DRILLING CONFIRMS EXTENSION OF COPPER RESOURCE AT SMC’S
CINABRIO MINE
Results of a recently completed exploration programme confirm the extension of the
copper resource at Cinabrio, the principal source of ore for SMC Gold’s Punitaqui
copper-gold project in Chile.
Managing Director Rob Kidd said in Chile today: “These excellent results mean that we
expect to announce next week a further increase in the Cinabrio resource which
currently stands at a combined Measured, Indicated and Inferred Resource of 6.5
million tonnes at 1.49% copper.
“This provides further resources for the company’s current expansion of copper
production at Punitaqui.”
In an update on the expansion, Mr Kidd said that the 8 x 12 foot rod mill had been
commissioned and throughput was being progressively increased. “Ongoing
optimisation of the processing circuit flows will lift throughput rates to the initial
throughput target of 1300 tonnes per day over the next few months at the mill’s
improved rate of copper recovery and concentrate grade. The Punitaqui plant is now
cashflow positive, before capital expenditure and working capital, and further growth in
operating cashflow is expected in the near future,” Mr Kidd said.
The drilling programme comprised a total of 14 reverse circulation holes totalling
3,111 metres. Mr Kidd said that it was very significant that the company had now
proved that the main ore zone extended to a depth of 460 metres down dip from the
outcrop. In addition, drill hole PZ-1 intersected mineralisation close to surface
approximately 200 metres north of the previous drill limit and may indicate a new ore
zone along strike from the existing Cinabrio resource.
SMO
smc gold limited
