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Chariot Resources Optimized Mine Plan Increases Production by Over 427 Million Pounds of Recovered Copper; Details Placed in Da

^{Published on 2009-12-08 07:46:52 - Market Wire}
 

TORONTO, ONTARIO--(Marketwire - Dec. 8, 2009) - Chariot Resources Limited (TSX:CHD) announces results from an optimized mine plan that aims to increase production by 17.5% or 427.4 million pounds of recovered copper over the mine plan used in the Feasibility Study ("DFS") of the Mina Justa Project (see Press Release of June 9, 2009). The optimized mine plan could extend the life of the vat leaching operation by about two years and could extend the life of the concentrator operation by about four years.

The mine plan used in the DFS was derived from Whittle Run #5. This mine plan has mineable reserves of 163.4 million tons @ 0.80% Cu and produces 2.431 billion pounds of recovered copper. The DFS also provided an indication of upside potential arising from global estimates contained in Whittle Run #6 and Whittle Run #7.

After release of the DFS, Chariot commissioned AMEC-Minproc (formerly GRD-Minproc) to develop a detailed mine plan and production schedule from Whittle Run #6.

Both Whittle Run #5 and Whittle Run #6 are based on a copper price of $1.65/lb, however, certain input parameters used in both runs differed somewhat. Estimated operating costs and metallurgical recoveries used in Run #5 were pre-feasibility estimates, whereas inputs used in Run #6 are those on which the DFS is based. The numbers contained in the optimized plan are not materially different from those of Whittle Run #6 in the DFS.

The optimized mine plan based on Whittle Run #6 has mineable reserves of 208.6 million tons @ 0.74% Cu and produces 2.858 billion pounds of recovered copper; approximately 427.4 million more pounds of recovered copper than the DFS mine plan. What is particularly noteworthy about the optimized mine plan is that the largest increase in production comes from the lower cost sulphide reserves.

"We are pleased that various detailed studies completed since the Feasibility Study have confirmed key elements of upside potential initially signaled in the DFS," said President and CEO Ulli Rath.

"We have placed the optimized mine plan announced today in our Data Room; and as soon as we have completed new financial projections based on this plan, these results will be placed in the Data Room as well," continued Mr. Rath.

He went on to say: "We are continuing to work on a number of other optimization projects that are the basis of the previously announced robust Mina Justa budget going forward; and which we believe will be of interest to our shareholders and to the various groups eligible to use the Data Room."

The information in this release was prepared under the direction of Mr. Ross Oliver Manager Mining and Geology, AMEC-Minproc, and a "Qualified Person" as defined by National Instrument 43-101. Mr Oliver has read and approves the information contained herein.

Chariot will hold an Investor Update Conference Call Wednesday December 9th at 10:00 AM (ET). Ulli Rath, President and CEO will discuss recent developments and respond to questions from participants. To join the call:

Participant dial-in number(s): 416-340-2217 / 866-696-5910

Instant replay
Dial-in number(s): 416-695-5800 / 800-408-3053
Pass code: 4068550