EV Resources magnetics confirm copper-moly porphyry in Peru

EV Resources believes it has put its foot firmly on a significant porphyry system at its Parag copper-molybdenum-silver project in Peru after a recently-completed geophysical survey threw out highly-promising results that correlated with findings in an earlier seven-hole diamond drilling program.

The survey, which included 34km of induced-polarisation (IP) and ground magnetometry across 18 lines, has not only identified key areas of interest, but has also supported a decision to push on with the remaining 13 holes of the permitted drilling campaign. It was designed to picked up on areas with high chargeability of more than 18 millivolts per volt (mV/V), suggesting the likelihood of the sulphide mineralisation that is a significant indicator for copper and molybdenum.

Importantly, several strong magnetic anomalies did shine through in the findings, particularly around the promising Pichacani I section – an undrilled area in the western part of its tenements that now stands as a priority for future drilling efforts.

The historical data from previous drill campaigns in the 1990s for 55 holes and a further 21 holes in 2011 – totalling more than 18,000m – also align well with the recent geophysical results, particularly through a high correlation between copper and molybdenum mineralisation in six distinct breccia zones and the chargeability responses detected beneath them at depth.

The structures had been drilled out to shallow depths as part of the 2011 program and have since been identified by management as high-grade and able to support near-surface mining operations, while a bigger porphyry target continues to be explored.

So, with the chargeability model now throwing up the tantalising prospect of much deeper mineralisation and the potential treasures that may lie beneath, the zones will now be targeted with further drilling.

The recent Geophysics program at Parag confirms our view that Parag is a compelling porphyry target. The breccias drilled to date have been an invaluable source of information and represent outcropping and shallow high-grade mineralisation that can potentially support economic mining activity while the bigger porphyry system is explored.

Callaghan says several bigger strategic partners are already showing interest in the long-term potential of Parag.

EV bought a 70 per cent stake in the Parag copper-molybdenum project from Peruvian-based GeoAndina Minerals 14 months ago, before launching a charm offensive with the local community to expedite the drilling permit process. The strategy proved highly successful, resulting in agreements with surrounding communities for a five-year period, along with a commitment to local investments.

A 2000m diamond drilling campaign then officially started in January and revealed high-grade copper and molybdenum intercepts from the Trinchera Este breccia in the eastern section of its leases, in addition to significant intercepts in adjacent porphyry intrusive rock, suggesting a shallower porphyry system than was initially believed.

The presence of silver in notable quantities also raised interest, especially given that prices are trading at more than US$30 (AU$44.5) per ounce, spurring the company to reinvestigate the metal in historical drill cores.

Drilling to date has tested six outcropping breccia structures, with Trinchera Este being the smallest. The company says evidence of mineralised porphyry intrusive rocks extending to the Paylacocha breccia, 1200m westwards, points to the potential scale of the system.

It now plans to integrate its newly-gathered geophysical data with historical information to help it define further drill targets and unlock the full potential of the Parag porphyry system.

Internally, management has also turned its thoughts towards a strategic partnership to fund its ongoing exploration and resource definition activities at Parag, especially given the potentially increased size of the project.

EV appears to have a new spring in its step with what it says is confirmation that Parag is indeed a copper-molybdenum-silver porphyry system, possibly of considerable size.

With copper prices at US$9673 a tonne (AU$14,362) and nipping at the heels of US$10,000 tonne, molybdenum quietly making gains and silver prices running riot in concert with the currently rampaging gold price, the company may start to catch the eye of the smart ASX punters.

Is your ASX-listed company doing something interesting? Contact: matt.birney@wanews.com.au