Empire strikes back with high-grade copper intercept at Yuinmery
Empire Resources has struck copper grading 5.1% at its A Zone prospect – part of the Yuinmery project in WA.
Gold producer Empire Resources (ASX: ERL) has hit high-grade copper during its recent two-hole reverse circulation drilling program at its Yuinmery copper-gold project in Western Australia.
The copper was identified on the A Zone prospect where one hole intersected 12m grading 2.05% copper and 0.31 grams per tonne gold from 138m, with a 2m interval comprising 5.1% copper and 0.50g/t gold.
These results follow previous drilling in 2011 and 2012 at A Zone, which returned 19m grading 1.9% copper and 0.3g/t gold from 160m, with a 5m interval containing 4.4% copper and 0.4g/t gold.
Other notable previous drill results were 7m grading 3.2% copper and 0.5g/t gold from 192m, including 4m grading 4.5% copper and 0.5g/t gold; and 8m grading 2.4% copper and 1.3g/t gold from 275m, with a 3m interval grading 4% copper and 3.3g/t gold.
The copper struck within A Zone is 1.3km along strike from the Just Desserts copper-gold deposit at the project which has a resource of 1.27 million tonnes grading 1.9% copper and 0.7g/t gold, at a 1% copper cut-off.
Empire Resources plans to continue drilling at A Zone to prove up a maiden resource and expand its overall resource inventory at Yuinmery.
Drilling is underway on exploration licence 57/681 where Empire Resources has a two-year option agreement to lock-in 91% of the licence from gold operator Evolution Mining (ASX: EVN).
Supreme court proceedings
Today’s news follows Empire Resources’ announcement yesterday regarding legal proceedings where its Penny’s Find venture partner private entity Brimstone Resources sought an injunction in the Supreme Court of Western Australia to prevent Empire Resources from taking action to recoup A$1.02 million in owed funds.
Brimstone was due to repay the A$1.02 million by the 6 June 2018.
Empire Resources’ plans to oppose the injunction.
Penny’s Find gold mine
Meanwhile, the Penny’s Find joint venture recently completed its fourth toll treatment campaign of its gold ore at the nearby Lakewood Mill.
Under the fourth campaign 28,134 tonnes of ore was processed with an average head grade of 6.68g/t gold.
The joint venture recovered 5,520 ounces of gold, which was sold for around A$1,745.30 per ounce.
With debts repaid, Empire Resources is anticipating positive cash flow in the current quarter.
The company is also carrying out a feasibility study into moving Penny’s Find underground, which would extend the mine life to about 10 years.
In late morning trade, Empire Resources’ share price had slipped almost 6% to A$0.016.