Chutine awaiting feasibility study

A feasibility study for an open- pit copper mining operation in northwestern Mexico is expected to be completed during the second half of October, shareholders of Chutine Resources (VSE) were told at the recent annual meeting in Toronto. The study is evaluating the Luz del Cobre mine area, part of the large San Antonio de la Huerta property in Sonora province, in which Chutine has an interest, for its ability to produce 15 tonnes of cathode copper per day by way of solvent extraction-electrowinning (SX-EW) processes.

Chairman Peter Holmes said potential reserves are in the 15-million-tonne range at a cutoff grade of 0.2% copper.

The SX-EW process is a relatively low-cost method of producing copper which involves leaching but not conventional smelting and refining techniques.

Testing for gold occurrences on the property is also under way in the form of a trenching and 4,000-metre drilling program. Previous exploration on the property by another company uncovered gold mineralization.

Chutine owns a 49% interest in Minera Sanex, the private Mexican company which owns the San Antonio property. Chutine also has an option to acquire the remaining 51% of Sanex up to June 30, 1993.

Shareholders of Chutine approved a resolution changing the corporate name to Amcort Resources Corp. Holmes said the current name change is not related to a stock consolidation as was the case in 1988 when a name change was approved in connection with a consolidation. As of mid-August, the company, which is seeking a listing on The Toronto Stock Exchange, had about 37.7 million shares outstanding.

Elected to Chutine’s board of directors were Holmes, Christopher Freeman, Stanley Holmes, Charles Michener, Manuel Quiroga and John White of Pittsburgh.