Photo: Diamond Drilling
Catalyst Copper Corporation today announced it will commence 20,000 metres of diamond drilling at its La Verde copper-gold project located in Michoacán State, México, by the end of January. A diamond drill rig is currently on site and drilling crews are being mobilized.
The drilling will form part of Catalyst Copper’s 2011 exploration and development program, which will also include: a determination of the gold-silver-molybdenum values for the known deposits; initial metallurgical test work; commencement of baseline environmental studies and updating the resource model.
Following the excellent drill and geophysical results achieved during 2010, Phase 1 of the 2011 program will involve drilling extensions of the known deposits. This work was recommended by Micon International Limited in the technical report released in December 2010 which stated “there is potential for additional tonnage in both deposits especially at depth” and recommended that “additional delineation drilling around the perimeter of the deposits and at depth should be initiated”. Phase 1 is budgeted at a minimum US$2 million.
Phase 2 of the 2011 exploration program will involve the continuation of definition drilling on the known deposits as well as testing geophysical targets identified in the 2010 program. Initial metallurgical test work will be carried out to determine copper-gold-silver-molybdenum recoveries to a sulphide concentrate, as well as updating the resource model with the 2011 drilling results. Phase 2 is budgeted at a minimum US$4 million and (subject to available funding) will commence upon completion of Phase 1. Upon completion of the 2011 program a preliminary economic assessment of the La Verde deposits will be carried out.
The Company currently has approximately $3.2 million dollars in working capital. The 2011 work program will complete the commitments with Teck Resource Limited (Teck) to exercise the Company’s option to earn a 60% interest in the property .
In 2010, Catalyst:
Signed a three-year option agreement with Teck whereby Minera Hill 29, Catalyst’s wholly owned Mexican subsidiary, can earn a 60% interest in the La Verde porphyry copper deposit, subject to a back-in right by Teck.
Signed a four-year land access agreement with local land owners.
Completed 12,275 metres of core drilling (Table 2) and 150 kilometres of geophysical surveys.
Published an initial NI 43-101 compliant independent resource estimate completed by Micon International Engineering of Vancouver.
About La Verde
The La Verde project is located in an area with excellent infrastructure. Power, rail and water all cross the property. Lazaro Cardenas, Mexico’s third largest port on the Pacific Ocean coast is 150 km from the site. Significant upside potential remains for the two known zones of porphyry style copper, gold and molybdenum mineralization as the 2010 drill program has shown both deposits remain open to depth and along strike.