Ivanhoe Electric Updates Santa Cruz Copper Project in Arizona 55,733 Meters of Drilling Complete Updated Santa Cruz Project Mineral Resource Estimate Expected in January 2023 Mineral Resource Estimate to Include Texaco and East Ridge Areas
October 31, 2022
Ivanhoe Electric Updates Santa Cruz Copper Project in Arizona
55,733 Meters of Drilling Complete
Updated Santa Cruz Project Mineral Resource Estimate Expected in
January 2023
Mineral Resource Estimate to Include Texaco and East Ridge Areas
NEW YORK, NEW YORK – Ivanhoe Electric (NYSE American: IE; TSX: IE) Chairman and
Chief Executive Officer Robert Friedland and President Eric Finlayson are pleased to
provide an update on drilling operations and exploration activities at the Santa Cruz
Copper Project located west of Casa Grande, Arizona.
Mr. Friedland commented: “Our industry-leading geologists and engineers are building
a wealth of knowledge from the ongoing drilling program at the Santa Cruz Copper
Project. We are excited by the rapid progress we’ve experienced at Santa Cruz, which is
leading to an updated mineral resource statement for the project expected in January
2023.”
Glen Kuntz, Chief Technical and Innovation Officer, commented: “We have had a busy
and successful first twelve months at Santa Cruz. The technical teams have published
an initial Mineral Resource Estimate while managing a multi-rig drill program,
completing numerous trade-off studies and carrying out the technical studies required
to support a future Preliminary Economic Assessment.”
Graham Boyd, Vice President of US Projects, commented: “Our expert geological team
is encouraged by the spectacular blues and greens of the high-grade oxide and exotic
copper zones. We believe that the Santa Cruz deposit could be one slice of a larger
porphyry copper system. With our Typhoon™ results, we have started testing new
anomalies for additional copper discoveries.”
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Andy Russell, Santa Cruz Consulting Project Director, commented: “Based on our work
to date, we expect to complete a Preliminary Economic Assessment on the Santa Cruz
deposit in the first half of 2023. The initial project economics could improve further as
we continue to explore and understand the other areas, including Texaco and East
Ridge.”
Santa Cruz drill program employing up to eight drill rigs
Up to eight drill rigs are working 24 hours a day to collect resource in-fill, geotechnical,
hydrological and metallurgical information required to assess potential mine
development options at the Santa Cruz Project. We have completed 23,945 meters of in-
fill drilling and 7,792 meters of drilling to support studies on underground mine access,
utilizing a large and experienced on-site crew of over 40 employees and 76 contractors.
A recent highlight of the in-fill drilling program is from hole SCC-084, which intersected
over 250 meters of impressive oxide and exotic copper mineralization. Although
pending assays, this hole demonstrates the potential for identifying new zones of oxide
and exotic copper mineralization.
Core sample from hole SCC-084 at 756 meters depth showing Diorite (black) with
intense high-grade atacamite copper mineralization (green) along fractures and
within veins. Atacamite is a high-grade copper mineral with 60% copper by
weight.
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Hole SCC-084, shown between 746- and 749-meters displaying Oracle Granite
with intense, high-grade atacamite and chrysocolla copper mineralization in
fractures.
Prior to sampling drill core for assays, holes receive detailed geotechnical evaluation
using rock quality designation, logging of whole core and mapping of structural
features using downhole acoustic televiewer surveys. This data is essential for
understanding the engineering characteristics of the rocks influencing potential mine
design.
As a result of the detailed geotechnical work being performed on the core samples, and
the industry-wide backlogs at assay laboratories, we have experienced some delays in
the receipt of assay results. Approximately 5,000 drill samples are currently being
processed at two laboratories: Skyline Assayers & Laboratories in Tucson, Arizona and
Société Générale de Surveillance SA (“SGS”) in Vancouver, British Columbia, Canada.
We expect to receive assay results in the coming weeks.
SGS is constructing a sample preparation facility in Tempe, Arizona to support the
Santa Cruz Project. This important facility, located a 45-minute drive from the Project,
should be operating by mid-November and will significantly improve assay sample
process times.
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We have installed vibrating wire piezometers in selected holes to monitor the movement
of groundwater in the cover gravels and bedrock. Hydraulic testing is also underway.
This work is important for assessing the water content of different rock types and
determining potential dewatering requirements.
Samantha Pascarelli, Geologist, logging Santa Cruz drill core.
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In early October, the Santa Cruz Project introduced on-site scanning of drill core
utilizing cutting-edge technology developed by GeologicAI of Calgary, Alberta, Canada.
The system utilizes several components including: Light Detection and Ranging
(“LIDAR”) scanning, X-Ray Fluorescence (“XRF”) chemical analysis, hyperspectral
analysis for mineral identification, high-resolution core photography and geotechnical
data collection and analysis tools.
Once fully deployed, this sophisticated system will allow a two to three-day turnaround
time for preliminary geochemical data. The system and the produced data will assist
with the prioritization of samples for both assaying and the decision-making process on
subsequent drill holes.
Michelle Legat, Vice President of Geology at GeologicAI, operating the core
scanning system.
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Santa Cruz Copper Project, Casa Grande, Arizona – Drill Site Location, October 8,
2022.
Updated Mineral Resource Estimate and Preliminary Economic
Assessment underway
Results from the evaluation drill program will be used to support an updated Mineral
Resource Estimate for the Santa Cruz Project expected in January 2023. The updated
Mineral Resource Estimate will update the existing Santa Cruz deposit resource and will
include initial estimates for the Texaco and East Ridge deposit areas.
Mining and metallurgical processing trade-off studies aimed at optimizing the initial
economic analysis of the project are underway, in support of the Preliminary Economic
Assessment (“PEA”) for the Santa Cruz Project. The initial PEA will cover only the Santa
Cruz deposit area and is scheduled for completion in Q2 2023.
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Through the trade-off studies we are resolving access alternatives, production rates,
processing methods, copper cut-off grades, mining sequences and material handling
systems. Our engineering teams have reviewed an initial 26 scenarios, which have been
reduced to 7 optimized potential underground development scenarios for further study.
The Company is also completing environmental baseline studies, including hydrology
and geochemistry test work, to support future applications for the Aquifer Protection
Permit to the Arizona Department of Environmental Quality and the Dewatering Permit
to the Arizona Department of Water Resources.
Deidra Contreras and Karilys Mendez, Geotechnicians sampling Santa Cruz
drill core.
To date, 23,996 meters of exploration drilling on new areas have been completed. This
includes the initial four-hole verification drill program conducted on the Santa Cruz
copper deposit in 2021.
Based on results from the 26.5 km2 Typhoon™ survey completed in July, with
preliminary results disclosed on September 15, 2022, three drill rigs were re-assigned
from the Santa Cruz copper deposit evaluation drilling program to test five major
chargeability targets that are potentially indicative of new zones of sulfide
mineralization. A major new exploration discovery could alter the development options
being studied for the upcoming PEA.
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Drilling at the East Ridge Typhoon™ target commenced in late-September and on the
Far Southwest Typhoon™ target in mid-October. Both targets are thought to be
separated by faults from the Santa Cruz copper deposit and could represent fragments
of a single large porphyry copper deposit.
A highlight of initial East Ridge drilling was discovered in hole SCC-096, which
intersected 150 meters of visible oxide copper mineralization, including approximately
10 meters of intense copper mineralization. Assays are currently pending.
An example of spectacular chrysocolla and atacamite oxide copper
mineralization in a core sample from hole SCC-096 at 587 meters depth, targeting
the East Ridge Typhoon™ target.