DRAGOON, Ariz., Jan. 29, 2004 (PRIMEZONE) -- Nord Resources Corporation (Pink Sheets:NRDS) is pleased to announce that it has acquired a five year option to earn 100% of the Coyote Springs porphyry copper-gold property located near Safford in Graham County, Arizona. The Coyote Springs Property is a significant, large tonnage porphyry copper-gold exploration target with exposed, surface copper oxides and considerable potential for deeper copper sulfides. The Coyote Springs Property consists of two State of Arizona Prospecting Permits and fifty-two mining lode claims covering an area of approximately 3 1/2 square miles. The option was acquired with a combination of the issue of common stock, future work commitments, future cash payments or the issue of additional common stock and the payment of a future production royalty.
The Coyote Springs Property is situated immediately north and adjacent to the Phelps Dodge Corporation Safford Project which has been determined by the U.S. Geological Survey to be the largest undeveloped porphyry copper mining district in the world with proven undeveloped reserves. The large tonnage porphyry copper deposits in the Safford Mining District are located along a major northwest-southeast alignment called the Butte-Foothill Fault, which cuts and off-sets the Safford Dos Pobres deposit and cuts and lies within the Coyote Springs Property. The Coyote Springs Property lies along the intersection of the northeast trending Morenci-Safford lineament and along the west-northwest extension of the Safford porphyry copper belt.
Coyote Springs has received considerable interest in the past due to its proximity to the large tonnage Safford Dos Pobres, Safford San Juan, Sanchez and Safford Lone Star Deposits but has been tied up by diverse and non-cooperative mining exploration companies such as Kennecott, Quintana, Phelps Dodge and other companies and ranchers. The Coyote Springs Property was owned by various competing groups and was not fully explored and not fully evaluated. The area was not very well understood until the U.S. Geological Survey released the Geological Map of the Safford Quadrangle (Map I-1617) and Phelps Dodge Corporation released their 2 volume detailed draft and final environmental impact statement (EIS) to the BLM in December 2003. As stated in the EIS, the Phelps Dodge Safford mining plan for Safford Dos Pobres is estimated to produce 2.9 billion pounds of copper from the operation over a 16 year mine life. A total of 1.01 billion tons is expected to be mined from the property. Copper will be recovered by the low cost SX/EW (solvent extraction and electro-winning) method. An additional 330 million tons of mill-grade material averaging 0.65% Cu lies below the planned Dos Pobres Pit (Paydirt Magazine, December 2003). In addition, Phelps Dodge controls a large tonnage resource of copper bearing material at Safford Lone Star and Safford Sanchez that may also be developed in the future.
The Coyote Spring Property contains the same surface rocks as found at the Safford Dos Pobres deposit, namely volcanics intruded by Laramide porphyry copper veins and intrusive dike swarms. Oxide copper mineralization occurs on the surface in wide N60E trending shear zones that are also very similar to the nearby Safford Dos Pobres ore deposit. The Coyote Springs Property has strong porphyry copper alteration zoning, stockwork veins and anomalous copper. The property contains large tonnage, porphyry copper targets, 1) that occur at depth, under surface exposures of stockwork copper oxide veins, 2) under younger volcanic cover, and 3) under unexplored, gravel covered areas. The missing faulted off-set of the Safford Dos Pobres ore deposit or another faulted ore deposit may exist on the Coyote Springs Property along the Foothill-Butte fault. The U.S. Geological Survey in Map I-1617 has identified Laramide porphyry dike swarms at the Coyote Springs Property. About 75% of the known copper ores in the Safford Mining District have been found along disseminations and fractures in the Safford Volcanics, and about 25% has been found in porphyritic intrusions. Similar rocks exist on the Coyote Springs Property.
Coyote Springs exhibits the same altered andesitic rocks, porphyry dike swarms and east-northeast and west-northwest trending veins and diorite porphyry and monzonite porphyry intrusions as those found at Dos Pobres. The vein stockworks have copper oxide and leached goethite-hematite capping minerals. The Laramide andesitic rocks are covered to the west by the down faulted Foothill-Butte Fault and to the east by younger mid-Tertiary volcanics. The exposed Laramide andesites are altered from strong epidote-chlorite alteration to biotite veined alteration, just south of the mid-Tertiary covered volcanics. On the western side of the Coyote Springs Property the Foothill-Butte fault displaces and down drops the Laramide andesite, approximately 2,000 feet. The down dropped block was explored by David Lowell with Quintana Minerals in the 1970's. A total of 7 drill holes by David Lowell traced stronger biotite-orthoclase veined alteration with copper oxide mineralization outside of their property toward the Coyote Springs area, where no drilling was ever completed in the down dropped block.
Erland Anderson, Nord's president, commented, "The acquisition of the Coyote Springs Property provides Nord with a very high quality copper-gold exploration target. We plan to vigorously explore Coyote Springs with the goal of discovering a major new ore deposit. Coyote Springs, by all indications to date, has the potential to host a large, high quality copper porphyry deposit and the discovery of a significant copper deposit there will certainly enhance the long term potential of Nord Resources."
Nord Resources Corporation is currently developing an ambitious plan to explore the highly prospective Coyote Springs Property.
Other Interests
Nord Resources Corporation owns the Johnson Camp SX-EW copper mine in Arizona. The mine is currently on care and maintenance. According to the Johnson Camp Feasibility Study conducted by The Winters Company, the project can be returned to production in approximately eight months from receipt of necessary financing. Actual production of 99.999% copper cathode can begin in three months of a restart. The Feasibility Study concluded that the Johnson Camp heap leach copper mine can be operated profitably at current copper prices. Nord Resources Corporation is currently in active discussions regarding financing for this project.
Nord Resources also owns a 2.5 % royalty interest in Sierra Rutile Limited, which, based on current information, is slated to resume production of titanium dioxide in 2004. At one time, this project represented over 50% of the entire exports of Sierra Leone.
In addition, Nord Resources owns approximately 24% of Nord Pacific Limited (Pink Sheets:NORPF). Nord Pacific is involved in the Simberi Gold Joint Venture located in Papua New Guinea and has recently agreed to a Plan of Arrangement with Allied Gold Limited, an Australian company, under which Nord Pacific will be acquired by Allied Gold.
This release includes certain statements that may be deemed to be "forward-looking" statements within the meaning of the U.S. Private Securities Litigation Reform Act of 1995. All statements released, other than statements of historical facts, that address future production, reserve potential, exploration drilling, exploitation activities and events or developments that the Corporation expects, are forward-looking statements. Although Nord Resources Corporation believes the expectations expressed in such forward-looking statements are based on reasonable assumptions, such statements are not guarantees of future performance and actual results or developments may differ materially from those in the forward-looking statements. Factors that could cause actual results to differ materially from those in the forward-looking statements include metals prices, exploitation and exploration successes, availability of capital and financing, and general economic, market or business conditions. Nord Resources Corporation does not undertake any responsibility to update the forward-looking statements in the future.