DRAGOON, Ariz., July 7, 2004 (PRIMEZONE) -- Nord Resources Corporation (Pink Sheets:NRDS) is pleased to announce the acquisition of the Mimbres Property, a large tonnage porphyry copper exploration target, located near Silver City, New Mexico. The Mimbres property consists of 4.6 square miles of New Mexico State Mineral leases and BLM unpatented mining claims. It is located 7 miles southeast of the Phelps Dodge Chino Mines open pit, mill and smelter complex. The Chino copper mine is the oldest active copper mine in the southwest United States, started by the Spanish in early 1800's.
The Mimbres Property is a large tonnage, buried, porphyry copper exploration target with 16 widely spaced holes drilled by Kennecott Copper Corporation in the 1970's. Copper mineralization and strong porphyry and skarn alteration was intersected in almost all drill holes. The altered and mineralized deposit is completely covered by post-ore volcanic cover, with shallow depths to the north and increasing to 600 to 1,600 feet to the southwest. Only selected drill holes and intervals were assayed in this Kennecott Copper Corporation 1970's exploration program. The core drilling outlines alteration and mineralization developed around a quartz monzonite porphyry stock and flat-lying diorite porphyry sills, similar in size to the Chino deposit to the north. Extensive garnet, diopside and actinolite-biotite skarn with 50-foot intervals of up to 10% pyrite and 0.5 to 1.0% Cu occurs in the upper Paleozoic and Mesozoic altered sediments and Laramide porphyry intrusions. The Mimbres porphyry copper system has a similar zoning pattern to mineral deposits at Chino, Continental, Pinos Altos and Tyrone in the Silver City Area.
A total of 7 exploration targets have been developed to extend mineralization and explore for near surface leachable copper oxide/chalcocite mineralization in the Cretaceous Beartooth quartzite. Good potential exists for high-grade copper sulfide breccia targets along a northeast trending horst and graben structures adjacent to the Larmide porphyry stock. Potential targets and byproduct mineralization of gold, silver and molybdenum may occur in the Paleozoic skarns and Laramide porphyries.
Future geological exploration will consist of evaluating the past drilling, and re-interpreting geophysical aeromagnetic anomalies and induced polarization anomalies from the Kennecott report by Roger Newell, 1976. Additional mapping and geological sampling of the exposed porphyry dikes on the northern part of the property will be completed with additional geophysical testing before exploration drilling commences.
The option was acquired with a combination of cash, the issue of common stock and common stock options, future work commitments, future cash payments or the issue of additional common stock and the payment of a future production royalty. Nord was the successful bidder for the New Mexico State Mineral leases at a recent auction.
"I believe the Mimbres property acquisition and the Coyote Springs acquisition in Arizona earlier this year are a major coup for Nord Resources. This has been the result of the geologic team's shared knowledge, professionalism and commitment in providing a platform for our goal of enhancing long-term shareholder value," stated Chairman and CEO Ronald A. Hirsch.
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 very profitably at current copper prices. Nord Resources Corporation is currently in active discussions regarding financing for this project.
Nord Resources owns the Coyote Springs porphyry copper-gold property located near Safford in Graham County, Arizona. Coyote Springs is a significant, large tonnage porphyry copper-gold exploration target with exposed, surface copper oxides and considerable potential for deeper copper sulfides. The property is situated immediately north and adjacent to the Phelps Dodge Corporation Safford Project, which has been described by the US Geological Survey to be the largest undeveloped porphyry copper mining district in the world with proven undeveloped reserves. Very recently, the U.S. Bureau of Land Management approved a land exchange, under which Phelps Dodge will transfer environmentally sensitive land it owns to the public in exchange for land of equal value next to the company's property near Safford, Arizona, paving the way for the world's second largest copper producer to open a new mine in southern Arizona.
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, the Company has an interest in 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 (ASX:ALD), under which Nord Pacific will be acquired by Allied Gold. Upon conclusion of the Plan of Arrangement, Nord Resources will own approximately 5 million shares of Allied Gold.
This release includes certain statements that may be deemed to be "forward-looking" statements within the meaning of the US 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.