Phelps Dodge finds copper system

Exploration by Phelps Dodge (PD-N) has uncovered a copper system at the Cerro Verde project in Mexico’s Sonora state.

The major is earning a 60% interest in the project from Corner Bay Minerals (BAY-T) by spending US$1.3 million on exploration and making cash payments totalling US$270,000. This year’s work included a 7-hole drill program, aimed at defining an oxide copper prospect previously outlined by mapping and sampling.

Hole 3 intersected 196 metres averaging 0.34% copper, including a 68-metre intercept averaging 0.61% copper. Also encountered was a gold-rich section that averaged 1.7 grams per tonne over 28 metres.

Holes 4 through 7, drilled west and northwest of hole 3, also intersected copper mineralization. Hole 5 hit 196.8 metres of 0.22% copper, hole 6 returned 160.8 metres of 0.2% copper and hole 7 returned 168.8 metres of 0.34% copper. Results were not released from holes 1 and 2, drilled south and east of hole 3 and adjacent to the main mineralized area. However, Corner Bay reports that they also intersected oxide copper mineralization.

The junior is encouraged by results to date, as the copper intercepts are close to surface and much of the material consists of oxide copper minerals, which could be amenable to heap-leaching and solvent-extraction electrowinning.

Phelps Dodge also carried out drilling on the Las Vigas copper project in Chihuahua state, but, while copper mineralization was intersected, results fell short of expectations.

Phelps Dodge plans more work for Cerro Verde in 1997; it has not yet informed Corner Bay if more work is planned for Las Vigas.