defined by the “LIX capping” (Figure 1), which correlates with an underlying, near vertical, porphyry system that is developed to depths in excess of 2,000 metres. Furthermore, the width of the system increases from 700 metres near surface, to in excess of 1,000 metres at a vertical depth of 1,500 metres as defined by drill holes CD-27, CD-31, CD-38 and CD-39 and demonstrated in figures 2, 3 and 4.
Five drill rigs are currently operating on site, with a further drill rig being requested in order to expedite the completion of the Phase 3 drill program of which 21 holes have been completed or are close to completion for a total of 24,700 metres completed to date (Table 2). Five drill holes are in progress and a further 5 drill holes are planned for the Phase 3 drill program, totalling 9,000 metres to define the mineralisation limits. This program is expected to be completed by the end of 2011.
The current drill program (Figure 1) will test the full strike length of the porphyry system (delineated by the “LIX capping”), as well as the broad geometry of the system and associated mineralization. Figures 2, 3 and 4 graphically depict key geological attributes of the porphyry system, in addition to some of the drill hole results returned to date.
On completion of these drill holes, Metminco expects to be in a position to commence an in-fill drill program of the mineralized porphyry system, to be completed by the end of 2012. This drill program will be undertaken in 2 phases:
? Phase 1 in-fill program: approximately 30,000 metres of diamond drilling with drill hole spacing to 100m X 200m to be completed by April 2012 (interim resource estimation completed by mid 2012).
? Phase 2 in-fill program: approximately 70,000 metres of diamond drilling with drill hole spacing to 100m X 100m to be completed by end 2012 (updated resource estimation completed early 2013).
On completion of this drill program Metminco will commission a pre-feasibility study on the Los Calatos Project.
Chilean Projects Update
In Chile, Metminco has completed a drilling program comprising 1,154 metres of Reverse Circulation (RC) drilling and 2,250 metres of diamond drilling at the Mollacas Project to provide ore for further metallurgical testwork and additional information for a final resource estimate.
Drilling has commenced at the Company?s Vallecillo project where 9,000 metres of diamond drilling (2 drill rigs) will test the La Colorada deposit and La Colorada type geochemical anomalies and 4,000 metres of RC drilling (1 drill rig) is testing the Cu/Au porphyry system. On completion of the Vallecillo drilling, 10,000 metres of RC drilling will be completed at the Camaron and La Piedra projects. These drill programs are expected to be completed during first quarter 2012.
A geophysical survey comprising IP and ground magnetics has recently been initiated at Vallecillo to assist in refining existing drill targets. A similar geophysical program is being planned for the Camaron and La Piedra projects prior to the commencement of drilling.
Drilling Programs Fully Funded
The current phase of drilling programs at the Los Calatos, Mollacas, Vallecillo, Camaron and La Piedra projects are fully funded from existing cash reserves. As announced in the Company?s June 11 Quarterly Report, Metminco had $A31.5 million as at 30 June 2011.

Table 2: Los Calatos Project: Summary of Phase 3 drill hole results (19 October 2011).
Hole ID Easting Northing RL Azimuth true Dip (degrees) Hole depth Depth (m) Interval Cu Mo (m) (m) (m) (degrees) (m) From To (m) (%) (ppm)
CD-24
286612
8130619
2957
360
-65
1035
26
118
92
0.29
20
118
265
147
0.24
210
339
907
568
0.49
649
includes
542
612
70
1.02
620
918
943
25
0.49
260
959
972
13
0.55
130
978
984
6
0.62
90
cumulative
851m @ 0.43%Cu and 482ppm Mo
CD-25
286513
8130527
2974
360
-65
909
75
94
19
0.01
350
192
617
425
0.52
1360
628
833
205
0.98
1690
includes
637
772
136
1.21
2190
cumulative
192m to 833m, 630m @ 0.67%Cu and 1467ppm Mo
CD-26
286413
8130660
2983
220
-60
1041
94
111
17
0.22
20
CD-27
286920
8131284
3024
220
-60
1940
770
778
8
0.22
0
816
826
10
0.16
0
847
869
22
0.39
70
877
916
39
0.44
720
931
1037
106
0.51
670
1037
1124
87
0.83
560
1139
1940
801
0.37
118
cumulative
1073m @ 0.42% Cu and 227ppm Mo
CD-28
287198
8130528
2918
220
-60
1212
231
274
43
0.20
20
285
342
57
0.54
60
370
374
4
0.28
10
418
434
16
0.2
110
853
1068
215
0.57
90
cumulative
335m @ 0.49% Cu and 76ppm Mo
CD-29
286087
8131602
2894
220
-60
1250
1035
1166
131
0.19
20
CD-30
287006
8130240
2939
220
-60
850
144
177
33
0.43
40
Table 2: Los Calatos Project: Summary of Phase 3 drill hole results (19 October 2011)
(Continued) Hole ID Easting Northing RL Azimuth true Dip (degrees) Hole depth Depth (m) Interval Cu Mo (m) (m) (m) (degrees) (m) From To (m) (%) (ppm)
CD-31
286671
8130926
2965
220
-60
1769
16
32
16
0.13
0
59
314
255
1.68
310
includes
125
262
137
2.79
520
328
475
147
0.23
126
481
944
463
0.31
344
includes
875
944
69
0.43
1040
944
1419
475
0.52
512
1419
1446
27
0.34
250
1446
1555
109
0.43
190
1555
1646
91
0.40
240
1646
1728
82
0.54
350
1728
1769
41
0.48
450
cumulative
1,690m @ 0.60% Cu and 353ppm Mo
CD-32
287514
8130896
2940
220
-70
1569
1338
1436
98
0.14
10
1448
1463
15
0.29
30
CD-33
286949
8130876
2965
220
-60
1319
537
782
245
0.40
402
1082
1095
13
0.25
0
1204
1319
115
0.35
207
cumulative
373m @ 0.38% Cu and 328ppm Mo
CD-34
287053
8130373
2931
220
-60
829
238
425
187
0.38
20
includes
298
414
116
0.55
20
CD-35
287395
8130787
2881
218
-60
1631
791
911
120
0.50
50
920
938
18
0.18
10
1039
1093
54
0.14
30
1247
1254
7
0.15
70
1261
1504
243
0.45
154
cumulative
442m @ 0.41% Cu and 103ppm Mo
CD-36
286644
8131286
3012
218
-60
1601
561
576
15
0.27
0
1097
1151
51
0.32
10
1384
1403
19
0.20
0
1413
1445
32
0.15
0
1479
1546
67
0.15
0
1560
1586
26
0.15
0
cumulative
210m @ 0.20% Cu and 2ppm Mo
Table 2: Los Calatos Project: Summary of Phase 3 drill hole results (19 October 2011)
(Continued)
Hole ID
Easting Northing RL
Azimuth
true Dip
(degrees)
Hole
depth
Depth (m) Interval Cu Mo
(m) (m) (m) (degrees) (m) From To (m) (%) (ppm)
CD-37 287224 8130277 2928 218 -60 993 213 240 27 0.2 10
259 271 12 0.21 0
277 286 9 0.19 10
295 316 21 0.20 0
354 373 19 0.50 20
381 386 5 0.23 10
402 407 5 0.20 0
491 493 2 0.92 0
cumulative 100m @ 0.27% Cu and 8ppm Mo
CD-38 286839 8130744 2859 218 -60 1457 56 427 371 0.38 234
includes 379 427 48 0.70 160
499 573 74 0.30 50
573 846 273 0.26 30
846 969 123 0.33 120
977 1023 46 0.24 180
1039 1310 271 0.36 256
1310 1447 137 0.17 30
cumulative 56m to 1310m 1,158m @ 0.33% Cu; 165ppm Mo
CD-39 286684 8130869 2850 220 -60 1611 159 195 36 0.19 30
219 230 11 0.19 60
257 262 5 0.14 100
284 330 46 0.14 50
333 641 308 0.25 223
780 896 116 0.4 376
942 1451 509 0.41 417
1281 1590 309 0.20 31
cumulative 333m to 1590m 1242m @ 0.32% Cu ; 269ppm Mo
CD-40 287056 8130681 2931 218 -60 n/a 69 76 7 0.25 15
150 157 7 0.64 25
225 229 4 0.29 0
240 243 3 0.30 0
250 328 78 0.15 22
328 823 495 0.43 132
847 959 112 0.78 338
cumulative 328 to 959m 607m @ 0.49% Cu ; 170ppm Mo
William Howe
Managing Director
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