Los Andes Copper Ltd. [LA-TSXV; LSANF-OTC] reported results from Hole CMV-001B and, aggregate from 64 metres to 1,265.15 metres, the copper equivalent grade is 0.50%, including 0.43% copper and 198 parts per million (ppm) molybdenum (with 24 metres of lost core not reported) at the 100%-owned Vizcachitas project, Chile. The average grades include, newly reported 0.47% copper equivalent including 0.38% copper and 260 ppm molybdenum from 820 to 1265.15 metres down the hole. Assay grades for silver for the complete interval reported are still pending.
Michael Jones, CEO, commented: “A 1,177-metre intercept of copper mineralization is impressive and the area west of this intersection is open. We plan to systematically look for the limits of the Vizcachitas porphyry copper deposit with our continued drilling. We have completed approximately 6,000 metres of new drilling and, along with the approximately 52,000 metres in previous drilling, our data is increasing. However, we are early in our understanding of this 1.2 billion tonne plus mineralized copper system in one of the best copper belts in the world.”
The area to the west of drill hole CMV-001B remains open and two drill rigs are completing holes in this area. As drill results become available, we will be assessing the impact on the resources and potential mine plan. Tetra Tech Engineering has been contracted to enable the implications of new large drill intercepts to be dynamically assessed on the resources and pit plans and this work can direct further drilling. Drilling is continuing with four drill rigs at Vizcachitas with the objectives of expanding the resources within and outside the boundaries of the open pit designed in the Preliminary Economic Assessment, (PEA, 2019). One drill rig is working on the east side of the deposit, and an additional rig is working in the South Breccia zone of the deposit.
The current Phase 1 drill program will continue with four diamond drill rigs and one reverse circulation drill rig. Approximately 6,000 metres of drilling have been completed. The full Phase 1 drill program consists of 30,000 metres of drilling with potential for further expansion.
The ongoing drilling program is targeting areas on all sides of the current resource.
The project is a copper-molybdenum porphyry deposit, located 120 km north of Santiago, in an area of very good infrastructure. The company’s Preliminary Economic Assessment (the “PEA”), delivered in June 2019, highlights that the Project has a post tax NPV of $1.8 billion and an IRR of 20.77%, based on a $3/lb copper price. It also has a Measured Resources of 254.4 million tonnes grading 0.439% copper and an Indicated Resource of approximately 1.03 billion tonnes grading 0.385% copper.The ongoing drilling program is targeting areas on all sides of the current resource.
The PEA is preliminary in nature, it includes inferred mineral resources that are considered too speculative geologically to have the economic considerations applied to them that would enable them to be categorized as mineral reserves, and there is no certainty that the PEA will be realized.