Los Azules is a 100% owned advanced-stage porphyry copper exploration project located in the cordilleran region of San Juan Province, Argentina near the border with Chile. It is one of the world's largest undeveloped copper deposits with a mineral resource of 10.3 billion pounds of copper (inferred) and 2.2 billion pounds of copper (indicated). Gold resources are 308,326 ounces measured and indicated, and 2 million ounces inferred. Silver resources are 7,5 million ounces measured and indicated, and 49 million ounces inferred.
Los Azules is a traditional porphyry copper system. The upper part of the system consists of a barren leached cap, which is underlain by a high-grade secondary enrichment blanket, and the primary mineralization below the secondary enrichment zone extends to at least 650 meters, which is the depth of the deepest holes drilled to date. McEwen Mining is planning to drill 8,000 meters in 2012 at Los Azules to continue exploration of the deposit.
The property encompasses 50,933 acres and surrounds a large alteration zone that is approximately 8 kilometers long by 2 kilometers wide.
McEwen Mining has recently intersected 0.53% copper over 351 meters, including 0.71% copper over 167 meters, in Hole 1279. This hole is located 340 meters southeast of Hole T-01, which last year returned 0.50% copper over 269 meters, including 0.95% copper over 45 meters.
In addition, Hole 1175, located 200 meters east of T-01, returned 0.70% copper over 15 meters before being terminated due to bad ground conditions. Hole 1175 extends the mineralization beyond the known limits of the deposit.
| Hole |
From
(m) |
To
(m) |
Thickness
(m) |
Copper Grade
(%) |
| 1175 |
340 |
355.2 |
15.2 |
0.702 |
1279
Including |
272
456 |
622.7
622.7 |
350.7
166.7 |
0.53
0.71 |
In an effort to solve the problems encountered with the recent drilling at Los Azules, McEwen Mining has signed a contract with Major Drilling to provide four core drills for the 2012-13 drill season which are considerably more powerful than the ones used this season. The company believes this will increase the likelihood of reaching target depths (+500 meters), where high-grade copper mineralization has been encountered. McEwen Mining anticipates starting the upcoming drill season in October, adding 3 months to the program and will commence with the permitting process for a helicopter pad that could allow the drills to operate year round.
An updated resource estimate will be published by mid-year which will incorporate the 7,350 meters of drilling completed in the current and previous seasons.
Mineral Resource Estimate
Mineral
Resource
Category |
Tonnes
(millions) |
Copper
% |
Contained
Copper
(B lbs) |
Gold
grams/tonne |
Silver
grams/tonne |
| Indicated |
137 |
0.73 |
2.2 |
0.07 |
1.7 |
| Inferred |
900 |
0.52 |
10.3 |
0.07 |
1.7 |
Cut-off grade of 0.35%
December 16, 2010 technical report available on SEDAR (www.sedar.com)
Mineral Resources Greater than 0.70% Copper
Mineral
Resource
Category |
Tonnes
(millions) |
Copper
% |
Contained
Copper
(B lbs) |
Gold
grams/tonne |
Silver
grams/tonne |
| Indicated |
67 |
0.95 |
1.4 |
0.08 |
1.9 |
| Inferred |
127 |
0.86 |
2.4 |
0.09 |
1.9 |
December 16, 2010 technical report available on SEDAR (www.sedar.com)
Preliminary
metallurgical test work conducted at Los Azules indicates that the
mineralization is amenable to conventional flotation processing with
indicated copper recovery in the range of 92-93%.
Click to enlarge
Location of Los Azules
Los Azules is 6 km east of the Chilean-Argentine border, is accessible by road and is at an elevation of 3,500 meters above sea level. Due to snow conditions on two mountain passes on the access road to the site, seasonal exploration typically commences in November and terminates in late April. The project is expected to have year-round access during the construction and production phases.
The deposit is located on a copper porphyry belt host to some of the world's largest copper mines including Codelco's El Teniente mine (world's largest underground copper mine), Anglo American's Los Bronces mine, Antofagasta's Los Pelambres mine and Xstrata's El Pachón project.
Los Azules technical information was derived from the report titled "Canadian National Instrument 43-101 Technical Report Updated Preliminary Assessment, Los Azules Project, San Juan Province, Argentina" with an effective date of December 1, 2010 prepared by Kathleen Altman, Robert Sim, Bruce Davis, Richard Jemielita, William Rose, and Scott Elfen. To access the report click here.