SDL 0.00% 0.6¢ sundance resources limited

do we have a company maker

  1. 644 Posts.
    The Chacarilla Copper Project in Bolivia, South America, is a rich, near surface copper deposit. Sundance Resources holds a 50% working interest in this project.

    It consists of three massive contiguous concessions with a total area of 66,000ha. Further to the west, the company’s geologists have identified additional mineralisation and graticular concessions are being considered with an additional area of 100,000ha.

    Oxide copper is clearly visible at surface and our geologists have been able to field map and take channel samples over a strike of in excess of 35 kilometres.

    During 1960-1976, the Japanese Nitto Metal Mining Company ("NMMC") carried-out underground mining to yield the majority of the recorded production for the area. Approximately 1,457,000 tonnes of sulphide copper ore grading 2.55% copper was reportedly mined to produce a 50% copper concentrate at a recovery of 89%.

    NMMC mined only sulphide copper ores as feed for flotation processing, the oxide resources were completely disregarded as there was no technology available at the time to economically process the oxide resources. Today such a technology, utilising SX/EW (solvent extraction / electro winning) plants, is commonplace and results in lower costs of production.

    As the name suggests an oxide ore has been exposed to oxygen thereby changing its chemical state and in most cases, will be located above the sulphide ore. The sulphide mineralisation on the other hand, has benefited from a supergene enrichment process, resulting in a significant body of copper enriched chalcocite ore. Both types of ore require different types of processing plants.

    No work was untertaken on the project from the 1970’s until Sundance Resources became involved in 1997 due to the political and labour climate which existed in South America at that time.

    The copper oxide that we have focused on resides between the sulphide ore and the surface making mining far simpler, easier and cheaper. Because of its changed chemical state the copper oxide can be extracted using the relatively new and inexpensive SX/EW process

    The well developed infrastructure and convenient road access to the site locations also adds to the cost effectiveness of establishing mining and milling operations of a significant scale.
    Recorded exploration by NMMC included 63,000m (530 drill holes) of predominantly vertical diamond drilling during delineation and underground grade control of the copper sulphide resources.

    Oxide copper mineralisation was geologically logged in the diamond core but not assayed. The bulk of the diamond core was drilled for sulphide ore production purposes with all assaying being undertaken in the company’s mine site laboratory.
    Sundance Resources activity in the area has been directed at verifying and expanding the NMMC records so our initial target was the Borda prospect which featured more clearly in the NMMC data, even though it was felt that other areas may hold greater potential for even higher tonnage and grade ore.

    To ensure the accuracy and reliability of our work we employed technically sophisticated equipment and staff with a proven track record. Drilling equipment was transported from Australia to Bolivia, and an experienced team of Australian specialists were resident on site for several months. The personnel that have at various times been engaged on the project include drilling staff, geologists, mining engineers, metallurgists, project managers, geochemists and geoscientists. In addition to this team we have had as many as 30 local Bolivians working for the Company.
    Sundance Resources completed in excess of 7,500 metres of reverse circulation drilling on the project.

    Review of both our and previous data and subsequent economic analysis of the Chacarilla Copper Project has identified excellent potential for commercial development. Whittle 4D evaluation of ore blocks geologically interpreted from previous NMMC exploration diamond drill holes has indicated that the grade of copper mineralisation currently defined could support significant open pit mining operations.

    In addition, strong potential exists to substantially increase the resource base through exploration of along strike and down-dip extensions of the host mineralised units.

    Subsequent to the drill program two separate regional reconnaissance programs were undertaken. These programs involved mapping, geological traversing, rock chip and mullock dump sampling (refer to ASX Announcement dated 17th December 2003 for details).

    These exploration programs were designed to rapidly investigate the local geology and identify significant outcropping copper mineralisation.
    The initial rock chip sampling program around the Chacarilla area suggested that 38 million tonnes of potentially open pittable mineralised host may be present. The second program, further to the north, identified similar mineralisation with the potential to double again the tonnages.

    These two programs covered an area of some 35 kilometres in length, varying in width from 2 to 3 kilometres. The copper oxides either outcrop in the form of mantos varying in thickness from 0.5 to 6 metres thick or are clearly visible at surface and easily identifiable. These mantos cover the entire length and breadth of the project area and run into the large neighbouring Coro Coro copper mine.

    To date less than 2% of the project area has been systematically investigated. As data has emerged from the Borda and Tivina regions we have gained a deeper insight into the geology of the project and the accuracy of the NMMC data.

    In summary the Chacarilla Project has at this stage:

    Reported copper resources of some 18.9mt @ a grade of 2.44%Cu.
    An extensive data base of in excess of 60,000 metres of diamond drilling.
    An ever increasing data base of confirmation RC drilling (now in excess of 7,500 metres).
    An landholding area of 66,000 hectares (660 square kms).
    An easily identifiable visible strike length of more than 35kms.
    Soft ground conditions which could lead to inexpensive "free-dig" mining.
    Very good infrastructure, sealed roads, water, electricity, etc.
    A stable democratic government.
    A government very keen to provide incentives to start up projects.
    In October 1998 a valuation of the project was undertaken by Terence Wilsteed & Associates. This valuation and geological report were included in a prospectus issued by Sundance Resources in November 1998. The valuers went on site and these reports provide an excellent summary of the project (refer to Sundance Resources Mining Prospectus, 5th November 1998 and download Prospectus for details) .

    Sundance Resources Group is currently seeking a North American company to continue the extensive exploration program that Sundance Resources has commenced.

    Strategic investment in Austminex NL

    In March 2005 (ASX code: ATX).

    Sundance currently holds 11,500,000 free trading fully paid shares in Austminex NL.

 
watchlist Created with Sketch. Add SDL (ASX) to my watchlist

Currently unlisted public company.

arrow-down-2 Created with Sketch. arrow-down-2 Created with Sketch.