Kookaburra proceeding with Chaucha testing

Metallurgical testing is proceeding on a 1,200-lb. sample of material from the Chaucha deposit.

Kookaburra Resources (VSE) can earn a 50% interest in the Ecuador project from AG Armeno Resources (VSE) by making cash and share payments totaling $375,000 and 200,000 shares respectively, as well as spending $3.5 million on exploration and development over four years.

The company can earn an additional 15% interest in the project by paying AG Armeno a further $2.5 million and spending an additional $2.5 million on the property.

The metallurgical testing is part of a pre-feasibility study the company hopes to complete by the third quarter.

Consulting Engineer Fluor Daniel Wright recently completed a preliminary technical and economic study on the copper project, outlining a 14,000 ton-per-day solvent extraction-electrowinning operation which would produce in the order of 33 million lb. of high-quality copper cathodes per year. Preliminary estimates put the capital cost of the project at about US$63.6 million including US$6.75 million in working capital but excluding a further US$17 million for engineering procurement, construction management and contingency.

Fluor estimated preliminary minable reserves at about 60 million tons grading 0.46% copper and noted the presence of a near-surface higher-grade zone. Although Fluor made no size estimates for the zone, previous estimates by Kookaburra put its size at about 27 million tons grading 0.56% copper. Fluor estimates cash operating costs at about US$4.50 per ton while Arizona-based Mountain States R and D predict ultimate recoveries will reach about 80%, based on ferric-acid cure techniques and a minus-one-inch crush leached over a minimum of 120 days.

Mountain States’ estimates are based on preliminary column leach tests on Chuacha ore samples as well as leach results from a number of similar ore types.

Mountain States is conducting bacterially assisted, ferric/acid cure column leaching tests on the 1,200-lb. sample over a 150-day period to obtain better estimates of ultimate leach recoveries.

Further exploration work at Chaucha will not proceed until road access to the property has been completed.

The government of Ecuador is constructing a road into the area and Kookaburra expects to have road access before year-end.