THE BOURSE WHISPERER: Australian-American Mining Corporation (ASX: AIW) has released a maiden JORC-compliant resource for the company’s Blue Bell VMS project in Arizona.
The maiden inferred mineral resource calculated using a 0.5 per cent copper equivalent cut-off.
The numbers have come in at 6 million tonnes at 1.2 per cent copper equivalent (0.84 per cent copper, 0.41 grams per tonne gold and 12.5 grams per tonne silver).
The initial inferred resource is based upon 26 RC drill holes, covering approximately 750 metres of strike length of the Blue Bell mineralised system, of which a further 900m remains to be tested.
Location of resource and VTEM conductors. Source: Company announcement
Aus-American has been encouraged by the success of the drilling and subsequent maiden resource at Blue Bell and has now set a revised exploration target for the Blue Bell open pit.
The company believes the project has the potential for an additional 7.5 to 12.5 million tonnes at 0.7 to 0.9 per cent copper, 0.3 to 0.5g/t gold and 10 to 20 g/t silver.
A separate exploration target of 1 to 3 million tonnes at 2 to 4 per cent copper, 2 to 4g/t gold and 30 to 60g/t silver has been developed for the underground potential of the Blue Bell project.
The company has based this target on a review of historical mining information and recent drilling results.
“The maiden resource at Blue Bell has certainly exceeded our expectations,” AusAmerican Mining managing director Richard Holmes said in the company’s announcement to the Australian Securities Exchange.
“Both copper and gold grades were higher than the initial exploration target and the drilling has highlighted further areas where exploration potential is very high.
“Drilling has only been undertaken on 45 per cent of the Blue Bell system and the recent VTEM survey, combined with historical mining information, highlights the significant potential of the remainder.
“This optimism is reflected in the updated exploration target.”