Auspex, partners to buy into Portuguese play

Auspex Minerals (APJ-V) and partners Redfern Resources (RFR-T), Cumberland Resources (CBD-T) and International Vestor Resources (IVS-V) will acquire up to a 75% interest in the Aljustrel property in Portugal’s south-central region.

The agreement was reached with the Portuguese state mining corporation.

Aljustrel encompasses four massive sulphide deposits that historically were mined for pyrite. The two most promising deposits — Feitais and Moinho/Sao — host copper-zinc-lead mineralization.

Due diligence drilling at Feitais returned 0.2% copper, 3.75% lead and 8.86% zinc over 37.9 metres, as well as 0.27% copper 3.4% lead and 11.16% zinc over 26.9 metres. The Footwall zone generally contains higher copper values, with hole 54 returning 19 metres of 3.97% copper, 0.22% lead and 0.79% zinc.

At Moinho, drilling returned 0.5% copper, 2.02% lead and 5.89% zinc over 34.2 metres, and 0.38% copper, 3.05% lead and 7.07% zinc over 30.69 metres.

A stockwork zone in the footwall revealed higher copper grades, with hole 49 hitting a 19.6-metre interval of 2.09% copper, 0.11% lead and 0.73% zinc.

The project is already equipped with a 1.2-million-tonne-per-year mill complex, a tailings plant, extensive underground workings, and a rail line and port facility capable of handling concentrates.

The four Canadian juniors can earn a collective 75% interest in the property, with the remaining 25% held by the state. For its part, Auspex can earn 37.5%, with the balance split evenly among Redfern, Cumberland and Vestor.

The companies are required to complete a feasibility study at an estimated cost of $15 million. If the study proves positive, the joint venture will be responsible for raising the estimated $25-30 million capital cost, as well as pay off $8 million in existing debt.

Next door to the Aljustrel property is the Estacao deposit, which, since early June, has been the focus of a drill program.

The project is being operated by Auspex, which has a 30% interest. Redfern, Cumberland and Vestor each hold 10%. The remaining 40% is held by the state.

Hole 7 returned a 21-metre interval of 6.95% zinc, 1.94% lead and 58.6 grams silver per tonne; included in this interval were 9 metres of 10.25% zinc, 3.06% lead and 66.2 grams silver. The entire 61-metre sulphide interval averaged 4.6% zinc, 1.75% lead, 0.08% copper, 59 grams silver and 0.2 gram gold. The true width of the sulphide body is estimated at 50 metres.