Oroco Resource Corp. (OCO.V) is now releasing assay results from its Phase 2 resource drill program on the Sinaloa based Santo Tomas copper project. It’s a pity the company chose a rather boring title for its press release ‘Oroco continues South Zone success’ as the actual drill results deserve to be highlighted. Encountering 369 meters of 0.45% CuEq, 57 meters at 0.72% CuEq and 103 meters containing 0.58% CuEq are pretty good assay results for a project where the average copper-equivalent grade currently is 0.37% CuEq in the indicated resource and 0.33% in the inferred resource. Note: the latter is based on $4 copper and $13.5 molybdenum versus the $5 copper and $25.75 molybdenum used in the copper-equivalent calculation of the assay results.
Additionally, two of the holes the company recently reported on actually ended in mineralization at a depth below the current PEA pit limits. This further strengthens the thesis of finding more copper and perhaps improve the mine plan and mineable resource in the next economic study. On top of that, these drill results also provide further confidence in the South Zone model as every additional hole further improves the understanding and interpretation of the mineralized envelope in the South Zone.
The company has now completed just over 12,600 meters of drilling in 42 holes of the Phase 2 drill program, which is continuing with three drill rigs currently on site.
Disclosure: The author has a long position in Oroco Resource Corp. Oroco currently is not a sponsor of the website, but has been a sponsor in the past. This post is for educational purposes only; be mindful investing in junior mining stocks is risky and you may lose your entire investment if things go wrong. Please read the disclaimer.
