Mineral Production Sharing Agreement Approved

15 Aug 2005 09:04

15th August 2005 COPPER RESOURCES CORPORATION ("CRC" or "the Company") MINERAL PRODUCTION SHARING AGREEMENT ("MPSA") APPROVED CRC whose principal asset is the Hinoba-an Copper Project in the Philippines,which is held through its associated company Colet Mining and DevelopmentCorporation, has had its MPSA approved by the Philippine government.CRC will now commence its infill drilling programme which forms part of theBankable Feasibility Study. CRC looks forward to completing the BankableFeasibility Study which should confirm the economics and subsequently enabledevelopment of the project.Mr Jordinson the Chief Executive Officer of CRC said "We are delighted that theMPSA has been approved which is a result of the Philippine Government'spositive stance on mining and we are now able to commence the work programme".For further information please contact: Copper Resources Nabarro Wells & Co. Westhouse Securities Mitchell Alland Keith Smith Cailey Barker Executive Vice Chairman +44 (0)787 569 5563 +44 (0)20 7710 7400 +44(0) 20 7601 6100 Background Information on CRC CRC is the ultimate holding company of a group of mineral exploration,development and operating companies. The Group effectively has a 92.5 per centeconomic interest in the Hinoba-an Porphyry Copper Project (the "Project"),subject to a 3 per cent net benefits royalty payable to the original claimowner. The Project is located on the island of Negros in the Republic of thePhilippines, approximately 700 km south of Manila.The Group's interest in the Project is held under an Integrated Mining andOperating Agreement with Colet Mining and Development Corporation, which holdsmining leases over 90 hectares and approximately 2,900 hectares of mineralclaims (collectively, the "Colet Claims"). The Colet Claims cover two knownporphyry copper deposits, the Don Jose deposit and the A1 deposit, whichcomprise the Hinoba-an property.Over the years, a significant amount of exploration and metallurgical testworkhas been performed on the Hinoba-an property with its previous owners havingspent approximately C$14.7 million. The Hinoba-an property has been subject toapproximately 48,000 metres of diamond drilling and 11,000 metres of reversecirculation drilling. Pre-feasibility studies indicate that the two depositsare well drilled and that all due attention has been paid to core handling,sampling and assaying.A scoping study undertaken in 1998 envisioned a 15 year mine life for the ColetClaims based on a geological resource of 254 million tonnes at 0.46 per centcopper at a 0.30 per cent copper cut-off. The study showed that the depositscould be profitably mined by open pit method with the ore processed in aconventional flotation milling operation to produce approximately 2 billionpounds of recoverable copper and other by-products. Annual production wasestimated at 56,000 tonnes of recoverable copper with an average cash cost(including smelting, refining and by-product credits) of US$0.48/lb of copper.The Company will complete additional infill core drilling on the property and afeasibility study within the next 18 months. Upon completion of the feasibilitystudy, and assuming favourable economics, the Group plans to develop apotential 15 million tonnes per annum open pit copper mine on the Hinoba-anproperty. The development of the Project will be dependent on obtaining futurefinancing.In addition, the CRC Group owns 23 unpatented lode claims coveringapproximately 186 hectares in the state of Colorado. The copper deposit on theproperty has historically been mined as an underground operation. The Groupcommenced an initial exploration drilling programme in early August 2005.COPPER RESOURCES CORPORATION