World Copper (TSXV: WCU) has significantly upped the potential value and scale of its Zonia copper project in Arizona with an updated mineral resource on the historical estimates using a refined mineralization model.
The new estimate brings the Zonia copper count to nearly 1 billion pounds, comprising 686 million lb. (113.2 million tonnes grading 0.303% total copper) in the indicated category and 300 million lb. (59.2 million tonnes grading 0.254% total copper) in the inferred category.
By comparison, the historical estimate totalled 510 million lb. of copper indicated and 154.6 million lb. of copper inferred at a higher cut-off grade. Based on this resource, a preliminary economic assessment was released in 2018, showing a post-tax net present value (discounted at 8%) of $192 million and 29% internal rate of return. The potential heap-leach copper oxide operation has a mine life of nearly 9 years.
This updated resource “significantly increases the value of an already prominent copper asset,” says World Copper’s CEO Gord Neal, adding that “this new report greatly de-risks the project by expanding the indicated resource classification of the deposit.”
“This new resource definition could significantly extend the life of mine of the project. It also has the potential to substantially increase the throughput of future operations and boost the projected annual production profile,” Neal adds.
According to World Copper, the resource has the potential to expand with further exploration around the current open pit and resource. A large (2.5 x 1.5 km) copper-molybdenum-manganese geochemical anomaly called Zonia Norte situated 1.5 km away from the Zonia deposit has been identified, and it will be the next area of focus.
Meanwhile, the company remains focused on further advancing the Zonia deposit into feasibility and subsequently into production. The project is scheduled to commence copper cathode production within 48 months, as it benefits from a location on private land with existing power and water in Arizona.
The next corporate milestone is the commencement of a verification drill program on the leach pads. Positive results from this drill program could mean significant pre-production csh flow, says World Copper.
Source: MINING.COM – Read More
