Vancouver — After completing 24,000 ft. of drilling in this year’s program over the past-producing Afton copper-gold mine property, DRC Resources (DRC-V) has extended the strike length of the mineralized zone by 400 ft.
The drilling was part of an ongoing $2-million program. The mineralization under the old open pit now extends for 1,600 ft. DRC is testing the zone at depth with several holes.
At last count, the property hosted an indicated mineral resource of 25 million tons grading 2% copper and 0.045 gram gold per ton.
Earlier this year, Vancouver-based Behre Dolbear & Co. completed a scoping study on the project. The study utilized block caving at a rate of 4,500 tons per day and put the total production costs at $22.19 per ton over the life of the mine.
The early-staged scenario would generate an internal rate of return of 32.3%. Preliminary metallurgical test work showed recovery rates of 89% for copper and 90% for gold, using standard floatation.
DRC can earn a 100% interest in the 6-sq.-km property from Westridge Enterprises and Indo-Gold Development by issuing 2 million shares over a six-year period and spending $6.5 million on exploration over nine years. DRC must also bring the property into production within 10 years.
The Afton mine started production in 1978, cranking out 450,000 oz. gold and 45 million tons copper. In May 1997, it was closed by Afton Mines, a subsidiary of Teck (TEK-T).
The remaining resource at mine closure was pegged at 10.5 million tons averaging 1.52% Copper and 0.03 oz. gold.
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