Sulphur Springs is proving a boon for Venturex Resources (ASX: VXR), with the explorer continuing to intersect “exceptional” thick high-grade copper and zinc at the Western Australian project.
Latest assays from the project which is 144km south of Port Hedland were 63m at 1.89% copper from 45m, including 21m at 2.82% copper from 45m, and 5m at 5.43% copper from 45m.
The highlight zinc intersection was 10m at 10.78% zinc from 74m, including 6m at 15.10% zinc from 76m.
According to Venturex, the “outstanding” copper and zinc mineralisation that has been intersected has “exceeded” the company’s expectations.
“The high-grade copper, and now high-grade zinc mineralisation intersected within the current drilling program is an exceptional result,” Venturex managing director AJ Saverimutto said.
“This confirms both the tenor and grade of the mineralisation intersected in the first hole and further increases the geological confidence.”
“We are also very excited about the greenfields exploration drilling program currently underway at the Breakers prospect and look forward to seeing what this drilling can deliver,” Mr Saverimutto added.
Sulphur Springs project
This latest intersection follows results from Venturex’s first hole which were reported last week.
The first hole of the reverse circulation program hit several thick copper intervals – equating to 70m-plus of copper mineralisation.
Notable intervals were 29m at 1.47% copper from 45m; 9m at 0.86% copper from 82m; and 31m at 3.24% copper from 94m, including 11m at 4.15% copper from 99m.
A definitive feasibility study at Venturex was completed last year and revealed the project could generate $80 million per annum in pre-tax cash flow.
Capital expenditure for the project was estimated at $169 million, with annual production of 15,000t of copper and 35,000t of zinc.
Venturex is in ongoing discussions with potential financiers and is aiming to be in production by the end of next year.
If Venturex can get the project off the ground, it will be producing in a market where copper demand is expected to double in the next two decades.
The International Copper Association Australia (ICAA) issued a warning that copper demand is exceeding growth in supply – with copper consumption to hit 26Mtpa by 2040.
To meet the gap, ICAA chief executive officer John Fennell said miners will need to “get more for less” and search for much deeper deposits.
He added companies will need to turn to new technologies to unlock these deposits.
Prior to market open, shares in Venturex were at $0.19.