Lumina hits longest intercept to date

Scotia Capital mining analyst Tom Meyer has lifted his one-year target price on Lumina Copper (LCC-V) shares from $18 to $21 after the company released more positive drill results, including the longest mineralized intercept to date at its Taca Taca copper-gold-molybdenum project in northwestern Argentina.

Lumina pulled 873 metres grading 0.54% copper, 0.09 gram gold per tonne and 0.01% molybdenum at 0.65% copper equivalent, including 148 metres grading 1.31% copper, 0.19 gram gold and 0.01% molybdenum at 1.48% copper equivalent from hole 79 — a stepout hole in the northeast zone of the deposit. Hole 79 was drilled 150 metres south of hole 71, which was previously the longest mineralized intercept drilled at the project.

Hole 79 was drilled 300 metres east of the holes that define the northeastern boundary of mineralization in the updated National Instrument 43-101 resource estimate, and it demonstrates that high-grade, supergene copper mineralization lies significantly closer to surface — less than 80 metres — than that to the south, a beneficial result of topography that drops off to the north and east towards a salar. 

Stepout hole 80, drilled in the southeast zone, returned 184 metres grading 0.45% copper, 0.13 gram gold and 0.02% molybdenum at 0.65% copper equivalent, including 72 metres of 0.76% copper, 0.20 gram gold and 0.02% moly at 1% copper equivalent.

The hole was drilled 750 metres southeast of the updated National Instrument 43-101 resource estimate and indicates mineralization southeast of a porphyritic intrusion. It also intersected the same granitic host rock as that encountered to the north and west of the porphyritic intrusive, and similar grades of primary copper, gold and moly mineralization to that in the updated resource estimate, suggesting that extensive copper mineralization may occur south and east of the porphyry intrusive.

The company calculated its copper-equivalent rate using US$2 per lb. copper, US$800 per oz. gold and US$12 per lb. molybdenum.

The company is expanding its drill program from 99,500 metres to 163,500 metres, with 64,000 metres of stepout drilling. The increase in drilling meterage could extend the drill program from April to fourth-quarter 2012.

A new interim resource estimate is due in April.

News of the latest assay results on March 27 sent Lumina shares up 42¢, or 2.6% higher, to close at $16.56 per share. At presstime Lumina traded at $17.12 per share, breaking past its 52-week high of $16.60 per share.