Ero tables resource estimate for Brazil copper-gold project

Ero Copper Corp. [ERO-TSX, NYSE] has released a NI 43-101-compliant mineral resource estimate for the Furnas Copper-Gold project in Para State, Brazil. The company said the initial mineral resource estimate highlights significant potential for the project. At a 1:00% copper equivalent (CuEq) cut-off grade, the indicated mineral resource stands at 35.2 million tonnes of grade 1.04% copper and 0.69 g/t gold (1.36% CuEq), containing an estimated 364,700 tonnes of copper, and 775,300 ounces of gold.

On top of that is an inferred resource of 61.3 million tonnes of grade 1.06% copper and 0.63 g/t gold (1.36% CuEq), containing an estimated 647,400 tonnes of copper and 1.23 million ounces of gold.

The company said this estimate is supported by more than 90,000 metres of historic drilling on the project, conducted by Vale SA [VALE-NYSE], and Anglo American Plc, as well as resampling and database validation program undertaken by the company.

Furnas is an iron oxide copper-gold deposit located approximately 50 kilometres southeast of Vale Base Metal’s Salobo operations and approximately 190 kilometres northeast of Ero’s Tucuma Operations. Covering an area of approximately 2,400 hectares, the project sits within 15 kilometres of extensive regional infrastructure, including paved roads, an industrial-scale cement plant, a power substation, and Vale S.A.’s loadout facility.

In July, 2024, the company signed a definitive earn-in agreement with Salobo Metals S.A., a subsidiary of Vale Base Metals, to earn a 60% interest in the project upon completion of several exploration, engineering and development milestones over a five-year period.

In exchange for its 60% interest, Ero will solely fund a phased work program during the earn-in period and grant Vale Base Metals an 11.0% “free carry” on future project construction capital expenditures.

The company has said Furnas presents a tremendous opportunity to define a major-copper-gold mineral resource capable of supporting a large-scale underground mine

“We are extremely pleased with this initial mineral resource estimate for Furnas,” said Ero CEO David Strang. “It provides a solid foundation upon which we can focus over the coming months, on unlocking further potential,’’ he said.

In September 2024, the company received drilling permits from the Para State environment agency, allowing for the commencement of the Phase 1 drill program on October 2024. This minimum 28,000-metre program will focus on two identified high-grade zones – the NW and SE Zones – within the broader deposit. The program is designed to support a preliminary economic assessment on the project.

Ero was in the news recently when the company said it has received the operational license for the Tucuma copper project in Brazil, formerly known as Boa Esperanca. This development marks the last remaining permitting milestone for commercial production, the company said in a press release, Wednesday.

The resource update was released after the close of trading on October 2, 2024, when Ero shares closed at $30.13. The shares trade in a 52-week range of $32.89 and $15.72.