Drilling is planned by Canada Tungsten (TSE) to provide samples for metallurgical testing at the Andacollo heap-leach copper project, 50 km from La Serena, Chile.
The company recently acquired an option to buy and develop the project, subject to confirmation of technical details. After the 15-month evaluation period, the company can acquire a 70% interest, with the remainder held by a Chilean mining and processing company.
Preliminary results indicate that a US$50-million operation could produce 37 million lb. of cathode copper per year at US49 cents per lb. over a 15-year mine life. The oxide reserves overlie a porphyry deposit estimated to contain 280 million tonnes grading 0.57% copper and 0.165 grams gold per tonne. Canada Tungsten examined more than 200 copper and gold properties in Chile, focusing on targets in relatively restricted areas. Several prospects were identified, and follow-up work is under way.
On the financial front, the company reported a net loss of $466,000 for the 9-month period of 1993, compared with a loss of $39.8 million for the same period a year earlier. The 1992 loss reflects asset writedowns related to the reorganization late last year of Canada Tungsten, Canamax Resources and Minerex Resources.
The company has a half interest in the Aurora Partnership mine in Nevada, which produced 19,870 oz. gold for the 9-month period at US$303 per oz. Gold production during the 1993 third quarter was 7,630 oz. at an average operating cost of US$300 per oz., compared with 9,430 oz. at US$243 in the same period a year earlier.
Canada Tungsten had working capital of $15.8 million at the end of Sept. 30, 1993.
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