The total drilling campaign has three main objectives:
- To explore the deeper parts of the classic porphyry copper deposit at Vizcachitas, where earlier drilling demonstrated higher copper grades at depth. Previous intercepts include the drill hole V2017-10 with 506 metres ("m") at 0.57 % copper ("Cu") and 357 parts per million ("ppm") Molybdenum ("Mo") from 486 m down-hole. The occurrence of the high copper content mineral bornite at depth is an important indicator of potential in many porphyry copper systems including Vizcachitas.
- To explore the open part of the deposit to the north and northeast. Geological mapping and geophysics suggest the deposit extends to the north of the previous drilling and current Preliminary Economic Assessment ("PEA") resource estimates.
- To fill in areas of drilling in advance of finalization of the resources for the upcoming Pre-Feasibility Study ("PFS").
The drilling is being completed in strict compliance with the full legal permitting from the Regional Environmental Committee (Comision de Evaluacion Ambiental) for drilling to be carried out at the Company's Vizcachitas Project over the next four years. The Company's wholly owned subsidiary, Compañia Minera Vizcachitas Holding, is permitted for up to 350 holes and 124 platforms with specific environmental conditions and monitoring. The initial planned drilling is for 13,000 m in 18 holes including 3 deep holes to satisfy the first two objectives. Drilling is then expected to continue into Q1 2022.
The Company continues to consult closely on an ongoing basis with government and local organisations to maximize the value of the project for all stakeholders and to protect the environment in compliance with its permits.
Fernando Porcile, Executive Chairman of Los Andes, commented:
"We are excited to advance the Project and to explore the full potential of the Vizcachitas porphyry copper deposit. The engineering planning will be finalized and optimized quickly in the PFS once we complete the next resource update."
R. Michael Jones, the newly appointed CEO of Los Andes, commented:
"It is a great pleasure to join the Company at a time where a clear world class copper system is being explored by a professional team with decades of local domain experience."
The Company expects initial drilling results will be available in early Q1 2022. The Company has also commenced discussions with various independent engineering firms for the review and independent confirmations of the detailed work completed by the Company towards the PFS. The PFS is expected to be completed at the end of Q1 2022.
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.
For more information please contact:
Fernando Porcile, Executive Chairman
Tel: +56 2 2954-0450
Antony J. Amberg, Chief Geologist
Tel: +56 2 2954-0450
Blytheweigh, Financial PR
Tel: +44 207 138 3203
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About Los Andes Copper Ltd.
Los Andes Copper Ltd. is an exploration and development company with an 100% interest in the Vizcachitas Project in Chile. The Company is focused on progressing the Project, which is located along Chile's most prolific copper belt, into production. Vizcachitas is one of the largest copper deposits in the Americas not controlled by the majors and the Company believes it will be Chile's next major copper mine.
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.
Los Andes Copper Ltd. is listed on the TSX-V under the ticker: LA.
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; including, without limitation, Spinnaker's ability to raise capital, target and attract institutional and retail investors and focus on developing and expanding the network of investors, analysts and financial intermediaries who are interested in Los Andes. 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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