Musto drilling boosts tonnage at Bajo copper-gold deposit

Recent drilling by International Musto Explorations (VSE) appears to be confirming the depth extension and southwest expansion of the Bajo de la Alumbrera copper-gold deposit in Argentina.

One hole drilled in the southwest area returned 1,080 ft. grading 0.61% copper and 0.02 oz. gold per ton (from 230-1,320 ft.). Another hole returned 1,090 ft. of 0.8% copper and 0.03 oz. gold (from 190-1,290 ft.), which includes 510 ft. of 1.25% copper and 0.05 oz. gold.

Musto noted that the latter hole confirms a second high-grade zone in the southern area of the deposit, which compares favorably with the surface high grade in the central portion of the deposit.

Results were also released from two geotechnical holes which, Musto said, indicated better than anticipated mineralization along the periphery of the deposit. Results from these holes are 890 ft. of 0.56% copper and 0.02 oz. gold (from 425-1,320 ft.) and 570 ft. of 0.46% copper and 0.01 oz. gold (from 750-1,320 ft.).

Musto has completed 15 holes of a 19-hole drill program, and all holes completed to date are reported to have returned significant copper-gold mineralization. The 26,000-ft. drill program will provide information for a final feasibility study, which is expected to be completed in September. Minable reserves (proven and probable) at Bajo de la Alumbrera are currently reported as 370 million tons, averaging 0.53% copper and 0.02 oz. gold. An updated reserve will be released shortly, but Musto estimates that minable reserves will exceed 500 million tons.

Results from metallurgical work indicate the work index will be in the range of 10-12, thus enabling a mill to process 66,000 tons per day in two grinding circuits. Average annual production is estimated to be 230 million lb. copper and 345,000 oz. gold contained in concentrate.

Bajo de la Alumbrera is in western Argentina near the border with Chile. Because of its remote location, some upgrading of infrastructure will be required to transport concentrates to a coastal port.

Like many other countries in Latin America, Argentina recently adopted free-market economic policies and opened its doors to foreign investment.