True North Copper Updates Vero Copper-Silver Resource
TRUE NORTH COPPER LIMITED (TNC) Share Update August 2024 Thursday 8th
True North Copper Announces Updated Vero Copper-Silver Resource
True North Copper Limited (ASX:TNC) has released an updated Mineral Resource Estimate (MRE) for its Vero copper-silver deposit, part of the Mt Oxide Project in Queensland, showcasing significant improvements in resource confidence and silver content.
Instant Summary:
- Updated MRE contains 15.03Mt at 1.46% Cu & 10.59g/t Ag.
- 20% increase in silver ounces to 5.13Moz.
- 3% decrease in copper metal tonnes to 220kt.
- New geological model and revised geotechnical studies.
- MIMDAS IP program progressing well to identify deeper drill targets.
Resource Update Details
True North Copper Limited has reported an updated Mineral Resource Estimate (MRE) for the Vero copper-silver deposit, which is part of the Mt Oxide Project in Queensland. The updated MRE, prepared in accordance with the JORC 2012 Code, now includes 15.03 million tonnes at 1.46% copper and 10.59 grams per tonne silver, resulting in a contained 220,000 tonnes of copper and 5.13 million ounces of silver.
The update reflects a 20% increase in silver ounces, highlighting the potential for Vero to deliver a significant silver co-product alongside copper. However, there has been a minimal 3% decrease in copper metal tonnes, which is attributed to the reassessment of underground mine voids and the introduction of an improved geological deposit model.
Geological and Technical Enhancements
The updated geological model incorporates data from 12 infill and extensional diamond drill holes completed in October 2023. Revised geotechnical and metallurgical studies have also been integrated into the analysis, providing a more robust and higher confidence resource estimation. This updated model will inform future project development studies, including potential mining options for the Vero deposit.
The MIMDAS IP program at Mt Oxide is progressing well, with the line at Camp Gossans complete. The program is now being extended over the Vero deposit to identify drill targets for resource expansion at depth.
Resource Breakdown
The updated resource breakdown is as follows:
- Indicated: 10.74Mt at 1.68% Cu & 12.48g/t Ag for 180kt Cu & 4.32Moz Ag
- Inferred: 4.28Mt at 0.92% Cu & 5.84g/t Ag for 39kt Cu & 0.81Moz Ag
- Total: 15.03Mt at 1.46% Cu & 10.59g/t Ag for 220kt Cu & 5.13Moz Ag
The updated resource estimate, particularly the increase in silver content, is likely to positively impact True North Copper's stock as it demonstrates the potential for additional revenue streams. The improved geological model and higher confidence in the resource estimation also enhance the project's attractiveness to investors.
Investor Reaction:
Analysts are expected to react positively to the increase in silver ounces and the robust resource estimation. However, the slight decrease in copper tonnes may temper some of the enthusiasm. Overall, the market is likely to view this update as a net positive for True North Copper.
Conclusion:
Investors should keep an eye on further updates from True North Copper regarding the Mt Oxide exploration activities and potential mining options for the Vero deposit. The company's strategic response to these enhancements will be crucial in maintaining and growing investor confidence.