Los Andes Copper Ltd (TSX-V:LA) has outlined this year's planned corporate milestones at its Vizcachitas Copper project in Chile, where it said "considerable" work has been completed in the last two years towards a pre-feasibility study (PFS).
In the corporate update, the company also announced the appointment of a new executive chairman with immediate effect and the retirement of Fernando Porcile, who was in the role.
The company also said that it reckons current resources and additional intercepts are sufficient for a full PFS mine plan and it aims to resume drilling as soon as possible since a number of areas are not closed off. A request to lift the injunction for drilling to stop, as announced in March this year, is being prepared, it added. As previously reported, the injunction relates to the potential impact on the habitat of the vizcachas - a small rabbit.
On summary milestones, the company listed:
- April to June 2022 - report assay results from the completed 8,297 meters (m) of drilling
- August 2022 - Updated resource estimate, including 2022 drill results
- Q3, 2022 - Continued drill operations, provided injunction is lifted
- Q4, 2022 - Completion of a pre-feasibility study (PFS)
Los Andes CEO R. Michael Jones said: "We have sufficient new drill intercepts completed that a resource update is warranted as soon as the assays are in, and we can finalize an updated mine plan and the pre-feasibility study in the next few months.
"There is further resource potential from additional step out drilling which is planned for a further 10,000 meters."
Los Andes Copper has completed 8,297 meters of diamond drilling and results for the first hole showed 1,177m of 0.50% copper equivalent near the northwest edge of the deposit.
READ: Los Andes Copper announces plan to temporarily suspend drilling at Minera Vizcachitas project in Chile
A total of 4,221m in five holes are sampled and awaiting assay results and a further 2,811 m of drilling from five holes are in the logging and sampling process with results expected to become available in coming weeks, it added.
The company said Eduardo Covarrubias has been named executive chairman with immediate effect. He is the representative of Turnbrook Mining, which owns 53% of shares and he has been involved in the project for decades.
Fernando Porcile, former executive chairman, has announced his retirement effective as of March 25, 2022, and will be devoting his time to personal matters, it added.
"Mr. Covarrubias and the Board of Directors and management of the Company thank Mr. Porcile for his years of invaluable contribution directing the advancement of the Vizcachitas Copper project to a Tier 1 Copper mining project," the company said.
New investment
In a separate statement, the company announced that Queen's Road Capital will invest US$4 million in the company via a convertible debenture to advance the Vizcachitas project.
The convertible debenture will have a term of five years, carry an 8% coupon, and will be convertible into company common shares at C$ 19.67. The interest is payable quarterly, 5% in cash and 3% in shares, at the 20-day volume-weighted average price prior to the interest payment date.
"We are very pleased that Queen's Road Capital is making this follow-on investment, which demonstrates its continued confidence in Los Andes Copper. The stalwart support of Queen's Road is a testament to their long-term support of their mining companies," said CEO Jones.
"We are at a very exciting time in the company with significant pending drilling results and a pre-feasibility study in our milestones in the months ahead. This modest capital raise allows the company to complete the milestones we set out for 2022."
Los Andes Copper's Vizcachitas property was the subject of a preliminary economic assessment (PEA), delivered in June 2019, which showed a post-tax net present value (NPV) of US$1.8 billion and an internal rate of return (IRR) of 20.77%, based on a US$3 per pound copper price. The project has a measured resource of 254.4 million tonnes at a grade of 0.439% copper and an Indicated resource of about 1.03 billion tonnes at a grade of 0.385% copper.
Vizcachitas lies 120 kilometres (km) north of Santiago, in an area of very good infrastructure.
Contact the author at giles@proactiveinvestors.com