Quadra Acquires Land Options For Sierra Gorda

VANCOUVER, BC - Quadra Mining Ltd. reported the completion of an updated NI 43-101 compliant mineral resource estimate for its 100% owned Sierra Gorda project in Chile as well as the purchase of significant additional water rights to meet future production needs.
The Indicated mineral resource estimate contains 10.6 billion pounds of copper and 474 million pounds of molybdenum while the Inferred mineral resource estimate contains 5.5 billion pounds of copper and 211 million pounds of molybdenum. The Sierra Gorda copper and molybdenum resource estimate has increased significantly in size and level of confidence from the previous resource estimate. Recent drilling has also shown significant gold grades over much of the area, however gold assay data is lacking or is selective over much of the historical drilling, so gold was not included in the current resource estimate.
The Company acquired the permitted water rights to 319 litres per second (lps) of water capacity located in Pampa Llalqui, Calama, in Region II, northern Chile, in exchange for $10 million in cash and 1,231,916 common shares of Quadra. This acquisition, in addition to the 129 lps purchased last year, totals 448 lps and represents a significant portion of the estimated overall water requirements for the project and its potential development.
The Company has also elected to make accelerated payments totalling $22.5 million to exercise eight of the Sierra Gorda option agreements. The Company therefore now has a 100% ownership interest in the project.
As a result of the exploration results and the associated substantial resource, the Board of Directors has approved a $37 million development program. The program will include infill definition drilling aimed at moving additional resources into the measured and indicated categories, together with the metallurgical, geotechnical, environmental, infrastructure and engineering studies required for the pre-feasibility and feasibility stages of the project.
The company's address is Suite 2000, 1177 West Hastings Street, Vancouver, BC V6E 2K3, 604-689-8550, fax: 604-689-8556.