Post by
KatieRossland on May 02, 2022 3:38pm
Some key points of mention ..
1.Copper Mountian Resource: Currently, it’s only inferred resource estimation (0.16% Cu cutoff, average grade 0.31% Cu sulfide), very general, it’s not for economic conception. And it didn’t add the Mo% into Cueq, (I guess) some of their history data didn’t have Mo assay. Anyway, it will put the Mo into Cueq% when they upgrade some the resource to Measured and Indicated category after the 30,000m drilling. From history production data of Copper Mountain, the general grade is 0.5% Cu and 0.02% Mo. For porphyry type deposit, when go deeper close to the porphyry center, usually the Mo is higher, the Cu is lower (element zonation), that’s why the report says “ (beside Hole 30-950), the nearby intrusion was lower grade averaging 0.12% Cu, 0.19% Mo and 1.14 gpt Ag across its entire length of 350m”. We will see more detailed Cu-Mo assay data when the drilling news flow coming in next few months. Anyway, lets say average Mo grade is 0.02%, use 5x of Cu price, then roughly convert to 0.1% Cueq, adding to the inferred resource table, and compare to other open pit porphyry Cu mine, eg. using cutoff 0.3-0.4% Cueq, then the average grade of Copper Mountain could be 0.5%+ Cueq, the total CuEq metal is over 1Mt (2.2 billion pound), which is still very positive, it should be economic. I think that’s why the CEO is so confident for this project.
2.Other Resources (1) Oxide ore, also positive, but requires the leaching permit, Rob said “it will be the first Cu leaching permit in Quebec”. Hoping they can get it. (2) “C””E”zones, skarn type mineralization, underground residual ore, high grade, usually it’s not big volume, maybe still have some potential, but difficult to go big.
(3) Previous tailing, Doc says it has 140Mt@ 0.02% Mo, but if only 0.02%Mo and no Cu left, it’s impossible to be economic. 0.02% Mo roughly equals to 0.1%Cu, for by product, it’s ok, but if shoveling and processing only for Mo, uneconomic.(From previous production data, 85% Cu recovery, maybe it still have 0.1% Cu left in the tailing? So total could be 0.2%Cueq?).
(4) Porphyry Mountain, roughly 437Mt@1%Cueq, depth 1200-2000m, good resource but big depth. “The only way to mine this is block caving”, they did some research in 1990s, tough to be economic at that time, even today it’s still very challenging as the big depth (and very close to the road on the east side, block caving could create some potential risk on the surface). Block caving requires huge capex at beginning. If they can start the mine at Copper Mountain first and have good profit, then it could afford some the capex for block caving at Porphyry Mountain. One of typical block caving porphyry Cu mines is New Afton Mine of New Gold, in BC, compare to Porphyry Mountain, the grade at New Afton is higher and the depth is shallower (600m down), but the resource is smaller. 3.Currently the key for Gaspe project is the Copper Mountain open pit. Rob and his group know this very well, if the DD can verify the resource at Copper Mountain is economic, definitely it will be a mine and going to be successful. The oxide and “C, E” zone materials are the extra bonus, the resource at Porphyry Mountain will be a big potential picture for long term consideration.