Western Copper Holdings (WTC-T) has engaged Kilborn Engineering to provide technical assistance in assessing the economic potential of its wholly owned Penasquito silver-lead-zinc property in central Mexico.
Kilborn has designed a 6,875-metre drill program aimed at categorizing reserves in the Chile Colorado zone, where drilling has so far delineated a 350-by-500-metre mineralized zone. The zone is open in all directions and at depth. Previously, 19 holes collared on the zone returned an average weighted grade of 100 grams silver and 0.54 gram gold per tonne, plus 1.8% zinc and 0.8% lead.
A preliminary economic evaluation of the Chile Colorado employing metal prices of US$4.50 per oz. of silver, US45 per lb. of zinc, US22 per lb. of lead and US$280 per oz. of gold indicates a positive internal rate of return. The evaluation envisages a mining rate of 20,000 tonnes per day over a 14-year lifespan.
Work and studies completed to date indicate that the Chile Colorado zone has the potential to be one of the largest and lowest cost silver deposits in North and South America.
Expenditures of about US$2 million are estimated to complete a funding level feasibility study.
WTC regained full ownership of the project earlier this year after its joint-venture partner, Peru-based Mauricio Hochschild & Cia, dropped its option to earn a 68% interest in the property. Hochschild had spent more than US$1 million on exploration, mostly at the Chile Colorado prospect.
WTC is seeking a new joint-venture partner.
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