THE BOURSE WHISPERER: A recent Pre-Feasibility Study conducted for Azure Minerals on the company’s Promontorio copper-gold-silver project, located in Chihuahua State, Mexico has returned positive results.
According to Azure the study came back demonstrating the robust technical and economic viability of the project, with its current mining inventory of 656,000 tonnes supporting a 150,000 tonnes per annum mining and processing operation over an initial mine life of four and a half years.
The Promontorio deposit consists of massive, high grade copper sulphide mineralisation containing significant grades of gold and silver.
The current JORC-compliant Mineral Resource for the project is:
Source: Company announcement
The Promontorio Mineral Resource is defined over a strike length of 200 metres and remains open in all directions.
Recent drilling undertaken by Azure intersected high-grade copper-gold-silver mineralisation outside of the current Resource boundaries.
These intercepts extend the north-south strike length of the mineralised system to 400m, which the company considers to confirm additional mineral resources may be defined by further drilling.
Azure has an Exploration Target for the Promontorio project of one to two million tonnes at grades of four to five per cent copper, 1.5 to 2.5 grams per tonne gold and 80 to 120 grams per tonne silver.
Azure said it will recommence drilling as soon as practicable to increase the Resource.
“Importantly, the scenarios demonstrated that the project retained a positive cash flow within all the range of options studied,” Azure Minerals said in its ASX announcement.
“The Upside Case assumes future exploration success sufficient to double the existing Resource and realise a mining inventory of 1.3 million tonnes at the same metal grades and recoveries.
“Specifically, an operation based upon the Upside Case scenario could return Gross Revenue of US$395 million and Free Cash of US$155 million.”
The study has confirmed an underground operation at Promontorio to be the ideal scenario using a mechanised bench stoping mining method.
Decline and level development layout. Source: Company announcement
Access to the orebody will be via a decline initiated as a portal and adit into the side of a hill adjacent to the outcropping mineralisation.