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Norsemont Mining Provides Constancia Project Update

December 7, 2010
  • Additional high grade copper-gold intercepts including 63.40 metres @ 2.52% Cu Eq, and 80.30 metres @ 1.52% Cu Eq
  • High-grade bonanza gold intercepts including 2.65 metres @ 62 g/t Au and 60.20 g/t Ag; and 0.85 metres @ 19.36 g/t Au and 18.20 g/t Ag

Share Issued and Outstanding: 82,701,945             
TSX: NOM
BVL: NOM

TORONTO, ON and LIMA, Peru, Dec. 7 /PRNewswire/ – Norsemont Mining Inc. (“the
Company”) (TSX: NOM, BVL: NOM) today announced the results of ongoing
exploration drilling at the Company’s Pampacancha discovery, located
2.5 kilometres south east of the Constancia Project’s planned first
mine development (“Phase 1 Mine”).

Drilling at the southern edge of Pampacancha Main Body continues
intercepting high-grade Cu-Mo-Au mineralization demonstrating further
extension of the mineralized body at the southern limits of the known
mineralisation. The latest result from holes PO-10-040 and PO-10-042
are very encouraging and demonstrate the southern extension of high
Cu-Mo-Au values in the skarn mineralisation and a high grade epithermal
gold vein overprint returning up to 62 gpt Au over 2.65 metres.

Commenting, Norsemont President and COO Mr. Robert Baxter said: “These
results demonstrate the excellent upside potential to improve the
economics of the Constancia project from additional exploration of
satellite deposits. When you add these results to the ongoing
optimization studies we can only expect the end result will be a
strongly robust project. Exploration drilling with five diamond drill
rigs is continuing”.

Norsemont has previously announced that SRK Vancouver has been engaged
to conduct a scoping study on the Pampacancha resource where the
Company expects to be able to exploit the high grade copper-gold and
molybdenum mineralization by open-pit and underground mining methods.
It is anticipated that the scoping study will be completed by Q2 2011.

At Pampacancha, accumulated meterage from 2008 to date totals 18,425.80m, with only
11,199.60m (44 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 include:

  • Hole PO-10-040, located 200m SSE of hole PR-08-008 (discovery hole), returned 80.30m (from 24.15 to 104.45m depth) averaging 0.90% Cu, 530ppm Mo and 0.40g/t Au (1.52% Cu-Eq), including 21.50m (from 66.80 to 88.30m depth) returning 1.66% Cu, 384ppm Mo and 0.81g/t Au (2.43% Cu Eq).
  • Hole PO-10-042, drilled to the south from the same platform as hole PO-10-40,
    intercepted 63.40m (from 4.00 to 67.40m depth) with 0.50% Cu, 339ppm Mo and 3.02g/t Au (2.52% Cu-Eq). Additionally, this hole encountered two high grade bonanza gold
    mineralization structures, the first 2.65m (from 18.85 to 21.50m depth) returning 62g/t Au, 60.2g/t Ag, 0.66% Cu and 589ppm Mo, and another interval of 0.85m (from 62.45 to 63.30m depth), assaying 19.36g/t Au and 18.20g/t Ag.

Two rigs are currently drilling at Pampacancha, and from January 2011 an
infill drilling campaign is planned at the Main Body to upgrade the
resource classification from inferred to measured and indicated. This
campaign contemplates an additional 6,000 metres of diamond drilling at
Sectors 1 and 2.

At Chiloroya South, drilling is currently under way at the Skarn Target 1 (where hole SR-10-013 reported 3m with 242.5g/t Au, September 2010 News Release) totalling 3,260m to date, most of them
DDH. Two rigs are currently working in this area.

Drilling at the Chilloroya South porphyry “Target 3″ resumed last month, with one UDR rig that has the capacity to drill to
depths of 1 kilometre. To date, two additional holes have been drilled
(holes SO-10-012 and SO-10-015, totalling 943.50m). Assays are still
pending for these two holes. 

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

HOLE_ID AZ DIP Length StartAt EndAt COG Cu 

per

Mo

ppm

Ag

gpt

Au

gpt

Pb

per

Zn

per

CuEq

per

PO-10-037 12 -75 22.00 25.50 47.50 0.10 0.20 89 2.04 0.06 0.01 0.11 0.31
    6.00 116.00 122.00 0.10 0.22 736 3.45 0.14 0.07 0.12 0.82
PO-10-038 110 -75 13.00 77.00 90.00 0.10 0.23 29 4.51 0.10 0.05 0.10 0.34
PO-10-039 275 -75 8.15 42.65 50.80 0.10 0.24 171 2.93 0.17 0.06 0.17 0.47
PO-10-040 350 -75 9.80 7.50 17.30 0.10 0.41 144 1.58 0.20 0.02 0.05 0.63
    80.30 24.15 104.45 0.10 0.90 530 4.88 0.40 0.07 0.14 1.52
including 26.20 24.15 50.35 0.50 1.05 952 7.39 0.41 0.12 0.29 1.98
and 10.55 39.80 50.35 1.00 1.16 995 12.25 0.49 0.08 0.15 2.20
also 40.45 56.75 97.20 0.20 1.07 417 4.17 0.51 0.05 0.08 1.67
including 35.25 56.75 92.00 0.30 1.16 421 4.09 0.56 0.04 0.07 1.79
and 31.55 56.75 88.30 0.40 1.24 464 4.45 0.61 0.05 0.07 1.94
also 21.50 66.80 88.30 0.50 1.66 394 4.84 0.81 0.05 0.07 2.43
including 6.25 66.80 73.05 1.00 4.42 582 4.40 1.42 0.00 0.03 5.67
PO-10-042 170 -75 63.40 4.00 67.40 0.20 0.50 339 5.35 3.02 0.05 0.06 2.52
  including 2.65 18.85 21.50   0.66 589 60.20 62.00 0.60 0.67 38.31
and 32.45 30.00 62.45 0.50 0.71 488 3.85 0.30 0.02 0.04 1.24
also 11.35 41.50 52.85 1.00 1.14 908 4.78 0.59 0.02 0.03 2.11
including 0.85 62.45 63.30   0.15 52 18.20 19.36 1.68 1.85  

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.

Note 2: All analytical results presented are carried out by
SGS-Lakefield laboratories in Lima, Peru. All appropriate QA-QC
measures are adopted by both the laboratory and the company involving
the use of duplicates and standards. The intercepts presented are not
true widths.

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
finalizing 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.


Source: newswire