Ero Copper Corp. (the “Company”)
(TSX:
ERO) is pleased to announce the release of its 2020
updated National Instrument 43-101 Standards of Disclosure for
Mineral Projects (“NI 43-101”) compliant mineral reserve and
resource estimate along with updated life of mine (“LOM”)
production, capital and operating cost projections on its 99.6%
owned Vale do Curaçá Property (herein referred to as the “Curaçá
Valley”) located in Bahia State, Brazil.
Within the Curaçá Valley LOM production plan,
for the 2020 update, the Company has included production, capital
and operating cost projections based upon the mineral reserves
derived from the Measured and Indicated mineral resources from
within the Deepening Extension Zone of the Pilar Mine (the
“Deepening Extension Project”). In addition, the Company has
included an independent preliminary economic assessment based upon
the Inferred mineral resources within the Deepening Extension Zone
of the Pilar Mine (the “Deepening Inferred Project”), that shows
the expected synergies associated with utilizing the infrastructure
that will be built in support of the Deepening Extension Project,
to illustrate the potential of the Deepening Extension Zone.
Highlights of the 2020 update include:
- Significant increase in contained
copper within the mineral reserves and resources of the Pilar Mine
with the inclusion of the Deepening Extension Zone. Proven and
Probable mineral reserves, at the same long-term copper price
assumption of US$2.75 per pound, increased by 43%, while Measured
and Indicated, and Inferred Resources increased by 28% and 155%,
respectively. The mineralized extent of the Deepening Extension
Zone has yet to be fully defined and remains open to the north,
east and to depth.
- Overall Curaçá Valley contained
copper within the Proven and Probable mineral reserves, Measured
and Indicated, and Inferred mineral resources increased by 23%, 29%
and 62% respectively, inclusive of the Deepening Extension
Zone.
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Summary, 2020 Update(1,2) |
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Year-on-Year Change |
|
Tonnes (000s) |
Grade (Cu %) |
Contained Cu (kt) |
|
Contained Cu (kt) |
(%) |
Deepening Extension Zone, Pilar
Mine |
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|
Mineral
Reserves |
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|
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|
|
|
|
Proven |
- |
- |
- |
|
- |
n/a |
|
Probable |
7,432 |
1.68 |
125 |
|
101 |
421% |
|
Proven &
Probable |
7,432 |
1.68 |
125 |
|
101 |
421% |
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Mineral Resources |
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Measured |
- |
- |
- |
|
- |
n/a |
|
Indicated |
7,527 |
1.86 |
140 |
|
110 |
373% |
|
Measured &
Indicated |
7,527 |
1.86 |
140 |
|
110 |
373% |
|
Inferred |
4,476 |
2.12 |
95 |
|
70 |
284% |
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Pilar Mine (including Deepening Extension
Zone) |
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Mineral Reserves |
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Proven |
5,835 |
1.41 |
82 |
|
(15) |
(16%) |
|
Probable |
15,157 |
1.38 |
209 |
|
103 |
98% |
|
Proven &
Probable |
20,992 |
1.39 |
291 |
|
88 |
43% |
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|
|
|
Mineral
Resources |
|
|
|
|
|
|
|
Measured |
26,829 |
1.50 |
401 |
|
52 |
15% |
|
Indicated |
21,518 |
1.37 |
295 |
|
101 |
52% |
|
Measured & Indicated |
48,347 |
1.44 |
696 |
|
153 |
28% |
|
Inferred |
17,266 |
1.20 |
206 |
|
126 |
155% |
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Curaçá Valley, Total (including Pilar
Mine) |
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|
Mineral
Reserves |
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|
|
|
|
|
|
Proven |
21,464 |
1.06 |
228 |
|
(26) |
(10%) |
|
Probable |
28,990 |
1.06 |
308 |
|
126 |
69% |
|
Proven &
Probable |
50,454 |
1.06 |
536 |
|
100 |
23% |
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Mineral
Resources |
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|
|
|
|
|
|
Measured |
49,158 |
1.27 |
624 |
|
69 |
12% |
|
Indicated |
53,627 |
0.99 |
531 |
|
192 |
56% |
|
Measured &
Indicated |
102,786 |
1.12 |
1,155 |
|
260 |
29% |
|
Inferred |
39,201 |
1.00 |
391 |
|
149 |
62% |
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• |
LOM copper
production targeting average C1 cash costs at or below US$1.00 per
pound of copper is shown in the table below. The LOM
production plan includes ongoing production from the Vermelhos and
Pilar mines (including the Deepening Extension Project), open pit
production utilizing ore sorting from the N8/N9 and Siriema open
pit operations within the Vermelhos District and non-ore sorted
production from the Surubim District open pit operations of Surubim
and C12: |
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Q4 2020(1) |
2021 |
2022 |
2023 |
2024 |
2025 |
2026 |
2027 |
2028 |
2029 |
2030 |
2031 |
2032 |
2033 |
LOM Plan Cu Production (000s tonnes) |
9.2 |
43.0 |
42.9 |
45.1 |
48.9 |
46.3 |
46.2 |
43.9 |
46.0 |
37.8 |
26.3 |
15.3 |
12.3 |
17.3 |
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Deepening Inferred Project Cu Production (000s tonnes) |
- |
- |
- |
0.1 |
0.3 |
0.8 |
2.1 |
4.0 |
3.9 |
11.4 |
23.2 |
17.4 |
8.0 |
7.7 |
__________________(1) Q4 2020 production
outlines the mineral reserve schedule for the three months from the
effective date of October 1, 2020 to December 31, 2020. Please
refer to the detailed mineral reserve and mineral resource tables
of this press release, as detailed in the “Mineral Reserves, 2020”,
“Underground Mineral Resources, 2020”, and “Open Pit Mineral
Resources, 2020” sections of this press release, as well as the
“Technical and Scientific Information” below for additional
information on the stated mineral reserves and mineral
resources.(2) Presented mineral resources inclusive of mineral
reserves. Mineral resources that are not mineral reserves do not
have a demonstrated economic viability. All figures have been
rounded to the relative accuracy of the estimates. Summed amounts
may not add due to rounding.
The Deepening Inferred Project is preliminary in
nature and based on the Inferred mineral resources of the Deepening
Extension Zone which are considered too speculative geologically to
have the economic considerations applied to them that would enable
them to be categorized as mineral reserves, and there is no
certainty that the Deepening Inferred Project will be realized.
Mineral resources that are not mineral reserves do not have a
demonstrated economic viability. Please refer to the “Deepening
Inferred Project” section of this press release for additional
technical and scientific information related to the Deepening
Inferred Project
- Integration of ore sorting into the
Company’s LOM plan for the Vermelhos District open pit deposits of
N8/N9 and Siriema contribute to improved mill head-grades and
maintaining first-quartile C1 cash costs over the LOM.
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Ore Sorting Highlights |
|
Vermelhos District, Mining (including
fines) |
|
Open Pit Production / Sort Feed (000s tonnes) |
19,968 |
Copper Grade, Sort Feed (% Cu) |
0.56% |
|
|
Sorted Production, Sent to Mill (including
fines) |
|
Sort Product, Sent to Mill (000s tonnes) |
8,891 |
Copper Grade, Mill Feed (% Cu) |
1.18% |
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|
- With the inclusion of the Deepening
Extension Project at the Pilar Mine, a significant increase in
production from the current 1.2 Mtpa ore mined to approximately 2.2
Mtpa ore mined is planned. The expansion of the Pilar is supported
by the installation of a new external shaft, scheduled to commence
construction in Q3 2021, that will not only support the planned
increases in copper production at the Pilar Mine but has also been
designed to support the potential for longer term copper production
increases from both the Deepening Inferred Project and as
additional mineralization is defined. In keeping with the
Company’s return on invested capital focus, the expansion of the
mine and development of the infrastructure in support of the
Deepening Extension Project is being delivered at a low
capital-intensity ratio of approximately US$1,677 per tonne of
incremental copper production delivered over the LOM.
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LOM Plan & Pilar Deepening Highlights |
LOM Plan including Deepening Extension Project, Pilar
Mine |
Deepening Inferred Project, Pilar Mine |
Average Mill Throughput / Production (Mtpa) |
3.0 |
n/a |
Peak Mill Throughput / Production (Mtpa) |
4.2 |
n/a |
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Total Tonnes Processed (000s tonnes) |
39,378 |
4,203 |
Average Copper Head Grade (% Cu) |
1.33% |
2.01% |
Average Metallurgical Recoveries (%) |
91.5% |
93.2% |
Total Copper Production (000s tonnes) |
480.8 |
78.9 |
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Average LOM C1 Cash Costs (US$ per lb. Cu)[1] |
US$0.97 |
US$0.25 |
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Total LOM Capital Cost (USD million) |
US$553.9 |
- |
Pilar Mine Deepening Capital Cost Only (USD million) |
US$190.3 |
US$27.8 |
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Pilar Mine Deepening Capital Intensity (US$ per tonne of
Cu) [2] |
US$1,677 |
US$353 |
Additional LOM Plan & Pilar
Deepening Highlight Notes:
- C1 Cash Costs expressed in US
Dollars (“USD”), converted at a USD to Brazilian Real (“BRL”)
foreign exchange rate of 5.00, assumes gold and silver price of
$1,750 and $18.00 per ounce, respectively. Fixed processing costs
and operational support for the Curaçá Valley are allocated to the
Company’s LOM Plan.
- Capital costs for capital intensity
figures converted to USD at a USD:BRL foreign exchange rate of
5.00. Capital intensity figures based on recovered copper assuming
average LOM metallurgical recovery, as disclosed in this
table.
The Deepening Inferred Project is preliminary in
nature and based on the Inferred mineral resources of the Deepening
Extension Zone which are considered too speculative geologically to
have the economic considerations applied to them that would enable
them to be categorized as mineral reserves, and there is no
certainty that the Deepening Inferred Project will be realized.
Mineral resources that are not mineral reserves do not have a
demonstrated economic viability. Please refer to the “Deepening
Inferred Project” section of this press release for additional
technical and scientific information related to the Deepening
Inferred Project.
Commenting on the update, David Strang,
President and CEO stated, “Our 2020 updated mineral reserve and
resource estimate and LOM plan reflects a considerable effort
across our organization to deliver on several key initiatives that
we commenced late last year. All of these initiatives were
delivered under our corporate philosophy of maintaining a high
return on invested capital for our shareholders and targeting LOM
operating costs at or below US$1.00 per pound of copper.
First, and most significantly, this includes the
delivery of the Deepening Extension Project at the Pilar Mine from
initial concept in late 2019, through 12 months of aggressive
drilling, and extensive engineering and design work undertaken by
our technical teams with the support of a large, diversified group
of external consultants. While the Deepening Extension Project,
technically, remains a mere extension of our existing operations at
Pilar, the inclusion of the new shaft along with updated
ventilation and cooling provides us with increased flexibility to
not only increase overall production from Pilar but also improve
the operating environment for our operations teams working in the
mine, thereby increasing operating time at the working
face.
Further, we believe the new shaft will support
production from the deeper parts of the Pilar mine well beyond the
currently defined mineral reserves within the Deepening Extension
Project in this update. As we have stated, mineralization in
the Deepening Extension Zone remains open to the north, to depth
and to the east best evidenced by the high-grade Inferred mineral
resources outlined in this update. These resources have been
categorized as Inferred resources primarily as a result of
variability in drill hole spacing due to the acute angles and
limited availability of drill stations. During 2021, we will be
developing exploration drives that we expect will enable holes to
be drilled at angles that will allow for upgrading of these
Inferred resources to the Measured and Indicated categories. These
exploration drives will also assist in our ability to evaluate
potential extensions to the current known limits of mineralization
of the Deepening Extension Zone.
The second initiative reflected in our LOM
update is the successful integration of ore-sorting into our
operations following the completion of a comprehensive trial
campaign earlier this year. The integration of ore-sorting within
our operations will allow us to remove a significant amount of
waste material mined, deliver feed to the plant at significantly
higher copper grades and thereby lower transportation and
processing costs while allowing our operations to use less water
and power, and generate significantly less tailings. The
integration of ore-sorting, like the Deepening Extension Project,
is in-line with our corporate philosophy of maintaining high
returns on invested capital, low capital intensity and first
quartile operating costs.
With our updated LOM plan now in place, we have
a solid production platform on which we can continue to grow.
Relative to the mill’s original design capacity of 5.5 million
tonnes per annum, our updated LOM plan retains excess capacity of
up to 1.3 million tonnes per annum, which continues to provide
flexibility to augment our near- to medium-term production profile
with new discoveries. In 2021, we will be focusing our exploration
efforts on defining new mineral resources and reserves within the
Southern Vermelhos Corridor to extend the operational life at the
Vermelhos Mine beyond 2026. We will also be focusing on upgrading
the Inferred resources within the Deepening Extension Zone while
continuing to define extensions of mineralization to the north, to
depth and to the east as well as refocus some of our exploration
efforts at Pilar on the West Limb to further define down plunge
extensions. And of course, we will continue to advance our regional
exploration programs in a post-Covid environment that will allow
our geological team and consultants greater freedom to travel to
site on a regular basis.”
The 2020 updated mineral reserve and resource
estimate for the underground and open pit deposits and mines of the
Curaçá Valley are shown in the tables below:
Mineral Reserves, 2020
|
Classification |
Tonnage |
Grade |
Cu Contained |
(000 tonnes) |
(Cu %) |
(000 tonnes) |
Reserves, Underground |
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Deepening Extension Zone, Pilar UG Mine (Pilar
Mine below Level -965) |
Proven |
- |
- |
- |
Probable |
7,432 |
1.68 |
125 |
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Pilar UG Mine Ex-Deepening Extension Zone (Pilar
Mine above Level -965) |
Proven |
5,835 |
1.41 |
82 |
Probable |
7,725 |
1.09 |
84 |
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Vermelhos UG Mine |
Proven |
3,359 |
2.09 |
70 |
Probable |
1,844 |
1.23 |
23 |
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Surubim District, Underground |
Proven |
513 |
1.09 |
6 |
(C12 Underground) |
Probable |
515 |
0.83 |
4 |
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Total
Proven |
|
9,707 |
1.63 |
158 |
Total Probable |
|
17,516 |
1.34 |
236 |
Total Proven
& Probable, Underground |
|
27,224 |
1.45 |
394 |
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Reserves, Open
Pit |
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N8/N9 OP Mine (Vermelhos District) |
Proven |
7,355 |
0.55 |
40 |
Probable |
8,012 |
0.54 |
44 |
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Siriema OP Mine (Vermelhos District) |
Proven |
- |
- |
- |
Probable |
3,011 |
0.88 |
26 |
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Surubim District, Open Pit (Surubim &
C12) |
Proven |
2,778 |
0.82 |
23 |
Probable |
123 |
0.55 |
1 |
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Suçuarana South OP Mine (Pilar District) |
Proven |
1,623 |
0.42 |
7 |
Probable |
328 |
0.46 |
2 |
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Total
Proven |
|
11,757 |
0.60 |
70 |
Total Probable |
|
11,474 |
0.63 |
72 |
Total Proven
& Probable, Open Pit |
|
23,230 |
0.61 |
142 |
Mineral Reserve Notes:
- Mineral reserve effective date of
October 1, 2020. All figures have been rounded to the relative
accuracy of the estimates. Summed amounts may not add due to
rounding.
- Mineral reserve estimates were
prepared in accordance with the Canadian Institute of Mining,
Metallurgy and Petroleum (“CIM”) Definition Standards for Mineral
Resources and Mineral Reserves, adopted by the CIM Council on May
10, 2014 (the “CIM Standards”), and the CIM Estimation of Mineral
Resources and Mineral Reserves Best Practice Guidelines, adopted by
CIM Council on November 23, 2003 (the “CIM Guidelines”), using
geostatistical and/or classical methods, plus economic and mining
parameters appropriate for the deposit. Mineral reserves are based
on a long-term copper price of US$2.75 per pound (“lb”), and a
USD:BRL foreign exchange rate of 4.27, except for the C12 (Surubim
District) and Suçuarana (Pilar District) open pit mines, whose
design was not changed in 2020, and continued to assume a 3.70
USD:BRL foreign exchange rate. Mineral reserves are the economic
portion of the Measured and Indicated mineral resources. Mining
dilution and recovery factors vary for specific mineral reserve
sources and are influenced by factors such as deposit type, deposit
shape, stope orientation and selected mining method. Inferred
resource blocks, where unavoidably mined, were assigned zero grade.
Dilution occurring from Measured & Indicated resource blocks
was assigned grade based upon the mineral resource grade of the
blocks included in the dilution envelope. Please see “Technical and
Scientific Information” for additional information on the stated
mineral reserves.
Underground Mineral Resources, 2020
Underground Mine / Deposit |
Classification |
Tonnage |
Grade |
Cu Contained |
(000 tonnes) |
(Cu %) |
(000 tonnes) |
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Deepening Extension Zone, Pilar Mine (Pilar Mine below Level
-965) |
Measured |
- |
- |
- |
Indicated |
7,527 |
1.86 |
140.0 |
Measured &
Indicated |
7,527 |
1.86 |
140.0 |
Inferred |
4,476 |
2.12 |
94.8 |
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Pilar Mine Ex-Deepening Extension Zone (Pilar Mine above Level
-965) |
Measured |
26,829 |
1.50 |
401.3 |
Indicated |
13,991 |
1.11 |
154.8 |
Measured &
Indicated |
40,820 |
1.36 |
556.0 |
Inferred |
12,790 |
0.87 |
111.6 |
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Pilar District, Other Underground (R75, Sucuarana) |
Measured |
816 |
0.72 |
5.9 |
Indicated |
1,045 |
0.89 |
9.3 |
Measured &
Indicated |
1,861 |
0.82 |
15.2 |
Inferred |
742 |
0.60 |
4.5 |
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Pilar District Underground Total |
Measured |
27,645 |
1.47 |
407.2 |
Indicated |
22,563 |
1.35 |
304.2 |
Measured &
Indicated |
50,208 |
1.42 |
711.3 |
Inferred |
18,008 |
1.17 |
210.9 |
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Vermelhos Mine |
Measured |
3,389 |
2.80 |
94.9 |
Indicated |
4,514 |
1.19 |
53.7 |
Measured &
Indicated |
7,903 |
1.88 |
148.6 |
Inferred |
4,128 |
0.86 |
35.5 |
Vermelhos District, Other Underground (Siriema, N8/N9) |
Measured |
1,465 |
0.79 |
11.6 |
Indicated |
4,153 |
0.80 |
33.4 |
Measured &
Indicated |
6,676 |
0.91 |
61.1 |
Inferred |
7,689 |
0.88 |
67.9 |
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Vermelhos District Underground Total |
Measured |
4,402 |
2.33 |
102.4 |
Indicated |
8,667 |
1.00 |
87.1 |
Measured &
Indicated |
13,069 |
1.45 |
189.5 |
Inferred |
13,781 |
0.93 |
127.6 |
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Surubim District, Other Underground (Surubim, C12, Cercado Velho,
Lagoa da Mina, Terra do Sal) |
Measured |
1,841 |
0.96 |
17.7 |
Indicated |
3,062 |
0.96 |
29.3 |
Measured &
Indicated |
4,904 |
0.96 |
47.0 |
Inferred |
4,482 |
0.92 |
41.3 |
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Surubim District Underground Total |
Measured |
1,841 |
0.96 |
17.7 |
Indicated |
3,062 |
0.96 |
29.3 |
Measured &
Indicated |
4,904 |
0.96 |
47.0 |
Inferred |
4,482 |
0.92 |
41.3 |
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Total, Underground |
Measured |
33,888 |
1.56 |
527.3 |
Indicated |
34,292 |
1.23 |
420.6 |
Measured &
Indicated |
68,180 |
1.39 |
947.9 |
Inferred |
36,271 |
1.05 |
379.8 |
Underground Mineral Resource Notes:
- Mineral resource effective date
varies by deposit, with an effective date of August 8, 2020 except
for P1P2 (July 24, 2020), R75 (July 9, 2019) and Suçuarana (July 3,
2020) within the Pilar District; Vermelhos Mine (July 29 2020),
Siriema and N8 (July 4, 2020), N9 (July 9, 2019) within the
Vermelhos District; and Surubim District effective date of July 9,
2019 except for Terra do Sal (July 3, 2020).
- Presented mineral resources
inclusive of mineral reserves. All figures have been rounded to the
relative accuracy of the estimates. Summed amounts may not add due
to rounding.
- Mineral resources have been
constrained within newly developed 3D lithology models applying a
0.45% and 0.20% copper grade envelope for high and marginal grade,
respectively. Within these envelopes, mineral resources for
underground deposits were constrained using varying stope
dimensions of up to 20m by 10m by 35m applying a 0.51% copper
cut-off grade, as well as a 0.32% copper marginal cut-off grade.
Mineral resources have been estimated using ordinary kriging inside
5m by 5m by 5m block sizes. The mineral resource estimates were
prepared in accordance with the CIM Standards, and the CIM
Guidelines, using geostatistical and/or classical methods, plus
economic and mining parameters appropriate to the deposit. Please
see “Technical and Scientific Information” below for additional
information on the stated mineral resources.
Open Pit Mineral Resources, 2020
Open Pit Mine / Deposit |
Classification |
Tonnage |
Grade |
Cu Contained |
(000 tonnes) |
(Cu %) |
(000 tonnes) |
|
|
|
|
|
Pilar District, Open Pit (R22W, Suçuarana, R75) |
Measured |
3,172 |
0.49 |
15.4 |
Indicated |
365 |
0.45 |
1.6 |
Measured &
Indicated |
3,537 |
0.48 |
17.0 |
Inferred |
351 |
0.47 |
1.6 |
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Pilar District Open Pit Total |
Measured |
3,172 |
0.49 |
15.4 |
Indicated |
365 |
0.45 |
1.6 |
Measured &
Indicated |
3,537 |
0.48 |
17.0 |
Inferred |
351 |
0.47 |
1.6 |
|
|
|
|
|
Siriema Deposit |
Measured |
- |
- |
- |
Indicated |
2,956 |
0.92 |
27.1 |
Measured &
Indicated |
2,956 |
0.92 |
27.1 |
Inferred |
187 |
0.99 |
1.9 |
|
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N8/N9 Deposits |
Measured |
7,420 |
0.55 |
41.1 |
Indicated |
13,562 |
0.48 |
64.9 |
Measured &
Indicated |
20,982 |
0.51 |
106.0 |
Inferred |
858 |
0.40 |
3.4 |
|
|
|
|
|
Vermelhos North |
Measured |
- |
- |
- |
Indicated |
- |
- |
- |
Measured &
Indicated |
- |
- |
- |
Inferred |
121 |
0.88 |
1.1 |
|
|
|
|
|
Vermelhos District Open Pit Total |
Measured |
7,420 |
0.55 |
41.1 |
Indicated |
16,518 |
0.56 |
92.0 |
Measured &
Indicated |
23,938 |
0.56 |
133.1 |
Inferred |
1,166 |
0.55 |
6.4 |
|
|
|
|
|
Surubim Mine |
Measured |
2,340 |
0.93 |
21.7 |
Indicated |
73 |
0.84 |
0.6 |
Measured &
Indicated |
2,413 |
0.92 |
22.3 |
Inferred |
3 |
0.80 |
0.0 |
|
|
|
|
|
C12 Deposit |
Measured |
1,272 |
0.94 |
11.9 |
Indicated |
942 |
0.70 |
6.6 |
Measured &
Indicated |
2,214 |
0.84 |
18.6 |
Inferred |
154 |
0.56 |
0.9 |
|
|
|
|
|
Surubim District, Other Open Pit (Cercado Velho, Lagoa da Mina,
Terra do Sal) |
Measured |
1,067 |
0.61 |
6.5 |
Indicated |
1,436 |
0.67 |
9.6 |
Measured &
Indicated |
2,503 |
0.64 |
16.1 |
Inferred |
1,255 |
0.15 |
1.9 |
|
|
|
|
|
Surubim District Open Pit Total |
Measured |
4,678 |
0.86 |
40.1 |
Indicated |
2,452 |
0.69 |
16.8 |
Measured &
Indicated |
7,130 |
0.80 |
56.9 |
Inferred |
1,413 |
0.20 |
2.8 |
|
|
|
|
|
Total, Open Pit |
Measured |
15,270 |
0.63 |
96.6 |
Indicated |
19,335 |
0.57 |
110.5 |
Measured &
Indicated |
34,605 |
0.60 |
207.0 |
Inferred |
2,930 |
0.37 |
10.8 |
Open Pit Mineral Resource
Notes:
- Mineral resource effective date
varies by deposit, with an effective date of August 8, 2020, except
for Suçuarana (July 3, 2020), R22W and R75 (July 9, 2019) within
the Pilar District; Siriema and N8 (July 4, 2020), N9 and Vermelhos
North (July 9, 2019) within the Vermelhos District; and an
effective date of July 9, 2019 for the Surubim District except
Terra do Sal (July 3, 2020). Presented mineral resources inclusive
of mineral reserves. All figures have been rounded to the relative
accuracy of the estimates. Summed amounts may not add due to
rounding.
- Mineral resources have been
constrained within newly developed 3D lithology models using a
0.21% copper cut-off grade for open pit deposits. Mineral resources
have been estimated using ordinary kriging inside 5m by 5m by 5m
block sizes. The mineral resource estimates were prepared in
accordance with the CIM Standards, and the CIM Guidelines, using
geostatistical and/or classical methods, plus economic and mining
parameters appropriate to the deposit. Please see “Technical and
Scientific Information” below for additional information on the
stated mineral resources.
Mineral resources which are not mineral reserves
do not have demonstrated economic viability.
UPDATED LOM PRODUCTION PLAN, OPERATING &
CAPITAL COSTS
The Company’s updated LOM production plan, based
upon updated mineral reserves within the Curaçá Valley, is
highlighted by the inclusion of the Deepening Extension Project and
integration of ore sorting into the Company’s operations. Copper
production over the updated LOM plan totals approximately 481,000
tonnes of copper in concentrate, at average C1 cash costs of $0.97
per lb. of copper produced.
The tables below outline the updated production
plan for the Curaçá Valley, as well as associated capital and
operating cost projections, which do not include estimates for the
Deepening Inferred Project which can be found later in this press
release. Amounts are presented in thousands of Brazilian Real
(“BRL”). Where applicable, C1 cash costs, as defined by the Company
are presented in US Dollars (“USD”) per pound of copper produced,
based on a USD:BRL foreign exchange rate of 5.00, and by-product
gold and silver prices of $1,750 and $18.00 per ounce,
respectively.
Updated LOM production plan, operating and
capital cost projections can be downloaded in table format:
https://www.globenewswire.com/NewsRoom/AttachmentNg/a2466a64-41dc-41dc-b707-3eb9ebd81571
https://www.globenewswire.com/NewsRoom/AttachmentNg/ef0be384-d186-4b23-8532-d9062195de30
C1 Cash Cost & Capital Expenditure
Notes:
- Presented C1 Cash Costs assumes
USD:BRL FX rate of 5.00, gold price of US$1,750 per ounce and
silver price of US$18.00 per ounce.
- C1 Cash Cost of copper produced is
a non-IFRS measure, as more particularly discussed under the
“Non-IFRS Measures” section of this press release.
- Capital expenditures shown do not
include discretionary greenfield or brownfield exploration.
MINERAL RESOURCE GROWTH
The following section discusses the updated
mineral reserve and resource estimates as they relate to the Pilar
and Vermelhos Districts, and target areas for continued growth.
Relative comparisons of 2020 to 2019, where applicable, refers to
the 2020 updated mineral resource and reserve estimate discussed
herein and the 2019 Technical Report, respectively. A more fulsome
discussion of each of the deposits of the Curaçá Valley and the
installed infrastructure within each of the mineral districts can
be found in the 2019 Technical Report.
The mineral resources, planned development and
exploration target areas within the Pilar and Vermelhos Districts
outlined in this press release 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 Pilar
underground mine (which includes the zones of: Baraúna, the
Deepening Extension Zone, East Limb, MSB South, the West Limb,
P1P2N, R22 and P1P2W) as well as the open pit deposits of R75, and
Suçuarana. In total, contained copper within the Measured and
Indicated resource categories increased by approximately 166,000
tonnes of copper as compared to the 2019 Technical report, based on
30.8 million tonnes grading 1.37% copper of Measured mineral
resources and 23.0 million tonnes grading 1.33% copper of Indicated
mineral resources.
A major focus of the Company’s 2020 mineral
resource and reserve update was to extend the known limits of the
Pilar Mine at depth, targeting high-grade mineralization within the
Deepening Extension Zone. During the period from September 2019 to
August 2020, a total of 19,600 meters of drilling were completed in
support of this objective. In total, contained copper within the
Indicated mineral resource category of the Deepening Extension Zone
increased by approximately 110,000 tonnes of copper (comprised of
7.5 million tonnes grading 1.86% copper vs. 1.4 million tonnes
grading 2.19% copper as set out in the 2019 Technical Report).
Additionally, approximately 70,000 tonnes of additional contained
copper added within newly defined, high-grade, Inferred mineral
resources of the Deepening Extension Zone totalling 4.5 million
tonnes grading 2.12% copper, representing a 284% increase in
contained copper at a 14% improvement in grade (compared to 1.3
million tonnes grading 1.86% copper as set out in the 2019
Technical Report). A drill program focused on upgrading portions of
this new high-grade Inferred mineral resources within the Deepening
Extension Zone is underway. Recent drilling in this area is
highlighted by hole FC5367 that intercepted 29.9 meters grading
5.90% copper and FC5514 that intercepted 22.0 meters grading 2.14%
copper including 9.0 meters grading 3.22% copper (please refer to
the Company’s press releases dated June 23, 2020 and September 22,
2020 for additional details).
Based on a review of historical data, including
structural analysis and compilation work of all drill intercepts
and previously mined areas above 8.00% copper within the Pilar
Mine, the Company has developed an interpolated north-plunging
structural zone of high-grade potential extending to depth. Many of
the Company’s best holes drilled to date in the Deepening Extension
Zone are intercepts within this structural corridor. A long-section
of the Pilar Mine, including the interpolated zone and historical
drill intercepts above 8.00% copper is shown in Figure 1. Drilling
from underground and surface utilizing directional drilling
technology is currently underway to better evaluate mineralized
continuity of this high-grade target area.
Vermelhos District
The Vermelhos District encompasses the Vermelhos
underground mine, the N8/N9 and Siriema open pit deposits. In
total, contained copper within the Measured and Indicated resource
categories increased by approximately 72,000 tonnes of copper as
compared to the 2019 Technical report, based on 11.8 million tonnes
grading 1.21% copper of Measured mineral resources and 25.2 million
tonnes grading 0.71% copper of Indicated mineral resources.
The most significant increases in contained
copper within the Vermelhos District occurred within the N8/N9
deposit and Siriema, both near-surface and to depth, combined with
increases within the Vermelhos Mine, were more than sufficient to
offset mine depletion from 2019 to 2020. The underground additions
to Measured and Indicated mineral resources within the Vermelhos
District totaled 41,000 tonnes of contained copper based on 4.4
million tonnes grading 2.33% copper in Measured mineral resources
and 8.7 million tonnes grading 1.00% copper in Indicated mineral
resources. Contributions from the open pit deposits resulted in
additions of 32,000 tonnes of contained copper based on 7.4 million
tonnes grading 0.55% copper in Measured mineral resources and 16.5
million tonnes grading 0.56% in Indicated mineral resources.
Down-hole electromagnetic (“EM”) work, and
follow-up drilling performed in the third quarter of 2020
identified a new target zone of mineralization supportive of the
potential for multiple “stacked” mineralized structures being
present between the Siriema deposit and the Vermelhos Mine, a
distance of approximately 700 meters in strike-length. This new
zone, now known as the “Southern Vermelhos Corridor”, extends
approximately 700 meters in a north-south direction between the
Siriema deposit and UG1 mining area, approximately 300 meters on
east-west section and approximately 400 meters to depth. Drilling
within this zone is highlighted by FSI-40, which was extended from
its original length of 396 meters to 660 meters down-hole, and
intersected 10.0 meters grading 4.50% copper and 0.68% nickel
including 4.0 meters grading 8.53% copper and 1.25% nickel at the
location of an EM anomaly. The zone was confirmed with a second
hole, FSI-99, that intersected 13.2 meters grading 1.92% copper and
0.78% nickel including 2.5 meters grading 5.73% copper and 3.33%
nickel, representing some of the highest copper grades discovered
in the Vermelhos District outside of the Vermelhos Mine, and
highest nickel grades intercepted outside of the Siriema Keel Zone
to date. Extensional results along this zone are highlighted by
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 (please refer to the Company’s press release
dated June 23, 2020 and September 22, 2020 for additional details).
Five drill rigs are planned to be operating within the Southern
Vermelhos Corridor.
TECHNICAL AND SCIENTIFIC INFORMATION
Mineral Resources
Block model tonnage and grade estimates for the
Curaçá Valley were classified according to the CIM Standards and
the CIM Guidelines by Sr. Porfirio Cabaleiro Rodriguez, MAIG
(#3708), Mining Engineer and Director of GE21 Consultoria Mineral
Ltda. (“GE21”) who is an independent qualified person as such term
is defined under NI 43-101.
Mineral resources have been constrained within
newly developed 3D lithology models applying a 0.45% and 0.20%
copper grade envelope for high and marginal grade, respectively.
Within these envelopes, mineral resources for underground (“UG”)
deposits were constrained using varying stope dimensions of up to
20m by 10m by 35m applying a 0.51% copper cut-off grade, as well as
a 0.32% copper marginal cut-off grade. For open pit ("OP") deposits
a cut-off grade of 0.21% copper was applied. Mineral resources
are based on copper prices of US$2.90 per pound, net smelter return
(“NSR”) of 94.53%, average metallurgical recoveries of 90.7%,
processing costs of US$5.65 per tonne (run of mine), sorting costs
for open pit deposits of US$1.00 per tonne of sorter feed and
variable transportation costs to the mill (assuming an average 50%
mass recovery). These variable costs, per tonne shipped to the mill
are: Surubim District equal to US$4.61 per tonne; Suçuarana (Pilar
District) equal to US$2.73 per tonne; and Vermelhos District equal
to US$8.91 per tonne. Mining costs of US$3.10 and US$17.30 per
tonne were applied for open pit and underground deposits,
respectively. Mineral resources were estimated using ordinary
kriging within 5m by 5m by 5m block sizes. Mineral resources
associated with underground deposits were further constrained using
Datamine MSO tool varying stopes dimensions from 20m by 10m by 35m
to 5m by 5m by 5m. Mineral resources associated with open-pit
operations were limited using a Whittle (4.7.1) 3D optimized pit.
Mineral resources presented are shown inclusive of mineral
reserves.
A low-grade envelope using a cut-off grade of
0.20% copper for UG deposits was used to develop a dilution
envelope and development block model that was included to define
the grade of blocks within the dilution envelope in the planning
and design of stopes within the mineral resources and mineral
reserve estimate.
Mineral resource effective date varies by
deposit, with an effective date of August 8, 2020 except for P1P2
(July 24, 2020), R22W and R75 (July 9, 2019) and Suçuarana (July 3,
2020) within the Pilar District; Vermelhos Mine (July 29 2020),
Siriema and N8 (July 4, 2020), N9 and Vermelhos North (July 9,
2019) within the Vermelhos District; and Surubim District effective
date of July 9, 2019 except for Terra do Sal (July 3, 2020).
Presented mineral resources inclusive of mineral reserves. All
figures have been rounded to the relative accuracy of the
estimates. Summed amounts may not add due to rounding.
Mineral ReservesThe mineral
reserves for the Pilar, Vermelhos, and Surubim Districts are
derived from the Measured and Indicated mineral resources as
defined within the resource block models following the application
of economic and other modifying factors further described below.
Inferred mineral resources, where unavoidably mined within a
defined mining shape have been assigned zero grade. Dilution
occurring from Measured and Indicated resource blocks within the
mineral reserve plan was assigned grade based upon the
estimated mineral resource grade of the blocks included in the
dilution envelope. Mineral reserves were classified according to
the CIM Standards and the CIM Guidelines by Dr. Beck Nadar of BNA
Mining Solutions, in association with GE21, who is an independent
qualified person as such term is defined under NI 43-101.
Mineral reserve cost assumptions are based on
actual operating cost data during the 18-month period from January
1, 2019 to June 30, 2020. The USD:BRL rate of 4.27 was selected
based on the average rate during this same period.
A summary of the mineral reserve estimate
parameters is provided below:
Mining Costs (US$/tonne ore mined) |
|
Pilar UG Mine |
$23.52 |
|
Vermelhos UG Mine |
$21.95 |
|
C12 UG Mine |
$18.66 |
|
Surubim OP Mine |
$2.65 |
|
Suçuarana & C12 OP Mine |
$3.06 |
|
N8/N9 & Siriema OP Mines |
$2.17 |
|
|
|
|
Transportation Costs (US$/tonne to mill) |
|
|
Pilar Mine |
(none) |
|
Vermelhos Mine |
$10.96 |
|
Surubim OP Mine |
$5.48 |
|
C12 OP/UG Mine |
$5.98 |
|
Suçuarana mine |
$3.54 |
|
|
|
|
Processing Costs (US$/tonne milled) |
|
|
Pilar & Vermelhos Mines |
$7.41 |
|
Suçuarana & C12 OP/UG Mine |
$7.90 |
|
Surubim, Siriema & N8/N9 OP Mines |
$4.12 |
|
|
|
|
Metallurgical Recovery (average) |
|
|
Pilar UG Mine |
90.39 |
% |
Vermelhos UG Mine |
91.49 |
% |
N8/N9, Siriema, Suçuarana & C12 OP/UG Mines |
89.0 |
% |
Surubim OP Mine |
85.0 |
% |
|
|
LME Copper Price (US$/lb) |
$2.75 |
|
Net Smelter Return |
94.53 |
% |
Transport & Sales Costs (US$/tonne
copper) |
$82.15 |
|
CFEM Royalty (after tax) |
1.58 |
% |
Foreign Exchange Rate (USD:BRL) |
4.27 |
|
Reserve Parameters NoteAll
road-maintenance costs associated with the Curaçá Valley haul road
have been allocated to Vermelhos. Calculated differences between
open pit mining and processing costs are a result of additional
incurred costs related to contract mining vs. employee operated and
allocation of mining and processing administrative / fixed costs
between mines. Metallurgical recoveries vary by area as outlined.
G&A costs of US$4.16 per tonne were applied to the current
operating underground mining operations of Pilar and Vermelhos.
USD:BRL foreign exchange rate of 4.27 applied to all mines, except
Suçuarana and C12 OP/UG mines, as the mine designs did not change
from 2019, thus remain based on a USD:BRL foreign exchange rate of
3.70.
Other modifying factors considered in the
determination of the mineral reserve estimate include:
- 10% dilution has been applied to
all mines, with the exception of the Pilar UG Mine which varies
with stope height. For planned stopes within the Pilar UG Mine with
a height above 35 meters, dilution of 15% has been applied, while
for planned stopes with a height of 26 meters, dilution of 7% has
been applied.
- Maximum bench height of 15 meters
for open pit mines. Maximum underground stope dimensions based on
geotechnical assessments from previous studies and past operating
experience within each mining area, combined with evaluation of
induced stresses and the Rock Mass Rating (“RMR”).
- The Vertical Retreat Mining (“VRM”)
method with cemented paste fill was selected for the Pilar UG Mine,
where the method is currently in use. For the Vermelhos UG Mine,
Sublevel with cemented rockfill (“CRF”) is the mining method
currently in use on consideration of the dip, plunge and thickness
of the ore-bodies, the rock quality designation (“RQD”) and overall
competence of the host rock.
- Mining recovery of 100% has been
applied for open pit mines. The Pilar UG Mine and Vermelhos UG Mine
assume 96% and 95% mine recovery, respectively.
- Within designed stopes, all
contained material was assumed to be mined with no selectivity.
Inferred mineral resources, where unavoidably included within a
defined mining shape have been included in the mineral reserves
estimate at zero grade. Mining dilution resulting from Measured and
Indicated blocks was assigned the grade of those blocks captured in
the dilution envelope using the estimated grade within the blocks
of the dilution and development model.
DEEPENING INFERRED PROJECT
Approximately 19,600 meters of drilling was
performed between September 2019 and August 2020 in support of the
updated mineral resource estimate of the Deepening Extension Zone.
While a significant portion of the Company’s target area was
upgraded to Indicated mineral resource, a portion of higher-grade
material within the zone remained unconverted due to drilling
access and orientation of the zone.
Inferred mineral resources within the Deepening
Extension Zone totals approximately 4.5 million tonnes grading
2.12% copper, resulting in contained copper of approximately 95,000
tonnes. An independent preliminary economic assessment was prepared
on this material utilizing the infrastructure that will be built to
support development and mining of the mineral reserves of the
Deepening Extension Project, as more fully described in the
Company’s updated LOM Plan, presented elsewhere in this press
release.
The Deepening Inferred Project is preliminary in
nature and based on the Inferred mineral resources of the Deepening
Extension Zone which are considered too speculative geologically to
have the economic considerations applied to them that would enable
them to be categorized as mineral reserves, and there is no
certainty that the Deepening Inferred Project will be realized.
Mineral resources that are not mineral reserves do not have a
demonstrated economic viability. The Company has commenced a
program to continue infill drilling of the Inferred resource to
further upgrade this material; however, until this work is
completed and the Inferred resources have been upgraded to
reserves, there is no certainty this material will be converted
into mineral reserves.
Inferred Mineral Resource Captured in
Deepening Inferred Project
The Deepening Inferred Project envisions
application of the same mining and recovery methods as the
Deepening Extension Project. As a result, the same mining recovery
and dilution assumptions have been applied as elsewhere within the
Pilar Mine. Specifically, these include: mining recovery of 96% and
dilution which varies with stope height. For planned stopes with a
height above 35 meters, dilution of 15% has been applied, while for
planned stopes with a height of 26 meters, dilution of 7% has been
applied.
The technical and scientific information related
to the Deepening Inferred Project has been reviewed and approved by
Sr. Porfirio Cabaleiro Rodriguez, MAIG (#3708), Mining Engineer and
Director of GE21 who is an independent qualified person as such
term is defined under NI 43-101.
|
Deepening Extension Zone, Inferred Resources |
Deepening Inferred Project, Captured Inferred
Resource |
Tonnes (000s) |
4,476 |
4,203 |
Grade (% Cu) |
2.12 |
2.01 |
Contained Cu (000 tonnes) |
94.8 |
84.5 |
Deepening Inferred Project
Notes:
- Mineral resource effective date of
August 8, 2020. All figures have been rounded to the relative
accuracy of the estimates. Summed amounts may not add due to
rounding. Mineral resources which are not mineral reserves do not
have demonstrated economic viability.
- The Inferred mineral resources
(undiluted) outlined in this table are further detailed in the
“Mineral Resources, 2020” table, presented elsewhere in this press
release. Mineral resources of the Pilar Mine are based on copper
prices of US$2.90 per pound, net smelter return (“NSR”) of 94.53%,
average metallurgical recoveries of 90.7%, processing costs of
US$5.65 per tonne (run of mine) and mining costs of US$17.30 per
tonne.
- Mineral resources have been
constrained within newly developed 3D lithology models applying a
0.45% and 0.20% copper grade envelope for high and marginal grade,
respectively. Within these envelopes, mineral resources for
underground deposits were constrained using varying stope
dimensions of up to 20m by 10m by 35m applying a 0.51% copper
cut-off grade, as well as a 0.32% copper marginal cut-off grade.
Mineral resources have been estimated using ordinary kriging inside
5m by 5m by 5m block sizes. The mineral resource estimates were
prepared in accordance with the CIM Standards, and the CIM
Guidelines, using geostatistical and/or classical methods, plus
economic and mining parameters appropriate to the deposit. Please
see “Technical and Scientific Information” below for additional
information on the stated mineral resources.
Deepening Inferred Project
Results
The Deepening Inferred Project is expected to
utilize the same infrastructure that will be built in support of
the Deepening Extension Project, including the new external shaft.
Over the LOM of the Deepening Inferred Project, approximately 4.2
million tonnes grading 2.01% copper are expected to be mined,
producing at total of approximately 78,900 tonnes of copper after
average metallurgical recoveries of 93.2%. Initial production from
the Deepening Inferred Project is expected to commence in 2023
after completion of the new external shaft and associated
development in support of the Deepening Extension Project of the
Pilar Mine.
As a result of shared infrastructure and
associated synergies with the Deepening Extension Project as
reflected in the Company’s LOM production plan, total capital
costs, comprised of only equipment and development, are expected to
total R$193.5 million over the LOM of the Deepening Inferred
Project. As there is no certainty that the Deepening Inferred
Project will be realized, fixed processing costs and the majority
of operational support costs, other than variable operational
support costs associated with concentrate transport for copper
produced from the Deepening Inferred Project, have been allocated
to the Company’s LOM production plan, as described elsewhere in
this press release. As such, C1 cash costs for the Deepening
Inferred Project are expected to average US$0.25 per lb. of copper
produced.
Where applicable, C1 cash costs, as defined by
the Company are presented in US Dollars (“USD”) per pound of copper
produced, based on a USD:BRL foreign exchange rate of 5.00, and
by-product gold and silver prices of $1,750 and $18.00 per ounce,
respectively.
Deepening Inferred Project production plan, operating and
capital cost projections can be downloaded in table
format: https://www.globenewswire.com/NewsRoom/AttachmentNg/cf8e4fa7-1714-4ff3-b902-f57fb295cf7c
Deepening Inferred Project, C1 Cash Cost
& Capital Expenditure Notes:
- Presented C1 Cash Costs assumes
USD:BRL FX rate of 5.00, gold price of US$1,750 per ounce and
silver price of US$18.00 per ounce. Fixed processing costs and the
majority of operational support costs, other than variable
operating support costs associated with concentrate transport from
the Deepening Extension Project, are allocated to the Company’s LOM
Plan.
- C1 Cash Cost of copper produced is
a non-IFRS measure, as more particularly discussed under the
“Non-IFRS Measures” section of this press release.
- The Deepening Inferred Project is
preliminary in nature and based on the Inferred mineral resources
of the Deepening Extension Zone which are considered too
speculative geologically to have the economic considerations
applied to them that would enable them to be categorized as mineral
reserves, and there is no certainty that the Deepening Inferred
Project will be realized. Mineral resources that are not mineral
reserves do not have a demonstrated economic viability. The Company
has commenced a program to continue infill drilling of the Inferred
resource to further upgrade this material; however, until this work
is completed and the Inferred resources have been upgraded to
reserves, there is no certainty this material will be converted
into mineral reserves.
- Capital expenditures shown do not
include discretionary greenfield or brownfield exploration.
Non-IFRS Measures
The Company utilizes certain non-IFRS measures,
including C1 cash cost of copper produced, which are not measures
recognized under IFRS, as more particularly described in the
Company’s management’s discussion and analysis for the three and
nine months ended September 30, 2020, a copy of which can be found
on the Company’s website (www.erocopper.com) and on SEDAR
(www.sedar.com). The Company believes that these measures, together
with measures determined in accordance with IFRS, provide investors
with an improved ability to evaluate the underlying performance of
the Company. Non-IFRS measures do not have any standardized meaning
prescribed under IFRS, and therefore they may not be comparable to
similar measures employed by other companies. The data is intended
to provide additional information and should not be considered in
isolation or as a substitute for measures of performance prepared
in accordance with IFRS.
C1 cash cost of copper produced (per lb) is the
sum of production costs, net of capital expenditure development
costs and by-product credits, divided by the copper pounds
produced. C1 cash costs reported by the Company include treatment,
refining charges, offsite costs, and certain tax credits relating
to sales invoiced to the Company’s Brazilian customer on sales.
By-product credits are calculated based on actual precious metal
sales (net of treatment costs) during the period divided by the
total pounds of copper produced during the period. C1 cash cost of
copper produced per pound is a non-IFRS measure used by the Company
to manage and evaluate operating performance of the Company’s
operating mining unit and is widely reported in the mining industry
as benchmarks for performance but does not have a standardized
meaning and is disclosed in addition to IFRS measures.
QUALITY ASSURANCE / QUALITY CONTROL
Current QA/QC Program
The Company is currently drilling underground
with core drill rigs using a combination of owned and third-party
contracted drill rigs. During the period from September 2019
to September 2020, third party drill rigs were operated by Major
Drilling, DrillGeo Geologia e Sondagem Ltda., and Layne Christensen
Co., all of whom are independent of the Company. Drill core
is logged, photographed and split in half using a diamond core saw
at MCSA’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 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
the secure on-site laboratory of Mineraҫão Caraíba S.A.
(“MCSA”). 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
such sample results have been monitored through a quality assurance
and 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 independent of
the Company.
Historic Database QA/QC
Validation
Samples that were analyzed prior to the
implementation of MCSA’s current QA/QC program in 2007 have been
subjected to the same quality control tools used currently to allow
for an evaluation of the accuracy and precision of the grades that
were obtained. Based on the demonstrated quality associated
with the current sampling procedures and the post-2007 performance
of MCSA’s laboratory, which is evaluated through daily QA/QC
campaigns, MCSA conducted a post mortem QA/QC analysis, with the
aim of validating the samples that were analyzed before the QA/QC
program was effectively implemented. The post-mortem QA/QC
analysis involved re-analyzing a minimum of 10% of the total number
of samples with no corresponding QA/QC data to validate the
historic assays. Please refer to the 2019 Technical Report
for additional information related the post-mortem QA/QC
analysis.
Qualified Persons and the NI 43-101
Technical Report
Sr. Porfirio Cabaleiro Rodriguez, MAIG, has
reviewed and approved the scientific and technical information
contained in this press release. Mr. Rodriguez is independent of
the Company and a qualified person as defined by NI 43-101.
The Company will file the associated NI 43-101
compliant report on SEDAR (www.sedar.com) and on the Company’s
website (www.erocopper.com) within 45 days of this press release,
which will serve as an update to the 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 –
Projectos e Consultoria em Mineração Ltd. (“Planminas”), Porfirio
Cabaleiro Rodrigues, MAIG, Leonardo de Moraes Soares, MAIG, and
Bernardo Horta de Cerqueira Viana, MAIG, all of GE21, and each a
“qualified person” and “independent” of the Company within the
meanings of NI 43-101 (the “2019 Technical Report”).
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 Company's expected
operations at the Vale do Curaçá Property, 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
potential to convert any portion of the inferred mineral resource
base, 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 down-plunge mineralization, further extensions and
expansion of mineralization near the Company’s existing operations
of the Vale do Curaçá Property, statements with respect to any
benefits of ore sorting implementation including sustainability
objectives and statements with respect to any potential positive
outcomes from the Deepening Inferred Project. 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 Esperança 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 and critical supplies, spare parts and
consumables; 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
(the “AIF”). 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. 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.
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