Venturex Resources (ASX:VXR) released an updated resource estimate at the Kangaroo Caves project in September, which now contains 3.55 million tonnes of ore in all categories. As the average grade of the mineralization is approximately 6% zinc, 0.55% copper and half an ounce of silver per tonne of rock, Kangaroo Caves now contains 470 million pounds zinc, 43 million pounds of copper and almost 1.8 million ounces of silver. The 25 million pounds of lead are relatively immaterial, but a nice additional kicker anyway.
That’s already pretty interesting, but keep in mind Kangaroo Caves is located just a few kilometers south of the Sulphur Springs resource which contains almost 13 million tonnes of ore at 4.1% zinc and 1.5% copper for a total resource of almost 1.2 billion pounds of zinc as well as in excess of 400 million pounds of copper. So even if you would exclude all other mineralized zones that are included in the ‘Pilbara Base Metal project’), it’s starting to look like Sulphur Springs and Kangaroo Caves combined has already reached a certain critical mass to start thinking about developing those two zones, ignoring the other resources.
The Kangaroo Caves resource was not included in the 2012 feasibility study, so we hope to see Venturex being able to include the 3.55 million tonnes in an updated optimization study.
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Disclosure: The author holds no position in Venturex Resources. Please see our disclaimer for current positions.
