World Copper’s Zonia project resource nears 1 billion lb. in Arizona

World Copper (TSXV: WCU; US-OTC: WCUFF) has increasded the potential value and scale of its Zonia copper project in Arizona with an updated resource on the historical estimates using a refined mineralization model.

The new estimate brings the Zonia copper count to nearly 1 billion lb., comprising 686 million lb. (113.2 million tonnes grading 0.3% copper) in the indicated category and 300 million lb. (59.2 million tonnes at 0.25% copper) in the inferred category, the company said on Monday

By comparison, the historical estimate totalled 510 million lb. of copper indicated and 154.6 million lb. of copper inferred at a higher cut-off grade. Based on this resource, a preliminary economic assessment was released in 2018, showing a post-tax net present value (discounted at 8%) of US$192 million and a 29% internal rate of return. The potential heap-leach copper oxide operation has a mine life of nearly 9 years.

“This new report greatly de-risks the project by expanding the indicated resource classification of the deposit,” World Copper CEO Gord Neal said in a release. “This new resource definition could significantly extend the life of mine of the project. It also has the potential to substantially increase the throughput of future operations and boost the projected annual production.”

Escalones write-down

Also on Monday, World Copper said it would write down to a nominal level its Escalones copper project in Chile because of the uncertainty of a presidential decree last November that declared the project area an environmental sanctuary. It said it was monitoring the situation with the landowner and the government, but couldn’t promise more exploration now that an easement had lapsed. 

The project has an after-tax net present value of US$1.9 billion and initial capital expenses forecast at US$438 million, according to a preliminary economic assessment in 2022. It showed a 46% internal rate of return, a 2.2-year payback period and all-in sustaining costs of US$1.42 per lb. of copper produced. 

Anomaly probe

However, more exploration is planned at Zonia. Drilling around the current open pit and resource could add to the resource, World said.  A 2.5-km x 1.5-km copper-molybdenum-manganese geochemical anomaly called Zonia Norte situated 1.5 km away from the Zonia deposit is to be the next area of focus.

The company is advancing Zonia into feasibility and subsequently into production. The project is scheduled to commence copper cathode production within 48 months, World said. It benefits from a location on private land in Arizona with existing power and water to help permitting, the company suggested

The next corporate milestone is the commencement of a verification drill program on the leach pads. Positive results from this drill program could mean significant pre-production csh flow, says World Copper.

Shares in World Copper closed unchanged at 6.5¢ in Toronto on Monday, valuing the company at $12.2 million. They’ve traded in a 52-week range of 5.5¢ to 35¢.