ISLAMABAD, Jan 14: Pakistan has found substantial gold-enriched copper porphyry outside the already known mineral reserves, which could rank its undeveloped Reko Diq Copper-Gold Project in Balochistan as one of the largest copper resources in the world.
"With 14 known mineralised porphyry bodies in addition to the known resources, Reko Diq ranks as one of the largest undeveloped copper resources in the world, proving TCC with unrivalled leverage to the rising copper price and expanding demand in the growing Asian economies, particularly China," said a statement issued by the Australian firm Tethyan Copper Company Limited (TCC).
The company said it drilled two holes into the H9 Porphyry complex, located close to its existing reserve inventory, had "encountered continuous copper and gold mineralisation from top to bottom", suggesting that a new copper-gold resource was likely to be present in the area.
Pakistan has already become a copper exporter following its first-ever copper sales in the London Metal Exchange last year from another project, known as Saindak Copper-Gold Project, which also falls in its largest and mineral-rich Balochistan province.
TCC of Australia, after green signal from the Pakistan government, raised $15 million through its over-subscribed initial public offering at the Sydney Stock Exchange late last year to develop first phase of the Reko Diq project in Balochistan over a 12-month period.
It also commenced a major drilling campaign late last year targeting a series of mineralised complexes known as the Southern Porphyries. The programme is designed to increase the existing JORC-standard resource inventory at Reko Diq, which already comprises over 11 billion pounds of copper and nine million ounces of gold.
Hole H-117 - drilled on the western side of the H9 Complex - returned 354 metres gracing 0.27 per cent copper and 0.41 g/t (grams per ton) gold, including a high-grade gold zone of 48 metres at 0.5 per cent copper and 0.84 g/t gold. Mineralisation is continuous from six metres down hole to the end of the hole at 360 metres, and is notable for the high gold to copper ratios.
A second hole, RD-118, drilled into the northern margin of the complex approximately 500 metres northeast of H-117, also exhibited continuous mineralisation from surface and showed increasing copper and gold values with depth. The hole did not reach the target contact breccia zone encountered in H-117.
The Southern Porphyries lie immediately east of the 730 million ton inferred resource already identified at the Western Porphyries and just two kilometres south of the 78 million ton probable reserve at the H4 project.
The H9 Complex, part of the Southern Porphyries, is approximately 700 metres by 900 metres in dimension. Previous drilling into the complex returned a best result from three holes of 65.6 metres at 0.43 per cent copper and 0.68 g/t gold from 311 metres depth.
"This is a great start to our exploration campaign and demonstrates the extraordinarily prolific nature of the Reko Diq area," said TCC's Managing Director David Moore.
Mr Moore said TCC was mobilising two additional drilling rigs to the site, with the existing rigs currently completing a series of holes for metallurgical test work at the H4 Project before returning to the exploration drilling programme.
"We will be drilling continuously over the next 12 months to more clearly define the true potential of this rich copper-gold system," he said. TCC's triple objectives are to substantially expand the existing resource base at Reko Diq, complete a major regional geophysical programme targeting giant Escondida-style supergene copper deposits and rapidly progress the feasibility study on the H4 Starter Project.