Surge Copper (SURG.V) has released the assay results from holes 234-236 which were drilled on its Berg project in British Columbia, where it is earning a 70% interest from Centerra Gold (CG.TO). These are the first three holes drilled in 2021 which means the assay results of the remaining six holes are still pending.
All three holes intersected thick layers of copper-bearing mineralization, starting exceptionally close to surface and all three holes ended in mineralization, in excess of 300 meters deep. The grades aren’t spectacular but the current high copper price can be forgiving and the thick and continuous intervals will make any potential mining scenario fully dependent on economies of scale. The upper layer of hole 235 for instance, which encountered 162 meters of 0.37% copper, 0.075% molybdenum, 0.03 g/t gold and 4.3 g/t silver has a gross rock value of $70/t, a large scale open pit mining operation would likely be viable (although it also depends on how hard the inflation would impact the up-front capex). It’s also interesting to see that at the current molybdenum price, moly and copper are now contributing an almost equal value to the gross rock tonnage. But of course, metallurgy will be a key element in determining the viability of the Berg (and Ootsa) deposits.
Disclosure: The author has no position in Surge Copper. Please read our disclaimer.
