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Ezenet secures drill rig for advanced Chuminga copper gold project

Ezenet (ASX:EZE), to be renamed Oro Verde Limited, has been able to secure a drill rig for the Chuminga Copper-Gold Project in Chile, at a time when it is difficult to secure a rig in the country.

As a part of an update at the advanced Chuminga Copper Gold project and a site visit by the managing director Wolf Martinick and technical director, Brad O'Farrell, drilling is due to commence at Chuminga in late October 2011.

Securing a drill rig was because of the relationship Ezenet has established with the Errazuriz-Hochschild Mining Group of Chile.

Chuminga has an exploration target of 50-60 million tonnes containing 1.0-1.1% copper, 0.40-0.50 grams per tonne (g/t) gold and 1% zinc.

Road Construction

Work on the 5 kilometres long zigzag road from the coastal access road to the Chuminga mineralisation located about 650 metres above sea level is progressing with about 3.2 kilometres having been completed.

Construction of the road and seven drill pads along the immediate strike of the outcropping mineralisation should be sufficiently advanced to permit drilling to commence in late October, 2011.

Efforts are being made to establish a road route that will require minimal blasting, and thus reduce costs, and be trafficable by trucks. Steep scree slopes of loose rocks render road construction challenging.

Drilling program

Ezenet’s wholly owned Chilean subsidiary Green Mining Ltd, will engage the Sali Hochschild drilling company, of the Errazuriz-Hochschild Mining Group to drill seven holes for a total of about 1,400 meters of diamond drilling.

Drilling of Chuminga’s prospective copper-gold breccia mineralisation is expected to commence in late October 2011.

First drilling results are expected in late November 2011 and they should confirm the potential identified by such major international mining houses as AUR Resources (now part of Teck Cominco) and Rio Tinto Mining and Exploration.

Magnetic and Induced Polarisation (NYSE:IP) Surveys

A ground magnetic survey commenced in August, but was halted because of safety concerns with road construction and potential rock falls. The survey will be recommenced on completion of road construction and will be followed by an IP survey to more accurately outline Chuminga’s mineralisation.

As part of the due diligence process, channel sampling over 1 metre sample intervals of the 201 metres of available strike of the copper-gold mineralised breccia was completed on 21 September, and it is expected that analytical results of the 201 samples taken will be available in early October 2011 and that they will further support the prospectivity of Chuminga.

A stream sediment sampling programme over the strike environs of the Chuminga mineralised zone will commence within a week as an orientation study to possible further localised regional prospecting by stream sediment sampling for repetitions of the Chuminga copper-gold breccia mineralisation.

Dr Wolf Martinick, Ezenet’s Chairman and Managing Director said:

“Brad Farrell (Ezenet’s technical director) and I have just returned from a two week visit to Chile and the Chuminga Project. We are very pleased with the progress of the road being constructed to the Chuminga site.

"The road contractor is doing a sterling job, dealing very well with blasting and earth moving operations on steep slopes covered by lose rocks. We expect road and drill pad construction to be sufficiently advanced to permit drilling to commence in early November.

"The need to temporarily postpone the geophysical surveys...will not cause any delays to designing a detailed second phase drilling programme for early next year.

"I expect results from the channel sampling to provide further support for our request to shareholders to approve the acquisition of Chuminga at a shareholder meeting proposed for late November 2011.

"I am confident that drilling results are likely to be available in late November from our first phase drilling project and that these will further substantiate our confidence in the mineral prospectively of Chuminga.

"I am happy to confirm that we enjoy a strong and trusting business relationship with the Errazuriz-Hochschild family which I am certain will be of considerable benefit and value to Ezenet in its ongoing Chilean activities."

Recently, Ezenet disposed of its shares in Dundee Precious Metals shares, together with the sale of smaller investments in two other companies. This has increased cash in the bank to around $1.8 million.

Together with an investment in Weatherly, currently worth about $2.1 million, Ezenet has sufficient cash to readily fund the outlined exploration activities and expenses associated with Ezenet’s change of activity.

Chuminga is located on the Pacific coast of northern Chile, around 60 kilometres north of the regional mining town of Taltal and about 115 kilometres south of the regional city and port of Antofagasta. The region has excellent infrastructure and supports many mines including the world class Mantos Blancos, Chuquicimata and Escondida copper mines.

The Chuminga Project has an exploration target of 50-60 million tonnes at 1.0-1.1% copper, 0.40-0.50g/t gold and 1% zinc, indicated from both surface exploration, involving prospecting and trenching, and underground exploration by three tunnels on a copper gold stock work breccia body which has a width of 60 to 100 metres and a strike extent of 800 to 1,200 metres.