Los Andes Copper Ltd. [LA-TSXV; LSANF-OTCQX] reported continued consistent positive results from recent drilling completed at the 100%-owned Vizcachitas Copper Project in Chile. The new results include 331 metres grading 0.63% CuEq (Copper Equivalent – 0.55% copper, 212 ppm molybdenum and 1.28 g/t silver) in hole CMV 012B on the northeastern edge of the deposit where almost no prior drilling has been completed. The results also include 122 metres grading 0.59% CuEq on the western edge of the deposit (0.55% copper, 223 ppm molybdenum and 1.72 g/t silver) in hole CMV 011.
The drill results continue to expand a Tier 1 large, advanced copper deposit, with a Pre-Feasibility Study (PFS) in progress, in a copper market with few development projects in the pipeline and a multi-million tonne supply deficit looming.
The drill core assay results reported today will be incorporated into the new resource assessment for the PFS targeted for the fourth quarter 2022.
Michael Jones, CEO, said, “The drill results continue to show that the limits of the Vizcachitas Porphyry Copper deposit still have not been determined. On the east, west and southern areas we have yet to close-off the deposit with drilling. Our recent previously announced results of 152 metres of 1% Copper Equivalent in the south (CMV 009) and the results announced today on the western and eastern sides, show that further drilling is required to determine the full scale of the deposit.”
Vizcachitas is a classic porphyry copper deposit in the same setting as some of the largest copper mines in the world, which surround it to the north and south in Chile. Current Resources, as estimated in the Preliminary Economic Assessment (the PEA), which will be updated with the new drilling in 2022, are Measured Resources of 254.4 million tonnes grading 0.489% CuEq and Indicated Resources of approximately 1.03 billion tonnes grading 0.442% CuEq.
Future milestones for the Company include additional drilling assay results in the coming weeks and completion of the PFS in the fourth Quarter of 2022.
All thicknesses from the drill hole intersections are down-hole drilled thicknesses. Hole CMV-008 was drilled in an exploration area located on the southwestern side of the project site.
The company is preparing a filing for the Environmental Court in Chile on the issues raised in a recent injunction that suspended drilling. Following considerable detailed work and documentation, the company plans to submit substantial evidence to demonstrate that the drilling project can continue, in accordance with the company’s permits, with no significant negative effects to fauna and the environment. Los Andes Copper welcomes continued open dialogue with all stakeholders in a climate of mutual respect to protect the environment and maximize the value of the project.
The project is a copper-molybdenum porphyry deposit 120 km north of Santiago, in an area of very good infrastructure. The company’s PEA, delivered in June 2019, highlights that the Project has a post-tax NPV of $2.7 billion and an IRR of 26.7%, based on a US$3.50/lb copper price.