Drilling at Petaquilla upgrades resource

Feasibility work on the Petaquilla project in Panama continues to confirm and upgrade previous estimates.

Adrian Resources (TSE) reports that Teck (TSE) has drilled 80 holes since mid-January in a combined infill and stepout program at Petaquilla, as part of an ongoing feasibility study.

Teck can earn a half interest in Adrian’s 52% interest in the copper-gold project by delivering a bankable feasibility study by November and funding Adrian’s share of production costs.

The remaining 48% interest is held by Inmet Mining (TSE).

Grades and thicknesses in Teck’s drilling compare well with the geologic model used in previous estimates, and Adrian expects a substantial portion of the 220-million-tonne possible resource will be upgraded to the status of proven and probable.

At last report, the resource in the Petaquilla, Botija and Valle Grande porphyry copper-gold deposits, combined with the Molejon epithermal gold deposit, totalled some 1.5 billion tonnes grading 0.49% copper and 0.015% molybdenite, as well as 0.11 gram gold per tonne.

Recent drill results from the Petaquilla deposit include: 403.5 ft. grading 0.59% copper, 0.031% moly and 0.18 gram gold in hole 41; 561.1-ft. in hole 46 grading 0.93% copper, 0.03% moly and 0.1 gram gold; and 807.2 ft. grading 0.64% copper, 0.02% moly and 0.1 gram gold in hole 52.

Drilling on the Botija deposit included a 383.9-ft. intersection grading 0.86% copper, 0.11 gram gold and 0.037% molybdenite. Teck plans to follow up the current drilling with a program of 25-30 additional diamond drill holes.

The most recent scoping study for Petaquilla estimates yearly output from a 12,000-tonne-per-day mine at 411 million lb. copper, 95,300 oz. gold and 8.6 million lb. moly at a cash cost of US35 cents per lb. copper produced.

Preliminary estimates put the capital cost of the proposed mine at US$800 million, plus US$25.7 million for working capital.