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.
