- Company declares maiden Inferred mineral resources of 143.6
million tons at 1.015% Cu at Parks/Salyer for 1.46 million tons of
contained copper
- Inferred mineral resources of:
- Leachable: 2.46 Billion pounds of 1.066% total soluble
copper
- Primary Sulphide: 0.45 Billion pounds at 0.804% total
copper
- Inferred Resources at Parks/Salyer are comprised of oxide,
enriched and primary mineral zones; the oxides and enriched
material is considered amenable to heap leach processing
methods
- A revised Technical Study to include Cactus and P/S is expected
in the next 12-18 months
Arizona Sonoran Copper Company Inc. (TSX:ASCU |
OTCQX:ASCUF) (“ASCU” or the “Company”) is pleased to announce a
maiden Mineral Resource Estimate (“MRE”) for the Parks/Salyer
(“P/S”) porphyry copper deposit, located immediately southwest of
the Cactus Project on contiguous private land in Arizona, USA. The
P/S Project is located 1.3 mi (2 km) SW from the Cactus open pit
along the mine trend, and demonstrates the same geological
characteristics (see FIGURES 1-4).
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Notes to Grade/Tonnage Curve - 1. Tons
and grades reported in the grade tonnage curve chart should not be
misconstrued as Mineral Resources of confused with the Mineral
Resource Statement above for Parks/Salyer. Tons and grades are
reported to show the sensitivity of the block model estimated
grades and tonnage to the selection of cut-off grade.(Graphic:
Business Wire)
The ASCU global mineral resources are as noted below; Oxide,
Enriched and Stockpile material are all considered amenable to a
heap leaching operation:
Table 1: Parks/Salyer Inferred Underground Mineral Resource
Estimate as at 26th September, 2022
Inferred Resource
Tons
(kt)
CuT
(%)
Cu TSol
(%)
Contained
Cu (k lbs)
Contained
Cu (k Tons)
Oxide
14,100
0.827
233,700
117
Enriched
101,200
1.100
2,227,200
1,113
Leachable
115,400
-
1.066
2,460,900
1,230
Primary
28,300
0.804
-
454,400
228
Total Inferred
143,600
1.015
2,915,400
1,458
Comprehensive notes for Table 1, with
Table 2 below.
Table 2: Global Cactus and Parks/Salyer Project Open Pit and
Underground Mineral Resource Estimate
Material Type
Tons (kt)
CuT %
TSol
%
Contained
Cu (k lbs)
Contained
Cu (k Tons)
INDICATED
Cactus
Oxide
31,400
0.559
349,700
176
Enriched
42,500
0.844
715,500
359
Total Leachable
73,900
0.723
1,065,200
534
Primary
77,900
0.35
545,500
273
Total Indicated
151,800
0.531
1,610,700
806
INFERRED
Cactus
Oxide
62,500
0.346
430,500
216
Enriched
55,100
0.498
548,800
274
Total Leachable
117,600
0.417
979,300
490
Primary
111,300
0.349
776,000
388
Total Inferred
228,900
0.384
1,755,300
879
Stockpile
Oxide
77,400
0.144
223,500
111
Parks/Salyer
Oxide
14,100
0.827
233,700
117
Enriched
101,200
1.1
2,227,200
1,113
Total Leachable
115,400
1.066
2,460,900
1,230
Primary
28,300
0.804
454,400
228
Total Inferred
143,600
1.015
2,915,400
1,458
Total Resources
INDICATED
Total Leachable
73,900
0.723
1,065,200
534
Total Indicated
151,800
0.531
1,610,700
806
INFERRED
Total Leachable
310,400
0.59
3,663,700
1,832
Total Inferred
449,900
0.544
4,894,200
2,447
Notes for Tables 1 and 2:
1. CuT means total copper and Tsol means
total soluble copper as the addition of sequential acid soluble and
sequential cyanide soluble copper assays. Tons are reported as
short tons.
2. Cactus and Stockpile Resource estimates
have an effective date of 31st August, 2021 and use a copper price
of US$3.15/lb. The assumptions in respect of the Cactus and
Stockpile Resource estimates are as stated in the Preliminary
Economic Assessment (“PEA”) titled "Arizona Sonoran Copper Company,
Inc. Cactus Project, Arizona, USA Preliminary Economic Assessment"
with an effective date of August 31, 2021; Parks/Salyer Resource
estimate has an effective date of 26th September, 2022 and uses a
copper price of US$3.75/lb.
3. Technical and economic parameters
defining resource pit shell: mining cost US$2.45/t; G&A
US$0.55/t, and 44°-46° pit slope angle.
4. Technical and economic parameters
defining underground resource: mining cost US$28.93/t, and G&A
representing 7% of direct costs.
5. Technical and economic parameters
defining processing: Heap leach (HL) processing cost including
selling US$1.77/t; HL recovery 83% of CuT; mill processing cost
US$8.50/t.
6. For Cactus: Variable cutoff grades were
reported depending on material type, potential mining method, and
potential processing method. Oxide material within resource pit
shell = 0.096% TSol; enriched material within resource pit shell =
0.098% TSol; primary material within resource pit shell = 0.205%
CuT; oxide underground material outside resource pit shell = 0.56%
TSol; enriched underground material outside resource pit shell =
0.70% TSol; primary underground material outside resource pit shell
= 0.70% CuT.
7. For Parks/Salyer: Variable cut-off
grades were reported depending on material type associated
potential processing method. Oxide underground material = 0.495%
TSol; enriched underground material = 0.60% TSol; primary
underground material = 0.586% CuT.
8. Mineral resources, which are not
mineral reserves, do not have demonstrated economic viability. The
estimate of mineral resources may be materially affected by
environmental, permitting, legal, title, sociopolitical, marketing,
or other relevant factors.
9. The quantity and grade of reported
inferred mineral resources in this estimation are uncertain in
nature and there is insufficient exploration to define these
inferred mineral resources as an indicated or measured mineral
resource; it is uncertain if further exploration will result in
upgrading them to an indicated or measured classification.
10. Total may not add up due to
rounding.
Due to the significant increase in the Company-wide Mineral
Resources, the oxide and enriched material at Parks/Salyer will be
considered for inclusion in a future technical study incorporating
both the Cactus and Parks/Salyer deposits. Future studies will be
based on the expanded leachable inventory, heap leaching and SX/EW
process methodology. An integrated technical study is expected to
be completed in the next 12-18 months. The primary sulphides are
currently being tested for leachability (based on the NutonTM
technology) and may form the basis of further project upside.
George Ogilvie, Arizona Sonoran President and CEO
commented, “The significant increase to our global resource
base is a key inflection point in the low-risk development of our
existing Cactus Project. We have increased our global leachable
inventory base by over 100%, and as a result, the Company has
determined that a full revised study will be considered to produce
an integrated business case for Cactus and Parks/Salyer. It is
clear that the high-grade nature of Parks/Salyer’s mineral resource
inventory offers significant potential to increase scale within an
integrated operation at conservative copper price estimates. We
will continue advancing our work study programs, specifically,
metallurgical and geotechnical test work, hydrology, permitting,
infill drilling and associated projects to advance the combined
Cactus and P/S Project through the technical study phases. Through
updating the global MRE, our team has delineated a significant
copper project, with the potential to become a key supplier to the
USA critical metals chain in the coming years.”
The MRE was prepared by Stantec in accordance with the Canadian
Institute of Mining, Metallurgy and Petroleum ("CIM") Definition
Standards and National Instrument 43-101 - Standards of Disclosure
for Mineral Projects ("NI 43-101"). Due to the proximity of P/S to
the Cactus Mine, and associated future shared infrastructure, the
P/S MRE will be stated as an inferred mineral resource in a new
technical report in conjunction with the Cactus MRE effective
August 31, 2021. The Cactus Mine Project economics are as of the
date as contained in the technical report titled "Arizona Sonoran
Copper Company, Inc. Cactus Project, Arizona, USA Preliminary
Economic Assessment" with an effective date of August 31, 2021 (the
"2021 Technical Report"). The new technical report covering the
Cactus Mine Project and Parks/Salyer, will be filed within 45
days.
Focused Drill Program Results in Large Maiden Resource
Estimate
In 2020, ASCU drilled two exploration holes to the north of two
historic ASARCO drill holes. These holes successfully intersected
well mineralized porphyry copper mineralization over significant
widths. In 2021, the Company began exploring the P/S property with
500 ft (152 m) spaced drilling to test its defined Exploration
Target. The Exploration Target presented the potential of a second
underground operation on the Cactus Mine Project private property.
In total, 31 drill holes over 66,507 ft (20,271 m) were used to
define the P/S target for this maiden inferred MRE.
The maiden inferred MRE for the Parks/Salyer Deposit is
summarized in Table 1 above. The table illustrates the inferred
mineral resource in the oxide, enriched and primary mineralized
zones and leachable and primary zones, respectively.
Park/Salyer: High grade deposit with significant leverage to
Copper Price
The sensitivity and upside exposure to a larger tonnage at
higher copper prices is demonstrated in the table below. The reader
is cautioned that figures in the following chart should not be
misconstrued as Mineral Resources or confused with the Mineral
Resource Statement reported above. These figures are only presented
to show the sensitivity vis a vis copper prices based on the
methodology and assumptions stated:
Table 3: Parks/Salyer Resource: Leverage to Copper Price
Price
Total Leachable
Total Material
Cu TSol
(%)
Tonnage
(M short ton)
Metal
(Cu Blbs)
Cu
(%)
Tonnage
(M short ton)
Metal
(Cu Blbs)
$3.35
1.13
100.5
2.30
1.08
123.5
2.65
$3.55
1.10
108.0
2.40
1.05
134.0
2.80
$3.75
1.07
115.5
2.45
1.01
143.5
2.90
$3.95
1.04
122.5
2.55
0.99
153.5
3.05
$4.15
1.01
128.5
2.60
0.96
163.0
3.15
$4.35
0.99
135.0
2.65
0.93
172.5
3.25
$4.55
0.97
141.5
2.75
0.91
182.5
3.30
Notes:
1. Price sensitivity tons and grades were
calculated using a consistent methodology to the reporting of the
Parks/Salyer inferred resource. New cut-off grades were calculated
for each material type (oxide, enriched, and primary) based on the
variation in copper price. Tons and grades were rereported for each
material type with the appropriate cut-off grade.
2. Cu grade reported for Total Material
represents a blend of Cu TSol for oxide and enriched material, and
CuT for primary material.
Potential shared infrastructure between Parks/Salyer and
Cactus
Like Cactus, the P/S Project extends over a portion of the
larger Santa Cruz porphyry copper system that has been dismembered
and displaced by tertiary extensional faulting. Major host rocks at
Cactus are precambrian oracle granite and laramide monzonite
porphyry and quartz monzonite porphyry. The porphyries intruded the
older rocks to form mixed breccias; monolithic breccias and occur
as large masses, poorly defined dike-like masses; and thin
well-defined but discontinuous dikes. The mineralization is
structurally complex with intense fracturing, faulting, and both
pre-mineral and post-mineral brecciation. As such, it is expected
the metallurgy of both Cactus and P/S will be similar however
testing is ongoing.
The two deposits are located within the same 4,846 acre private
land parcel. Water, power, roads, the metallurgical testing
building and core shacks are all easily accessible within the
confines of the total project area. Future processing plants,
ponds, auxiliary buildings and mine access would be considered in a
location accessible by both deposits should a positive production
decision be made in the future.
Next Steps
Resource Declaration in Technical Report
Due to the proximity of P/S to the Cactus Mine, and associated
future shared infrastructure, the P/S MRE will be stated as an
inferred mineral resource in a new technical report in conjunction
with the Cactus MRE effective August 31, 2021. The Cactus Mine
Project economics are as of the date as contained in the 2021
Technical Report. The new technical report covering the Cactus Mine
Project and Parks/Salyer will be filed within 45 days.
Continued Exploration Success and 2022 Plans for Further
Drilling
ASCU has 3 drills currently running a 105,000 ft (32,000 m)
program at the P/S deposit to reduce the spacing between holes to
250 ft (76 m). This infill drilling program is planned to improve
the resource category to an indicated status, with a goal to
defining future probable reserves. Results will support mine
planning in connection with an integrated technical study. The
drill program is expected to be complete by year-end, with assays
returned by Q1 2023.
Drilling is expected to resume at Cactus later this year to
continue to infill drill to 125 ft (38 m) spacing at both Cactus
East and West. Drill spacing is being infilled with the goal to
produce measured resources in the upcoming integrated technical
report.
Metallurgical Studies
Cactus Column Leaching: Over a
dozen leaching columns ranging in height between 20 and 30 ft are
currently underway to complete a feasibility-level metallurgical
program on Cactus material. Testing is taking place in the onsite
Trustone Building. Heights were determined to simulate an entire
bench on a heap leach pad. Jim Sorensen (Samuel Engineering), Randy
Scheffel (Independent Metallurgical Consultant), Amado Guzman
(HydroGeoSense Inc.) and Dan Johnson (ASCU’s Project Director) are
collaborating and supervising the program to complete the testing
program for technical study. Results are expected before the end of
2023 and will update the current recoveries as shown in Table 4
below.
Table 4: Average Cactus Metallurgical Performance, updated
Feb 22, 2022
Resource Component
Net Copper
Recovery
(% CuAS)
Net Copper
Recovery
(% CuCN)
Gross Acid Consumption
(lb/ton)
Net Acid
Consumption
(lb/ton)
STOCKPILE
Oxide
90%
40%
22
16
OPEN PIT AND
UNDERGROUND
Oxide
92%
73%
22
16
Enriched
92%
73%
22
0
A Parks/Salyer bottle roll testing
program is now underway using material from the current drilling
program. It will be followed by a column leach test using material
from larger exploration bore holes, expected to begin in
October.
Sulphide leaching optionality:
Oxide, enriched and primary material samples from both Cactus and
Parks/Salyer have testing underway. ASCU material was sent to test
the leachability using the Nuton Technology. Initial testing of the
primary sulphide material using Nuton technology indicates copper
recovery in excess of 72% and provides optionality to unlock the
primary resource at depth, below the Cactus and Parks/Salyer
leachable resources. Results from the column testing program are
expected in 2023.
Private Land Operation Permitting Underway
ASCU holds approximately 4,846 acres of private land to support
an operation entirely on private land. The company has received its
water permits, including the right to draw water, the aquifer
protection permit and air quality permit, all key state-level
permits required for a private land operations, along with other
minor permits. Additionally, the company has received confirmation
from the US Army Corps of Engineers that no Waters of the United
States flow through the ASCU properties, thus confirming State-led
permitting processes.
The Company is advancing its production and construction
permitting process. The Mined Land Reclamation Permit, for closure
and monitoring, and Industrial Air Permitting Applications, for air
quality during production, are being prepared and are expected to
be submitted to the State and County Permitting offices by
year-end.
Bronco Creek Lands
A total of 725.5 M pounds of inferred mineral resources at
1.084% Cu, contained within the maiden Parks/Salyer Inferred MRE,
was reported from the Bronco Creek lands (“BCE”). BCE was leased
from Bronco Creek Exploration, a wholly-owned subsidiary of EMX
Royalties (EMX: TSXV, NYSE American) in February 2022 and consists
of 158 acres; together with P/S, totaling 318 acres of the
Parks/Salyer project. Under the terms of the agreement, having had
declared at least 200 M pounds of Copper on the land, ASCU will pay
US$3 M to BCE.
Sensitivity Analysis
The results of grade sensitivity analysis are presented below to
illustrate the continuity of the grade estimates at various cut-off
increments and the sensitivity of the mineralization to changes in
cut-off grade. The reader is cautioned that figures in the
following chart should not be misconstrued as Mineral Resources or
confused with the Mineral Resource Statement reported above. These
figures are only presented to show the sensitivity of the block
model estimated grades and tonnages to the selection of cut-off
grade. Cut-off at Parks/Salyer was set at $3.75/lb copper,
translating to a 0.6% Cu grade.
Resource Estimation Methodology
A total of 31 holes, drilled at 500 ft (250 m) drill spacing, by
ASCU including four by previous owners were used to inform the
Parks/Salyer resource model. The methodology followed to estimate
mineral resources at P/S is consistent to the approach used at
ASCU’s Cactus Mine Project, including using the Inverse Distance
Cubed (ID3) estimation method. Please refer to the NI 43-101
Technical Report for Cactus, with an effective date of August 31,
2021 for more details; an restated report will be posted to the
Company’s website and to SEDAR within 45 days detailing the
Parks/Salyer resource estimation methodology.
Quality Assurance / Quality Control
Drilling completed on the project between 2020 and 2022 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
approved by Dr. Martin Kuhn, who is a qualified person as defined
by National Instrument 43-101– Standards of Disclosure for Mineral
Projects.
Technical aspects of this news release have been reviewed and
verified by Allan Schappert – CPG #11758, who is a qualified person
as defined by National Instrument 43-101– Standards of Disclosure
for Mineral Projects.
Links from the Press Release
FIGURES 1-4:
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 and Parks/Salyer 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) and
Parks/Salyer deposit 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/20220928005320/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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