Vancouver — After two years of drilling, Sinchao Metals (SMZ-v) has delineated a sizable initial resource at its namesake copper-gold- silver project in Peru.
Inferred resources now stand at 237 million tonnes grading 0.47% copper, 0.49 gram gold per tonne and 12.1 grams silver, using a 0.27% copper cutoff. At a 0.13% copper cutoff, the resource grows to 416 million tonnes grading 0.36% copper, 0.33 gram gold and 9.2 grams silver.
Mineralization at Sinchao is contained in two zones, known as Skarn and Breccia, which together stretch along 700 metres of strike, across 500 metres width, and to 450 metres depth. The deposit remains open in all directions. Moreover, Sinchao estimates that less than 30% of the prospective targets on the Sinchao property have been drill tested.
In the near term, the company is planning a 5,000-metre drill program to confirm the extensions of the Breccia zone to the northwest and the Skarn zone to the southeast.
Sinchao is in northern Peru’s Cajamarca province and sits about 30 km from Newmont Mining’s (NMC-T, NEM-n) Yanacocha deposit, which supports the largest gold mine in South America.
Andean American Mining (AAG-V, ANMCF-o) picked up the Sinchao property in 1996 and completed more than 8,000 metres of drilling in a few years. Despite promising results, work on the property was put on hold because of low metal prices. In 2006, the company spun the property out into Sinchao Metals; Andean American owns 67% of the junior.
On news of the resource estimate, Sinchao’s share price gained 4 to close at 10. The company has a 52- week trading range of 5.5-$1.05 and has 70.1 million shares issued.
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