152m Grading 1% Copper Equivalent
Included in 387 m at 0.56% Copper Equivalent
Additionally, 377 m at 0.31% Copper Equivalent
Hole CMV-009 located near the southern edge of the current resources has returned results from 93.2 meters to 480.35 meters with a copper equivalent grade of 0.56 %, including 0.53 % copper, 62 parts per million ("ppm") molybdenum and 1.5 grammes per tonne ("g/t") silver. Included in this intercept is an interval from 108 meters to 260 meters, of 152 meters grading 1.00% copper equivalent. Further drilling is planned to outline this area in detail.
Hole CMV-010 located near the western edge of the previous resource model returned assay results from 430.0 meters to 807.3 meters, with 377.3 meters of 0.31 % copper equivalent. This result will be incorporated into the new resource assessment for the Pre-Feasibility Study ("PFS") targeted for the fourth quarter 2022.
R. Michael Jones, CEO of Los Andes, comments that "The shallow mineralization in Hole CMV-009 is impressive. The higher-grade areas of the deposit will be targeted for early mining where accessible in the developing PFS mine plan. Hole CMV-010 illustrates that the deposit is still open to the northwest and assays are pending for Hole CMV-011 that is further west. Hole CMV-010 and CMV-011 will allow the western area to be reconsidered in the resource model. The opportunity to convert tonnes assumed to be waste in the Preliminary Economic Assessment (the "PEA") to resources in the mine plan for the PFS, and to target high grade areas are good opportunities to optimize the project."
The drilling results indicate that the limits and the center of the Vizcachitas Porphyry Copper deposit are not yet known. A further 3,300 meters of sampled core are awaiting assay results at this time.
Milestones for the Company include further drilling assay results in the weeks ahead and completion of the PFS in the fourth quarter of 2022. Vizcachitas represents one of the truly Tier One Copper Assets with no major company holdings or offtake agreements.
Drilling Results Details
The details of Holes CMV-002, CMV-003, CMV-005, CMV-009 and CMV-010 are shown in the table below.
|Drill Hole||Interval (m)||Meters||Cu %||Mo ppm||Ag g/t||CuEq %*|
|CMV-002||42.3 - 664.85||622.55||0.07||27||0.2||0.08|
|CMV-003||42.3 - 698.0||655.70||0.09||11||N/A**||0.09|
|CMV-005||13.1 - 996.0||982.90||0.07||26||N/A**||0.08|
|CMV-009||93.2 - 480.35||387.15||0.53||62||1.5||0.56|
|Including||108 - 260||152.00||0.94||122||2.6||1.00|
|CMV-010||82 - 807.3||725.30||0.20||28||0.7||0.21|
|Including||430 - 807.3||377.30||0.28||36||1.0||0.31|
* Copper Equivalent grade has been calculated using the following calculation: CuEq (%) = Cu (%) + 0.000333 x Mo (ppm) + 0.00826 x Ag (g/t), using the metal prices: 3.00 USD/lb Cu, 10.00 USD/lb Mo and 17.00 USD/oz Ag. No allowance for metallurgical recoveries has been considered. These are the same reference prices as in reporting of 2019 PEA. This means that the reported intercepts can be compared directly with the results published in the PEA. Approximate relative value on the PEA pricing is 93% Cu, 6% Mo and 1% silver.
** Assay results pending for silver.
All thicknesses from the drill hole intersections are down-hole drilled thicknesses. True widths will be estimated as the deposit model is updated and information becomes available. Hole CMV-002 was drilled in an open shallow exploration area north of the current resource model. The deep part of the deposit in the north remains open. Holes CMV-003 and CMV-005 indicate that the shallow part of the system does not extend northward from the current resource model. However deeper drilling in this area has good mineralization and the depth potential to the north is still untested.
The Company is preparing to file detailed reports with the environmental court on the issues raised in the recent court injunction to suspend drilling. The Company is confident that the drilling project can continue, in accordance with its permits, with no significant effects to the environment and the Company welcomes continued dialogue with all stakeholders in a climate of mutual respect.
About Los Andes Copper Ltd.
The Project is a copper-molybdenum porphyry deposit, located 120 kilometres north of Santiago, in an area of very good infrastructure. The Company's Preliminary Economic Assessment (the "PEA"), delivered in June 2019, highlights that the Project has a post tax NPV of $1.8 billion and an IRR of 20.77%, based on a $3 per pound copper price. It also has a Measured Resources of 254.4 million tonnes having a grade of 0.439% copper and Indicated Resource of approximately 1.03 billion tonnes having a grade of 0.385% copper. Mineral resources that are not mineral reserves do not have demonstrated economic viability. Please refer to the technical report dated June 13, 2019, with an effective date of May 10, 2019 and titled "Preliminary Economic Assessment of the Vizcachitas Project", prepared by Tetra Tech.
The PEA is preliminary in nature, it includes inferred mineral resources that are considered too speculative geologically to have the economic considerations applied to them that would enable them to be categorized as mineral reserves, and there is no certainty that the PEA will be realized.
Qualified Person ("QP") and Quality Control and Assurance
Antony Amberg CGeol FGS, the Company's Chief Geologist, is the qualified person who has reviewed and approved the scientific and technical information contained in this news release. The QP has validated the data by, supervising the sample collection process, through chain of custody records and inspecting the detailed technical data and quality control and assurance information.
Los Andes Copper has a strict Quality Assurance and Quality Control (QA QC) protocol, which is consistent with industry best practices. There is a strict chain of custody from the project site to laboratory via the Company's core cutting facility. The QA QC protocol includes the insertion of field duplicates, coarse duplicates, pulp duplicate, pulp and coarse blanks and Certified Reference Materials supplied by Ore Research and Exploration, Australia.
The core was analysed by ALS Minerals in Lima, Peru. All samples were assayed using the method ME-MS61, a four-acid digestion with an ICP-MS finish. Copper samples with grades above 0.7 % Cu were reanalysed using ALS method Cu-OG62, a four-acid digestion with an AAS finish. The Company uses a program of detailed QA QC and monitors the performance of the laboratory.
For more information please contact:
R. Michael Jones, P.Eng CEO
+44 203 4407982
BlytheRay, Financial PR
Tel: +44 207 138 3203
Certain of the information and statements contained herein that are not historical facts, constitute "forward-looking information" within the meaning of the Securities Act (British Columbia), Securities Act (Ontario) and the Securities Act (Alberta) ("Forward-Looking Information"). Forward-Looking Information is often, but not always, identified by the use of words such as "seek", "anticipate", "believe", "plan", "estimate", "expect" and "intend"; statements that an event or result is "due" on or "may", "will", "should", "could", or might" occur or be achieved; and, other similar expressions. More specifically, Forward-Looking Information involves known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of the Company, or industry results, to be materially different from any future results, performance or achievements expressed or implied by such Forward-Looking Information. Such Forward Looking Information includes, without limitation, the timing of and ability to obtain TSX-V and other regulatory approvals and the prospects, details related to and timing of the Vizcachitas Project. Such Forward-Looking Information is based upon the Company's assumptions regarding global and Chilean economic, political and market conditions and the price of metals and energy and the Company's production. Among the factors that have a direct bearing on the Company's future results of operations and financial conditions are changes in project parameters as plans continue to be refined, a change in government policies, competition, currency fluctuations and restrictions and technological changes, among other things. Should one or more of any of the aforementioned risks and uncertainties materialize, or should underlying assumptions prove incorrect, actual results may vary materially from any conclusions, forecasts or projections described in the Forward-Looking Information. Accordingly, readers are advised not to place undue reliance on Forward-Looking Information. Except as required under applicable securities legislation, the Company undertakes no obligation to publicly update or revise Forward-Looking Information, whether as a result of new information, future events or otherwise.
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