Mining Group confirms high-grade copper at El Roble

THE DRILL SERGEANT: Mining Group Limited (ASX: MNE) has received results from follow-up due diligence channel sampling conducted at the Paraguay underground mine at the company’s El Roble copper project in Chile.

Mining Group claims the close-spaced channel sampling results confirm grade continuity at Paraguay over 30m along strike and delineation of a high-grade copper zone.

 

Plan view of the Paraguay mine showing recent high-grade results
in red. Results in blue announced to ASX on 18 February 2014. Source:
Company announcement

 

Results include:

2.1 metres at 6.89 per cent copper, 0.57 grams per tonne gold, 2815ppm cobalt and 16.36 per cent iron, including 1.5m at 8.59 per cent copper, 0.69g/t gold, 3657ppm cobalt and 13.3 per cent iron and 0.5m at 17.2 per cent copper, 0.88g/t gold, 3230ppm cobalt and 13.7 per cent iron;

1.5m at 6.92 per cent copper, 0.4g/t gold, 4103ppm cobalt and 14.93 per cent iron including 1m at 9.74 per cent copper, 0.39g/t gold, 3120ppm cobalt and 12.9 per cent iron.

Mining Group has an exclusive option to acquire up to 90% of the El Roble Copper project, which is located in the iron oxide copper gold (IOCG) Coastal Cordillera Belt of Chile.

The project covers approximately 6,000 hectares and is currently being actively mined on a small scale by the owner.

The company has assessed the Paraguay underground mine to be a high-priority area following initial high-grade copper samples were announced earlier this year.

The mine is located approximately one kilometre south west of the Panga mine, for which Mining Group has signed a production agreement and is currently assessing the viability of commencing mining for copper.

“This close-spaced sampling has been very effective in delineating a strike-continuous, high-grade zone of copper mineralisation at Paraguay, displaying grades and widths well in line with what we can potentially mine at El Roble,” , Mining Group managing director Zeff Reeves said in the company’s announcement to the Australian Securities Exchange.

“The Paraguay vein has been exploited by the owner of the concession on a very small scale, on a single level.

“There appears to be significant potential to expand this underground area both along strike and deeper to expose more high-grade copper zones, especially considering current underground workings at Paraguay extend only eighty metres along the thirty kilometres of prospective veins already mapped.

“This sampling provides us with further confidence that the veins do thicken, in conjunction with some very healthy copper grades, which justifies our strategy of beginning mining at the project on a small scale in the very near future.”

Mining Group indicated it is negotiating access to mine at Paraguay with the current owner, who also owns the Panga concession.

The company explained it intends on signing a production agreement, following which it will submit the appropriate applications to gain an operating licence permitting it to extract up to 5,000 tonnes of copper-bearing rock per month and commence further underground assessment work.

Email: admin@mininggroup.net.au

Website: www.mininggroup.net.au