- ASCU drills two of the best holes to date on its properties,
including:
- ECP-045: 595 ft (181.4 m) of 1.29% CuT, 1.18% TSol, 0.018%
Mo (enriched)
- ECP-042: 86 ft (26.2 m) of 2.26% CuT, 2.11% TSol, 0.020% Mo
(enriched)
- Including: 27 ft (8.2 m) of 4.22% CuT, 3.78% TSol, 0.019%
Mo
- Porphyry copper grade, thickness and continuity is improving to
the north, and remains open in all directions, including the newly
leased land, a potential trend of 4,000 ft (1.2 km) at the
Parks/Salyer Project (“P/S Project”)
- Outlines Exploration Target for further drilling in the coming
months for the P/S Project; Exploration target supports significant
upside and expansion potential for leachable material at the Cactus
Project
- Enters leasing agreement for land 42 m (138 ft) east of the
ECP-045
Arizona Sonoran Copper Company Inc. (TSX:ASCU) (“ASCU” or
the “Company”), an emerging US-based copper developer and near-term
producer, is pleased to announce assay results from the first 2
drill holes in a 12-hole program at the P/S Project. Drill hole
ECP-045 extends and improves known mineralization to the northeast
by 600 ft (183 m) and to within 150 ft (45 m) of the recently
leased land (as noted below). Mineralization is expected to
strengthen as it continues along the mine trend and into the newly
leased area. Strike of the P/S Project mineralized system now
totals at least 1,900 ft (579 m) with a strong grade profile (see
FIGURES 1-7).
Additionally, ASCU has entered into an agreement to lease 158
acres of State Lands between the immediate boundaries of the Cactus
Project and Parks/Salyer. The total land position of the combined
Cactus and the P/S Project now totals 4,846 acres and provides
continuity of the entire 2.5 mi (4 km) mine trend extending from
Parks/Salyer to the NE Extension (see FIGURE 7).
George Ogilvie, Arizona Sonoran President and CEO stated,
“These exciting drill results represent only some of the
large-scale exploration upside outside of the Cactus Project. We
note the drill results at P/S illustrate a very similar footprint
to Cactus East, with grades in excess of 1% and good thicknesses.
In particular, the drilling is demonstrating a system which is
strengthening to the north and northeast towards Cactus along the
mine trend. The Exploration Target at P/S is focused on extending
mine life and building scalability of leachable material at the
Cactus Project. Concurrent with the Cactus Feasibility drilling,
our team will continue to drill the P/S Project with the aim of
declaring maiden mineral resources at the P/S Project later this
year. The team is currently running both programs with three drills
onsite.
He continued, “As the drilling programs build on the district
scale potential of the property, we have scope for further
exploration at the NE Extension at Cactus. Current programs at
Cactus, P/S and the NE Extension only focus on the leachable
material, with known primary sulphide sitting below. The potential
for significant primary material at the base of the Cactus pit and
along the mine trend itself, remains untested and supports the
continued belief in the opportunity and scalability of the
Project.”
Parks/Salyer Exploration Target
The holes drilled to date on the P/S Project together with the
new drilling, on a preliminary basis demonstrates a scalable
underground opportunity for further expansion of leachable
inventory at Cactus. The total underground exploration target (the
“Exploration Target”) now represents an area of approximately 4,000
ft x 4,000 ft (1.2 km x 1.2 km) supported by magnetics, regional
drilling results and ionic leach sampling previously conducted by
ASCU. The Exploration Target at the P/S Project comprises:
- 40-90 M tons of potential leachable material @ 1.05%- 1.3% TSol
for potential of 1.0-2.35 B lbs of contained copper
- 8-35 M tons of potential primary material @ 0.85-1.05% TCu for
0.15-0.75 B lbs of contained copper
The potential quantity and grade presented in the Exploration
Target ranges are conceptual and have insufficient exploration and
drill density to define a Mineral Resource. At this stage, it is
uncertain if further exploration will result in the targets being
delineated as a Mineral Resource. Estimates of exploration targets
are not Mineral Resources and are too speculative to meet the NI
43-101 reporting standards. The methodology for preparing the
Exploration Targets and a summary of supporting technical work
undertaken to reach the targets can be found at the end of this
announcement.
2022 P/S Exploration Program
ASCU is currently pursuing a 12-hole exploration program,
following up on four historic diamond holes. The planned program
totals 22,000 ft (~6,700 m) and aims to test the extension of the
porphyry copper system from the southern border of its Parks/Salyer
property, along the mine trend towards the Cactus Mine. With
success, the Company may increase the number of drill holes on the
project.
Subject to program success, the Company anticipates issuing a
maiden mineral resource estimate for the property. Defined
mineralization will aim to leverage the Cactus Mine’s already
envisaged 18-year, low-cost operation, thus providing the Company
with significant scale of production in the longer term.
Lease Assumption and Assignment Terms
Cactus 110 LLC (a group company of ASCU) has entered into an
assignment & assumption agreement (the “Assignment &
Assumption Agreement”) and a royalty agreement (the “Royalty
Agreement”) in respect of transfer of permit 08-122116 with Bronco
Creek Exploration Inc., a wholly-owned subsidiary of EMX Royalty
Corporation (NYSE American: EMX; TSX-V: EMX). The total added land
position is 158 acres of leased State Land.
Key terms of the Assignment & Assumption Agreement and
Royalty Agreement include:
- Payment of US$5,000 on the effective date of the agreement
(determined to be February 9, 2022) and further US$195,000 upon
registration and transfer of the permit in the name of Cactus 110
LLC;
- Payment of US$1.5 M upon declaration of 100 Mlbs of mineral
resource (as defined under NI 43-101) and further payment of US$1.5
M upon further declaration of additional 100 Mlbs of mineral
resource (as defined under NI 43-101) in relation to the
transferred property;
- Payment of US$50,000 annually as an advance royalty payment
until commencement of commercial production. Upon commencement of
commercial production 75% of the annual advance royalties shall be
offset from the net smelter royalty payment as mentioned
below;
- 1.5% net smelter royalty applicable to production returns
generated (subject to allowable deductions) from the transferred
property. ASCU has the right to purchase 1% of the net smelter
royalty for US$500,000 at any time; and
- US$2 million undertaken in exploration expenditures before the
first anniversary of the registration of the transfer and further
US$2 million spent in exploration expenditures before the second
anniversary of the registration of the transfer (total US$4 million
work commitment)
The agreements also include customary terms and conditions as
applicable to transactions of a similar nature.
Permitting activities will be directed to the State and County
levels in a similar process to owning Private Land.
Geologic Description of Drilling Results at P/S
The Company’s 100%-owned Parks/Salyer Project is located 1.3 mi
(2 km) down trend to the southwest of the Cactus Project on private
land. The P/S Project is interpreted to represent a north trending
horst block of porphyry copper mineralization similar in
characteristics to that of Cactus West. Results to date at
Parks/Salyer support that interpretation with mineral zonation also
consistent with Cactus containing oxide, chalcocite enrichment, and
primary chalcopyrite-molybdenite mineralization (see FIGURES
1-7). Exploration drilling to date has been undertaken from the
Company's southern property boundary northward along the
northeasterly regional trend of known copper mineralization. Hole
ECP-042 intercepted oxide and enriched mineralization with a post
mineral dacite dike truncating the continuity of the high-grade
enrichment. Similar dacite dikes were encountered during the mining
of the Sacaton (Cactus West) pit where they were observed as
localized and discontinuous features.
Thick, continuous primary chalcopyrite-molybdenite
mineralization was intercepted at depth terminating at the basement
fault. ECP-045 intercepted thick, continuous oxide and enriched
copper mineralization with little post-enrichment leaching. The
bedrock and mineralization contacts indicate ECP-045 is located
within a downfaulted block from previous holes drilled at
Parks/Salyer which compliments the reduced post-enrichment leaching
observed. The continuity and grade of mineralization logged in
ECP-045 is similar to that intercepted in Cactus East drilling,
which represents a high-grade underground resource in the Cactus
Project located within a down dropped block from the shallower
Cactus West mineralization. ECP-045 is the northern most hole
drilled in the P/S Project and mineralization remains open in all
directions. According to a 2019 ionic soil survey, which did not
define the extents of the system, mineralization is open to the
northwest for at least another 1,969 ft (600 m).
TABLE 1: Drilling Highlights
Drill
Zone
Metres
Feet
Grade (%)
Hole
from
to
length
from
to
length
CuT
Tsol
Mo
ECP-045
oxide
343.2
376.1
32.9
1,126.0
1,234.0
108.0
0.89
0.83
0.020
including
354.8
376.1
21.3
1,164.0
1,234.0
70.0
1.16
1.07
0.019
enriched
402.3
583.7
181.4
1,320.0
1,915.0
595.0
1.29
1.18
0.018
including
402.3
434.9
32.6
1,320.0
1,427.0
107.0
1.81
1.71
0.018
and
501.4
556.3
54.9
1,645.0
1,825.0
180.0
1.68
1.61
0.024
primary
583.7
648.3
64.6
1,915.0
2,127.0
212.0
0.37
0.02
0.009
ECP-042
oxide
268.5
272.2
3.7
881.0
893.0
12.0
1.00
0.94
0.008
enriched
332.3
336.9
4.7
1,090.1
1,105.4
15.3
1.06
1.05
0.012
enriched
360.4
386.6
26.2
1,182.3
1,268.3
86.0
2.26
2.11
0.020
including
366.7
374.9
8.2
1,203.0
1,230.0
27.0
4.22
3.78
0.019
enriched
402.9
416.8
13.9
1,322.0
1,367.6
45.6
0.64
0.45
0.008
enriched
446.2
477.0
30.8
1,464.0
1,565.0
101.0
0.67
0.26
0.022
primary
477.0
654.2
177.2
1,565.0
2,146.3
581.3
0.42
0.04
0.027
including
480.1
520.9
40.8
1,575.0
1,709.0
134.0
0.57
0.05
0.038
and
595.3
607.5
12.2
1,953.0
1,993.0
40.0
0.56
0.04
0.160
- Intervals are presented in core length; are drilled with
vertical dip angles.
- Drill assays assume a mineralized cut-off grade of 0.5% CuT
reflecting the potential for heap leaching in the case of Oxide and
Enriched based on underground material, or to provide typical
average grades in the case of Primary material. Holes were
terminated in either Primary mineralization or the basement
fault.
- Assay results are not capped. Intercepts are aggregated within
geological confines of major mineral zones.
- True widths are not known.
Table 2: Drilling details
Hole
Easting
Northing
Elevation
Depth
Azimuth
Dip
ECP-042
383750.000
58600.000
1373.537
2151.500
0
-90
ECP-045
384249.114
59511.375
1382.548
2127.000
0
-90
Summary of Information Comprising the Exploration Target
ASCU has conducted extensive
exploration work to delineate the Exploration Target contained in
this announcement. This work includes analysis and interpretations
from four historical and the two recently drilled core holes into
the project, similarities of mineralization intercepted to that of
the adjacent Cactus project (for mineralization and alteration
characteristics, and grade architecture), and review of geophysical
and surface ionic leach programs to support realistic target ranges
for extent, thickness, and grade. The Exploration Target ranges
assume an underground target for exploration purposes.
Quality Assurance / Quality Control
Drilling completed on the
project in 2020 and 2021 was supervised by on-site ASCU personnel
who prepared core samples for assay and implemented a full QA/QC
program using blanks, standards and duplicates to monitor
analytical accuracy and precision. The samples were sealed on site
and shipped to Skyline Laboratories in Tucson AZ for analysis.
Skyline’s quality control system complies with global
certifications for Quality ISO9001:2008.
Technical aspects of this news
release have been reviewed and verified by Allan Schappert – CPG,
who is a qualified person as defined by National Instrument 43-101–
Standards of Disclosure for Mineral Projects.
Links from the Press Release
FIGURES 1-7:
https://arizonasonoran.com/projects/exploration/maps-and-figures/
Neither the TSX nor the
regulating authority has approved or disproved the information
contained in this press release.
About Arizona Sonoran Copper Company (www.arizonasonoran.com |
www.cactusmine.com)
ASCU’s objective is to become a mid-tier copper producer with
low operating costs, develop the Cactus Project that could generate
robust returns for investors, and provide a long term sustainable
and responsible operation for the community and all stakeholders.
The Company's principal asset is a 100% interest in the Cactus
Project (former ASARCO, Sacaton mine) which is situated on private
land in an infrastructure-rich area of Arizona. The Company is led
by an executive management team and Board which have a
long-standing track record of successful project delivery in North
America complemented by global capital markets expertise.
Forward-Looking Statements
Forward-looking statements involve known and unknown risks,
uncertainties and other factors which may cause the actual results,
performance or achievements of ASCU to be materially different from
any future results, performance or achievements expressed or
implied by the forward-looking statements. Factors that could
affect the outcome include, among others: future prices and the
supply of metals; the results of drilling; inability to raise the
money necessary to incur the expenditures required to retain and
advance the properties; environmental liabilities (known and
unknown); general business, economic, competitive, political and
social uncertainties; results of exploration programs; accidents,
labour disputes and other risks of the mining industry; political
instability, terrorism, insurrection or war; or delays in obtaining
governmental approvals, projected cash operating costs, failure to
obtain regulatory or shareholder approvals.
Although ASCU has attempted to identify important factors that
could cause actual actions, events or results to differ materially
from those described in forward-looking statements, there may be
other factors that cause actions, events or results to differ from
those anticipated, estimated or intended. Forward-looking
statements contained herein are made as of the date of this news
release and ASCU disclaims any obligation to update any
forward-looking statements, whether as a result of new information,
future events or results or otherwise, except as required by
applicable securities laws.
View source
version on businesswire.com: https://www.businesswire.com/news/home/20220210005239/en/
Alison Dwoskin, Director, Investor Relations 647-233-4348
adwoskin@arizonasonoran.com
George Ogilvie, President, CEO and Director 416-723-0458
gogilvie@arizonasonoran.com
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