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International PBX’s Copaquire Life of Mine Animation
By Resource Intelligence · July 26, 2011 · 2:18 pm · Leave a Comment
Junior copper project flanked by majors in prolific Chilean belt
The 100-per-cent owned Copaquire project is an advanced-stage copper-molybdenum deposit in the highly prolific Chilean Copper Belt.
Located at the northern extension of the Sierra de Moreno mountains, Copaquire lies 1,450 kilometres north of the capital city of Santiago, and 125 kilometres southeast of the city of Iquique, a busy mining-service-hub for supplies, skilled personnel and deep-sea port facilities.
Extending through 30 known porphyries, the Chilean Copper Belt contains the largest amount of copper concentration in the world.
Copaquire is surrounded by major mines, including Xstrata/Anglo American’s seven-billion tonne (@ 0.80 %) Collahuasi mine, and Teck’s one-billion-tonne (@ 0.50 %) Quebrada Blanca mine.
In such a prolific mining region, Copaquire is already connected to a major highway by established roads, and lies near water and power.
The property covers 2000-hectares, and hosts multiple mineralized zones, including the Cerro Moly Zone, Sulfato South, Sufato North and the newly discovered Marta Porphyry.
To date, Copaquire has completed four phases of drilling totalling 110 holes over 35,000 metres. Seventy three of these holes were concentrated in the Cerro Moly zone.
Identifying a massive, highly concentrated body of molybdenum, nested within a much larger porphyry copper system, provides significant additional economic value to the project.
Highlights of the Cerro Molly drill program include 200 metres @ 0.07% Mo and 0.12% Cu, 390 metres @ 0.05% Mo and 0.09% Cu, 354 metres @ 0.05% Mo and 0.19% Cu.
A 2009 Preliminary Economic Assessment on the Cerro Moly zone defines 563-million lbs Cu and 199-million lbs Mo in the indicated category.In the inferred category there are 623-million lbs Cu, and 111-million lbs Mo.
Based on this resource, the PEA outlined a 36,000 tpd open pit mine at Copaquire. It included a primary crusher, conveyor, SAG Mill, floatation plant and concentrators located near the open pit.The plan envisioned processing 298 MM tonnes of ore for a life-of-mine production of 785.4 million lbs of copper and 166.4 million lbs of molybdenum over a 24 year mine life.
At current copper and molybdenum prices, the NPV would stand at $374 million @ an 8% discount. But economic modeling and target analysis in the PEA shows that by adding just 50-million tonnes of ore grading 0.5% Cu, the NPV would increase 2 ½ times to $966M, with the internal rate of return increasing from 15% to 32%.
To that end, PBX designed and implemented a drill program that will conceptually more than double
existing resources at Copaquire.
In 2010 IPBX successfully completed a five-hole drill program in the Sulfato South zone with the aim of defining a “starter pit” for mining operations. The company found high-grade intervals averaging 0.57 per cent copper through 267 metres, including 139 metres @ 0.82 per cent Cu, and 14 metres @ 2 per cent Cu.
Phase One of 2011 drilling in Sulfato South calls for 10 holes totalling 5,000 metres to increase the resource size. The first hole intercepted a further 300 metres @ 0.37% Cu including 150m @ 0.51% Cu.
IPBX plans to release an updated PEA upon the completion of Phase One drilling, by Q1 2012.
Conceptual modeling suggests there is potential to add 300 to 500 million tonnes of material averaging 0.4 to 0.6% copper.
In Sulfato North, drill results from a 2005-06 and 2011 program pointed to a mineralized zone similar in size and scope to Sulfato South, which returned copper grades reaching 47 metres @ 0.52%. Phase Two of IPBX’s drill program will focus on defining the Sulfato North resource as the IPBX keeps an eye some interesting developments at the Marta porphyry.
In 2010, IPBX contracted an airborne geophysical survey that revealed a dense anomaly in Cerro Moly that coincided precisely with previous drilling in the zone. This lent legitimacy to other mineral signatures throughout the property — especially the massive, newly discovered Marta porphyry.
Drilling for the first time has confirmed that the Marta porphyry is mineralized, intercepting wide spaced chalcopyrite veinlets.
Company geologists believe that these veins are extensions of a nearby larger porphyry core. A Titan IP survey then identified nine, high-priority drill targets, again, matching the Cerro-Moly anomaly.
The potential for resources at the Marta zone appears vast.
As Phase One of its infill and expansion drill programs conclude, IPBX will undertake a new PEA to increase potential reserves for an updated mine development plan at Copaquire.
With its aggressive 2011 drill program, IPBX continues to unlock and increase asset and shareholder value.
In late 2010, a CIBC World Markets Report listed International PBX Ventures as one of its Top 25 junior copper developers.
With the right address in northern Chile, the interest of its neighbours and the growing size and grade of its resource, International PBX is on the road to developing Copaquire as a world-class deposit.
This presentation may contain forward-looking statements including but not limited to comments regarding the timing and content of upcoming work programs, geological interpretations, receipt of property titles, potential mineral recovery processes, etc. Forward-looking statements address future events and conditions and therefore involve inherent risks and uncertainties. Actual results may differ materially from those currently anticipated in such statements. The Issuer relies upon litigation protection for forward-looking statements. This piece is for information purposes only and is not a recommendation to buy or sell any securities.
