Thoughts on first drilling results from Sulphide Target ...Hi all,
From the same contact as before. Always good to share.
B
--------------------------------------------------------------------------
Hello,
Yesterday Marimaca announced the result of the first drill hole (of a five-hole program) targeting sulphide mineralisation extensions under the Company's Marimaca Oxide Deposit. The result was an intersection of
116m @ 0.51% CuT, across a broad zone of mineralisation with two higher grade zones approaching 1% CuT (please see attached the full new release, which also contains useful location maps).
For what it's worth, some thoughts :
- Put simply this is a great result. Just to highlight, this first program is looking at extensions to the initially defined mineral resource that was the subject of the Preliminary Economic Assessment (PEA) released last August. This intersection is directly below the open pit in the PEA, and of probable ore grade. As such, one could not ask for much more.
- This is obviously just one result though ... the next drill holes will start to build an image of what may be possible in terms of greater mineral resource extension. The Company also communicated that the next holes are step-out holes in nature, designed to test the extremities of the targeted mineralisation. Again, as such if these holes are successful it will make them all the more exciting. I would guess we should have these results in the next 2/3 weeks.
- Even though these first results are very preliminary, an obvious question would be - would such widths and grades potentially fall into a larger open pit ? To definitely answer such a question a lot of work always needs to be done. However it is worth remembering 1) the extremely low strip ratio in the PEA of 0.84/1 (i.e. for every 1 tonne of copper bearing ore, there is only 0.84 tonne of waste to be moved), and 2) the significant cost and logistical advantage of this asset's location. Both of these points make me very hopeful that pulling additional economic tonnes into an enlarged pit should not be hard.
- It's worth re-highlighting that post this first drill program the Company will move on to the multiple additional oxide targets (Cindy, Mercedes, Robles etc). This exciting larger exploration program is just at its beginning.
Summary - This is a wonderful first result. However it is just one data point. These next step-out holes will tell us a lot more. If they do hit ore grade material over good widths then we will start to get an idea of meaningful additional tonnage potential. If this does happen then I think it will bring immediate value to the stock ... we could well look back to now and see any shares purchased under C$5.00 as cheap. Lots of work to be done, but yet again the direction of travel is very good.