Canadian Copper (CSE: CCI) has followed up on its letter of intent (LOI) with Votorantim Metals Canada by announcing its decision acquire a 72% stake in the Murray Brook project located in the Bathurst mining camp of New Brunswick.
Murray Brook represents an advanced-stage, undeveloped volcanogenic massive sulphide (VMS) deposit containing an open pit mineral resource that is more 98% in the measured and indicated category. The deposit is open laterally and at depth, with potential for near-mine and prospective regional exploration.
The sulphide M+I mineral resource totals are estiamted at 18 million tonnes grading 0.47% copper, 2.73% zinc, 0.99% lead, 42 g/t silver and 0.59 g/t gold, for approximately 183 million lb. of copper, 1.07 billion lb. of zinc, 390 million lb. of lead, 42 million oz. of silver and 339,000 oz. of gold.
According to a 2013 technical report by MetalQuest Mining, which holds the remaining 28% of the project, Murray Brook represents the fifth largest VMS deposit within the Bathurst camp, which ranks 3rd globally as a major VMS district.
A preliminary economic assessment that year outlined a 10-year operation that would produce 91.4 million lb. of zinc, 9.2 milion lb. of copper, 13.6 million lb. of lead and 1.3 million lb. of silver annually. Its initial capital cost is estimated at $261 million.
Canadian Copper noted that additional metallurgical testwork completed in 2019, which yielded significantly higher metal recoveries than previously included in 2013 PEA, could improve the project’s economics. A new copper stringer zone discovery 25 metres outside of the known open-pit mineralization could also increase the current 10-year mine life. There are several targets identified both near-mine and more than 10 km from the known Murray Brook deposit.
“Our objective to secure majority ownership of the Murray Brook deposit has been central to our growth strategy since 2022. This potential acquisition of a large, advanced-stage polymetallic asset is transformative for Canadian Copper,” Simon Quick, CEO of Canadian Copper, commented in a news release.
The transaction would consolidate the company’s ownership across 18 km’s of the Caribou Horizon trend, connecting its Murray Brook West exploration asset to the west and the Murray Brook deposit to the east. These assets connect the previous operating Restigouche and Caribou mines, which have produced more than 700 million pounds of zinc, plus copper, lead, and other precious metals, since 1970. The Caribou mine remains equipped with an operating process plant including milling, flotation, and a tailings storage facility.
According to Quick, the Murray Brook project would compliment the company’s current Chester asset very well with estimated measured resources totaling 120 million pounds of copper. “This opportunity enables possible synergies with the Chester deposit through the implementation of hub and spoke processing. Several deposits in the region extend beyond 1,000 metres in depth, thus we are excited to test the vertical depth extent of Murray Brook beyond the previously explored 350 metres,” he said.
As outlined in the terms of the LOI, Canadian Copper will pay $1 million cash and issue 2 million units to Votorantim. It will also assume $2 million of the seller’s bonds provided to the provincial government and grant it a 0.25% net smelter return. Upon commercial production, Votorantim would receive another $2 million.
Shares of Canadian Copper surged 10.5% by 11:50 a.m. EDT Tuesday. The company has a market capitalization of $7 million.
THIS ARTICLE WAS ORIGINALLY POSTED ON MINING.COM
