Metminco’s (LON:MNC, ASX:MNC) Los Calatos is fast becoming a globally very important copper discovery, according to Singer Capital analyst Charlie Long. This morning the company told investors that based on drilling results to date Los Calatos in Peru, a project it acquired last year, is a ‘classic major porphyry system’. A 50,000 metre drill program began in December 2010. So far 13,000 metres have been drilled, in a total of 10 holes, and Metminco has encountered significant intercepts of mineralisation. The group said that the mineralisation is now known to extend to 1,700 metres deep and the width of mineralisation broadens in the central part of the porphyry system. “These results demonstrate that the Los Calatos deposit is significantly larger than current estimates, and that there will be flexibility to increase the overall grade,” Singer analyst Long said. Explaining the impact of the news, Long added: “These drill results very significantly increase the geometry of the ore-body. “The current Resource estimate is derived from a porphyry approximately 1,100 metres deep and 500 metres wide, however it is now clear that the main ore-body at Los Calatos is 700 metres wide at surface, 1,000 metres wide at a vertical depth of 1,500 metres and with mineralisation continuing to 1,700m. “Not only does this increase the size of the deposit, it lowers the strip ratio and generally improves the economics.” At the moment Metminco’s work is focused on the main part of the deposit, which it refers to as the ‘LIX capping’. Four drill rigs are currently at work on Los Calatos and a fifth is expected to start work mid way through the third quarter. The significant drill results from the most recent batch includes1,340 metres grading 0.64% copper and 360 parts per million (ppm) molybdenum, within that there is 255 metres at 1.68% copper and 310ppm molybdenum. In another hole Metminco cut 798 metres grading 0.50% copper and 288ppm molybdenum, including 406 metres with 0.65% copper and 422ppm molybdenum. Importantly Singer’s analyst also explained that this morning’s results also eased concerns over a potential geological stumbling block. “There had been a concern that the diatreme plug (a cone shaped body of breccia found within the porphyritic orebody) might be low grade and dilute the orebody,” Long said. “However, today’s results demonstrate that the diatreme is in fact well mineralised, albeit with lower Mo grades.” Metminco now plans to focus drilling so that it can test the strike length ‘LIX capping’, in the next fifteen holes. After that it expects to start in-fill drilling with a view to delineating the mineral resource by the end of 2012. It will subsequently commission a pre-feasibility study on the project. Collins Stewart analyst John Mcgloin reckons today’s results are a sign that, once defined, the mineral resource will much higher. “It is likely that Metminco will announce a significant increase in resources this is expected in 2012 following an infill drill program,” the analyst said in a note to clients. Separately this morning Metminco also told investors that it has now hired a drill contractor, known as ‘Major Drilling’, to carry out a 26.000 metre drill program on its projects in Chile - Mollacas, Vallecillo and Camaron. The program will comprise 16,000 metres of reverse circulation drilling and 12,000 metres of diamond drilling

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