Los Andes Copper Ltd. owns 100% of the Vizcachitas project in Chile, the largest copper deposit in the Americas not controlled by the majors. Vizcachitas is an advanced stage copper –molybdenum porphyry deposit in Central Chile.
The deposit occurs in the same geological belt as several other giant copper-molybdenum porphyry deposits including Río Blanco-Los Bronces (101 million tonnes contained copper), Los Pelambres-Pachon (46 million tonnes contained copper) and El Teniente (128 million tonnes contained copper)1.
The Vizcachitas Property covers a porphyry copper-molybdenum system with alteration delineated over 3.0 km in a north-south direction and 1.5 km in an east-west direction. Within this altered zone is an area of strongly-leached capping, copper oxide and sulfide and molybdenum mineralization covering an area measuring approximately 2 km in a north-south direction and 1 km in an east-west direction.
In February 2014 Coffey Mining and Alquimia Conceptos S.A. updated the NI 43-101 compliant preliminary economic assessment (PEA) on the Vizcachitas project. The property contains an indicated resource of 1,038 million tonnes grading 0.434 % Cu Eq, (0.37% Cu and 0.012% Mo) containing an estimated 8.5 billion pounds of copper and 281 million pounds of molybdenum , and an inferred resource of 318 million tonnes grading 0.405 % Cu Eq (0.345% Cu and 0.013% Mo) at a 0.3% CuEq. cut-off2 containing an estimated 2.4 billion pounds of copper and 88 million pounds of molybdenum. The resource estimate was based on a total of 146 drill holes and 40,383 metres drilled, including a total of 16 drill holes and 5,128 metres of drilling completed between 1993 and 2008.
After publication of the PEA, the Company has re-logged 100% of the project’s core, creating a new geological model that identified the importance of the early diorite porphyry and the later hydrothermal breccias in controlling the higher grade mineralization. A 3,610-metre drilling program was carried during late 2015-2016 to confirm the new geological model. The results of this campaign triggered a 10,000-metre drilling campaign initiated in February 2017 to test the extensions of the new geological model, improve the understanding of sections deeper in the higher grade central core, and test extensions to the current mineralization.
Note: The Preliminary Economic Assessment is considered preliminary in nature and includes inferred mineral resources that are considered too speculative geologically to have the economic considerations applied to them that would enable them to be categorized as mineral reserves, and there is no certainty that the Preliminary Economic Assessment will be realized. Mineral resources that are not mineral reserves do not have demonstrated economic viability.
1 Singer, D.A., Berger, V.I., and Moring, B.C., 2008, Porphyry copper deposits of the world-Database and grade and tonnage models, 2008: U.S. Geological Survey OpenFile Report 2008-1155, 45 p., http://pubs.usgs.gov/of/2008/1155/
2 Copper equivalent grade (Cu Eq) has been calculated using the following expression: Cu Eq (%) = CuT (%) + 4.95 x Mo (%), where 4.95 reflects the Mo/Cu price ratio