Surge drills 296 metres of 0.53% CuEq at Ootsa
Surge Copper Corp. [SURG-TSXV] on Thursday released assay results from multiple resource definition holes from its 100%-owned Ootsa Project in British Columbia. The project is known to contain three large copper porphyry deposits located beside Imperial Metals Corp.’s (III-TSX) Huckleberry mine and mill complex.
A preliminary economic assessment (PEA) completed in 2016 has estimated that the three deposits (Ox, East Seel and West Seel) contain a measured and indicated pit constrained resource of 224 million tonnes, hosting 1.1 billion pounds of copper and 1.0 million ounces of gold (2.5 billion pounds of copper equivalent).
Although no agreement has been reached with Imperial Metals, the company says the proximity of those deposits to the Huckleberry mill raises the possibility of Surge producing copper and molybdenum concentrates at a fraction of the usual mining costs through a toll-milling arrangement.
The plan is based on the sequential open pit development that would occur over a period of 12 years. Crushed mill feed would be transported from Ootsa to the adjacent mill by means of an overland conveyor system employing a series of floating conveyor units to cross an intervening reservoir.
The PEA envisages production of 324 million pounds of copper, 185 ounces of gold, 15.8 million pounds of molybdenum and 3.0 million ounces of silver over a mine life of 12 years.
Meanwhile, the company undertook at 2021 drilling program at Ootsa consisting of 26,556 metres of drilling in 72 holes. As of Thursday’s news release, results from 24 holes have been released, with results from 48 additional holes still pending.
Drilling highlights include hole S21-264, which was targeting extensions of mineralization into the Gap Zone, connecting West and East Seel. The 60-degree angled hole intersected 296 metres of grade 0.53% copper equivalent (CuEq) from a down-hole length of 448 metres, including 66 metres of grade 0.75% CuEq.
On Thursday, Surge Copper shares eased 2.9% or $0.01 to 33 cents in light trading. The shares currently trade in a 52-week range of 85 cents and 30 cents.
Of the holes still pending, 45 were focused on the shallow were focused on the shallow Breccia Zone located north of the Seel deposits. Also pending are holes from select regional exploration targets, and the bottom portion of hole S21-268, which is the last remaining hole to be reported from West Seel drilling.
Meanwhile, the company said the 2021 core drilling program at the Berg deposit area has been completed for the season and will resume next summer. Nine core holes were completed at Berg for a total of 2,855 metres. All of the Berg drill core has been logged and sample and submitted for assay.
The company is earning a 70% interest in the Berg property from Centerra Gold Inc. [CG-TSX, CAGDF-OTC]. Berg is a large advanced-stage exploration project, located 28 kilometres northwest of the Ootsa deposits.
Berg contains pit-constrained 43-101-compliant copper, molybdenum and silver in the measured and indicated categories.