MinQuest (ASX:MNQ) expects to start exploration at the Fyre Lake...

MinQuest (ASX:MNQ) expects to start exploration at the Fyre Lake Project in Canada’s Yukon Territory to increase its copper-gold resources.

The project currently has an Indicated and Inferred Resource of 8.93 million tonnes at 1.52% copper, 0.09% cobalt and 0.56 grams per tonne gold.

To be economically viable as a standalone operation with a NPV in excess of US$150 million, this has to be increased to more than 16-17Mt at no less than current grades.

MinQuest has identified three highly prospective targets with the potential to increase the Kona Resource.

These targets have been developed through reinterpretation of the geology of the Resource and from interpretation of magnetic and electromagnetic data from a VTEM survey flown over the Fyre Lake Project in October 2014.

The planned drill program commencing in the northern hemisphere spring, will target potential extensions to the shallow mineralisation, as it believes maximising the mineralisation able to be mined by open pit methods will have the greatest positive effect on the economics of a stand-alone operation.

A mining operation at Fyre Lake will most probably involve both open pit and underground mining, due to the fact that the copper-cobalt-gold mineralisation of the Resource crops out at the surface and dips shallowly at depth.

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