Electric Royalties Ltd (TSX-V:ELEC, OTC:ELECF) has highlighted a significant expansion in copper resources at its asset partner World Copper’s Zonia deposit in Arizona.
World Copper published an updated mineral resource estimate for the Zonia copper oxide deposit, on which Electric Royalties holds a 0.5% gross revenue royalty, on September 9.
The updated resource estimate includes 113.2 million short tons grading 0.303% total copper in the Indicated category (686 million pounds of copper) and 59.2 million short tons grading 0.254% total copper in the Inferred category (300 million pounds of copper).
This is a “significant expansion” of prior estimates attributed to refined mineralization models and methods and the use of a higher copper price, the royalty company said.
Electric Royalties CEO Brendan Yurik congratulated World Copper on further de-risking the Zonia copper project, with the expansion of the project’s copper resources potentially able to extend the future mine’s life.
“World Copper is focused on advancing the project into feasibility,” he noted. “According to World Copper, copper cathode production at Zonia is expected to commence within 48 months, as it benefits from a location on private land with existing power and water.”
Yurik also highlighted World Copper’s efforts toward a verification drill program on the site's historical leach pads.
“If the grade and mineralogical characteristics of the historically mined material is confirmed through the results of the exploration program, World Copper plans to analyze if the mineralized material could be processed before any potential future mining of the bedrock resources,” he said.
“The prospect of re-processing historically mined mineralized material could lead to pre-production cash flow payable to Electric Royalties.”
He also pointed out that in addition to the Zonia deposit, World Copper has identified resource expansion potential at the Zonia Norte target, located northeast of the main resource deposit. Electric Royalties has an option to acquire a 1% gross revenue royalty on this target.