Positive Chaucha project report leaves Kookaburra confident

The recent completion of a preliminary technical and economic study on the Chaucha copper project in Ecuador has Kookaburra Resources (VSE) confident in the project’s potential and eager to proceed with additional work.

The company commissioned Consulting Engineers Fluor Daniel Wright to complete the study which estimated a 14,000-ton-per-day solvent extraction and electrowinning operation would produce in the order of 33 million lb. of high-quality copper cathodes per year.

Kookaburra can earn a 50% interest in the project from AG Armeno Resources (VSE) by making cash and share payments totalling $375,000 and 200,000 shares respectively, as well as spending $3.5 million on exploration and development over a 4-year period.

The company can earn an additional 15% interest in the project by paying AG Armeno a further $2.5 million and spending an additional $2.5 million on the property.

Kookaburra paid AG Armeno US$50,000 and 50,000 shares on signing last October and must spend a total of US$150,000 on the property in the first year. Rennie Blair, president of Kookaburra, said the budget for Chaucha this year totals about US$425,000 and includes additional work to complete a prefeasibility study by the third quarter.

The Fluor study is based on an estimated minable reserve of 60 million tons grading 0.46% copper at a strip ratio of about 0.83-to-1.

The reserve, which includes a higher-grade, near-surface zone containing an estimated 27 million tons grading 0.56% copper, could provide for an accelerated payback of the estimated US$63.6 million capital cost.