Los Andes Copper (TSXV: LA / OTCQX: LSANF) is continuing to report consistent positive results from the recent drilling completed at its 100% owned Vizcachitas Copper Project, located 120 kilometres from Santiago in Chile. The miner is an exploration and development company with a 100% interest in the Vizcachitas Project in Chile.
The project under investigation is a copper-molybdenum porphyry deposit, located 120 kilometres north of Santiago, in an area of very good infrastructure. Los Andes’ Preliminary Economic Assessment (PEA), which was delivered in June 2019, generated a post tax NPV of $ 2.7 billion and an IRR of 26.7%, based on a $3.50 per pound copper price.
The results from the recent drill program include a highlight of 404 meters grading 0.41% copper equivalent (0.36% copper, 136 parts per million molybdenum and 1.2 grammes per tonne silver) in hole CMV 014.
The results also include 44 meters grading 0.46% copper equivalent on the southwestern edge of the deposit (0.42% copper, 96 ppm molybdenum and 1.1 g/t silver) in hole CMV 013. Hole 14 was stopped early in phase 1 and is planned to be extended when drilling resumes.
Initial drill results indicate potential for growth in scale and copper grade
The drill results from the completed initial drill campaign have shown that the 1.2 billion tonnes at 0.45% copper equivalent Measured and Indicated Resource has considerable potential to grow both in scale and grade. Operating copper mines in the same area as Vizcachitas are among the largest in the world with resources more than 40 billion pounds of copper.
Drilling returned several new continuous intercepts in excess of 850 to 1,100 meters in length above the resource cut-off grade (0.18 % copper equivalent) and a 152-meter intercept of 1% copper equivalent clearly show the potential to continue growing the Vizcachitas resource. The deposit remains open to the east and west. Detailing high-grade near-surface mineralization in the south will be part of the ongoing Pre-Feasibility Study, which is in progress.
“The drilling program results, with the new approximately 1km intercepts of copper, clearly points to Vizcachitas becoming the next significant deposit in line for development in a district which hosts three of the largest porphyry copper mines in the world. We are only just now starting to see its full potential.”
R. Michael Jones, CEO of Los Andes Copper
Large-scale, advanced copper projects like Vizcachitas are rare and are expected to be in high demand as the copper market heads towards an expected significant supply deficit in the years ahead. Los Andes Copper’s 100% ownership of Vizcachitas with no copper offtake entanglements is also attractive to larger copper producers in the region.
What do the current resources look like?
Current resources at Vizcachitas are Measured Resources of 254.4 million tonnes grading 0.489% copper equivalent and Indicated Resources of approximately 1.03 billion tonnes grading 0.442% copper equivalent. Drilling is expected to resume in Q3 2022.
Los Andes Copper says it has filed extensive scientific information with the Environmental Court in Chile asking to lift a preliminary injunction which currently prevents further drilling. The company said today it is confident that drilling can resume with no significant risk to the environment as outlined in its granted environmental permits. If the injunction is lifted, drilling is expected to resume in Q3 2022.
