Copper-gold reserves jump at Expo property deposit

An independent engineering report from Steffen, Robinson, Kirsten has increased the preliminary reserves of the Expo property’s Hushamu deposit to 456 million tons grading 0.26% copper and 0.01 oz. gold per ton. Reserves on the deposit were last reported at 158 million tons grading 0.32% copper and 0.012 oz. gold per ton. Moraga Resources (VSE) is earning a 45% interest in the Expo property from BHP Utah Mines. BHP operates the Island Copper mine on the northern tip of Vancouver Island about 15 miles to the southeast of the Hushamu.

Most significant in the reserve jump is the drop in the overall stripping ratio to 1.5-to-1 from 2.2-to-1. The study showed that an initial pit could be mined with a reserve of 87 million tons grading 0.30% copper, 0.01 oz. gold, and 0.023% molybdenum at a stripping ratio of 0.8-to-1. This would provide a mine life of about five years at a production rate of 55,000 tons per day.

Moraga has spent about $1 million out of the $2.7 million required to earn the 45% interest.

The company is continuing various engineering studies on the project and plans to begin an infill drilling program coupled with stepout drilling to the south and west where the ore zone remains open.

Following a recent private placement, Moraga has about $800,000 in working capital.