Jordex boosts Hushamu reserves

With the recent completion of a 16,000-ft. drilling program on the Expo property on Vancouver Island, Jordex Resources (VSE) estimates that minable open pit reserves in the Hushamu deposit have jumped to 191 million tons grading 0.25% copper, 0.009 oz. gold and 0.010% molybdenum at strip ratio of 0.6-to-1.

The new reserve, prepared by Steffen, Robertson and Kirsten, uses a copper-equivalent cutoff grade of 0.25% and compares with the previous estimate of minable open pit reserves of 130 million tons grading 0.28% copper, 0.010 oz. gold and 0.010% molybdenum.

Jordex is earning a 45% interest in the property from BHP-Utah Mines and will complete its earn-in by spending an additional $500,000 and making a US$260,000 payment to BHP.

The new reserve figure covers two adjacent pits which may be combined into one large pit, according to Maurice Young, a director with Jordex. He said Jordex plans to begin an infill drilling program in and between the two pits in April to expand current reserves.

Young also noted that the company would drill addition holes southeast and southwest of the Hushamu zone. Recent drilling in the two areas returned some of the highest-grade intercepts ever encountered on the property. Hole 206, to the southwest, intersected 512 ft. grading 0.30% copper and 0.016 oz. gold starting about 290 vertical feet from surface. The hole included a 177-ft. intersection grading 0.40% copper and 0.024 oz. gold. Hole 207, to the southeast, intersected 433 ft. from 561 ft. to 994 ft. grading 0.25% copper and 0.013 oz. gold.

Paul Kostuik, another director, said the project “probably has the best chance of being the next producer of any of the developing copper deposits in British Columbia.” He noted that the deposit’s proximity to BHP’s existing 55,000 ton-per-day Island Copper mine makes it a “very compelling project,” and he estimates capital would be as little as 25% of the equivalent green fields operation.

Kostuik noted that reserves at the Island Copper mine, about 18 miles to the southeast, will be exhausted by 1995.

In addition to drilling, Jordex plans to undertake further engineering and transportation studies as well as initiating a permitting program.