Crazy Horse Resources (CVE:CZH) Wednesday announced an updated resource estimate for its 100 percent-held Taysan Copper-Gold Project on Luzon Island in the Philippines.
The updated resource estimate for the Taysan Project comprises 459 million tonnes in the Measured and Indicated categories, at a 0.1 percent copper cut-off grade.
This revised Measured and Indicated resource now allows for a longer mine life – 24 years compared to 15 years previously – based on recently updated pit optimisations.
Based on Measured and Indicated resources, contained copper increases 7 percent to 2,579 million pounds; contained gold increases 15 percent to 1.46 million ounces; contained silver increases 1 percent to 12.34 million ounces and contained magnetite increases by 11 percent to 14.89 million tonnes.
The company said that a ppre-feasibility study will be completed in April 2012.
Crazy Horse chair and CEO Mitch Alland said: “We are excited about the resource estimate, as the near surface, high grade zones of Measured resource, together with the major increase in magnetite recovery prospects announced last month further strengthen the project in terms of increased profitability and reduced operational risk.
“In addition, a revised pit optimisation has increased the mine life from 15 to 24 years, with possibility of a further increase to over 40 years on the basis of the extensive Inferred resource.
“The increase in mine life will be attractive to the local community in terms of continuing future employment and by potential trade buyers or joint venture partners that are looking for a long-term source of copper concentrate.
“Once the pre-feasibility study is issued in April, the company shall embark on an aggressive campaign to pursue a trade sale or joint venture with a view to maximising the return to the shareholders.”
The Taysan Project contains a drill defined copper-gold porphyry deposit, and is comprised of two mining exploration permits and three mining exploration permit applications over five contiguous claim blocks covering a combined total area of 11,254 hectares.
The project hosts a large and only partly-explored copper-gold porphyry deposit similar to other copper-gold porphyry deposits previously mined in the Philippines. The Taysan Project is located in southern Luzon, Philippines in a well-developed mining province and readily accessible by road located 20 km east of the provincial capital and deep-water commercial port of Batangas City.
With 302 drill holes for 82,594 meters of core drilling, the Taysan Project has been sufficiently drilled for defining a compliant bankable feasibility study based on the 15 million tonnes per annum mining operation currently planned.
The updated resource was prepared by Mining Associates.