Stockwatch noticed. David Strang's Ero Copper Corp. (ERO) fell 11 cents to $18.17 on 182,000 shares. The company has updated its reserve and resource estimates, including healthy increases at its NX gold mine in Brazil. Ero now lists a reserve of 1.1 million tonnes averaging 8.64 grams of gold per tonne, a total of nearly 307,000 ounces. It is a modest sum, but Ero grew the reserve by over 62,000 ounces despite the mine producing nearly 40,000 ounces last year.
Most of the gold resides in the Santo Antonio Vein system, but Ero has recently added over 29,000 ounces contained in the Matinha Vein zone. There is further room for growth through conversion, as Ero also has just over 50,000 additional ounces listed as a measured and indicated resource, while a further 152,000 ounces are inferred. Most of the inferred ounces are at Matinha and with an average grade of 10.47 grams per tonne, that rock is a prime candidate for upgrading this year.
Mr. Strang, chief executive officer, says that the "meaningful growth" of Ero's reserves and resources "continues to demonstrate our ability to deliver organic growth and generate shareholder value through exploration." His enthusiasm, having gained a foothold, quickly grasped for blue sky: The Deepening extension zone at the Pilar copper mine, he cheers, "continued to exceed our own lofty expectations" with respect to reserve and resource size and quality. (Perhaps Ero needs greater expectations; Mr. Strang and his crew offered the same enthusiasm a year ago.)
As for NX, Mr. Strang says that the extensions of Santo Antonio and Matinha "serve as further evidence of the intrinsic value and exploration potential" of the broader land package surrounding the mine. Accordingly, he had his crew will focus -- without any formal expectations, mind you -- on extending the mineralization at Matinha this year.