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Electric Royalties Ltd (TSXV:ELEC) has announced a substantial increase in copper resources at the Zonia deposit in Arizona, a project managed by World Copper Ltd. This development marks a notable advancement for the mining sector, reflecting broader industry trends and potential.
On September 9, World Copper released an updated mineral resource estimate for the Zonia copper oxide deposit. Electric Royalties holds a 0.5% gross revenue royalty on this project. The new estimate reveals 113.2 million short tons of Indicated resources grading 0.303% total copper, equating to approximately 686 million pounds of copper. Additionally, there are 59.2 million short tons of Inferred resources grading 0.254% total copper, which represents about 300 million pounds of copper.
This updated estimate signifies a considerable expansion from previous figures, attributed to enhanced mineralization models and methods, alongside an increased copper price. The CEO of Electric Royalties, Brendan Yurik, has commended World Copper for its efforts in further de-risking the Zonia copper project. The expansion in copper resources could potentially extend the future mine’s operational life, offering more extended opportunities within the sector.
World Copper’s focus is now on advancing the Zonia project towards feasibility. The projected timeline indicates that copper cathode production at Zonia might commence within the next 48 months, leveraging the deposit's location on private land with existing power and water resources.
Additionally, World Copper is undertaking a verification drill program on the historical leach pads of the site. Should the results confirm the grade and mineralogical characteristics of the historically mined material, World Copper plans to assess whether this material could be processed prior to any future mining of the bedrock resources. The re-processing of historically mined material could provide pre-production cash flow, which would benefit Electric Royalties.
Beyond the Zonia deposit, World Copper has also identified potential for resource expansion at the Zonia Norte target, situated northeast of the main deposit. Electric Royalties holds an option to acquire a 1% gross revenue royalty on this target, highlighting ongoing opportunities within the project’s broader scope.
This update underscores the dynamic nature of the mining sector and the significant potential of strategic resource management and exploration. It illustrates how advancements in mineral resource estimation and project development can impact industry players and their financial frameworks.
