EV Resources (ASX: EVR) believes it is on the trail of a significant porphyry system at its Parag project in Peru after unveiling a new set of drill hits from surface including 148m at 0.54 per cent copper and 0.35 per cent molybdenum.
The company today confirmed that its latest diamond drillhole hit what it says was high-grade copper-moly-silver mineralisation in both the breccia and surrounding porphyry intrusive within its Trinchera Este zone at Parag.
And management points out that the mineralisation in the breccia, porphyry and surrounding hornfels rocks is not just restricted to just the Trinchera Este prospect – the smallest of six prospects at Parag. Analysis of old core at its Palacocha 1 target, nearly 1200m to the west, also revealed similar mineralisation.
Geophysics programs are expected to kick off this week to provide EV with a better understanding of the breccia-porphyry system at Parag and to define further drilling targets in a bid to test the potentially extensive system at depth.
The successful drill campaign at Trinchera Este highlighted high-grade copper-molybdenum-silver mineralisation in both the polymictic breccia and in the surrounding intrusive porphyry and hornfels. This supports our view that the Parag porphyry system is potentially large.
EV Resources Managing Director Hugh Callaghan
The company recently re-evaluated its exploration strategy, with a new focus on molybdenum as a byproduct. EV says prices for the metal have climbed to a dizzying US$22.89 (AU$33.99) per pound – or US$50,635 (AU$75,191) per tonne. It is more than five-times that of the strongly performing copper price that sits at about US$9944 (AU$14,776) a tonne.
Management’s analysis of historic data from 76 holes covering 18,170m uncovered a peak molybdenum grade of 0.62 per cent within an 89.4m hit from just 6.5m that also returned 0.39 per cent copper. That represents a staggering 89.4m intersection of more than 3.55 per cent copper equivalent once additional silver credits are introduced.
About 90 per cent of molybdenum is produced as a byproduct of copper and contributes to the industry dominance of Chilean and Peruvian miners – the world’s top two copper producers. EV says the fact that the Climax and Henderson mines in the United States host molybdenum grades of between 0.15 and 0.18 per cent, compared to up to 0.62 per cent discovered so far at Parag, gives it confidence in pursuing the essential trace mineral.
In March, a maiden diamond drilling program at Parag produced impressive copper figures, in addition to high-grade molybdenum results, close to surface. Assay highlights returned an 18m hit at a peak grade of 1.7 per cent copper and 0.4 per cent molybdenum from just 11m, contained within a wider 32m section going 1.2 per cent copper and 0.4 per cent molybdenum from only 3m below the surface.
Following the company’s initial program to define the volume and economic potential of the mineralised breccia system, it will look to its drilling to do the same outside that area and to search at depth for the presence of a bigger porphyry-type system.
EV also plans to drill a 2000m program at its Don Enrique project in the second half of this year. The company recently picked up an additional 1000 hectares at the exploration license after identifying a chargeability high up to 1500m in length and some 300m in width.
Importantly, the chargeability high increases in strength at depth and dips to the west into the new tenements.
The main breccia zone at Don Enrique shows elevated copper results for a strike length of about 550m. A recent sampling campaign at the site showed that 28 of the 108 samples returned copper values of more than 0.3 per cent and reached an impressive peak of 3.22 per cent.
EV is also now reviewing the silver content of previously reported drillholes, with the precious metal’s prices recently rising to US$31.06 (AU$46.08) an ounce, presenting it as a more valuable credit.
The company looks to be onto a considerable copper-moly system in the mountains of Peru. Following a recent return to pricing prominence for copper to near all-time highs and the quietly impressive run for molybdenum, the emergence of a big porphyry system could put a stronger market focus on the $7.27 million market-capped explorer.
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