A study by Fluor Daniel Wright Engineers has confirmed previous estimates made by Chase Resources (VSE) on the Taysan copper project in the Philippines. Chase has an option to purchase a 59.9% interest in Taysan Copper, the company which owns the property. The vendors of the interest received 1.8 million treasury shares for the option.
Chase can exercise the option by paying US$1 million by May 10, 1992, US$2 million by May 10, 1993, or US$2.75 million by May 10, 1994. Fluor based its study on previous drilling totaling over 88,000 ft. in more than 70 holes. The company estimated proven and probable reserves at 370 million tons grading 0.31% copper and 0.01 oz. gold per ton at a 0.20% copper cutoff.
Including all categories, reserves are estimated at 600 million tons grading 0.30% copper and 0.01 oz. gold.
The company notes that further sampling and analysis will be required to better define gold reserves as many of the drill sections were not assayed for gold.
Total minable reserves in an initial 15-year pit based on a
55,000-ton-per-day operation are estimated at 257 million tons grading 0.32% copper and 0.009 oz. gold. The estimate uses a 0.20% copper cutoff grade resulting in a strip ratio of 0.85-to-1.
Mining costs are estimated at US50 cents per ton, while milling costs are projected at US$2.33 per ton, for a total cost including stripping of US$3.27 per ton. If recoveries are 90% for copper and 70% for gold, operating costs are estimated at US40 cents per lb. copper and US$159 per oz. gold. The Taysan deposit is capped by oxidized copper ore. Tonnage over the initial 15-year pit is estimated at 14 million tons.
Chase is planning to proceed with infill drilling to better define the tonnage and grade of the deposit as well as outline a higher-grade starter pit. The company also plans to conduct further drilling on the nearby Taysan West deposit which is estimated to contain more than 300 million tons at a grade similar to the main deposit.
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