from the miningnews.net

From the miningnews.net

Pacmag jumps 62% on Ann Mason upgrade


Thursday, 5 October 2006

PACMAG Metals has added 64% more copper to the resource at its Ann Mason copper-molybdenum-gold deposit in Nevada, with the good news flowing on to its share price – which jumped just over 62% in morning trade.



The company's new inferred resource for Ann Mason contains 810 million tonnes at 0.4% copper and 0.004% molybdenum (using a 0.3% copper cut-off) and includes a higher grade zone of 220Mt at 0.51% copper and 0.004% molybdenum (at a 0.43% copper cut-off).

A previous estimate of the deposit was completed in the 1970s by Anaconda Copper.

Pacmag managing director Michael Clifford said the 3.2Mt of contained copper in the deposit had an in-ground value of $US25 billion ($A33.5 billion), based on current metals prices.

"We own 100% of the Ann Mason copper-molybdenum-gold deposit, which is close to rail and power and is in Phelps Dodge's backyard, located in what is considered the most attractive location for mining investment in the world," Clifford said.

"Our Ann Mason deposit means Pacmag has one of the largest undeveloped deposits of its type in the American continent and during the fourth quarter of this year, we will complete our scoping level study, which will provide us with the details we need for mine and processing operations."

The good news continues for Pacmag, with current drilling indicating the deposit is open at depth, and two new large northwestern resource targets have been identified where previous drilling intersected high-grade copper mineralisation of up to 10.5%.

Better intersections from the new targets include 20m at 1.11% copper, 302m at 0.81% copper, 0.08 gram per tonne gold and 1gpt silver, and 220m at 0.68% copper and 1gpt silver.

In addition, Pacmag is assessing new regional targets in the Ann Mason area, which the company said "will have synergy with any potential future operation" in the region.

The Ann Mason project consists of a total of 80 unpatented mining claims covering a deposit discovered in the 1970s by Anaconda.

Shares in Pacmag are settling down from today's high of 30c and are currently at 27c at midday trading today. The stock began the day trading at 18.5c.