Arizona Sonoran (TSX: ASCU; OTCQX: ASCUF) has expanded the primary mineralization beneath the Cactus West open pit mine plan by 330 metres to the south, 150 metres to the southwest, and at least 215 metres below the planned pit shell. To confirm the expansion of the sulphide mineralization envelope, drilling was conducted below the leachable oxides and enriched sulphides into areas not previously tested.
The program is part of the 2024 work sponsored by Nuton LLC, a Rio Tinto venture. The program is following up on hole ECW-150, which cut a significant primary sulphide interval 205 metres below the pit shell. A total interval of 432 metres at 0.45 copper was encountered.
“While our engineering and geology teams remain focused on the integration of our MainSpring property into our February 2024 prefeasibility study, our geo teams continue their exemplary low discovery cost programs. To date, the discovery cost on our Cactus porphyry is under $0.01/lb., and therefore telling us to continue drilling until that cost begins to increase,” president and CEO George Ogilvie said in a release.
The Cactus pit is part of the copper-gold project of the same name in Arizona. There are three deposits, a waste dump, and the former Sacaton mine along a 4-km trend. The project has onsite power, rail and water in place. A simple heap leaching project is planned initially.
The 2024 PFS plots a project with a 21-year mine life producing an average of 110 million lb. copper annually. The all-in sustaining cost is estimated at US$2.34 per lb. copper. The project will have a post-tax undiscounted free cash flow of $3.32 billion (US$2.41 billion).
The project has a post-tax net present value (8% discount) of $708.8 million and a post-tax internal rate of return of 15.3%. Initial construction will cost $708.8 million, followed by sustaining costs of $1.68 billion.
See the complete PFS on www.ArizonaSonoran.com.
