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Norsemont Mining Reports Exploration Results from Constancia Project

Norsemont Mining Inc. (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.

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.

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.


Norsemont Mining Inc.


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