Study boosts resource at Petaquilla property

The size of the Petaquilla copper-gold resource in Panama has almost doubled.

An interim scoping study by Fluor Daniel Wright estimates the diluted measured and indicated resource at 1.1 billion tonnes grading 0.11 gram gold per tonne plus 0.48% copper and 0.014% molybdenum.

The resource is based on a cutoff of 0.2% copper-equivalent and a stripping ratio of 1.28-to-1.

The resource was last estimated at 579 million tonnes grading 0.12 gram gold, 0.52% copper and 0.014% moly.

Adrian Resources (TSE), which holds a 52% interest, reports that the measured and indicated starter-pit resource contains about 160 million tonnes grading 0.24 grams gold, 0.63% copper and 0.018% moly, at a stripping ratio of 0.93-to-1.

Drilling is continuing, and Adrian expects to complete its valuation in early 1996 as part of an initiative to sell its interest in the project by international tender.

Teck (TSE) is funding Adrian’s Petaquilla property costs under an option which gives it the right to earn half of the 52% holding. The remainder is owned by Inmet Mining (TSE).

Fluor Daniel estimates the net present value of the resource at US$510 million, based on a copper price of US$1 per lb. and a 10% discount rate.

The estimate is based on a daily mining and milling rate of 120,000 tonnes.

On an annual basis, the mine would yield 180,000 tonnes copper (397 million lb.), 2.9 million grams gold (94,000 oz.) and 4,000 tonnes moly (9.2 million lb.). The mine life is projected at 26 years. Cash operating costs are estimated at US35 cents per lb., or US$3.83 per tonne. Adrian has 30 million shares outstanding, or about 33.3 million on a fully diluted basis.