Ero Copper Corp. (TSX: ERO, NYSE: ERO) ("Ero" or the “Company”) is
pleased to announce an initial National Instrument 43-101 ("NI
43-101") compliant mineral resource estimate for the Furnas
Copper-Gold Project ("Furnas" or the "Project"), located in the
Carajás Mineral Province ("Carajás") in Pará State, Brazil.
The initial mineral resource estimate highlights
significant potential for the Project. At a 1.00% copper equivalent
("CuEq") cut-off grade, the mineral resource estimate, effective
June 30, 2024, totals:
-
Indicated Mineral Resource: 35.2 million tonnes
grading 1.04% copper and 0.69 grams per tonne ("gpt") gold (1.36%
CuEq1), containing an estimated 364,700 tonnes of copper and
775,300 ounces of gold
- Inferred
Mineral Resource: 61.3 million tonnes grading 1.06% copper
and 0.63 gpt gold (1.36% CuEq1), containing an estimated 647,400
tonnes of copper and 1,235,600 ounces of gold
This estimate is supported by more than 90,000
meters of historic drilling on the Project, conducted by Vale S.A.
and Anglo American plc, as well as a resampling and database
validation program undertaken by the Company.
"We are extremely pleased with this initial
mineral resource estimate for Furnas. It provides a solid
foundation upon which we can focus, over the coming months, on
unlocking further potential," said David Strang, Chief Executive
Officer. "Our Phase 1 drill program will target two key objectives:
improving the definition of high-grade zones through infill
drilling and extending known mineralization within these zones
beyond the historically drilled depth of approximately 300 vertical
meters from surface.
"Furnas presents a tremendous opportunity to
define a major copper-gold mineral resource capable of supporting a
large-scale underground mine. Our experience in underground mining
in Brazil, coupled with the successful construction of our new
Tucumã mine and processing plant in the Carajás, positions us well
to advance this Project.
"Together with our partners at Vale Base Metals,
we are committed to progressing Furnas in a manner that delivers
sustainable benefits for all stakeholders and reinforces Brazil's
position as a global leader in the responsible, low-carbon
production of critical minerals."
1. CuEq grade calculated as Cu grade + (Au grade x 0.03215 x
($1,900 gold price x 61.50% gold metallurgical recovery / (0.01 x
$9,259/tonne copper price x 85.00% copper metallurgical
recovery)).
MINERAL RESOURCE ESTIMATE AND CUT-OFF
GRADE SENSITIVITY
Cut-Off Grade |
|
|
|
|
|
Grade |
|
Contained Metal |
CuEq1 |
|
|
|
Tonnes |
|
Cu |
|
Au |
|
CuEq1 |
|
Cu |
|
Au |
|
CuEq |
(%) |
|
Category |
|
(Mt) |
|
(%) |
|
(gpt) |
|
(%) |
|
(kt) |
|
(koz) |
|
(kt) |
0.60 |
|
Indicated |
|
66.4 |
|
0.84 |
|
0.55 |
|
1.10 |
|
555.3 |
|
1,179.9 |
|
730.5 |
|
Inferred |
|
114.8 |
|
0.85 |
|
0.51 |
|
1.10 |
|
978.9 |
|
1,877.3 |
|
1,257.6 |
0.80 |
|
Indicated |
|
51.2 |
|
0.93 |
|
0.60 |
|
1.22 |
|
477.9 |
|
984.5 |
|
624.1 |
|
Inferred |
|
88.0 |
|
0.96 |
|
0.55 |
|
1.22 |
|
840.7 |
|
1,558.1 |
|
1,072.0 |
1.00 |
|
Indicated |
|
35.2 |
|
1.04 |
|
0.69 |
|
1.36 |
|
364.7 |
|
775.3 |
|
479.8 |
|
Inferred |
|
61.3 |
|
1.06 |
|
0.63 |
|
1.36 |
|
647.4 |
|
1,235.6 |
|
830.8 |
Note: The Canadian Institute of Mining,
Metallurgy and Petroleum ("CIM") Definition Standards (2014) were
used for reporting Mineral Resources, which are effective as at
June 30, 2024 and presented on a 100% ownership basis. All figures
have been rounded to reflect the relative accuracy of the
estimates. Summed amounts may not add due to rounding. Mineral
resources that are not mineral reserves do not have a demonstrated
economic viability. See "Notes on Mineral Resources" below for
additional technical and scientific information.1. CuEq grade
calculated as Cu grade + (Au grade x 0.03215 x ($1,900 gold price x
61.50% gold metallurgical recovery / (0.01 x $9,259/tonne copper
price x 85.00% copper metallurgical recovery)).
In September 2024, the Company received drilling
permits from the Pará State environmental agency, allowing for the
commencement of the Phase 1 drill program in October 2024. This
minimum 28,000-meter program will focus on two identified
high-grade zones – the NW and SE Zones – within the broader
deposit. The program is designed to support a preliminary economic
assessment on the Project. The drill plan comprises:
- Infill drilling
to upgrade inferred mineral resources and increase continuity of
the high- grade zones
- Extensional
drilling to depth, where limited prior drilling suggests increasing
grade and thickness
FURNAS COPPER-GOLD PROJECT DETAILS AND
EARN-IN AGREEMENT
Furnas is an iron oxide copper-gold deposit
located approximately 50 kilometers southeast of Vale Base Metal's
("VBM") Salobo operations and approximately 190 kilometers
northeast of Ero's Tucumã Operations. Covering an area of
approximately 2,400 hectares, the Project sits within fifteen
kilometers of extensive regional infrastructure, including paved
roads, an industrial-scale cement plant, a power substation and
Vale S.A.'s railroad loadout facility.
In July 2024, the Company signed a definitive
earn-in agreement ("Agreement") with Salobo Metais S.A, a
subsidiary of VBM, to earn a 60% interest in the Project upon
completion of several exploration, engineering and development
milestones over a five-year period. In exchange for its 60%
interest, Ero will solely fund a phased work program during the
earn-in period and grant VBM up to an 11.0% "free carry" on future
Project construction capital expenditures. For additional details
on the key terms and execution of the Agreement, please refer to
the Company's press releases dated October 30, 2023 and July 22,
2024.
NOTES ON MINERAL
RESOURCES
CIM Definition Standards (2014) were used for
reporting mineral resources, which are effective as at June 30,
2024 and presented on a 100% ownership basis. All figures have been
rounded to the relative accuracy of the estimates. Summed amounts
may not add due to rounding. Mineral resources that are not mineral
reserves do not have a demonstrated economic viability.
Mineral resource estimates are prepared by or
under the supervision of and verified by Mr. Cid Gonçalves Monteiro
Filho, SME RM (04317974), MAIG (No. 8444), FAusIMM (No. 329148).
Mr. Monteiro is Resource Manager of the Company and is a “qualified
person” within the meanings of NI 43-101.
Mineral resources have been estimated using a
copper price of US$9,259/tonne, a gold price of US$1,900/oz, a
USD:BRL foreign exchange rate of 5.10, and copper and gold
metallurgical recovery rates of 85.00% and 61.50%, respectively.
The estimation was constrained using Datamine's Mineable Shape
Optimizer ("MSO") at a 0.55% break-even copper cut-off grade.
Mineral resources were estimated using ordinary kriging within a
25-meter by 25-meter by 4- meter block size (X, Y, Z), with a
minimum sub-block size of 6.25 meters by 6.25 meters by2.0
meters.
QUALIFIED PERSONS AND THE NI 43-101
TECHNICAL REPORT
Mr. Cid Gonçalves Monteiro Filho, SME RM
(04317974), MAIG (No. 8444), FAusIMM (No. 329148) has reviewed,
verified and approved the scientific and technical information
contained in this press release, including the sampling, analytical
and test data underlying the information contained in this press
release. Mr. Monteiro is Resource Manager of the Company and is a
“qualified person” within the meanings of NI 43-101.
The Company will file the associated NI 43-101
compliant report on SEDAR+ (www.sedarplus.ca/landingpage/) and
EDGAR (www.sec.gov), and publish this report on the Company's
website (www.erocopper.com), within 45 days of this press
release.
QUALITY ASSURANCE & QUALITY
CONTROL
Four diamond exploration drilling campaigns were
previously carried out on Furnas, with control sample protocols
applied to each campaign. Historical QA/QC data was evaluated,
including duplicates, blanks and standard samples from the most
recent drilling campaign.
In all drilling campaigns, a quarter of the
recovered core sample was collected. In the first three exploration
campaigns, one-meter sampling intervals were predominately used. In
the fourth exploration campaign one-meter sampling intervals were
predominately used in the mineralized zone and two-meter sampling
intervals were used in the transition zone and in waste rock.
Physical preparation of the quarter-core samples
was performed in the following laboratories: Vale/Carajás,
Intertek-Parauapebas-PA, Intertek-Nova Lima-MG, SGS GEOSOL, or
Lakefield-Geosol. Chemical analysis was performed by ACME,
Lakefield-Geosol in Belo Horizonte/MG, and SGS Geosol Laboratories
in Vespasiano/MG. The selection of analytical methods and the
number of elements analyzed varied across exploration
campaigns.
To verify the accuracy of older sampling
campaigns, a post-mortem QA/QC program was performed on copper and
gold for select assay intervals. The post-mortem program undertaken
by the Company demonstrates good performance, particularly for
copper and gold, allowing for the inclusion of historical
exploration campaign data for the purposes of this press
release.
The Company reprocessed all historical QA/QC
data from the Project, according to the Company's internal
guidelines, and achieved exceptional results aligned with industry
standards. Error rates for pulp and coarse duplicates remained
significantly below the conventional limit of 10%, demonstrating
the effectiveness of historical data preparation and analytical
procedures. Global biases across all drilling phases and
laboratories stayed well within acceptable parameters, confirming
the analytical accuracy of the primary laboratories associated with
the historical database. Additionally, the absence of significant
contamination in all laboratories further validates the reliability
and integrity of the reprocessed data.
ABOUT ERO COPPER
CORP
Ero is a high-margin, high-growth, low
carbon-intensity copper producer with operations in Brazil and
corporate headquarters in Vancouver, B.C. The Company's primary
asset is a 99.6% interest in the Brazilian copper mining company,
Mineração Caraíba S.A. ("MCSA"), 100% owner of the Company's
Caraíba Operations (formerly known as the MCSA Mining Complex),
which are located in the Curaçá Valley, Bahia State, Brazil and
include the Pilar and Vermelhos underground mines and the Surubim
open pit mine, and the Tucumã Operation (formerly known as Boa
Esperança), an open pit copper mine located in Pará, Brazil. The
Company also owns 97.6% of NX Gold S.A. ("NX Gold") which owns the
Xavantina Operations (formerly known as the NX Gold Mine),
comprised of an operating gold and silver mine located in Mato
Grosso, Brazil. Additional information on the Company and its
operations, including technical reports on the Caraíba Operations,
Xavantina Operations and Tucumã Operation, can be found on SEDAR+
(www.sedarplus.ca/landingpage/) and on EDGAR (www.sec.gov). The
Company’s shares are publicly traded on the Toronto Stock Exchange
and the New York Stock Exchange under the symbol “ERO”.
FOR MORE INFORMATION, PLEASE
CONTACT
Courtney Lynn, SVP, Corporate Development, Investor Relations
& Sustainability (604) 335-7504info@erocopper.com
CAUTION REGARDING FORWARD LOOKING INFORMATION AND STATEMENTS
This press release contains “forward-looking
statements” within the meaning of the United States Private
Securities Litigation Reform Act of 1995 and “forward-looking
information” within the meaning of applicable Canadian securities
legislation (collectively, “forward-looking statements”).
Forward-looking statements include statements that use
forward-looking terminology such as “may”, “could”, “would”,
“will”, “should”, “intend”, “target”, “plan”, “expect”, “budget”,
“estimate”, “forecast”, “schedule”, “anticipate”, “believe”,
“continue”, “potential”, “view” or the negative or grammatical
variation thereof or other variations thereof or comparable
terminology. Forward-looking statements may include, but are not
limited to, statements with respect to Ero's ability, in
partnership with VBM, to create value at and/or maximize the value
of the Project; Ero's ability to successfully design an economic
high-grade underground mine or other development and operating
scenario for Furnas; Ero's ability to commence and complete the
required 28,000 meters of drilling during the 18-month Phase 1 work
program; and any other statement that may predict, forecast,
indicate or imply future plans, intentions, levels of activity,
results, performance or achievements.
Forward-looking statements are not a guarantee
of future performance. There can be no assurance that
forward-looking statements will prove to be accurate, as actual
results and future events could differ materially from those
anticipated in such statements. Forward-looking statements involve
statements about the future and are inherently uncertain, and the
Company’s actual results, achievements or other future events or
conditions may differ materially from those reflected in the
forward-looking statements due to a variety of risks, uncertainties
and other factors, including, without limitation, those referred to
herein and in the Company's most recent Annual Information Form
under the heading “Risk Factors”.
The Company’s forward-looking statements are
based on the assumptions, beliefs, expectations and opinions of
management on the date the statements are made, many of which may
be difficult to predict and beyond the Company’s control. In
connection with the forward-looking statements contained in this
press release and in the AIF, the Company has made certain
assumptions about, among other things: continued effectiveness of
the measures taken by the Company to mitigate the possible impact
of COVID-19 on its workforce and operations; favourable equity and
debt capital markets; the ability to raise any necessary additional
capital on reasonable terms to advance the production, development
and exploration of the Company’s properties and assets; future
prices of copper, gold and other metal prices; the timing and
results of exploration and drilling programs; the accuracy of any
mineral reserve and mineral resource estimates; the geology of the
Caraíba Operations, the Xavantina Operations and the Tucumã Project
being as described in the respective technical report for each
property; production costs; the accuracy of budgeted exploration,
development and construction costs and expenditures; the price of
other commodities such as fuel; future currency exchange rates and
interest rates; operating conditions being favourable such that the
Company is able to operate in a safe, efficient and effective
manner; work force continuing to remain healthy in the face of
prevailing epidemics, pandemics or other health risks (including
COVID-19), political and regulatory stability; the receipt of
governmental, regulatory and third party approvals, licenses and
permits on favourable terms; obtaining required renewals for
existing approvals, licenses and permits on favourable terms;
requirements under applicable laws; sustained labour stability;
stability in financial and capital goods markets; availability of
equipment; positive relations with local groups and the Company’s
ability to meet its obligations under its agreements with such
groups; and satisfying the terms and conditions of the Company’s
current loan arrangements. Although the Company believes that the
assumptions inherent in forward-looking statements are reasonable
as of the date of this press release, these assumptions are subject
to significant business, social, economic, political, regulatory,
competitive and other risks and uncertainties, contingencies and
other factors that could cause actual actions, events, conditions,
results, performance or achievements to be materially different
from those projected in the forward-looking statements. The Company
cautions that the foregoing list of assumptions is not exhaustive.
Other events or circumstances could cause actual results to differ
materially from those estimated or projected and expressed in, or
implied by, the forward-looking statements contained in this press
release. There can be no assurance that forward-looking statements
will prove to be accurate, as actual results and future events
could differ materially from those anticipated in such statements.
Accordingly, readers should not place undue reliance on
forward-looking statements.
Forward-looking statements contained herein are
made as of the date of this press release and the Company disclaims
any obligation to update or revise any forward-looking statement,
whether as a result of new information, future events or results or
otherwise, except as and to the extent required by applicable
securities laws.
CAUTIONARY NOTES REGARDING MINERAL RESOURCE AND
MINERAL RESERVE ESTIMATES
Unless otherwise indicated, all reserve and
resource estimates included in this press release and the documents
incorporated by reference herein have been prepared in accordance
with National Instrument 43-101, Standards of Disclosure for
Mineral Projects (“NI 43-101") and the Canadian Institute of
Mining, Metallurgy and Petroleum (the “CIM”) — CIM Definition
Standards on Mineral Resources and Mineral Reserves, adopted by the
CIM Council, as amended (the “CIM Standards”). NI 43-101 is a rule
developed by the Canadian Securities Administrators that
establishes standards for all public disclosure an issuer makes of
scientific and technical information concerning mineral projects.
Canadian standards, including NI 43-101, differ significantly from
the requirements of the United States Securities and Exchange
Commission (the “SEC”), and reserve and resource information
included herein may not be comparable to similar information
disclosed by U.S. companies. In particular, and without limiting
the generality of the foregoing, this press release and the
documents incorporated by reference herein use the terms “measured
resources,” “indicated resources” and “inferred resources” as
defined in accordance with NI 43-101 and the CIM Standards.
Further to recent amendments, mineral property
disclosure requirements in the United States (the “U.S. Rules”) are
governed by subpart 1300 of Regulation S-K of the U.S. Securities
Act of 1933, as amended (the “U.S. Securities Act”) which differ
from the CIM Standards. As a foreign private issuer that is
eligible to file reports with the SEC pursuant to the
multi-jurisdictional disclosure system (the “MJDS”), Ero is not
required to provide disclosure on its mineral properties under the
U.S. Rules and will continue to provide disclosure under NI 43-101
and the CIM Standards. If Ero ceases to be a foreign private issuer
or loses its eligibility to file its annual report on Form 40-F
pursuant to the MJDS, then Ero will be subject to the U.S. Rules,
which differ from the requirements of NI 43-101 and the CIM
Standards.
Pursuant to the new U.S. Rules, the SEC
recognizes estimates of “measured mineral resources”, “indicated
mineral resources” and “inferred mineral resources.” In addition,
the definitions of “proven mineral reserves” and “probable mineral
reserves” under the U.S. Rules are now “substantially similar” to
the corresponding standards under NI 43-101. Mineralization
described using these terms has a greater amount of uncertainty as
to its existence and feasibility than mineralization that has been
characterized as reserves. Accordingly, U.S. investors are
cautioned not to assume that any measured mineral resources,
indicated mineral resources, or inferred mineral resources that Ero
reports are or will be economically or legally mineable. Further,
“inferred mineral resources” have a greater amount of uncertainty
as to their existence and as to whether they can be mined legally
or economically. Under Canadian securities laws, estimates of
“inferred mineral resources” may not form the basis of feasibility
or pre-feasibility studies, except in rare cases. While the above
terms under the U.S. Rules are “substantially similar” to the
standards under NI 43-101 and CIM Standards, there are differences
in the definitions under the U.S. Rules and CIM Standards.
Accordingly, there is no assurance any mineral reserves or mineral
resources that Ero may report as “proven mineral reserves”,
“probable mineral reserves”, “measured mineral resources”,
“indicated mineral resources” and “inferred mineral resources”
under NI 43-101 would be the same had Ero prepared the reserve or
resource estimates under the standards adopted under the U.S.
Rules.
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