Drilling on the Red Chris copper-gold property in northwestern British Columbia has wrapped up for the year, and American Bullion Minerals (VSE) will next enter the prefeasibility phase.
The company holds an 80% interest in the property, and has spent roughly $10 million on drilling over two years.
The remainder is held by Teck (TSE).
As a result of drilling 71,100 metres in 244 holes, the company has outlined three deposits. The largest, known as Red Chris, is estimated to contain 157 million tonnes grading 0.5% copper, plus 0.4 gram gold per tonne, and American Bullion is confident this year’s drilling has expanded the resource beyond 220 million tonnes at a similar grade.
The other two deposits, in the adjacent Yellow Chris area, have a drill-indicated potential for a further 80 million tonnes of similar-grade material.
The resource will be upgraded in the new year, once all drill results have been received.
With about $3.5 million in working capital on hand, American Bullion expects to be able to complete the prefeasibility study, as well as cover operating expenses in 1996.
American Bullion expects to have the prefeasibility study in hand by the end of February.
With the delivery of the prefeasibility study, Teck holds the option to boost its interest to 55% by funding the project to production.
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