Far West Mining Intersects More Copper and Iron at Santo Domingo in Chile

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Far West Mining Intersects More Copper and Iron at Santo Domingo in Chile

posted on Jan 15, 2009 07:07AM

January 15, 2009

Far West Mining Intersects More Copper and Iron at Santo Domingo in Chile

VANCOUVER, BRITISH COLUMBIA--(Marketwire - Jan. 15, 2009) - Far West Mining Ltd. (TSX:FWM) is pleased to report additional positive results from the Phase 2 drilling campaign carried out in November and December 2008 at Santo Domingo in Chile. The drill campaign was designed to test the area between the Santo Domingo Sur and Iris pit outlines in an attempt to increase the overall tonnage of the project and connect the two pits in an updated project plan. The program was very successful and intersected copper and iron mineralization in the target area. Far West Mining ("The Company") is optimistic that the new mineralization will be sufficient to connect the two pits. The two best results are 216m of 37.5% iron starting at a depth of 114m in drill-hole 353 and 62m of 0.73% copper and 32.5% iron starting at a depth of 58m in drill-hole 358.

Drill Results

During the period November 20 through December 15, 2008, the Company completed eight reverse circulation (RC) holes for a total of 2,588 metres in Phase 2 drilling in the Santo Domingo project area (see Figure 1 for drill hole locations). Six drill holes were drilled in the area between the Santo Domingo Sur and Iris open pit outlines determined by AMEC Americas (Chile) in the Preliminary Economic Assessment (PEA) for the Santo Domingo project (see news release from April 1, 2008). One drill hole was drilled at Iris Norte and one hole was drilled in the Caprichosa area to the south of the Santo Domingo Sur deposit.

Drill-hole 353 intercepted a very thick iron manto grading 37.5% iron over 216m starting at a depth of 114m. This intercept constitutes one of the best iron intercepts drilled on the property to date. The significance of this result is further enhanced by the fact that of the 108 assays that constitute the interval (two metre assay interval), 49 values were reported at greater than 50% iron which is the upper detection limit of the analytical method that is routinely applied (ICP-MS). The actual iron content could therefore be higher (note: pure magnetite iron ore contains 70% iron). Drill hole 354, located 100m south of hole 353, intersected the same iron manto exhibiting a slightly lower grade at 27.6% iron over 172m.

Drill holes 355, 356 and 357 also intercepted iron mantos, some with copper mineralization (see Table 1 for detailed results).

Drill-hole 358 intersected a 62m interval of 0.73% copper and 32.5% iron starting at a depth of 58m. The hole is located in a fault block that was previously thought to be unmineralized.

The results from drill holes 353-358 are very positive and significant for the development of the project plan as these drill holes are located between the open pit outlines designed for the Santo Domingo Sur and Iris deposits. It should be noted that the iron grades intersected in these holes are generally higher than the average for the property.

The Company plans to complete a new resource study and is confident that the recent drill results will increase the overall tonnage of the project and will connect the open pit designs for the existing deposits. Combining the two planned open pits into one should increase the efficiency of future mining operations at Santo Domingo.

Table 1 - Drill Results

------------------------------------------------------------------------
Drill hole       Angle      From        To  Interval     Grade     Grade
Number        (degrees)  (metres)  (metres)  (metres)    (% Cu)    (% Fe)
------------------------------------------------------------------------

------------------------------------------------------------------------
353                -90       114       330       216         -      37.5(i)
------------------------------------------------------------------------

------------------------------------------------------------------------
354                -90       134       306       172         -      27.6
------------------------------------------------------------------------
 incl.                       138       224        86         -      33.5
------------------------------------------------------------------------

------------------------------------------------------------------------
355                -90       130       170        40      0.11      18.0
------------------------------------------------------------------------
                             200       230        30      0.18      16.6
------------------------------------------------------------------------
                             302       368        66      0.13      19.3
------------------------------------------------------------------------

------------------------------------------------------------------------
356                -90        16       266       250         -      21.6
------------------------------------------------------------------------
 incl.                       214       252        38         -      34.3
------------------------------------------------------------------------

------------------------------------------------------------------------
357                -90       160       254        94      0.26      24.9
------------------------------------------------------------------------
                             260       324        64         -      32.0
------------------------------------------------------------------------

------------------------------------------------------------------------
358                -90        58       120        62      0.73      32.5
------------------------------------------------------------------------
                             202       242        40         -      28.9
------------------------------------------------------------------------
                             264       280        16      0.39      50.0(i)
------------------------------------------------------------------------

------------------------------------------------------------------------
359                -90        58        68        10      0.23      33.1
------------------------------------------------------------------------
                             102       126        24      0.25      38.0
------------------------------------------------------------------------
                             140       150        10      0.37      29.2
------------------------------------------------------------------------
                             158       250        92         -      27.1
------------------------------------------------------------------------
 incl.                       214       246        32      0.26      27.4
------------------------------------------------------------------------

------------------------------------------------------------------------
4a2-021            -60       188       278        90         -      34.8
------------------------------------------------------------------------
 incl.                       188       202        14      0.25      33.0
------------------------------------------------------------------------

(i) The iron assays for hole 353 returned 49 out of 108 values above the 
    upper detection limit (greater than 50% Fe). Actual iron content is 
    likely higher. All iron assays (8) for the lower manto in hole 358 
    are above detection limit.

    The ore bodies at Santo Domingo display a gentle dip. Reported 
    intervals in the vertical holes are therefore very close to true 
    width.

Drill hole 359 was drilled at the Iris Norte deposit. The drill hole intercepted four mineralized intervals (see Table 1) and demonstrates the continuing potential of the area. Additional drilling will be required to determine the structural complexity and possible extensions at Iris Norte. The Company plans to conduct a resource calculation for the Iris Norte deposit and will design future drilling utilising the benefits of a block model.

Drill-hole 4a2-21 was drilled in the Caprichosa area south of the Santo Domingo Sur deposit to follow up a known iron intersection in the area and intercepted a thick iron manto. While the drill hole is too far away to be included in the existing pit outlines, it nonetheless demonstrates the potential to find additional mineralization elsewhere on the property.

To view Figure 1 please click on the following link: http://media3.marketwire.com/docs/01...

Metallurgy

The metallurgical test work on the Santo Domingo Sur/Iris ore is progressing well. SGA in Germany and SGS Lakefield in Ontario have completed the sulfide flotation work on the new composite sample and confirm that the composite yields a high quality copper concentrate with low mass recovery. This is a very good result as the new composite sample is lower in copper and iron grade than the initial material used for the 2006 metallurgical work that forms the basis of the PEA. The new composite sample has been designed to be representative in grade and character for the ore bodies at Santo Domingo in anticipation of a pre-feasibility study.

Initial work on iron recovery indicates that the Santo Domingo ore will yield a high quality magnetite concentrate using simple low intensity magnetic separation. On the recommendation of SGA, the focus of the hematite recovery work has been shifted towards the application of high intensity magnetic separation rather than flotation. This method simplifies the recovery process and may also reduce capital expenditure for the project as a hematite flotation circuit will not be required. Test work is continuing at SGA in Germany.

Georgetown Project, Australia

In the news release from December 15, 2008, the Company reported the discovery of polymetallic BHT ("Broken Hill Type") mineralization at its Georgetown project in Queensland, Australia. At the time of the release, assays for one final drill hole were pending.

Drill-hole GB19-5 at the Robin Hood prospect also intersected polymetallic mineralization in the same strong alteration zone as described in that news release. The drill-holes at Robin Hood now outline a zone of strong alteration over a width of approximately 100m and a strike extent of 300m. Future exploration will investigate the mineralized horizon along strike and down plunge.

Table 2 lists the significant intercepts in drill hole GB19-5. For a map of the drill holes at Robin Hood see news release from December 15, 2008.

Table 2 - Drill Results 

------------------------------------------------------------------------
Drill hole       Angle      From        To  Interval     Grade     Grade
Number        (degrees)  (metres)  (metres)  (metres)    (% Zn)    (% Cu)
------------------------------------------------------------------------

------------------------------------------------------------------------
GB19-5             -50        23        39        16      0.28         -
------------------------------------------------------------------------
 incl.                        35        40         5      0.53      0.15
------------------------------------------------------------------------
 and                          36        37         1      2.13         -
------------------------------------------------------------------------
                             102       112        10      0.30         -
------------------------------------------------------------------------
 incl.                       110       111         1      1.57         -
------------------------------------------------------------------------

Note: The metamorphic rocks intercepted in this drill hole are folded in 
both micro and macro scale. The mineralization is situated in an 
interpreted fold closure making any estimate of true width very difficult.
Based on the most prevalent angles of foliation to core axis, true width
is estimated to be 70-80% of the reported intervals.

The in-house qualified person is Richard N. Zimmer, P.Eng., Chief Executive Officer, President and a director of the Company who has reviewed and approved the contents of this news release.

Far West Mining Ltd. is an international mineral exploration company engaged in the evaluation, acquisition, exploration and development of mining properties in Chile and Australia.

FAR WEST MINING LTD.

Richard N. Zimmer, P.Eng., President and C.E.O.

For further information investors should review the Company's filings that are available at www.sedar.com or contact Richard Zimmer at (604) 602-9144 or [email protected], www.farwestmining.com.

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