As soon as funds are in place, International Musto Explorations (VSE) expects to commission a feasibility study to examine the economic viability of the Bajo de la Alumbrera deposit in the province of Catamarca, Argentina.
The Vancouver-based junior recently signed a contract with Yacimientos Mineros de Agua de Dionisio (YMAD), a quasi-state agency, for the exploitation of the deposit. The first phase of the contract is an 18-month feasibility study. The company can then decide if it wants to proceed to the second stage, which is to place the project into production. “It’s the first mining deal done in the country since political change came about,” said Musto President Lukas Lundin.
The deposit, which is on trend with large porphyry copper deposits of the Andes, is estimated to contain reserves of 340 million tons of 0.5% copper and 0.017 oz. gold. The sulphide deposit is amenable to conventional milling techniques.
About 65,616 ft. of core drilling has been done on a 328-ft. grid down to 984 ft., which covers most of the deposit. All of the holes finished in mineralization, and the results of three deep holes indicated the mineralization continues down to 1,968 ft. No stripping is required with an estimated 40 million tons of 1% copper on surface.
The project is accessible by road and well located at an elevation of about 8,530 ft., with water and rail transport available about 25 miles away. Lundin said it will cost about US$4 million for the feasibility study, and some of the funds are already in place. Once the feasibility stage is complete, the company will decide if it will proceed to the next stage, alone or with outside participation.
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