Los Andes Copper Ltd (TSX-V:LA) reported “excellent” drill results from its Vizcachitas copper project in Chile.
Hole CMV-001B intersected aggregate of 732 meters (m) with estimated average grade of 0.51% copper equivalent.
The average grades include 0.46% copper and 160 parts per million molybdenum from 64m to 820m down the hole, the company said in a statement.
READ: Los Andes Copper says investors should expect a “steady stream” of drill results in 2022 from its Vizcachitas project in Chile
Los Andes has four drill rigs turning at Vizcachitas with the aim of expanding the resources within the open pit designs and to explore the deposit below the boundaries of the open pit designed in the preliminary economic assessment (PEA).
Vizcachitas is being explored for the first time in recent history with the ability to drill across the whole property, CEO R Michael Jones told investors.
"Hole CMV-001B is important for two reasons: firstly, it demonstrates and confirms the scale of the good grades at Vizcachitas starting from the collar in rock; secondly, the hole is near the western limit of the resources and shows clear potential for further resources to the west. We look forward to the assays for this hole below the current pit designs,” Jones said.
A June 2019 PEA highlights that the project has a post-tax NPV of $1.8 billion and an IRR of 20.77%, based on a $3 per pound copper price. It also has measured resources of 254.4 million tonnes at a grade of 0.439% copper and indicated resources of approximately 1.03 billion tonnes at a grade of 0.385% copper.
The CEO noted that the while the firm is still awaiting assay grades for the interval reported for silver, silver typically reports to approximately 1% of the value on the deposit.
Jones added that the ongoing drilling program is testing areas in and below the PEA shell. Several large areas are taken as waste inside the previous pit designs that are classified as waste due to having no, or very limited drill testing. The historical fragmented land and permit position resulted in areas within the PEA pit not having any proper drill testing.
“The current drill program has many opportunities to offset known good grade holes with adjacent or deeper drilling into areas with no drill testing,” Jones said.
The Phase 1 program will expand from four to five drill rigs with 18,000 metres of drilling planned. The full program consists of 30,000 metres of drilling with potential for further expansion, Los Andes said.
Vizcachitas is located 120 kilometres north of Santiago, in an area of very good infrastructure.
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