An agreement between Azco Mining (AZC-T) and Phelps Dodge (PD-N) will allow for exploration of the Suaqui Verde copper deposit in Mexico’s Sonora state.
Phelps Dodge can earn a 70% interest in a joint-venture company by spending US$2 million on the project over the next three years, in addition to funding a feasibility study. The agreement also calls for Phelps Dodge to pay Azco US$25,000 per year.
A classic porphyry copper system, the Suaqui Verde deposit is 100 miles southeast of the city of Hermosillo. Azco has completed 27,000 ft. of drilling, which indicate an oxide resource of 20 million tons grading 0.29% copper, or 115 million lb.
Phelps Dodge became a partner of Azco last December when it bought that company’s Sanchez copper deposit in Arizona, along with a 70% interest in its Mexican subsidiary. The subsidiary owns the Piedras Verdes copper property in Sonora.
Piedras Verdes is an open-pit, heap-leach target containing an estimated 1.3 billion lb. copper.
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