NORSEMONT MINING COMPLETES STRATEGIC LAND ACQUISITIONS FOR DEVELOPMENT OF CONSTANCIA PROJECT
4,000 Hectares of Private Land Secured
Toronto, Ontario and Lima, Peru, March 25, 2009 – Norsemont Mining Inc. (“the Company”) (TSX: NOM, BVL: NOM) today announced the purchase of the fifth and final private land package (the farm ‘’San Antonio’’) for the development of the Constancia Cu-Ag-Mo project in southern Peru. San Antonio covers an area of approximately 1,443 hectares adjoining four other farms already owned by Norsemont, bringing the Company’s total land package at the Constancia project to approximately 4,000 hectares.
Norsemont’s CEO Patrick Evans said: “The acquisition of San Antonio brings to a conclusion a two-year program to secure all the private land in proximity to the Constancia project. Control over this private land provides Norsemont with security of access, flexibility in the selection of sites for surface infrastructure without impediments and also simplifies the permitting process.”
The Company also confirmed that the Constancia definitive feasibility study (DFS) is progressing satisfactorily and remains on schedule for completion during the second quarter of 2009. Advances to the DFS are completion of the pit geotechnical drilling and design, seismic studies, tailing facility alternatives analysis, selection of the preferred tailings facility and location, selection of the mine waste dump and design criteria, and 85% completion of the mining and process engineering. In addition, work on the waste characterisation and site-wide water balance for the project has been initiated and is on schedule. Offsite infrastructure design for the main access road and power supply has been completed.
On January 26, 2009, the pilot plant testing of a 25-tonne ore sample commenced. The testing program and reporting will be completed by the end of March. Preliminary results validate the laboratory work in terms of copper, zinc and molybdenum interactions.
The Constancia Environmental Social Impact Assessment (ESIA) is continuing and remains on scheduled for completion by the third quarter of 2009.
In pursuit of the Company’s vision to expand the Constancia resource to more than 800 million tonnes, a geological reconnaissance program has been initiated to further evaluate the Pampacancha copper/gold discovery and other new exploration targets to the south. Preliminary results confirm the widespread mineralisation in the southern area of Constancia. Results from the study will be released following the completion of the field program.
Norsemont today also announced the appointment of Cutfield Freeman & Co Ltd as a financial advisor to the Company. Cutfield Freeman will work jointly with Paradigm Capital who were appointed as financial advisors to the Company in December, 2008. The appointment of Paradigm Capital and Cutfield Freeman is in response to recent expressions of interest to acquire the Company. The Company cautions shareholders that there is no assurance that any definitive proposal will arise or that negotiations resulting from any such expressions of interest will result in any specific transaction and no timetable has been set for completion of any transaction.
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About Norsemont Mining
Norsemont Mining is a Canadian mineral exploration and development company focused on the 100 percent-controlled Constancia Cu-Mo-Ag deposit in southern Peru.
The Constancia Project currently has a 43-101 compliant indicated resource of 256.3M tonnes at 0.5% Cu (2.85 Billion lbs Cu) and an inferred resource of 156.5M tonnes at 0.33% Cu (1.14 Billion lbs Cu). A recently completed scoping study anticipates a project producing in excess of 90,000 tonnes of copper annually. The study indicates the project has a net present value of $530 million and an internal rate of return of 25.3 percent. The following long-term commodity price assumptions were used in the study: copper $1.80 per pound, molybdenum $12 per pound and silver $11 per ounce. The full study, dated December 11, 2007, and titled “Preliminary Assessment of the Constancia Project, Department of Cusco, Peru” is available for viewing on SEDAR. Mineral resources that are not mineral reserves do not have demonstrated economic viability.
The technical information provided in this press release was reviewed and approved by Robert. W. Baxter (MAusIMM), the President and a director of the Company and a qualified person for the purposes of National Instrument 43-101.
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For more information please contact:
Patrick Evans
Norsemont Mining
Phone: 416-670-5114
E-Mail: investors@norsemont.com
Web Site: www.norsemont.com
