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| New resource bolsters Rio Tinto-backed Arizona Sonoran’s Cactus copper project |
Arizona Sonoran Copper (TSX: ASCU) Surges with a Threefold Increase in Cactus Copper Project Resources, Supported by Rio Tinto
In a groundbreaking development, Arizona Sonoran Copper has nearly tripled its measured and indicated resource at the Cactus porphyry project, situated on the site of the former Sacaton mine, just south of Phoenix.
The updated resource, released on Monday, now boasts an impressive 446 million measured and indicated tonnes, grading at 0.58% copper, totaling a remarkable 5.2 billion pounds of copper. This marks a substantial increase from the 2021 preliminary economic assessment, which reported 151.8 million measured and indicated tonnes at 0.53% copper.
The upgrade applies to the combined Cactus, Stockpile, and Parks/Salyer deposits, forming the foundation for an upcoming pre-feasibility study, now scheduled for early next year, as opposed to its previous late-year projection. This study could consider the potential production of up to 50,000 tonnes of copper cathode annually.
George Ogilvie, CEO, and President, expressed his excitement, stating, "Our team has completed yet another key milestone in the process of reactivating the Cactus mine. Driven through textbook infill drilling programs at Parks/Salyer and Cactus, our team readies an already significant copper asset in Arizona for the next step in technical reporting."
Rio Tinto (NYSE: RIO; LSE: RIO; ASX: RIO) made a strategic investment of C$30.5 million last year, securing a 7.4% stake in the project. The endeavor may involve leveraging technology developed by Rio Tinto's Nuton unit. This investment showcases a growing trend among miners who are increasingly exploring historical sites to capitalize on improved recovery technology and heightened demand for metals, even as the price of copper dipped to $3.61 per pound on Monday, having fallen below the $4 per pound threshold in April that most developers aim to maintain.
The Cactus project, recognized by S&P Global in August as one of the top 10 copper developments in the United States, aspires to become a mid-tier producer with potential for phased expansion. The Sacaton mine, formerly operated by American Smelting and Refining (Asarco), a unit of Grupo México, from 1972 to 1984, processed 38 million tonnes of copper ore through a flotation mill, yielding 400 million pounds of copper, 759,000 ounces of silver, and 27,000 ounces of gold.
The site already boasts approximately $30 million worth of infrastructure and is at an advanced permitting stage, with access to water and approved water rights. It's conveniently located in an industrial park, offering connections to nationwide highways, railroads, and state power. The project envisions utilizing a solvent extraction-electrowinning leaching process with sulfuric acid.
In terms of inferred resources, there are now 233 million tonnes, grading at 0.47% copper, amounting to 2.2 billion pounds of copper, compared to a resource dated April last year, which reported 450 million tonnes at 0.54% copper, totaling 4.9 billion pounds of copper.
Notably, certain parts of the project boast even higher grades. The Parks/Salyer deposit contains 130 million tonnes at 1.03% total soluble copper, while Cactus East holds 41.2 million tonnes at 1.06% total soluble copper within the measured and indicated resources. With 160,000 meters of drilling across 900 holes, the deposits exhibit consistent mineralization.
Future drilling will be focused on the Parks/Salyer southern extensions and exploration of a 4-kilometer trend with pockets of mineralization south of Parks/Sayler in the Gap zone and northeast of Cactus East, according to Sonoran.
On Monday afternoon in Toronto, Arizona Sonoran shares traded at C$1.55 apiece, valuing the company at C$168.9 million, within a 52-week trading range of C$1.49 to C$2.40.
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