Outstanding Copper-Gold Assays Results At The Piuguenes Project

VANCOUVER - Pampa Metals Corp. reoirted outstanding copper-gold assay results for diamond drillhole PIU-02 recently completed at the Piuquenes project in San Juan Province, Argentina.

Highlight: 448 m @ 0.42% Cu, 0.46 g/t Au, 2.44 g/t Ag (from 214m), including 188m @ 0.59% Cu, 0.63 g/t Au, 3.49 g/t Ag (450-638m), and 126 m @ 0.66% Cu, 0.74 g/t Au, 3.94 g/t Ag (450-576 m).

Hole PIU-02 was orientated along an east-west section, proximate to shallow historical drillhole P4 which reported 67.5m @ 0.63% Cu, 0.51g/t Au. The hole was designed to test the lateral and depth potential of the Piuquenes Central porphyry, along its western side. Assay results confirm a classic sub-vertical to vertical porphyry geometry with chalcopyrite and bornite mineralization fully open at depth. Weaker mineralization is present from 662m to the end of hole where a gradational boundary to the deposit is encountered.

Joseph van den Elsen, President and CEO, said, "Following on from the exceptional porphyry copper-gold intersections reported in the first hole of our maiden drill campaign at Piuquenes we are very pleased to report further long intervals of strong primary copper mineralization in the second hole. Our initial drilling continues to extend the depth and lateral extensions of mineralization at Piuquenes Central and has confirmed a highly mineralized multi-phase porphyry system which remains open to depth and to the north-east. We are now eagerly awaiting the results from a recently completed third hole. Pampa Metals firmly believes the Piuquenes project is a Company maker asset and looks forward to more fully delineating the size and grade potential of this first deposit and simultaneously testing a second undrilled, outcropping porphyry already identified at Piuquenes East. We see the potential for a cluster of deposits on the property and will continue to advance several other nearby targets with surface exploration and geophysics."

Moderate intensity porphyry A type quartz veinlets were intersected from 120 m downhole, with copper oxides evident between 218-232 m, partially coincident with a zone of moderate supergene copper enrichment from 226 to 380 m. Copper sulphide (chalcopyrite) mineralization is evident in quartz veining from 270 m.

A significant increase in quartz veining is observed from 364 m downhole, coincident with an increase in intermineral potassic alteration (Kfeldspar-quartz), higher magnetite content, lower presence of early biotite and the appearance of bornite and chalcopyrite mineralization. Bornite mineralization remains evident down to 610 m, often more abundant than chalcopyrite, and coincident with an increased intensity of porphyry A type quartz veining and pulses of intermineral granodiorite porphyry. Bornite is disseminated in quartz veinlets, frequently intergrown with chalcopyrite. The bornite mineralized core remains open to depth.

From 610 m downhole the frequency of quartz veinlets, intermineral potassic alteration, magnetite content, and the presence of bornite decreases. Chalcopyrite-bornite mineralization remains present in the quartz veinlets, which frequently show thin Kfeldspar haloes. The outer periphery of the Piuquenes porphyry system can be observed from 690 m, with a predominance of early biotite over mafics along with disseminated magnetite, sporadic and thin quartz veinlets with a halo of potassium Kfeldspar and disseminated chalcopyrite and bornite overprinting diorite porphyry. From 690 m a late intermediate argillic event with chlorite is evident, along with veinlets and dissemination of pyrite/chalcopyrite-pyrite and specular magnetic hematite, grading to phyllic with selective chlorite-sericite and pervasive sericite veinlets, with fine dissemination of pyrite from 850 m to 870m (End of Hole).