Arizona Sonoran Copper (ASCU.TO) has released the first few assay results from its diamond drill program on the flagship Cactus copper project in Arizona. The company released the results from eight holes which confirmed the presence of copper mineralization that could be recovered by using the heap leach process.
The program initially targeted to define additional copper-rich zones at depth under the western highwall of the existing pit and beneath the West Fault. A previous drill program in 2020 already confirmed the presence of additional mineralization towards the west of the known zones, and the current drill program was mainly designed to be an infill drill program to fill in the blanks between the 2020 results and the historical pit and known mineralization.
With good results like 40 meters of 0.519% soluble copper and 34 meters containing 0.77% soluble copper, the drill program appears to be successfully converting waste rock into a mineralized area that would meet the cut-off grade required to have an economical operation.
The exploration activities of Arizona Sonoran are off to a good start, but the Initial Public Offering of ASCU was rather weak as the company hasn’t traded a single second at its C$2.45 IPO price. And now, just a few weeks later, the share price is trading about 25% lower than the IPO level. Good for new entrants, but participants in the IPO will likely be disappointed.
Disclosure: The author has a long position in Arizona Sonoran. Please read our disclaimer.
