Mancha Amarilla Results
The aim of the Mancha Amarilla drill programme was to confirm and delineate continuous oxide copper mineralization in the Mancha Amarilla lithocap, which is located adjacent to and located immediately south of the existing mineral resource. Early drilling focused on the western edge and the East Skarn (Figure 1). The Mancha Amarilla lithocap has alteration mineralogy and geochemistry consistent with the weathered top of a porphyry system and extends one kilometre south from the area of the main Escalones deposit (Figure 1). The geology encountered in the recent drilling indicates the Mancha Amarilla lithocap is as deeply oxidized as the existing resource but thins southward as topography drops in elevation where calcareous lithologies dominate over intrusive units. The increase in grade eastward from hole ES-57 to ES-56 suggests the central area is more highly mineralized than the western flank. The last hole of the programme (ES-60) was collared in the East Skarn zone but was shut down early due to bad weather with the onset of winter. Table 1 summarizes the significant drill intersections from the programme and Figure 1 shows their locations within the Mancha Amarilla zone.
Figure 1: Escalones Mancha Amarilla drill results, interval with 0.1% Cu.
To view an enhanced version of Figure 1, please visit:
https://images.newsfilecorp.com/files/3653/138505_3e46ad2a842069b8_002full.jpg
Table 1. Significant Drill results (total Cu) from the Mancha Amarilla Target; intervals over 0.1% Cu are bolded; all widths are true
Hole | From | To | Width | Cu % | Ag (ppm) | Au (ppm) | Mo (ppm) |
ES-54 | 3 | 86 | 83 | 0.0488 | 0.77 | 0.021 | 0.0012 |
ES-54 | 86 | 221 | 135.0 | 0.1544 | 0.82 | 0.018 | 0.0019 |
ES-54 | 221 | 245.4 | 24.4 | 0.0561 | 0.54 | 0.004 | 0.0013 |
ES-54 | 245.40 | 280.60 | 35.2 | 0.1185 | 0.84 | 0.009 | 0.0016 |
ES-54 | 280.6 | 287.5 | 6.9 | 0.0823 | 1.00 | 0.006 | 0.0008 |
ES-55 | 2.7 | 141 | 138.3 | 0.0399 | 0.75 | 0.002 | 0.0006 |
ES-55 | 141 | 148.85 | 7.85 | 0.1451 | 0.63 | 0.002 | 0.0009 |
ES-55 | 148.85 | 281.55 | 132.7 | 0.0254 | 0.58 | 0.001 | 0.0006 |
ES-56 | 0 | 73.1 | 73.1 | 0.0243 | 0.61 | 0.002 | 0.0005 |
ES-56 | 73.1 | 123 | 49.9 | 0.1061 | 0.81 | 0.005 | 0.0005 |
ES-56 | 123 | 272.4 | 149.2 | 0.0382 | 0.63 | 0.002 | 0.0005 |
ES-57 | 7.8 | 98 | 90.2 | 0.0255 | 0.86 | 0.001 | 0.0005 |
ES-57 | 98 | 106 | 8 | 0.1275 | 1.25 | 0.011 | 0.0005 |
ES-57 | 106 | 120 | 14 | 0.0354 | 0.71 | 0.002 | 0.0005 |
ES-57 | 120 | 125.5 | 5.5 | 0.2072 | 1.36 | 0.005 | 0.0005 |
ES-57 | 125.5 | 257.25 | 131.75 | 0.0238 | 1.05 | 0.001 | 0.0005 |
ES-58 | 12.6 | 20 | 7.4 | 0.0289 | 1.74 | 0.003 | 0.0006 |
ES-58 | 20 | 34 | 14 | 0.1810 | 3.14 | 0.003 | 0.0005 |
ES-58 | 34 | 287.65 | 253.65 | 0.0108 | 0.84 | 0.004 | 0.0005 |
ES-59 | 2.8 | 261.2 | 258.4 | 0.0165 | 0.61 | 0.002 | 0.0005 |
Table 2. Drill collar details*
Hole ID | Easting | Northing | Elevation | Depth |
ES-54 | 410972 | 6224021 | 3743.463 | 287.5 |
ES-55 | 410906 | 6223890 | 3726.787 | 281.55 |
ES-56 | 410989.9 | 6223705 | 3685.559 | 272.4 |
ES-57 | 410787.6 | 6223699 | 3697.033 | 257.25 |
ES-58 | 410878.2 | 6223351 | 3637.947 | 287.65 |
ES-59 | 410889.4 | 6223569 | 3685.083 | 264.4 |
*all holes are vertical, HQ diameter
Next Steps
With over 3,000 metres remaining in the Escalones drill permit, World Copper intends to restart drilling at the East Skarn target (Figure 1) as soon as conditions allow. The East Skarn target overlies the Mancha Amarilla zone to the northeast of the completed drilling and has only had sparse drilling along the south edge (see news release dated August 12, 2021). Surface sampling by the Company indicates the sandstone host rocks of the East Skarn target are strongly mineralized with copper oxides at surface. Once drilling at the East Skarn target is complete, World Copper would aim to to move to the west side of the Meseta ridge and test the depth potential of high-grade copper skarn mineralization exposed by roads on the west flank of the central Meseta intrusion (the West Zone; Figure 1).
Quality Control and Quality Assurance; Sampling and Assay Procedures
Drill core was transported at the end of each drill shift by pickup truck from the drill pad to a temporary logging, sampling and storage facility at the base camp at the south end of the ridge. The core was then logged, digitally photographed, and transported to the core-storage warehouse in the town of Romeral, where the core was split with a diamond saw and sampled with half the core placed in plastic poly bags and a sample tag. The core was photographed once again to record the sampling. After splitting, all samples were packed in rice sacks and sealed with uniquely numbered non-re-sealable security straps. The samples were trucked to ALS Laboratory (“ALS“) in Santiago. World Copper implemented a standard QA/QC programme for Escalones, inserting 1-in-20 certified standard reference material (“SRM“), 1-in-20 field (two ¼ core samples) and 1-in-20 coarse duplicates, and 1-in-25 blanks into the sample stream. There were no issues noted with the SRMs and all plotted within acceptable limits for copper submitted for analysis from the same sample interval.
At ALS, multi-elements were assayed using the ME-ICP61a package, which includes 4-acid digestion and ICP-MS finish. Gold was done by method Au-ICP21, in which a 30g sample is fire-assayed and finished with ICP-AES. Intervals of greater than 10 metres grading greater than 0.1% Cu will be sent for sequential copper analysis.
About Escalones
The Escalones porphyry-skarn copper-gold project has estimated inferred resources of 426 million tonnes of 0.367% total copper within the oxidized zone, based on nearly 25,000 m of drill core from 53 holes. Preliminary metallurgy indicates the 3.45 billion pounds of copper should be amenable to heap leaching with an average recovery of 71%. The Company is focused on exploring the flanking skarn mineralization east and west of the existing resource. In addition, three significant hydrothermal alteration zones, each measuring between 2,000 m and 3,000m in diameter, lie 8-10 km to the north of the main discovery. One of these, Rio Negro, has confirmed porphyry mineralization at surface.
Mineral resources are not mineral reserves and do not have demonstrated economic viability as there is no certainty that all or any part of the resources will be converted into reserves. Inferred resources are that part of a mineral resource for which quantity and grade or quality are estimated based on limited geological evidence and sampling. It is reasonably expected that the inferred resources could be upgraded to indicated resources with continued exploration.
About the Escalones February 2022 PEA study:
On February 15, 2022, the Company announced the following outstanding results of the Preliminary Economic Assessment (“PEA“) for the Escalones Project:
- $1,499.6 million post-tax NPV8 at $3.60 /lb. life-of-mine (“LOM”) (20 years) copper price
- $1,822.4 million post-tax NPV8 at $4.00 /lb. LOM copper price
- First 5 years average annual Copper production of 124.7 Mlbs. (56,520 tonnes); LOM average 114.9 Mlbs. (52,131 tonnes)
- First 5 years average C1 (Cash Operating) costs of $1.13 /lb. Cu; LOM average C1 costs $1.19 /lb. Cu
- First 5 years average annual EBITDA $290.8 million; LOM average annual EBITDA $265.1 million
- Initial Capital (CAPEX) cost of $438.4 million (from construction decision)
- LOM Sustaining Capital of $192.5 million
- Conventional heap leach, SX-EW processing facilities, targeting 50,000 tonnes of heap leach tonnes placed per day
The exceptional results of the Escalones PEA confirm what World Copper has always anticipated – that Escalones has the potential to be one of the most impressive copper properties in South America. Escalones now joins a peer group of large-scale, study backed, development stage assets. Escalones has several attributes that make it attractive for development including robust economics, strong value metrics and the potential of rapid returns for a comparably low capital investment. The results of the PEA, combined with Escalones large land package and resource expansion potential, make it a truly outstanding project.
The PEA is considered preliminary in nature, contains numerous assumptions and includes Inferred Mineral Resources that are considered too speculative, geologically, to have the economic considerations applied that would enable them to be classified as Mineral Reserves. There is no certainty that the results of the PEA will be realized. No Mineral Reserves have been estimated for Escalones. Mineral Resources are not Mineral Reserves and do not have demonstrated economic viability. Inferred Mineral Resources are that part of the Mineral Resource for which quantity and grade, or quality, are estimated based on limited geologic evidence and sampling, which is sufficient to imply but not verify grade or quality continuity. Inferred Mineral Resources may not be converted to Mineral Reserves. It is reasonably expected, though not guaranteed, that the majority of Inferred Mineral Resources could be upgraded to Indicated Mineral Resources with continued exploration. Mineral Resources are captured within an optimized pit shell and meet the test of reasonable prospects for economic extraction. All values are reported in US dollars unless otherwise noted.
The technical report prepared with respect to the PEA, which is available on the Company’s SEDAR profile at www.sedar.com, is entitled “Preliminary Economic Assessment NI 43-101 Technical Report, Escalones Copper Project, Santiago Metropolitan Region, Chile” and is dated March 22, 2022, with an effective date of February 15, 2022, and it was prepared by Global Resource Engineering with contributions from other firms, including Hard Rock Consulting, LLC.
Qualified Person
John Drobe, P.Geo., a qualified person as defined by National Instrument 43-101 Standards of Disclosure for Mineral Projects (“NI 43-101“), has reviewed the scientific and technical information that forms the basis for this news release and has approved the disclosure herein. Mr. Drobe is not independent of the Company as he is the Chief Geologist of World Copper.
ABOUT World Copper Ltd.
World Copper Ltd., headquartered in Vancouver, BC, is a Canadian resource company focused on the exploration and development of its two primary copper porphyry projects, Escalones and Cristal, both located in Chile. World Copper has laid claim to four copper porphyry targets, one with estimated resources, significant soluble copper mineralization, and exciting potential…
Read More: Battery & Precious Metals Virtual Investor Conference: Presentations Now Available for