Ero Copper Corp. (the “Company”)
(TSX:
ERO) is pleased to provide a quarterly update on the
ongoing exploration drill programs on its 99.6% owned Vale do
Curaçá Property located in Bahia State, Brazil and its 97.6% owned
NX Gold Mine located in Mato Grosso State, Brazil. This update
encompasses drill results received from March 2020 through early
June 2020. Drilling during the period continued to focus on
priority target areas within the Pilar and Vermelhos Mines, the
broader Curaçá Valley, as well as extensions of the Santo Antonio
Vein at the NX Gold Mine, all according to the drill program for
the second quarter of 2020, which continues to progress according
to budget despite the COVID-19 pandemic.
HIGHLIGHTS
- Continued success in demonstrating
high-grade continuity and wide-open potential at depth within the
Company’s ‘Superpod’ discovery below the known extent of the Pilar
Mine, part of the “Deepening Extension” zone. Results are
highlighted by:- FC5625: 96.4 meters grading 3.97% copper including
60.6 meters grading 5.61% copper, the highest grade-meter intercept
drilled by the Company at the Vale do Curaçá Property to date;-
FC5367: 29.9 meters grading 5.90% copper, the deepest intercept
drilled by the Company in the Pilar mine to-date, approximately 100
meters below the Company’s previously announced deepest intercept;-
FC47165: 19.6 meters grading 3.61% copper including 10.0 meters
grading 5.09% copper, drilled approximately 265 meters and 400
meters south of hole FC5367 and FC5625, respectively; and,-
mineralized intercepts within the Deepening Extension continue to
demonstrate continuity over approximately 800 meters in strike
length and to depth over 500 meters below the current level of the
primary ramp. The zone remains open to the north and to depth.
- New drilling, based on ongoing data
compilation work, has demonstrated an extended zone of thicker
mineralization in an area previously modeled as discontinuous
lenses within the northern known extent of the Pilar Mine.
Mineralization in this area, known as “West Limb North”, runs
parallel and in close proximity to the mineralized lenses
comprising the East Limb and the planned mining stopes of P1P2W.
The zone is located approximately 350 meters below surface and
approximately 150 to 200 meters from the closest access point on
level +205 of the Pilar Mine. To date, the known extent of
mineralization in this area has been extended by over 40 meters in
strike length, over a vertical extent of approximately 140 meters
and over an average thickness of approximately 20 to 30 meters with
local thicknesses up to 60 meters. The zone remains open to the
north. Results are highlighted by:- FC48136: 113.4 meters grading
1.41% copper, including 67.2 meters grading 1.77% copper, drilled
obliquely to the dominant orientation of mineralization in this
area, demonstrating vertical continuity and localized thickening of
mineralization within the zone;- FC5080: 24.8 meters grading 2.66%
copper including 6.0 meters grading 5.47% copper;- FC49169: 26.2
meters grading 2.40% copper including 5.0 meters grading 3.59%
copper;- FC47159: 37.7 meter grading 1.76% copper including 12.4
meters grading 2.78% copper; and,- FC47158: 26.2 meters grading
1.93% copper.
- At the NX Gold Mine, drill results
continue to demonstrate down-plunge extensions of the high-grade
mineralization of the Santo Antonio Vein. Results are highlighted
by:- SA77: 5.9 meters grading 5.09 grams per tonne, confirming a
thicker core of mineralization near previously announced holes SA73
and SA70 (4.9 meters grading 10.21 grams per tonne gold and 4.9
meters grading 9.53 grams per tonne gold, respectively), drilled
approximately 30 to 50 meters down-plunge from the limits of the
current mineral resource; and,- SA81: 2.8 meters grading 11.29
grams per tonne gold, located approximately 210 meters down-plunge
of the limit of the current inferred mineral resource. This is the
deepest intercept drilled in the Santo Antonio Vein to date and is
located an additional 140 meters down-plunge from hole SA77.
- Regional work in the Curaçá Valley
comprised of both exploration drilling and ground-based geophysical
work continues to remain focused on four newly interpreted mineral
systems within the portfolio of targets defined by the Company’s
comprehensive targeting work. Each of the new systems has an
average strike length of 5 kilometers and contains multiple
priority drill targets. While preliminary results are encouraging,
additional detail on these ongoing exploration programs continues
to be expected during the second half of the year.
Commenting on the results, David Strang,
President & CEO, stated, “The exploration results highlighted
in our second quarter update continue to build upon the success of
several critical exploration objectives we set out for the Company
during the first half of 2020. These objectives were centered upon
continued demonstration of high-grade mineralization within the
Deepening Extension Zone of the Pilar Mine, extensions of
mineralization at Vermelhos and Siriema and extending the known
limits of mineralization at the NX Gold Mine.
We continue to be extremely pleased with the
results of drilling from the Deepening Extension Project which now
includes the best hole on a grade-meter basis we have drilled as a
Company in the Curaçá Valley, as well as new records for the
deepest drill results at the Pilar Mine. Our progress at Siriema
remains encouraging as we continue to follow the mineralized
conduit to depth and to the north, and we are pleasantly surprised
by the new drilling within the West Limb North Zone, which appears
to be outlining potential for a new, higher-grade zone of near
surface mineralization. In addition, the drilling on the Santo
Antonio Vein at our NX Gold Mine continues to expand the known
extent of mineralization well outside of the current mineral
resource.
The Curaçá Valley and the NX Gold Mine continue
to deliver spectacular results and demonstrate that many of our
near-mine targets remain wide-open. The breadth of organic growth
opportunities available to the Company give us confidence that our
near-mine programs will continue to deliver on our core objectives
as we progress to more regional drilling during the second half of
the year. We continue to see the emergence of four key regional
mineralized systems on which we are focusing our regional
exploration efforts in the near to medium-term.
As a testament to the quality of our operating
and exploration teams in Brazil, the COVID-19 pandemic continues to
have minimal impact on our planned exploration programs to date.
Additionally, in early June we began to see progress and the
initial, yet incomplete, results for our pending cobalt, gold and
PGM assays at Siriema previously delayed due to global third-party
laboratory closures. We expect that we will obtain many of these
delayed sample batches in the coming months, provided these
laboratories continue to remain open while we build this capability
in house for the future.”
Twenty-seven drill rigs are currently operating
in the Curaçá Valley, including twelve within the Pilar District,
eleven in the Vermelhos District, and there are currently six drill
rigs (including two within the Vermelhos District) operating on
regional exploration targets in the Curaçá Valley. Five additional
drill rigs are currently operating at the NX Gold Mine.
Expansions and extensions, as referenced herein,
reflect mineralization not captured in the Company’s mineral
resource and mineral reserve models used in the current (2019)
mineral resource and reserve estimate. There has been insufficient
work and analysis surrounding new discoveries, as referenced
herein, to define a mineral resource and it is uncertain if further
exploration and analysis will result in such targets being
delineated as a mineral resource.
The drill holes outlined in this press release
within the Vermelhos and Pilar Districts will be made available on
the Company’s Curaçá Valley site tour and interactive
three-dimensional models for the Pilar Mine and the Vermelhos
System, which can be accessed via the Company’s website
(www.erocopper.com) or via VRIFY Technology Inc. (“VRIFY”)
(www.vrify.com).
PILAR DISTRICT
The Pilar District encompasses the area
surrounding the Pilar underground mine, Caraíba Mill complex and
the past producing Pilar open pit and R22 Mines. Twelve drill rigs
are currently focused on resource upgrade and exploration programs
within the Pilar Mine.
During the period, the Company has continued to
prioritize drilling of the Deepening Extension where the Company
continues to confirm thick and high-grade mineralization of a
recently identified mineralized chamber, or “Superpod”, within the
Deepening Extension zone.
The Deepening Extension
Deepening Extension drilling is currently
targeting mineralization on the East Limb of the Pilar Mine between
level -725 and level -1400 approximately 1,200 meters to 2,000
meters below surface and approximately 100 meters laterally from
the current level of the primary ramp (completed to level -940).
Drilling in the Deepening Extension zone continues to extend the
known limits of high-grade copper mineralization of the mine and
has continued to intercept some of the most significant holes on a
grade-meter basis drilled in the Pilar Mine since acquisition of
the Vale do Curaçá Property in 2016, including the highest
intercept on a grade-meter basis drilled in the Curaçá Valley to
date, confirming continuity within a high-grade, mineralized
chamber, or “Superpod”.
The Company has now identified a mineralized
area within the Deepening Extension zone that extends over
approximately 800 meters in strike length, over a total depth of
approximately 500 meters and over an average thickness of
approximately 15 to 20 meters with localized thicknesses in excess
of 50 meters. Within the total strike length, a higher-grade
continuous zone with a strike-length of approximately 400 to 500
meters is emerging in the central and northern segments of the
target area. The zone remains open to the north and to depth. There
are currently six underground exploration drill rigs systematically
drilling the defined exploration target area within the Deepening
Extension zone.
New results during the period are highlighted by
notable confirmatory and extensional drilling within the high-grade
target area. In the northern section of the target area, new
results are highlighted by hole FC5625 that intersected 96.4 meters
grading 3.97% copper including 60.6 meters grading 5.61% copper,
which is the highest grade-meter intercept drilled by the Company
to date. This results is complemented by previously released
intercepts, also on section 56, of hole FC5623 that intersected
21.8 meters grading 2.27% copper including 2.8 meters grading 7.76%
copper, hole FC5616 that intersected 51.8 meters grading 3.49%
copper including 33.4 meters grading 4.96% copper and hole FC5615
that intersected 62.5 meters grading 1.65% copper including 26.1
meters grading 2.37% copper.
Approximately 135 meters south of section 56, on
section 53 in the center of the higher-grade continuous zone, new
drilling sought to test the known limits of the Deepening Extension
zone to depth. The results are highlighted by hole FC5367 that
intercepted 29.9 meters grading 5.90% copper including 6.0 meters
grading 7.04% copper, which is the deepest intercept drilled by the
Company in the Pilar mine to-date and is located approximately 540
meters below the current level of the primary ramp, and
approximately 100 meters below the Company’s previously announced
deepest intercept in hole FC47144.
In the central portion of the Deepening
Extension, located approximately 400 meters south of the intercepts
noted previously on section 56, new results are highlighted by hole
FC47165 that intersected 19.6 meters grading 3.61% copper including
10.0 meters grading 5.09% copper and hole FC47169 that intersected
10.0 meters grading 6.27% copper including 5.0 meters grading 7.82%
copper. Drill results in the central portion of the Deepening
Extension are complemented by previously announced intercepts, also
on section 47, in hole FC47163 that intersected 22.8 meters grading
3.18% copper including 10.6 meters grading 5.29% copper, hole
FC47143 that intersected 37.0 meters grading 1.49% copper including
5.0 meters grading 2.92% copper, hole FC47142 that intersected 34.7
meters grading 2.29% copper including 18.6 meters grading 3.15%
copper, and hole FC47139 that intersected 7.1 meters grading 6.50%
copper including 4.1 meters grading 9.01% copper (please refer to
the Company’s press releases dated September 12, 2019, December 3,
2019 and April 22, 2020 for previously announced Deepening
Extension results).
Exploration results from the Deepening Extension
during the period continue to provide evidence that the Pilar Mine
remains open to depth, where high-grade mineralization continues to
be encountered, including the deepest intercept drilled in the
Pilar Mine to date in hole FC5367. Due to the limits of underground
infrastructure to the north, the Company has commenced a surface
drill program utilizing directional drilling technology to evaluate
the mineralized potential of the Deepening Project north of section
57, the most northern extent of known mineralization to date.
Please see Figure 1 for a north-south long
section and Figure 2 for a level map showing collar locations of
Deepening Extension drilling within the Pilar Mine.
Hole ID |
From (m) |
To (m) |
Length (m) |
Cu (%) |
FC45168 |
131.7 |
135.0 |
3.3 |
2.71 |
FC45169 |
279.3 |
302.5 |
23.1 |
1.28 |
including |
279.3 |
283.3 |
4.0 |
1.91 |
FC47165 |
481.8 |
501.4 |
19.6 |
3.61 |
including |
483.3 |
493.3 |
10.0 |
5.09 |
FC47166 |
459.7 |
468.5 |
8.9 |
2.99 |
including |
464.7 |
467.7 |
3.0 |
5.46 |
and |
477.5 |
498.5 |
21.0 |
1.96 |
including |
481.8 |
487.8 |
6.0 |
3.03 |
FC47169 |
501.8 |
511.8 |
10.0 |
6.27 |
including |
505.8 |
510.8 |
5.0 |
7.82 |
and |
577.1 |
584.6 |
7.5 |
2.40 |
including |
577.7 |
579.6 |
2.0 |
6.53 |
and |
594.6 |
599.9 |
5.3 |
2.60 |
and |
634.9 |
653.9 |
19.0 |
1.07 |
and |
689.9 |
720.5 |
30.6 |
1.29 |
FC47170 |
534.2 |
544.1 |
9.9 |
1.17 |
and |
548.1 |
555.1 |
7.0 |
1.35 |
and |
570.6 |
576.1 |
5.6 |
1.64 |
FC5364 |
NSI |
NSI |
NSI |
NSI |
FC5366 |
609.7 |
617.2 |
7.5 |
3.09 |
FC5367 |
780.3 |
785.3 |
5.0 |
1.19 |
and |
805.0 |
834.8 |
29.9 |
5.90 |
including |
809.0 |
815.0 |
6.0 |
7.04 |
FC5621 |
619.4 |
628.9 |
9.4 |
3.62 |
FC5624 |
475.8 |
480.9 |
5.1 |
3.79 |
and |
476.8 |
479.8 |
3.0 |
5.24 |
and |
503.0 |
506.7 |
3.7 |
1.97 |
FC5625 |
600.1 |
696.5 |
96.4 |
3.97 |
including |
615.8 |
676.5 |
60.6 |
5.61 |
NSI indicates no significant intercept based on
a three meter mining width and cut-off grade of 0.68% copper. Drill
holes were drilled from level -670, level -740 and level -875 in
the Pilar Mine. Holes not included are either pending assay
results, have been included in a different section of this press
release for clarity of discussing drill results or were previously
included in a prior press release. The length of intercept may not
represent the true width of mineralization. Values may not add up
due to rounding. From, to and mineralized intercepts are rounded to
the nearest tenth of a meter.
West Limb North
Ongoing data compilation work combined with new
drilling has resulted in the delineation of a zone of thicker and
continuous mineralization within the Pilar Mine at the northern
extent of known mineralization in an area previously modeled as
lower grade, discrete and discontinuous lenses. Mineralization in
this area, known as West Limb North, runs parallel and in close
proximity to the mineralization and planned mining stopes of P1P2W
on the East Limb of the Pilar Mine. The zone is located
approximately 350 meters below surface in the upper levels of the
mine (beneath the R22 open pit) and approximately 150 to 200 meters
from the closest access point on level +205 of the Pilar Mine. To
date, new drilling has extended the known limits of mineralization
by over 40 meters in strike length, approximately 140 meters in
vertical extent and over an average thickness of approximately 20
to 30 meters with local thicknesses of up to 60 meters. The zone
remains open to the north.
Drilling during the period is highlighted by
hole FC48136 that intersected 113.4 meters grading 1.41% copper,
including 67.2 meters grading 1.77% copper. This hole was drilled
at a new orientation that is oblique relative to the dominant
plunge of mineralization, demonstrating vertical continuity and
localized thickening of mineralization within the zone. In
addition, several drill holes, located approximately 45 meters
north and 200 meters west of the intercept in hole FC48136, were
drilled perpendicular to the dominant plunge of mineralization and
are indicative of average true widths in this area. These results
are highlighted by hole FC5080 that intersected 24.8 meters grading
2.66% copper including 6.0 meters at 5.47% copper, hole FC49169
that intersected 26.2 meters grading 2.40% copper including 5.0
meters grading 3.59% copper, and hole FC47159 that intersected 37.7
meter grading 1.76% copper including 12.4 meters grading 2.78%
copper.
The potential significance of the new results
within the West Limb North zone is that they define new extensions
of the planned mining stopes of P1P2W, a portion of which are
currently being prepared for mining. The proximity to surface and
existing infrastructure in this area, allows for mined tonnages to
be either hauled to surface via the primary ramp, or trucked
down-hill to the underground crusher, both at relatively low
transport cost and enhanced operational flexibility.
Please see Figure 3 for a north-south long
section, Figure 4 for an east-west cross section and Figure 5 for a
level map showing collar locations of the West Limb North drilling
within the Pilar Mine.
Hole ID |
From (m) |
To (m) |
Length (m) |
Cu (%) |
FC47167 |
327.2 |
331.2 |
4.0 |
0.96 |
and |
529.7 |
535.8 |
6.2 |
1.75 |
FC47171 |
496.4 |
520.0 |
23.5 |
1.59 |
FC47158 |
53.4 |
79.6 |
26.2 |
1.93 |
FC47159 |
5.0 |
9.1 |
4.1 |
1.10 |
and |
77.1 |
114.8 |
37.7 |
1.76 |
including |
86.4 |
98.8 |
12.4 |
2.78 |
FC47160 |
10.5 |
20.1 |
9.6 |
2.04 |
and |
52.9 |
58.0 |
5.1 |
1.80 |
FC48136 |
93.3 |
206.8 |
113.4 |
1.41 |
including |
105.5 |
172.7 |
67.2 |
1.77 |
FC49138 |
198.6 |
209.6 |
11.0 |
0.76 |
and |
214.4 |
232.0 |
17.6 |
2.35 |
FC49139 |
179.9 |
186.9 |
7.0 |
1.80 |
FC48143 |
494.8 |
505.6 |
10.8 |
1.47 |
FC48149 |
NSI |
NSI |
NSI |
NSI |
FC49143 |
170.5 |
175.4 |
4.9 |
1.75 |
FC49148 |
199.0 |
214.4 |
15.4 |
1.18 |
and |
210.5 |
214.4 |
3.9 |
2.05 |
FC49155 |
296.0 |
301.0 |
5.0 |
1.39 |
and |
307.0 |
311.0 |
4.0 |
0.77 |
and |
328.0 |
367.6 |
39.5 |
1.23 |
including |
365.0 |
367.6 |
2.6 |
5.15 |
and |
461.2 |
471.2 |
10.0 |
1.26 |
FC49156 |
385.1 |
390.7 |
5.6 |
1.24 |
and |
440.5 |
446.5 |
6.0 |
2.35 |
including |
443.5 |
446.5 |
3.0 |
3.33 |
FC49163 |
NSI |
NSI |
NSI |
NSI |
FC49165 |
318.4 |
342.6 |
24.3 |
1.53 |
and |
459.1 |
470.9 |
11.8 |
1.20 |
FC49169 |
439.8 |
464.8 |
26.2 |
2.40 |
including |
456.8 |
461.8 |
5.0 |
3.59 |
FC4983 |
313.1 |
317.4 |
4.3 |
0.92 |
and |
320.4 |
330.4 |
10.0 |
1.94 |
including |
322.3 |
324.7 |
2.4 |
3.57 |
FC5080 |
318.7 |
343.5 |
24.8 |
2.66 |
including |
330.5 |
336.5 |
6.0 |
5.47 |
and |
363.5 |
369.5 |
6.1 |
1.95 |
including |
365.5 |
368.5 |
3.0 |
3.05 |
FC5088 |
267.0 |
279.0 |
12.0 |
1.50 |
and |
364.3 |
367.7 |
3.4 |
1.72 |
FC5089 |
415.6 |
429.0 |
13.4 |
2.52 |
including |
422.6 |
427.6 |
5.0 |
3.94 |
FC5368 |
320.8 |
327.4 |
6.6 |
1.09 |
and |
418.1 |
422.1 |
4.0 |
0.82 |
NSI indicates no significant intercept based on
a three meter mining width and cut-off grade of 0.68% copper. Drill
holes were drilled from surface, level -35, level +190 and level
+205 in the Pilar Mine. Holes not included are either pending assay
results, have been included in a different section of this press
release for clarity of discussing drill results or were previously
included in a prior press release. The length of intercept may not
represent the true width of mineralization. Values may not add up
due to rounding. From, to and mineralized intercepts are rounded to
the nearest tenth of a meter.
VERMELHOS DISTRICT
The Vermelhos District is located approximately
eighty kilometers to the north of the Pilar Mine and Caraíba Mill
complex and includes the operating high-grade Vermelhos Mine.
Drilling is focused on both near-mine extensional drilling as well
as new regional targets identified during the Company’s regional
airborne survey and subsequent data compilation work of the broader
Vermelhos System – a north-south trend encompassing the Vermelhos
Mine, East Zone, Siriema N8/N9 deposit, and several high priority
targets that extends over ten kilometers in strike length.
Eleven drill rigs are currently operating in the
district including seven focused on upgrade and exploration
programs within and adjacent to the Vermelhos Mine, including the
Siriema deposit, while two rigs are focused on regional targets
within Vermelhos System trend.
Siriema
The Siriema deposit is the Company’s first
regional discovery (see press release dated July 30, 2019 for the
announcement of the Siriema discovery) and is located approximately
1.5 kilometers south of the Vermelhos Mine. The exploration drill
program at Siriema is focused on continuing to extend the known
limits of mineralization within the Siriema conduit – a
north-plunging mineralized controlling structure comprised of both
disseminated and massive sulphide mineralization, including the
massive sulphide breccia zone of elevated copper, nickel, cobalt
and platinum group metals (“PGMs”) of the Keel Zone (please refer
to the Company’s press release dated December 3, 2019 for
previously released multi-element intercepts).
During the period, wide-spaced, down-plunge, 200
meter step-out exploration drilling at Siriema continued to operate
as planned, and continued to intercept the previously identified
controlling mineralized Siriema conduit at depth. To date,
mineralization has now been encountered from surface to a depth of
approximately 620 meters below surface and over variable
thicknesses from sub 1 meter up to 20 meters. The Siriema deposit
remains open to depth and to the north where drilling and down-hole
electromagnetic (“EM”) work continue to evaluate the potential for
higher-grade and thicker mineralization.
As a whole, mineralization encountered within
the conduit continues to be comprised of disseminated and massive
sulphide mineralization, containing both copper and nickel.
Drilling during the period sought to extend the known limit of
mineralization within a previously identified deeper zone, located
approximately 500 to 650 meters below surface and approximately 400
meters beneath the current mineral resource limit. Continued
extensional results are demonstrated in hole FSI-92 that
intersected 17.0 meters grading 0.78% copper including 7.0 meters
grading 1.23% copper and hole FSI-93 that intersected 12.8 meters
grading 0.68% copper including 6.0 meters grading 1.00% copper.
These results are located approximately 370 meters and 550 meters
down-plunge from the limit of the current mineral resource;
respectively. The intercept of hole FSI-93 is located approximately
620 meters below surface, making it the deepest known intercept
within the Siriema conduit to date. These results are complemented
by the previously announced deepest Siriema intercept in hole
FSI-89 that intersected 6.0 meters grading 2.21% copper and 0.03%
nickel including 3.0 meters grading 3.12% copper and 0.04% nickel,
located approximately 180 meters south of FSI-93 (see the Company’s
press release dated April 22, 2020 for complete results).
Intercepts below three meters in thickness
drilled within the Siriema conduit are reported below as not
significant, consistent with the Company’s minimum mining thickness
and overall approach to reporting exploration drill results.
Further, as a result of the COVID-19 pandemic and global
third-party laboratory closures, assay results for cobalt, PGMs and
gold during the period, as well as pending samples from previously
released holes continue to be delayed. With third-party
laboratories recommencing operations during the period, the Company
expects to receive these pending assay results in the coming
months.
Please see Figure 6 for a north-south long
section and Figure 7 for a plan map detailing Siriema collar
locations.
Hole ID |
From (m) |
To (m) |
Length (m) |
Cu (%) |
Ni (%) |
FSI-90 |
NSI |
NSI |
NSI |
NSI |
NSI |
FSI-91 |
NSI |
NSI |
NSI |
NSI |
NSI |
FSI-92 |
596.8 |
613.8 |
17.0 |
0.78 |
0.02 |
including |
601.8 |
608.8 |
7.0 |
1.23 |
0.02 |
FSI-93 |
700.9 |
711.9 |
11.0 |
0.57 |
0.01 |
and |
717.5 |
730.3 |
12.8 |
0.68 |
0.04 |
including |
722.5 |
728.5 |
6.0 |
1.00 |
0.02 |
and |
739.3 |
743.3 |
4.0 |
1.02 |
0.02 |
NSI indicates no significant intercept, based on
a three meter mining width and cut-off grade of 0.18% copper for
all intervals, including to depth. Drill holes were drilled from
surface. The length of intercept may not represent the true width
of mineralization. Values may not add up due to rounding. From, to
and mineralized intercepts are rounded to the nearest tenth of a
meter.
Vermelhos Near-Mine
Programs
Drilling during the period in and around the
Vermelhos Mine was focused on both infill drilling for mine
planning and extensions of (i) the limits of known mineralization
surrounding the main Vermelhos orebodies to depth with systematic
fan drilling, (ii) the East Zone conduit and (iii) extensions of
the N8 Deposit (the western portion of the adjacent N8/N9 deposits,
previously referred to as Vermelhos West). Drilling continues to
demonstrate continuity of mineralization throughout the Vermelhos
System. Additional drilling and borehole EM work remains
ongoing.
At the Vermelhos Mine, the first systematic fan
drilling exploration program that commenced in Q1 2020 continued to
progress. To date, approximately 25% of the program has been
completed and it is now expected to run through the end of 2020.
Access for follow-up drilling in the central area of this program,
where several high-grade intercepts were previously encountered
including FVS-465 (13.4 meters grading 5.86% copper including 8.4
meters grading 7.04% copper) and FVS-638 (7.2 meters grading 2.16%
copper including 2.0 meters grading 4.62% copper), was not possible
due to the prioritization of production activities in the same area
during the period. As a result, drill rigs were moved to the
northern and southern sections of the planned fan drill program and
only several holes were drilled during the period.
In addition, drilling during the period sought
to extend the known limits of the East Zone conduit, a zone of
mineralization that has now been delineated from surface copper
oxide mineralization to a depth of approximately 575 meters below
surface and over a combined strike length of approximately 1.7
kilometers. Although there is no dedicated East Zone drill program
outside of the UG3 mining area and the south extensions of the N8
Deposit, short-term holes drilled for mine planning at Vermelhos as
well as those drilled on the eastern side of the main deposit as
part of the systematic fan drill exploration program are typically
extended approximately 150 meters beyond the primary exploration
target zones in order to evaluate mineralized potential within the
East Zone. Several new intercepts during the period continue to
demonstrate continuity within this zone.
At the N8 Deposit, drilling during the period
continued to extend the known limits of mineralization to the south
connecting the N8 Deposit to the East Zone conduit and linking the
N8 deposit to the UG1 mining area.
Please see Figure 8 for a plan map detailing all
Vermelhos near-mine collar locations and Figure 9 for north-south
long section detailing all Vermelhos near-mine drilling.
Hole ID |
From (m) |
To (m) |
Length (m) |
Cu (%) |
Vermelhos Mine & East Zone Extension
Drilling |
FVS-648 |
NSI |
NSI |
NSI |
NSI |
FVS-649 |
NSI |
NSI |
NSI |
NSI |
FVS-850* |
253.4 |
260.4 |
7.0 |
0.98 |
FVS-854* |
251.2 |
254.2 |
3.0 |
1.17 |
and |
310.7 |
320.4 |
9.7 |
1.71 |
FV-176* |
533.1 |
536.1 |
3.0 |
0.96 |
and |
547.3 |
552.3 |
5.0 |
0.78 |
FVS-609* |
542.2 |
548.3 |
6.1 |
0.69 |
FVS-612 |
NSI |
NSI |
NSI |
NSI |
FVS-616 |
NSI |
NSI |
NSI |
NSI |
FVS-617* |
91.3 |
97.4 |
6.1 |
0.58 |
and |
111.4 |
125.9 |
14.5 |
0.47 |
including |
111.4 |
114.4 |
3.0 |
0.89 |
and |
130.9 |
143.9 |
13.0 |
0.42 |
FVS-851* |
281.2 |
288.2 |
7.0 |
0.77 |
and |
292.2 |
297.2 |
5.0 |
1.07 |
and |
305.8 |
308.8 |
3.0 |
0.73 |
FVS-853 |
NSI |
NSI |
NSI |
NSI |
N8 Deposit Drilling |
FV-174 |
267.2 |
270.2 |
3.0 |
0.74 |
and |
283.8 |
289.0 |
5.2 |
0.96 |
and |
296.0 |
302.2 |
6.2 |
1.38 |
FV-177 |
391.0 |
398.0 |
7.0 |
1.18 |
including |
395.0 |
397.0 |
2.0 |
1.80 |
FV-178 |
200.5 |
203.4 |
3.0 |
1.31 |
(*) Denotes drill hole intercept within the East
Zone conduit. NSI indicates no significant intercept, based on a
three meter mining width and a cut-off grade of 0.18% copper for
near-surface intervals and 0.68% for intervals below 200 meters
down hole. Drill holes were drilled from surface and from level
+185, level +210, level +215, level 225 and level +250 in the
Vermelhos Mine. The length of intercept may not represent the true
width of mineralization. Values may not add up due to rounding.
From, to and mineralized intercepts are rounded to the nearest
tenth of a meter.
REGIONAL EXPLORATION
Regional work comprised of both exploration
drilling and ground-based geophysical work is currently focused on
four newly interpreted mineral systems identified in the Curaçá
Valley. These new systems have been defined by semi-continuous
geochemistry / geophysical anomalies as well as structural data
interpretation similar to the work undertaken to define the
Vermelhos System. These four new systems have an average strike
length of over 5 kilometers and, similar to the Vermelhos System,
each contain multiple priority drill targets. Two of these new
regional systems are located within the northern Vermelhos District
and two are located within the central Surubim District. While
preliminary results are encouraging, additional drilling is
required to further understand the extent and potential size of
targets within each system prior to their release which is expected
during the second half of the year, consistent with the Company’s
approach for releasing exploration drill results on new target
areas.
NX GOLD MINE
The NX Gold Mine is a high-grade producing gold
mine, located in Mato Grosso State, Brazil. Beginning in late 2018,
a comprehensive in-mine exploration program commenced for the first
time since the mine was commissioned in 2012 that resulted in the
Santo Antonio Vein discovery. In late 2019, all mining activity was
transitioned from the Brás and Buracão Veins into the Santo Antonio
Vein. To date, the Santo Antonio Vein has been defined over a
lateral extent of approximately 400 meters, a down-dip distance of
approximately 325 meters and remains open to depth (see press
release dated April 18, 2019 for detail regarding the Santo Antonio
Vein discovery).
Drilling during the period was primarily focused
on continuing to test down-plunge extensions of the Santo Antonio
Vein. Results are highlighted by hole SA77 that intersected 5.9
meters grading 5.09 grams per tonne, confirming a thicker core of
mineralization near previously announced holes SA73 and SA70 that
intersected 4.9 meters grading 10.21 grams per tonne gold and 4.9
meters grading 9.53 grams per tonne gold, respectively (please see
the Company’s press released dated April 22, 2020 for complete
results). Each of these holes were drilled approximately 30 to 50
meters down-plunge from the limits of the current mineral resource.
Approximately 140 meters down plunge from the thicker core of
mineralization identified in hole SA77, hole SA81 intersected 2.8
meters grading 11.29 grams per tonne gold. This new intercept is
located approximately 210 meters down-plunge from the limit of the
current inferred mineral resource, and is the deepest intercept
drilled to date in the Santo Antonio Vein.
In total, new results during the period have
increased the known extent of mineralization within the Santo
Antonio Vein down-plunge by a total of approximately 210 meters and
over a strike length of approximately 160 meters. The vein remains
open to depth. Currently, five drill rigs are operating on the
property.
Please refer to Figure 10 for drill collar
locations and Figure 11 for an east-west vertical long-section of
the NX Gold Mine.
Hole ID |
From (m) |
To (m) |
Length (m) |
Au (gpt) |
SA77 |
607.4 |
613.3 |
5.9 |
5.09 |
SA78 |
572.0 |
574.9 |
2.9 |
10.25 |
SA80 |
NSI |
NSI |
NSI |
NSI |
SA81 |
665.1 |
667.9 |
2.8 |
11.29 |
NSI indicates no significant intercept, based on
cut-off grade of 1.40 grams per tonne gold. Drill holes were
drilled from surface. The length of intercept may not represent the
true width of mineralization and reported intercepts reflect the
entire thickness of the vein. Values may not add up due to
rounding. From, to and mineralized intercepts are rounded to the
nearest tenth of a meter.
NOTE ON NI 43-101 COMPLIANT TECHNICAL
REPORT(S)
The conversion of drill results presented in
this press release into National Instrument 43-101, Standards of
Disclosure for Mineral Projects (“NI 43-101”) compliant mineral
resources and mineral reserves, including but not limited to the
drill results associated with the new and potential extensions of
mineralization across each of the mineral districts outlined in
this press release, all require additional work and analysis that
remains ongoing. To date, there has been insufficient exploration
and accompanying analysis to define a mineral resource and it is
uncertain if further exploration will result in these extensions
being delineated as a mineral resource. Accordingly, the results
herein may not be included in future NI 43-101 compliant mineral
resources or mineral reserves depending on the results of this
additional work and analysis, and other technical and/or economic
reasons.
QUALITY ASSURANCE / QUALITY CONTROL
Vale do Curaçá Property
The Company is currently drilling on surface and
underground with core drill rigs using a combination of owned and
third-party contracted drill rigs. During the period from March
2020 through early June 2020 third-party drill rigs were operated
by Major Drilling do Brasil Ltda., Tamarama Sondagens Ltda., Layne
Christensen Co., and DrillGeo Geologia e Sondagem Ltda., all of
whom are independent of the Company. Drill core is logged,
photographed and split in half using a diamond core saw at the
secure core logging and storage facilities of Mineração Caraíba
S.A. (“MCSA”). Half of the drill core is retained on site and the
other half core is used for analysis, with samples collected on
one-meter sample intervals unless an interval crosses a geological
contact. Reverse circulation cuttings are split at the drill rig
using one-meter sample intervals. All sample preparation is
performed in MCSA’s secure on-site laboratory. Total copper is
determined using a nitric-hydrochloric acid digestion and Atomic
Absorption Spectrometry (“AAS”) and/or Titration. Oxide copper
values are determined using sulfuric acid digestion followed by
AAS. All sample results during the period have been monitored
through a quality assurance – quality control (“QA/QC”) program
that includes the insertion of certified standards, blanks, and
pulp and reject duplicate samples. Regular check-assays are
submitted to ALS Brasil Ltda’s facility located in Vespasiano,
Minas Gerais, Brazil, at a rate of approximately 5%. ALS Brasil
Ltda is a subsidiary of ALS Limited and is independent of the
Company.
All nickel, cobalt, gold and PGM results, where
applicable, are prepared and analyzed by ALS Limited’s facilities
located in Lima, Peru and Vancouver, British Columbia. Gold,
platinum and palladium values are calculated by ALS Global’s
facility in Lima, Peru using acid digestion and inductively coupled
plasma atomic emission spectroscopy (“ICP-AES”). Nickel and cobalt
values are determined at the same facility using acid digestion
followed by ICP-AES and inductively coupled plasma mass
spectroscopy (“ICP-MS”) plus AAS for assay values above 1%. Rhodium
values are determined by ALS Global’s facility in Vancouver,
British Columbia using fire assay and ICP-MS. ALS Global is
independent of the Company.
NX Gold Mine
The Company is currently drilling on surface
with third-party contracted core drill rigs. During the period from
March 2020 through early June 2020 third-party drill rigs were
operated by Servitec Foraco Sondagem S.A. who is independent of the
Company. Drill core is logged, photographed and split in half using
a diamond core saw at NX Gold’s secure core logging and storage
facilities. Half of the drill core is retained on site and the
other half core is used for analysis, with samples collected on
half-meter sample intervals for quartz vein and one-meter intervals
in surrounding rock unless such interval crosses a geological
contact. Samples are sent to ALS Brasil Ltda.’s laboratory in
Goiânia (Brazil) for preparation and are analyzed by the certified
laboratory of ALS Peru S.A., whom are independent of the Company.
During the period, gold content has been determined by both fire
assay and screen fire assay. All sample results during the period
have been monitored through a QA/QC program that includes the
insertion of certified standards, blanks, and pulp and reject
duplicate samples at a rate of one standard, one blank, and one
duplicate pulp sample per every 20 samples for a blended rate of
approximately 5%.
Emerson Ricardo Re, MSc, MBA, MAusIMM (CP) (No.
305892), Registered Member (No. 0138) (Chilean Mining Commission)
and Resource Manager of the Company who is a “qualified person”
within the meanings of NI 43-101, has reviewed and approved the
disclosure of technical information, including verification of the
sampling, analytical and testing data in this press release.
Quarterly reviews entail sampling and laboratory procedure review
as well as verification of original assay certificates associated
with a selection of samples from Company’s internal database
included in this press release.
ABOUT ERO COPPER CORP
Ero Copper Corp, headquartered in Vancouver,
B.C., is focused on copper production growth from the Vale do
Curaçá Property, located in Bahia, Brazil. The Company’s primary
asset is a 99.6% interest in the Brazilian copper mining company,
MCSA, 100% owner of the Vale do Curaçá Property with over 40 years
of operating history in the region. The Company currently
mines copper ore from the Pilar and Vermelhos underground mines. In
addition to the Vale do Curaçá Property, MCSA owns 100% of the Boa
Esperanҫa development project, an IOCG-type copper project located
in Pará, Brazil and the Company, owns 97.6% of the NX Gold Mine, an
operating gold and silver mine located in Mato Grosso,
Brazil. Additional information on the Company and its
operations, including Technical Reports on the Vale do Curaçá, Boa
Esperanҫa and NX Gold properties, can be found on the Company’s
website (www.erocopper.com) and on SEDAR (www.sedar.com).
ERO COPPER CORP. |
|
Signed: “David Strang” |
For further information contact: |
David Strang, President &
CEO |
Makko DeFilippo, Vice President, Corporate Development |
|
(604) 429-9244 |
|
info@erocopper.com |
CAUTION REGARDING FORWARD LOOKING INFORMATION AND STATEMENTS This
Press Release contains “forward-looking information” within the
meaning of applicable Canadian securities laws. Forward-looking
information includes statements that use forward-looking
terminology such as “may”, “could”, “would”, “will”, “should”,
“intend”, “target”, “plan”, “expect”, “budget”, “estimate”,
“forecast”, “schedule”, “anticipate”, “believe”, “continue”,
“potential”, “view” or the negative or grammatical variation
thereof or other variations thereof or comparable terminology. Such
forward-looking information includes, without limitation,
statements with respect to the estimation of mineral reserves and
mineral resources, the significance of any particular exploration
program or result and the Company’s expectations for current and
future exploration plans including, but not limited to, planned
areas of additional exploration, the significance of any drill
results or new discoveries and targets, including without
limitation extensions of defined mineralized zones, possibilities
for mine life extensions or continuity of high-grade
mineralization, the recoverable value of any metals other than
copper, further extensions and expansion of mineralization near the
Company’s existing operations and throughout the Curaçá Valley or
the NX Gold Mine and the impact of the COVID-19 pandemic on the
Company’s planned drill programs. Forward-looking information is
not a guarantee of future performance and is based upon a number of
estimates and assumptions of management in light of management’s
experience and perception of trends, current conditions and
expected developments, as well as other factors that management
believes to be relevant and reasonable in the circumstances, as of
the date of this Press Release including, without limitation,
assumptions about: favourable equity and debt capital markets; the
ability to raise any necessary additional capital on reasonable
terms to advance the production, development and exploration of the
Company’s properties and assets; future prices of copper and other
metal prices; the timing and results of exploration and drilling
programs; the accuracy of any mineral reserve and mineral resource
estimates; the geology of the Vale do Curaçá Property, NX Gold Mine
and the Boa Esperanҫa Property being as described in the technical
reports for these properties; production costs; the accuracy of
budgeted exploration and development costs and expenditures; the
price of other commodities such as fuel; future currency exchange
rates and interest rates; operating conditions being favourable
such that the Company is able to operate in a safe, efficient and
effective manner; work force continues to remain healthy in the
face of prevailing epidemics, pandemics or other health risks;
political and regulatory stability; the receipt of governmental,
regulatory and third party approvals, licenses and permits on
favourable terms; obtaining required renewals for existing
approvals, licenses and permits on favourable terms; requirements
under applicable laws; sustained labour stability; stability in
financial and capital goods markets; availability of equipment;
positive relations with local groups and the Company’s ability to
meet its obligations under its agreements with such groups; and
satisfying the terms and conditions of the Company’s current loan
arrangements. While the Company considers these assumptions to be
reasonable, the assumptions are inherently subject to significant
business, social, economic, political, regulatory, competitive and
other risks and uncertainties, contingencies and other factors that
could cause actual actions, events, conditions, results,
performance or achievements to be materially different from those
projected in the forward-looking information. Many assumptions are
based on factors and events that are not within the control of the
Company and there is no assurance they will prove to be correct.
Furthermore, such forward-looking information involves a variety of
known and unknown risks, uncertainties and other factors which may
cause the actual plans, intentions, activities, results,
performance or achievements of the Company to be materially
different from any future plans, intentions, activities, results,
performance or achievements expressed or implied by such
forward-looking information. Such risks include, without limitation
the risk factors listed under the heading “Risk Factors” in the
Annual Information Form of the Company for the year ended December
31, 2019, dated March 12, 2020. Although the Company has attempted
to identify important factors that could cause actual actions,
events, conditions, results, performance or achievements to differ
materially from those described in forward-looking information,
there may be other factors that cause actions, events, conditions,
results, performance or achievements to differ from those
anticipated, estimated or intended. The Company cautions that the
foregoing lists of important assumptions and factors are not
exhaustive. Other events or circumstances could cause actual
results to differ materially from those estimated or projected and
expressed in, or implied by, the forward-looking information
contained herein. There can be no assurance that forward-looking
information will prove to be accurate, as actual results and future
events could differ materially from those anticipated in such
information. Accordingly, readers should not place undue reliance
on forward-looking information. Forward-looking information
contained herein is made as of the date of this press release and
the Company disclaims any obligation to update or revise any
forward-looking information, whether as a result of new
information, future events or results or otherwise, except as and
to the extent required by applicable securities laws. GENERAL
Information of a scientific or technical nature in respect of the
Vale do Curaçá Property included in this press release is based
upon the Vale do Curaçá technical report entitled “2019 Updated
Mineral Resources and Mineral Reserves Statements of Mineração
Caraíba’s Vale do Curaçá Mineral Assets, Curaçá Valley”, dated
November 25, 2019 with an effective date of September 18, 2019,
prepared by Rubens Jose De Mendonça, MAusIMM, of Planminas –
Projetos e Consultoria em Mineraҫão Ltda. and Porfirio Cabaleiro
Rodrigues, MAIG, Leonardo de Moraes Soares, MAIG, and Bernardo
Horta de Cerqueira Viana, MAIG, all of GE21 Consultoria Mineral
Ltda., whom are independent qualified persons under NI 43-101.
Information of a scientific or technical nature in respect of the
NX Gold Mine included in this press release is based upon the NX
Gold Mine technical report entitled “Mineral Resource and Mineral
Reserve Estimate of the NX Gold Mine, Nova Xavantina”, dated
February 3, 2020 with an effective date of September 30, 2019,
prepared by Porfirio Cabaleiro Rodrigues, MAIG, Leonardo de Moraes
Soares, MAIG, and Paulo Roberto Bergmann, FAusIMM, all of GE21
Consultoria Mineral Ltda., whom are independent qualified persons
under NI 43-101. Please see the relevant Technical Reports filed on
the Company’s profile at www.sedar.com, for details regarding the
data verification undertaken with respect to the scientific and
technical information included in this press release regarding the
Vale do Curaçá Property and the NX Gold Mine for additional details
regarding the related exploration information, including
interpretations, the QA/QC employed, sample, analytical and testing
results and for additional details regarding the Mineral Resource
and Mineral Reserve estimates discussed herein. Cautionary Notes
Regarding Mineral Resource and Reserve Estimates In accordance with
applicable Canadian securities regulatory requirements, all mineral
reserve and mineral resource estimates of the Company disclosed or
incorporated by reference in this press release have been prepared
in accordance with NI 43-101 and are classified in accordance with
the CIM Standards. Mineral resources which are not mineral reserves
do not have demonstrated economic viability. Pursuant to the CIM
Standards, mineral resources have a higher degree of uncertainty
than mineral reserves as to their existence as well as their
economic and legal feasibility. Inferred mineral resources, when
compared with Measured or Indicated mineral resources, have the
least certainty as to their existence, and it cannot be assumed
that all or any part of an Inferred mineral resource will be
upgraded to an Indicated or Measured mineral resource as a result
of continued exploration. Pursuant to NI 43-101, Inferred mineral
resources may not form the basis of any economic analysis.
Accordingly, readers are cautioned not to assume that all or any
part of a mineral resource exists, will ever be converted into a
mineral reserve, or is or will ever be economically or legally
mineable or recovered. |
A PDF accompanying this announcement is available
at: http://ml.globenewswire.com/Resource/Download/f1149e3f-12ba-4547-8d3d-c3f5a5ef3792
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