As part of the first phase of its fully funded growth strategy, AuTECO Minerals Ltd (ASX:AUT, OTC:MNXMF) has started underground diamond drilling at its Green Bay Copper-Gold Project in Newfoundland, Canada.
The company finalised the acquisition on October 20.
This program will include a 700-metre exploration drill drive to increase the speed, accuracy and efficiency of drilling which will focus exclusively on expanding the current Resource of 39.2 million tonnes at 2.1% for 811,000 tonnes copper equivalent.
AuTECO has a clear strategy to rapidly grow the copper-gold resource to demonstrate a globally significant copper-gold asset.
Overall, the company will conduct 40,000 metres of drilling, with initial high-priority targets to be drill-tested including the upper and lower extensions of the Lower Footwall Zone and high-grade VMS Horizon.
Long section of the Ming Mine showing key growth targets and planned drill platforms.
First results are expected in Q4 2023, with the program to ramp up in 2024 as additional drill rigs mobilise to site and the exploration drill drive progresses.
Planning is underway to start mining of the exploration drill drive in December 2023.
“This drilling campaign is at the centre of our strategy to create shareholder value by growing the Green Bay resource,” AuTECO managing director Steve Parsons said.
“We know there is a host of mineralisation which has been drilled but sits outside the resource. And so much of the known mineralisation remains completely open.
“This means we have two exceptional avenues for resource growth. The drilling is aimed at unlocking these opportunities in a timely manner.”
Milestone timetable for Phase 1 program. The above timetable is indicative only and is subject to change.
Why the Green Bay project?
The acquisition of the Green Bay Copper-Gold project broadens AuTECO's portfolio, giving it to a strong position in high-grade copper-gold exploration and development in North America.
Situated on the Baie Verte peninsula in northeast Newfoundland, Canada, the Green Bay project benefits from a favourable investment climate. Notably, the province of Newfoundland and Labrador ranked as a top four global mining investment jurisdiction in the 2022 Fraser Institute Annual Survey of Mining Companies.
The Green Bay Copper-Gold project comprises numerous assets, including:
- Ming underground mine
- Little Deer exploration project
- Nugget Pond processing plant
- Concentrate storage facility at Goodyear’s Coveport
The fully operational Ming mine is an underground mine with accessible decline, 650-metre shaft and other surface infrastructure.
The Green Bay Copper-Gold project’s resource has significant potential to grow.
AuTECO’s strategy with this project is to:
- rapidly grow the resource at Ming through investment in drilling; and
- demonstrate the size and scale of a globally significant high-grade copper-gold asset.
AuTECO expects to rapidly expand the resource through investment in drilling, while the existing underground infrastructure will fast-track work, with drill positions immediately accessible.