AURELIO ANNOUNCES INDEPENDENT ESTIMATE OF MINERALIZED
MATERIAL AT THE MAN AREA OF THE HILL COPPER-ZINC PROJECT, AZ
LITTLETON, COLORADO, October 30, 2007 News Release #07-21
Aurelio Resource Corporation (OTCBB:
AULO Frankfurt: F3RA) is pleased to announce the receipt of an independent
report estimating in-place mineralized material at the MAN Area of the
Company’s 100% owned Hill Copper-Zinc Project located in the Turquoise
Mining District of Cochise County, Arizona. The report was prepared by Chlumsky,
Armbrust & Meyers, LLC (“CAM”), an independent mining
engineering consulting firm located in Lakewood,
Colorado.
The
MAN Area is one of three mineralized areas at the Hill Copper-Zinc Project (the “Project”) that
are currently being evaluated. The numbers reported in this news release do not include the
Courtland Area high-grade copper-zinc-gold mineralization, nor has the
newly-discovered oxide copper and zinc mineralization at South
Courtland been included.
Estimated
in-place mineralized material in the MAN Area is 63,757,000 tons grading 0.43%
copper and 0.15% zinc (plus gold, silver and lead credits) based on cut-off grades of 0.20% copper
for sulfide material and 0.10% copper for leachable (oxide and chalcocite)
mineralized material.
Based
on the trailing average monthly metal prices for the past three years, the
copper-equivalent grade of the MAN deposit would be 0.56% copper-equivalent. All of this material can be mined by
open pit with low stripping ratios.
Mr. Steve Doppler, President and
CEO, stated: "Completion of the MAN in-place mineralized material
estimate by CAM is a significant achievement
for Aurelio. This report validates our geologic interpretation of the deposit
and the historical drilling data base, confirms an historical, in-house,
mineralized material estimate, and clearly demonstrates the Hill Copper-Zinc
Project has significant upside potential. We are pleased with these findings,
and the results achieved to date on a very modest capital investment."
A summary table from CAM’s report is shown in Table 1:
Table 1
Inferred Resources,
Hill Copper-Zinc Project (MAN Area)
|
Oxide
(0.10% Cu cutoff)
|
Chalcocite
(0.10% Cu cutoff)
|
Sulfide
(0.20% Cu cutoff)
|
Unclassified
(0.20% Cu cutoff)
|
Totals
(or
averages)
|
Tons:
|
328,000 ST
|
29,436,000 ST
|
28,919,000 ST
|
5,074,000 ST
|
63,757,000
ST
|
Copper Grade:
|
0.508 %
|
0.280 %
|
0.545 %
|
0.626 %
|
0.429
%
|
Zinc Grade:
|
0.485 %
|
0.054 %
|
0.252 %
|
0.040 %
|
0.145
%
|
Lead Grade:
|
0.035 %
|
0.020 %
|
0.027 %
|
0.006 %
|
0.022
%
|
Silver Grade:
|
0.002 oz/ST
|
0.034 oz/ST
|
0.087 oz/ST
|
0.054 oz/ST
|
0.060
oz/ST
|
Gold Grade:
|
0.002 oz/ST
|
0.002 oz/ST
|
0.006 oz/ST
|
0.005 oz/ST
|
0.004
oz/ST
|
|
|
|
|
|
|
“Copper-Equivalent” Grade:
|
0.76 %
|
0.33 %
|
0.75 %
|
0.71 %
|
0.56 %
|
Table 1 suggests that approximately half
of the MAN deposit consists of chalcocite, which could be processed by low-cost
heap leaching and SX/EW recovery.
In the original CAM
report, there are significant tonnages of mineralized material within the
section endpoints at various cut-off grades where no distinction could be made between
oxide, chalcocite and sulfide material due to the fact that there are portions
of the historic exploration database where only assay data is available, with
no corresponding information on mineralogy and geology.
This unclassified material amounts
to 5.1 million tons grading 0.63% copper at a cut-off grade of 0.20% copper;
the Company believes that much of this tonnage is likely sulfide mineralized
material. At a cutoff grade of 0.10% Cu, there are 23.6 million tons of
unclassified material grading 0.24% copper. This lower-grade material thought
to be a mixture of the chalcocite blanket overlying the MAN Area deposit, and
the underlying sulfide zone.
The Company believes that with
nominal additional drilling, the unclassified material can be reclassified so that
it could be included in the different categories of inferred resources shown in
Table 1.
Based on historical drill results
and the location of the drill holes, Aurelio geologists believe that the
deposit remains open in all directions, including a significant zone of zinc
mineralization extending to the south and east of the MAN deposit.
CAM’s calculations were based on
geologic and assay information from 87 historical drill holes totaling 64,252
feet of core and 10,737 assay records (Aurelio has a total database of 275
historical drill holes for the Hill Copper-Zinc Project). The estimates reported
above are not part of a mining plan, and an economic feasibility study has not
been completed.
Aurelio recently acquired 54,685
feet of MAN Area drill core. Some core intervals are currently being analyzed
to supply assay data for areas that were unclassified or were treated as
“missing” in CAM’s report. This
information should further increase the inferred resources of the MAN Area in
future calculations.
Aurelio is currently conducting
confirmation (twin) drilling and assaying of 5% of the MAN area holes. When
this work is complete, it is the Company’s intention to complete an NI
43-101 compliant resource estimate of the MAN Area mineralization. Definitive
metallurgical testwork will also be undertaken to establish the leaching
characteristics of the oxide and chalcocite blanket zones of the deposit.
The drilling, assay programs and
geologic interpretations have been performed under the direction of Mr. Earl
Detra, P.G., as a qualified person. In the opinion of the Company, this work
has been performed in accordance with current NI 43-101 standards and
practices.
CAM’s report, entitled “Technical
Report: Hill Copper-Zinc Project - MAN Area Arizona” dated October 23, 2007, was
authored by Mr. Robert L. Sandefur, P.E., Senior Geostatistician / Ore Reserve
Analyst. To access the full content of the CAM
report, visit www.aurelioresource.com.
About The Company
Aurelio Resource
Corporation is a mineral exploration and development company focused on
achieving mid-tier producer status. The Company's 100%-owned Hill Copper-Zinc
Project is contains a number of potentially low-cost, bulk-tonnage, open-pit-mineable
deposits close to surface containing significant amounts of copper, zinc,
silver and gold. Aurelio has also acquired the rights to explore, and an option
to purchase, the Gavilanes gold porphyry deposit in Mexico.
Contact:
Steve Doppler Diane
Dudley
President and CEO Investor
Relations
303.795.3030 303.945.7273
(direct)
800.803.1371 303.945.7270
(fax)
For additional
information, please visit our website (www.aurelioresource.com)
and/or send an email to Dianed@aurelioresource.com..
Cautionary Note to Investors:
The United States Securities and Exchange Commission
permits U.S.
mining companies, in their filings with the SEC, to disclose only those mineral
deposits that a company can economically and legally extract or produce. We use
certain terms in this release, such as “measured,”
“indicated,” and “inferred” and “resources”
that the SEC guidelines strictly prohibit U.S.
registered companies from including in their filings with the SEC, although
this terminology is common in other jurisdictions, including Canada
The potential
quantity and grade of the mineralized material referred to in this release is preliminary
in nature. There has been insufficient exploration to define a mineral resource
and we can not say with certainty if further exploration will result in the
target being delineated as a mineral resource. Furthermore, the preliminary
assessments referred to in this release are preliminary in nature, and include
inferred mineral resources for which it is too early in the exploration
process to have the economic considerations applied to them that would enable
them to be categorized as mineral reserves or resources. There is no certainty
that the preliminary assessment will be realized, or that the inferred
resources will be determined as presently defined.
As referred to in
this news release, “Mineralized Material” or “Deposit”
is a mineralized body which has been delineated by drilling to establish
continuity and support an estimate of tonnage and an average grade of the
selected metals. Mineralized material is reported as "in-place"
tonnages and grades, and, in the opinion of the Company, has reasonable prospects
for economic extraction, and has been delimited using an economically-based
cutoff grade to segregate potentially economic material from just
mineralization. Under SEC standards, such a deposit does not qualify as a
reserve until a comprehensive evaluation, based upon unit costs, metallurgical
recoveries and other factors have established economic viability.
Notice Regarding Forward Looking Statements:
Statements in this
news release that are not historical are “forward-looking
statements” within the meaning of Section 27A of the Securities Act of
1933, as amended and Section 21E of the Securities Exchange Act of 1934 as
amended. Such forward-looking statements include, among others, estimates of in-place
mineralized material in the MAN Area and whether any or all of this material
can be mined by open pit with low stripping ratios; estimates of the
copper-equivalent grade of the MAN deposit; that about one third of the deposit
consists of chalcocite which could be mined by low-cost heap leaching methods,
depending on metallurgical testing; that the deposit remains open in all
directions, including a significant zone of zinc mineralization extending to
the south and east of the MAN deposit; and that the information from analysis
of some core intervals to supply assay data for areas that were unclassified or
were treated as “missing” in CAM’s report could further
increase the Inferred Resources of the MAN Area in future calculations.
It is important to
note that the Company's actual outcomes may differ materially from those
statements contained in this news release. Factors which may delay or prevent
these forward looking statements from being realized include misinterpretation
of data; that our estimates of mineralized material are inaccurate; that we may
not be able to get equipment or labor as we need it; that we may not be able to
raise sufficient funds to complete our intended exploration, purchase, lease or
option payments; that our applications to drill may be denied; that weather,
logistical problems or hazards may prevent us from exploration; that analysis
of data cannot be done accurately and at depth; that results which we have
found in any particular location are not necessarily indicative of larger areas
of our property; and that despite encouraging data there may be no commercially
exploitable mineralization on our properties. Readers should refer to the risk
disclosures outlined in the Company's most recent Form 10-KSB and Form 10-QSB
filed with the Securities and Exchange Commission.
Regards,
Diane G. Dudley
Investor Relations
Aurelio Resource
Corporation
Direct Line: 303-945-7273
Toll Free: 1-800-803-1371
Email: dianed@aurelioresource.com
stock traded as AULO
on Over the Counter Bulletin Board (OTCBB)
Web site: www.aurelioresource.com