The new resource has 250 million tonnes grading 0.48% copper, 0.29 grams per tonne of gold and 7.5g/t of silver for a 0.74% copper equivalent grade or a 1.09g/t gold equivalent grade in the indicated category, containing 2.6 billion pounds of copper, 2.3 million ounces of gold and 61Moz of silver.
In addition, it has 267Mt grading 0.41% copper, 0.26g/t gold and 7.8g/t silver for a 0.66% copper equivalent grade or a 0.96g/t gold equivalent grade in the inferred category, containing 2.4Blb of copper, 2.2Moz of gold and 67Moz of silver.
"This new estimate … uses assumptions and methodologies we believe are better supported for the project in order to generate a higher level of confidence in the reported estimate. While this report is a significant milestone for the project, it is important to understand it only represents a marker along the path and not the final destination," said CEO John Black in a statement.
"We have yet to find the limits of the mineralisation and additional drilling is clearly warranted to extend [it]. It is remarkable to note hole AK-18-026, which intersected 473.2m with 1.16% copper, 0.21g/t gold and 8.4g/t silver falls outside the new mineral resource estimate due to lack of supporting drill holes in that area," said chief geological officer Kevin Heather.
The new estimate includes drilling results from work completed through November 2018 that have allowed significant conversion of inferred mineral resources to the indicated category. It also includes drilling data provided under a 2017 collaborative agreement with the adjoining property holder, which has seen the amount of drilling data available more than double compared to the previous resource estimate
Mineral resources are reported at a cut-off grade of 0.3% copper equivalent and constrained within a pit shell using a US$3/lb copper price, $1,400/oz gold price and $18/oz silver price assuming metallurgical recoveries of 85% copper, 55% gold and 50% silver.
This agreement with the Tantahuatay heap leach gold mine operated by Compañía Minera Coimolache has allowed Regulus to model a large open pit with layback onto the adjoining mining property to more completely capture mineral resources. However, the resource estimate does not include resources from adjoining concessions.
The resource remains open to the north with potential for significant expansion with additional drilling. The company plans to complete 20,000-25,000m of drilling this year,
Shares in Regulus closed up 6.7% on Friday at C$1.90 valuing the company at $173 million. Its share price has increased almost 40% so far in 2018.
