Ero Copper Corp.
(TSX: ERO, NYSE:
ERO) (“Ero” or the “Company”) is pleased to
announce the results of its 2021 updated National Instrument 43-101
Standards of Disclosure for Mineral Projects (“NI 43-101”)
compliant mineral reserve and resource estimates on its 99.6% owned
MCSA Mining Complex located in Bahia State, Brazil and its 97.6%
owned NX Gold Mine, located in Mato Grosso State, Brazil. The
updated mineral reserve and mineral resource estimates incorporate
drilling activities and mining depletion on the properties through
September 30, 2021. For the latest mineral reserve and resource
update on the Company's Boa Esperança Project please refer the 2021
Boa Esperança Technical Report (as defined below).
Highlights of the 2021 update include:
- In total, at the same cut-off
grades, a 13% increase in total proven and probable mineral
reserves at the MCSA Mining Complex with a significant 56% increase
in mineral reserves within the Deepening Extension Zone of the
Pilar Mine that remains open for potential expansion; and,
- A 32% increase in measured and
indicated mineral resources (25% increase in proven and probable
reserves) for the NX Gold Mine, at the same cut-off grades. These
increases are driven by extensions of the Santo Antonio Vein and
the maiden mineral reserve estimate for the Matinha Vein that
remains open for potential expansion and is expected to become an
integral part of the operation in the coming years.
Deepening Extension
Zone Highlights,
Pilar Mine
- Exceptional drill results continue
to demonstrate significant year-on-year increases in the grade and
contained copper of the Deepening Extension Zone of the Pilar Mine
since its initial discovery in 2018, further supporting the
Company's decision to construct a larger 6.3 meter finished
diameter external shaft (vs. 4.5 meters previously) to maximize the
value of the mine;
- Proven and
probable mineral reserves within the Deepening Extension Zone
increased by 56% to 194.2 kt of contained copper (11.0 Mt grading
1.76% copper) compared to 124.6 kt of contained copper (7.4 Mt
grading 1.68% copper) in 2020;
- Measured and
indicated mineral resources, inclusive of mineral reserves, within
the Deepening Extension Zone increased by 55% year-on-year to 217.1
kt of contained copper (10.4 Mt grading 2.08% copper) compared to
140.0 kt of contained copper (7.5 Mt grading 1.86% copper) in 2020;
and,
- Inferred mineral
resources within the Deepening Extension Zone increased by 37% to
130.1 kt of contained copper (6.1 Mt grading 2.14% copper) compared
to 94.8 kt of contained copper (4.5 Mt grading 2.12% copper) in
2020.
Deepening Extension
Mineral Resource
Evolution since
2018(contained copper in kt)
Note: Mineral resource 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. Please see the 2018 Technical Report,
2019 Technical Report or 2020 Technical Report, as applicable and
as defined below, for a discussion on the assumptions, parameters
and methods used to estimate the mineral resources and reserves.
2021 mineral resource effective date of September 30, 2021.
Presented indicated mineral resources inclusive of probable 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.
MCSA Mining
Complex Highlights,
including the
Deepening Extension
Zone
- Proven and
probable mineral reserves increased by 13% to 607.1 kt of contained
copper (59.3 Mt grading 1.02% copper) compared to 536.0 kt of
contained copper (50.5 Mt grading 1.06% copper) in 2020;
- Measured and indicated mineral
resources, inclusive of mineral reserves, increased 6% to 1,221.1
kt of contained copper (104.7 Mt grading 1.17%) compared to 1,154.9
kt of contained copper (102.8 Mt grading 1.12% copper) in 2020;
and,
- Inferred mineral
resources increased 21% to 473.4 kt of contained copper (43.3 Mt
grading 1.09% copper) compared to 390.6 kt of contained copper
(39.2 Mt grading 1.00% copper) in 2020.
NX Gold Mine
Highlights
- Proven and
probable mineral reserves increased 25% to 306.8 koz of contained
gold (1,104 kt grading 8.64 gpt gold) compared to 244.7 koz of
contained gold (862 kt grading 8.83 gpt gold) in 2020;
- Measured and indicated mineral
resources, inclusive of mineral reserves, increased 32% to 357.3
koz of contained gold (1,081 kt grading 10.28 gpt gold) compared to
269.9 koz of contained gold (770 kt grading 10.90 gpt gold) in
2020;
- Within the Santo
Antonio Vein, proven and probable mineral reserves increased by 13%
to 277.5 koz of contained gold (958 kt grading 9.01 gpt gold)
compared to 244.7 koz of contained gold (862 kt grading 8.83 gpt
gold) in 2020;
- Within the Santo Antonio Vein,
measured and indicated mineral resources, inclusive of mineral
reserves, increased by 20% to 322.4 koz of contained gold (950 kt
grading 10.56 gpt gold) compared to 269.2 koz of contained gold
(763 kt grading 10.97 gpt gold) in 2020, driven primarily by
conversion of inferred mineral resources delineated in 2020;
and,
- Within the
Matinha Vein, maiden mineral reserve estimate with probable mineral
reserves of 29.4 koz gold (146 kt grading 6.26 gpt gold) while
inferred mineral resources increased by 79% to 104.2 koz of
contained gold (310 kt grading 10.47 gpt gold) compared to 58.2 koz
of contained gold (149 kt grading 12.15 gpt gold) in 2020.
Commenting on the results, David Strang, CEO,
stated, “The meaningful growth of our asset base, as reflected in
our 2021 mineral reserve and resource update continues to
demonstrate our ability to deliver organic growth and generate
shareholder value through exploration. Our annual results are
highlighted by the significant increases in the mineral reserves
and resources within the Deepening Extension Zone.
“Over the last year, the Deepening Extension
Zone continued to exceed our own lofty expectations with respect to
mineral reserve and resource size and quality. The demonstrated
year-on-year growth in the high-grade superpod through our ongoing
drill campaigns since 2018 highlights the potential of the zone,
which remains open. These results support our decision in 2021 to
undertake a larger redesign of the new external shaft. The redesign
does require a greater upfront investment but will, over time,
enhance the project's value and provide optionality over the
long-term as we continue to look to increase overall production
volumes from the Pilar Mine.
"In addition to significant growth in the
Deepening Extension Zone's mineral reserves and resources, drilling
throughout the year at the Vermelhos Mine and throughout the
broader Curaçá Valley continued to deliver growth in overall
mineral reserves and resources. These additions were more than
sufficient to replace depletion during the year relative to our
2020 update, even as we increased our annual copper production
rate.
“At the NX Gold Mine, demonstrated extensions of
the Santo Antonio Vein and Matinha Vein during the year both serve
as further evidence of the intrinsic value and exploration
potential of the broader land package surrounding the mine. In
2022, we will focus on extending mineralization within the Matinha
Vein as we integrate it into our operations as an additional feed
source for the mill.
"As a core tenet of our organic growth strategy,
we are pleased to see our investment in exploration continue to
generate a pipeline of high-return actionable growth projects
across our portfolio. Looking ahead to 2022, our in- and near-mine
exploration plans for the year include expanded drilling activities
in the upper levels of the Pilar Mine in support of a two-mine
system, extending the known limits of the high-grade Vermelhos Mine
main orebodies to depth and continuing to define several growth
projects throughout the MCSA Mining Complex and the NX Gold
Mine."
2021 MINERAL RESERVE AND RESOURCE UPDATE
|
2021 Mineral Reserves &Resources |
2020 Mineral Reserves &Resources |
Change |
|
Tonnes |
Grade |
Contained |
Tonnes |
Grade |
Contained |
Contained |
|
|
|
|
(kt) |
(Cu %) |
Cu (kt) |
(kt) |
(Cu %) |
Cu (kt) |
Cu (kt) |
|
% |
|
Deepening Extension Zone, Pilar Mine |
|
|
|
|
|
|
|
|
|
|
Proven Reserves |
19 |
1.56 |
0.3 |
— |
— |
— |
0.3 |
|
NA |
|
Probable Reserves |
10,996 |
1.76 |
193.9 |
7,432 |
1.68 |
124.6 |
69.3 |
|
56 |
|
Proven & Probable Reserves1 |
11,016 |
1.76 |
194.2 |
7,432 |
1.68 |
124.6 |
69.6 |
|
56 |
|
|
|
|
|
|
|
|
|
|
|
|
Measured Resources |
4 |
1.77 |
0.1 |
— |
— |
— |
0.1 |
|
NA |
|
Indicated Resources |
10,439 |
2.08 |
217.0 |
7,527 |
1.86 |
140.0 |
76.9 |
|
55 |
|
Measured & Indicated Resources |
10,442 |
2.08 |
217.1 |
7,527 |
1.86 |
140.0 |
77.0 |
|
55 |
|
|
|
|
|
|
|
|
|
|
|
|
Inferred Resources |
6,095 |
2.14 |
130.1 |
4,476 |
2.12 |
94.8 |
35.3 |
|
37 |
|
MCSA Mining
Complex, including
Deepening Extension
Zone
Underground, including
Deepening Extension
Zone |
|
|
|
|
|
|
|
|
Proven Reserves |
9,177 |
1.49 |
136.8 |
9,707 |
1.63 |
158.2 |
(21.4 |
) |
(14 |
) |
Probable Reserves |
20,797 |
1.42 |
295.6 |
17,516 |
1.34 |
235.6 |
60.1 |
|
25 |
|
Proven & Probable Reserves1 |
29,974 |
1.44 |
432.4 |
27,224 |
1.45 |
393.8 |
38.7 |
|
10 |
|
|
|
|
|
|
|
|
|
|
Measured Resources |
30,355 |
1.63 |
493.7 |
33,888 |
1.56 |
527.3 |
(33.7 |
) |
(6 |
) |
Indicated Resources |
39,005 |
1.33 |
519.9 |
34,292 |
1.23 |
420.6 |
99.3 |
|
24 |
|
Measured & Indicated Resources |
69,360 |
1.46 |
1,013.6 |
68,180 |
1.39 |
947.9 |
65.7 |
|
7 |
|
|
|
|
|
|
|
|
|
|
Inferred Resources |
40,331 |
1.14 |
458.3 |
36,271 |
1.05 |
379.8 |
78.5 |
|
21 |
|
Open Pit |
|
|
|
|
|
|
|
|
Proven Reserves |
15,680 |
0.59 |
92.0 |
11,757 |
0.60 |
70.1 |
21.9 |
|
31 |
|
Probable Reserves |
13,627 |
0.61 |
82.7 |
11,474 |
0.63 |
72.2 |
10.6 |
|
15 |
|
Proven & Probable Reserves |
29,306 |
0.60 |
174.7 |
23,230 |
0.61 |
142.3 |
32.4 |
|
23 |
|
|
|
|
|
|
|
|
|
|
Measured Resources |
16,777 |
0.61 |
103.0 |
15,270 |
0.63 |
96.6 |
6.5 |
|
7 |
|
Indicated Resources |
18,563 |
0.56 |
104.5 |
19,335 |
0.57 |
110.5 |
(5.9 |
) |
(5 |
) |
Measured & Indicated Resources |
35,340 |
0.59 |
207.5 |
34,605 |
0.60 |
207.0 |
0.5 |
|
— |
|
|
|
|
|
|
|
|
|
|
Inferred Resources |
3,000 |
0.50 |
15.1 |
2,930 |
0.37 |
10.8 |
4.3 |
|
40 |
|
Total MCSA
Mining Complex,
including Deepening
Extension Zone |
Proven Reserves |
24,857 |
0.92 |
228.8 |
21,464 |
1.06 |
228.3 |
0.5 |
|
— |
|
Probable Reserves |
34,423 |
1.10 |
378.3 |
28,990 |
1.06 |
307.7 |
70.6 |
|
23 |
|
Proven & Probable Reserves |
59,280 |
1.02 |
607.1 |
50,454 |
1.06 |
536.0 |
71.1 |
|
13 |
|
|
|
|
|
|
|
|
|
|
Measured Resources |
47,132 |
1.27 |
596.7 |
49,158 |
1.27 |
623.9 |
(27.2 |
) |
(4 |
) |
Indicated Resources |
57,568 |
1.08 |
624.4 |
53,627 |
0.99 |
531.0 |
93.4 |
|
18 |
|
Measured & Indicated Resources |
104,700 |
1.17 |
1,221.1 |
102,785 |
1.12 |
1,154.9 |
66.2 |
|
6 |
|
|
|
|
|
|
|
|
|
|
Inferred Resources |
43,331 |
1.09 |
473.4 |
39,201 |
1.00 |
390.6 |
82.8 |
|
21 |
|
1. In the mine design of the Pilar and Vermelhos underground
mines, certain stopes include measured and indicated as well as
inferred resource blocks. In these instances, inferred resource
blocks within the defined mining shape were assigned zero grade.
Development occurring within marginal ore, above the operational
cut-off grade, has also been included in the mineral reserve
estimate. See below notes on mineral reserve and resource estimates
for additional technical and scientific information.
2. 2021 mineral reserve and resource estimates are effective as
at September 30, 2021. Presented mineral resources inclusive of
mineral reserves. Mineral resources that are not mineral reserves
do not have a demonstrated economic viability. See below notes on
mineral reserve and resource estimates for additional technical and
scientific information.
|
2021 Mineral
Reserves &
Resources |
2020 Mineral
Reserves &
Resources |
Change |
|
Tonnes(kt) |
Grade(Au
gpt) |
ContainedAu
(koz) |
Tonnes(kt) |
Grade(Au
gpt) |
ContainedAu
(koz) |
ContainedAu
(koz) |
% |
NX Gold
MineSanto
Antonio Vein |
|
|
|
|
|
|
|
|
Proven Reserves |
— |
— |
— |
— |
— |
— |
— |
|
NA |
|
Probable Reserves |
958 |
9.01 |
277.5 |
862 |
8.83 |
244.7 |
32.8 |
|
13 |
|
Proven & Probable Reserves |
958 |
9.01 |
277.5 |
862 |
8.83 |
244.7 |
32.8 |
|
13 |
|
|
|
|
|
|
|
|
|
|
Measured Resources |
— |
— |
— |
— |
— |
— |
— |
|
NA |
|
Indicated Resources |
950 |
10.56 |
322.4 |
763 |
10.97 |
269.2 |
53.2 |
|
20 |
|
Measured & Indicated Resources |
950 |
10.56 |
322.4 |
763 |
10.97 |
269.2 |
53.2 |
|
20 |
|
|
|
|
|
|
|
|
|
|
Inferred Resources |
248 |
2.99 |
23.9 |
268 |
13.08 |
112.6 |
(88.7 |
) |
(79 |
) |
Matinha Vein |
|
|
|
|
|
|
|
|
Proven Reserves |
— |
— |
— |
— |
— |
— |
— |
|
NA |
|
Probable Reserves |
146 |
6.26 |
29.4 |
— |
— |
— |
29.4 |
|
NA |
|
Proven & Probable Reserves |
146 |
6.26 |
29.4 |
— |
— |
— |
29.4 |
|
NA |
|
|
|
|
|
|
|
|
|
|
Measured Resources |
— |
— |
— |
— |
— |
— |
— |
|
NA |
|
Indicated Resources |
124 |
8.55 |
34.1 |
— |
— |
— |
34.1 |
|
NA |
|
Measured & Indicated Resources |
124 |
8.55 |
34.1 |
— |
— |
— |
34.1 |
|
NA |
|
|
|
|
|
|
|
|
|
|
Inferred Resources |
310 |
10.47 |
104.2 |
149 |
12.15 |
58.2 |
46.0 |
|
79 |
|
Brás &
Buracão Veins |
|
|
|
|
|
|
|
|
Proven Reserves |
— |
— |
— |
— |
— |
— |
— |
|
NA |
|
Probable Reserves |
— |
— |
— |
— |
— |
— |
— |
|
NA |
|
Proven & Probable Reserves |
— |
— |
— |
— |
— |
— |
— |
|
NA |
|
|
|
|
|
|
|
|
|
|
Measured Resources |
— |
— |
— |
— |
— |
— |
— |
|
NA |
|
Indicated Resources |
7 |
3.36 |
0.7 |
7 |
3.36 |
0.7 |
— |
|
— |
|
Measured & Indicated Resources |
7 |
3.36 |
0.7 |
7 |
3.36 |
0.7 |
— |
|
— |
|
|
|
|
|
|
|
|
|
|
Inferred Resources |
157 |
4.71 |
23.8 |
157 |
4.71 |
23.8 |
— |
|
— |
|
Total, NX Gold
Mine |
|
|
|
|
|
|
|
|
Proven Reserves |
— |
— |
— |
— |
— |
— |
— |
|
NA |
|
Probable Reserves |
1,104 |
8.64 |
306.8 |
862 |
8.83 |
244.7 |
62.2 |
|
25 |
|
Proven & Probable Reserves |
1,104 |
8.64 |
306.8 |
862 |
8.83 |
244.7 |
62.2 |
|
25 |
|
|
|
|
|
|
|
|
|
|
Measured Resources |
— |
— |
— |
— |
— |
— |
— |
|
NA |
|
Indicated Resources |
1,081 |
10.28 |
357.3 |
770 |
10.90 |
269.9 |
87.3 |
|
32 |
|
Measured & Indicated Resources |
1,081 |
10.28 |
357.3 |
770 |
10.90 |
269.9 |
87.3 |
|
32 |
|
|
|
|
|
|
|
|
|
|
Inferred Resources |
714 |
6.61 |
151.9 |
574 |
10.55 |
194.6 |
(42.7 |
) |
(22 |
) |
1. 2021 mineral reserve and resource estimates
are effective as at September 30, 2021. Presented mineral resources
inclusive of mineral reserves. Mineral resources that are not
mineral reserves do not have a demonstrated economic viability. See
below notes on mineral reserve and resource estimates for
additional technical and scientific information.
NOTES ON MINERAL RESERVE AND RESOURCE TABLES
Mineral reserves are presented inclusive of
mineral resources. All figures have been rounded to the relative
accuracy of the estimates. Summed amounts may not add correctly due
to rounding. Mineral resources that are not mineral reserves do not
have a demonstrated economic viability.
Estimates for the MCSA Mining Complex and the NX
Gold Mine are prepared by or under the supervision of and verified
by Mr. 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 as such
term is defined under NI 43-101. The technical and scientific
information in this news release has been prepared in accordance
with NI 43-101 and has been reviewed, verified and approved by Mr.
Emerson Ricardo Re.
Reference herein of $ or USD is to United States
dollars and BRL is to Brazilian reais. Mineral Reserves for all
active mines have been estimated using metal prices of $2.75/lb
copper and $1,650/oz gold. The exchange rates used were USD/BRL
5.23 for mineral reserve and mineral resource estimates for the
MCSA Mining Complex and USD/BRL 5.00 for mineral reserve and
mineral resource estimates for the NX Gold Mine.
MCSA Mining
Complex
Mineral reserve and mineral resource estimates
are effective as at September 30, 2021.
Underground mineral resource estimates 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 (or operational)
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.
A low-grade envelope using a cut-off grade of
0.20% copper for underground 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.
Open pit mineral resource estimates 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.
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. In the mine design of the
Pilar and Vermelhos underground mines, certain stopes include
measured and indicated as well as inferred resource blocks. In
these instances, inferred resource blocks within the defined mining
shape were assigned zero grade. In 2021, inferred blocks assigned
zero grade totaled approximately 159,000 tonnes for the Deepening
Extension Zone, 296,500 tonnes for the Pilar Underground Mine and
approximately 80,000 tonnes for the Vermelhos Underground Mine.
Development occurring within marginal ore, above the operational
cut-off grade, has also been included in the mineral reserve
estimate. Dilution occurring from measured and indicated resource
blocks was assigned grade based upon the mineral resource grade of
the blocks included in the dilution envelope.
Please refer to the NI 43-101 technical report
entitled "2020 Updated Mineral Resources and Mineral Reserves
Statements of Mineração Caraíba’s Vale do Curaçá Mineral Assets,
Curaçá Valley" dated January 14, 2021 with an effective date of
October 1, 2020, prepared by Porfirio Cabaleiro Rodrigues, FAIG,
Bernardo Horta de Cerqueira Viana, MAIG, Paulo Roberto Bergmann,
FAusIMM, Fábio Valério Câmara Xavier, MAIG and Dr. Augusto Ferreira
Mendonça, RM SME all of GE21 Consultoria Mineral Ltda. (“GE21”) and
Dr. Beck (Alizeibek) Nader, FAIG of BNA Mining Solutions (the “2020
Technical Report”) for technical information and assumptions
related to the 2020 mineral reserve and mineral resource estimate.
Where applicable, please refer to the NI 43-101 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”), and Porfirio Cabaleiro Rodrigues, MAIG, Leonardo de
Moraes Soares, MAIG, and Bernardo Horta de Cerqueira Viana, MAIG,
all of GE21 (the “2019 Technical Report”) for technical information
and assumptions related to the 2019 mineral reserve and mineral
resource estimate. Where applicable, please refer to the NI 43-101
technical report entitled "2018 Updated Mineral Resources and
Mineral Reserves Statements of Mineração Caraíba’s Vale do Curaçá
Mineral Assets, Curaçá Valley" dated October 17, 2018 with an
effective date of August 1, 2018, prepared by Rubens Jose De
Mendonça, MAusIMM, of Planminas, and Porfirio Cabaleiro Rodrigues,
MAIG, Fábio Valério Cãmara Xavier, MAIG, and Bernardo Horta de
Cerqueira Viana, MAIG, all of GE21 (the “2018 Technical Report”)
for technical information and assumptions related to the 2018
mineral reserve and mineral resource estimate.
Please refer to the table below for details
related to the mineral reserve and resource growth of the Deepening
Extension Zone within the Pilar Underground Mine from 2018 to
2021.
Deepening Extension
Mineral Resource
Evolution since
2018
|
2018 |
2019 |
|
Tonnes |
Grade |
Contained Cu |
Tonnes |
Grade |
Contained Cu |
|
(kt) |
(Cu %) |
(kt) |
(kt) |
(Cu %) |
(kt) |
Proven Reserves |
— |
— |
— |
— |
— |
— |
Probable Reserves |
— |
— |
— |
1,369 |
1.75 |
23.9 |
Proven & Probable Reserves |
— |
— |
— |
1,369 |
1.75 |
23.9 |
|
|
|
|
|
|
|
Measured Resources |
45 |
0.39 |
0.2 |
— |
— |
— |
Indicated Resources |
1,236 |
0.62 |
7.6 |
1,351 |
2.19 |
29.6 |
Measured & Indicated Resources |
1,282 |
0.61 |
7.8 |
1,351 |
2.19 |
29.6 |
|
|
|
|
|
|
|
Inferred Resources |
334 |
2.60 |
8.7 |
1,330 |
1.86 |
24.7 |
|
|
2020 |
|
|
2021 |
|
|
Tonnes |
Grade |
Contained Cu |
Tonnes |
Grade |
Contained Cu |
|
(kt) |
(Cu %) |
(kt) |
(kt) |
(Cu %) |
(kt) |
Proven Reserves |
— |
— |
— |
19 |
1.56 |
0.3 |
Probable Reserves |
7,432 |
1.68 |
124.6 |
10,996 |
1.76 |
193.9 |
Proven & Probable Reserves |
7,432 |
1.68 |
124.6 |
11,016 |
1.76 |
194.2 |
|
|
|
|
|
|
|
Measured Resources |
— |
— |
— |
4 |
1.77 |
0.1 |
Indicated Resources |
7,527 |
1.86 |
140.0 |
10,439 |
2.08 |
217.0 |
Measured & Indicated Resources |
7,527 |
1.86 |
140.0 |
10,442 |
2.08 |
217.1 |
|
|
|
|
|
|
|
Inferred Resources |
4,476 |
2.12 |
94.8 |
6,095 |
2.14 |
130.1 |
Note: Mineral resource and reserve estimates
were prepared in accordance with the CIM Standards and CIM
Guidelines, using geostatistical and/or classical methods, plus
economic and mining parameters appropriate for the deposit. Please
see the 2018 Technical Report, 2019 Technical Report or 2020
Technical Report, as applicable, for a discussion on the
assumptions, parameters and methods used to estimate the mineral
resources and reserves. 2021 mineral reserve and resource effective
date of September 30, 2021. 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.
NX Gold
Mine
Updated mineral reserve and mineral resource estimates are
effective as at September 30, 2021.
Grade shells using a value of 1.20 gpt gold were
used to generate a 3D mineralization model of the NX Gold Mine.
Within the grade shells, mineral resources were estimated using
ordinary kriging within 2.5 meter by 2.5 meter by 0.5 meter block
size, and the mineral resource estimate was constrained using a
minimum stope dimension of 2.0 meters by 2.0 meters by 1.5 meters
and a cut-off of 1.90 gpt based on gold price of US$1,900 per ounce
of gold.
Mineral reserve 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 for the deposit. Mineral reserves are the
economic portion of the indicated mineral resources. Mineral
reserve estimates include operational dilution of 17.4% plus
planned dilution of approximately 8.5% within each stope for
room-and-pillar mining areas and operational dilution of 3.2% plus
planned dilution of 21.2% for cut-and-fill mining areas. Assumes
mining recovery of 92.5% and 94.7% for room-and-pillar and
cut-and-fill areas, respectively. Practical mining shapes
(wireframes) were designed using geological wireframes / mineral
resource block models as a guide.
Please refer to the NI 43-101 technical report
entitled "Mineral Resource and Mineral Reserve Estimate of the NX
Gold Mine, Nova Xavantina" dated January 8, 2021 with an effective
date of September 30, 2020, prepared by Porfirio Cabaleiro
Rodrigues, FAIG, Paulo Roberto Bergmann, FAusIMM, Bernardo Horta de
Cerqueira Viana, MAIG and Leonardo de Moraes Soares, MAIG, all of
GE21 (the “2020 NX Gold Technical Report”) for technical
information and assumptions related to the 2020 mineral reserve and
mineral resource estimate.
In August 2021, the Company closed a US$110
million precious metals streaming agreement on the NX Gold Mine
with RGLD Gold AG, a wholly owned subsidiary of Royal Gold Inc.
(collectively "Royal Gold"). The Company received upfront cash
consideration of US$100 million for the purchase of 25% of gold
produced until 93,000 ounces of gold have been delivered,
decreasing to 10% of gold produced over the remaining life of mine.
Royal Gold will make ongoing payments equal to 20% of the
prevailing spot gold price for each ounce of gold delivered until
49,000 ounces of gold have been received, after which it will pay
40% of the prevailing spot gold price for each ounce of gold
delivered. Additional payment obligations of Royal Gold
include:
- Up to US$5
million payable, available through the end of 2024, based upon the
number of ounces of gold added to the Measured and Indicated
mineral resource categories as compared to the mineral resources as
of the effective date of the NX Gold transaction at a rate of US$20
per ounce;
- Up to US$5
million payable, available from 2022 through the end of 2024, based
upon completion of planned meters of drilling within the
exploration concessions of the NX Gold Mine at a rate of US$100 per
meter; and
- US$5 per ounce
of gold delivered under the NX Gold transaction payable to the
Company as contribution towards ongoing ESG initiatives within the
area of influence of the mine.
Boa
Esperança
Please refer to the NI 43-101 technical report
entitled "Boa Esperança Project NI 43-101 Technical Report on
Feasibility Study Update" dated November 12, 2021 with an effective
date of August 31, 2021, prepared by Kevin Murray, P. Eng., Erin L.
Patterson, P. Eng., and Scott C. Elfen, P.E., all of Ausenco
Engineering Canada Inc., Carlos Guzmán, FAusIMM RM CMC of NCL
Ingeniería y Construcción SpA, who are independent qualified
persons under NI 43-101, and Ricardo Emerson Re, MSc, MBA, MAusIMM
(CP) (No. 305892), Registered Member (No. 0138) (Chilean Mining
Commission) and Resource Manager of the Company (the “2021 Boa
Esperança Technical Report”) for technical information and
assumptions related to the 2021 mineral reserve and mineral
resource estimate.
QUALITY ASSURANCE / QUALITY CONTROL
Current QA/QC
Program
At the MCSA Mining Complex, 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 2020 to September 2021, 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 used in the preparation of the 2021 updated mineral
resource and reserve estimate 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.
At the NX Gold Mine, the Company is currently
drilling on surface with third-party contracted core drill rigs.
During the period from September 2020 to September 2021, 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 a minimum of 0.2 meters and a maximum of 2.0 meters
with an average length of 0.5 meters. Sampling commences at least
1.0 meter before the start of the mineralized zone and continues at
least 1.0 meters beyond the limit of the mineralized zone. Sample
collection is performed at NX Gold’s core logging facilities with
all sample preparation performed at ALS Brasil Ltda.'s laboratory
or SGS Geosol - Laboratórios Ltda's laboratory, both of which are
located in Goiânia, Brazil. Samples are analyzed by the certified
laboratories of ALS Peru S.A. or SGS Geosol - Laboratórios Ltda,
both of whom are independent of the Company. Gold content is
preferentially determined using screen fire assay. If the sample
isn't sufficiently weighted, fire assay is used. All sample results
used in the preparation of the 2021 updated mineral resource and
reserve estimate have been monitored through a QA/QC program that
includes the insertion of certified standards, blanks, field
duplicates and pulp duplicates at a rate of one standard, one
blank, and one field duplicate sample per every 20 samples for a
blended rate of approximately 5%. Pulp duplicate are used less
frequently than standards, blanks and field duplicates because not
all samples return enough weight for an additional assay.
QA/QC Validation
The QA/QC validation process undertaken for the
2021 updated mineral resource and reserve estimates for the MCSA
Mining Complex and the NX Gold Mine are consistent with the process
set out in the 2020 Technical Report and the 2020 NX Gold Technical
Report, respectively.
ABOUT ERO COPPER CORP
Ero Copper Corp, headquartered in Vancouver,
B.C., is focused on copper production growth from the MCSA Mining
Complex located in Bahia State, Brazil, with over 40 years of
operating history in the region. The Company's primary asset is a
99.6% interest in the Brazilian copper mining company, MCSA, 100%
owner of the MCSA Mining Complex, which is comprised of operations
located in the Curaçá Valley, Bahia State, Brazil, wherein the
Company currently mines copper ore from the Pilar and Vermelhos
underground mines, and the Boa Esperança development project, an
IOCG-type copper project located in Pará, Brazil. The Company also
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 MCSA
Mining Complex, Boa Esperança and NX Gold properties, can be found
on the Company's website (www.erocopper.com), on SEDAR
(www.sedar.com), and on EDGAR (www.sec.gov).
ERO COPPER
CORP.
/s/ David Strang |
For further information contact: |
David Strang, CEO |
Courtney Lynn, VP, Corporate Development & Investor
Relations |
|
(604) 335-7504 |
|
info@erocopper.com |
CAUTION REGARDING FORWARD LOOKING INFORMATION AND STATEMENTS
This press release contains “forward-looking
statements” within the meaning of the United States Private
Securities Litigation Reform Act of 1995 and “forward-looking
information” within the meaning of applicable Canadian securities
legislation (collectively, “forward-looking statements”).
Forward-looking statements include 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 statements include, without
limitation, statements with respect to mineral reserve and mineral
resource estimates; targeting additional mineral resources and
expansion of deposits; the Company’s expectations, strategies and
plans for the MCSA Mining Complex and the NX Gold Property,
including, but not limited to, the Company’s planned exploration,
development and production activities; the significance and timing
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 new discoveries and targets including, but not
limited to, extensions of defined mineralized zones, possibilities
for mine life extensions or continuity of high-grade
mineralization, and the timing and advancement of ongoing projects
including the Deepening Extension Project.
Forward-looking statements are not a guarantee
of future performance and are 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: continued
effectiveness of the measures taken by the Company to mitigate the
possible impact of COVID-19 on its workforce and operations;
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 MCSA Mining Complex, NX Gold Property 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 conditions to remain healthy in the face of
prevailing epidemics, pandemics or other health risks (including
COVID-19), 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,
global health, 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 statements. 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 statements
involve 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 statements. Such risks include,
without limitation the risk factors listed under the heading “Risk
Factors” in the Annual Information Form for the year ended December
31, 2020 and dated March 16, 2021.
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 statements,
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 statements contained herein. There can be no
assurance that forward-looking statements will prove to be
accurate, as actual results and future events could differ
materially from those anticipated in such statements. Accordingly,
readers should not place undue reliance on forward-looking
statements.
Forward-looking statements contained herein are
made as of the date of this press release and the Company disclaims
any obligation to update or revise any forward-looking statement,
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
MINERAL RESERVE ESTIMATES
In accordance with applicable Canadian
securities regulatory requirements, all mineral reserve and mineral
resource estimates of the Company disclosed in this press release
have been prepared in accordance with NI 43-101 and are classified
in accordance with CIM Standards. NI 43-101 is a rule developed by
the Canadian Securities Administrators that establishes standards
for all public disclosure an issuer makes of scientific and
technical information concerning mineral projects. NI 43-101
differs significantly from the disclosure requirements of the
Securities and Exchange Commission (the “SEC”) generally applicable
to U.S. companies. For example, the terms “mineral reserve”,
“proven mineral reserve”, “probable mineral reserve”, “mineral
resource”, “measured mineral resource”, “indicated mineral
resource” and “inferred mineral resource” are defined in NI 43-101.
These definitions differ from the definitions in the disclosure
requirements promulgated by the SEC. Accordingly, information
contained in this press release may not be comparable to similar
information made public by U.S. companies reporting pursuant to SEC
disclosure requirements.
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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