EXPLORATION ’92 — Azco seeks Sanchez financing

With engineering planning now under way for the development of the Sanchez copper project, owner Azco Mining (TSE) has retained First Boston as its lead financial adviser.

Pending the receipt of final environmental permits as well as project financing, Azco plans to start construction at the Arizona property next spring with production slated for 1994.

A final feasibility study by Consultant Fluor Daniel Wright recommends the project be put into production at an operating rate of 12 million tons per year.

Yearly production from the proposed solvent extraction and electrowinning operation is projected at 56 million lb. of cathode copper at a cash cost of about US49 cents per lb.

Preliminary estimates put reserves at about 168 million lb. grading 0.34% copper at a strip ratio of about 1.08-to-1 based on a cutoff grade of about 0.2% copper.