Montezuma Mining Company (ASX: MZM) has in excess of 3,000 km2 of exploration tenure in Western Australia, with multi-commodity prospectivity including gold, copper, nickel and uranium targets.
The company's Butcher Bird Project contains the historic Butcher Bird mine, a high grade near surface copper mine which targeted supergene copper mineralisation. The mine has recorded production of 8.46t of copper at an average grade of 22.6%.
Montezuma Mining Company (ASX: MZM) rallied on the ASX today with shares hitting an intra-day high of $0.305, up 22% on the previous day’s close.
The company recently re-commenced reverse circulation drilling at the Butcherbird Manganese Copper Project to follow up on a number of copper and cobalt targets highlighted by previous work.
The 5,500 metre drilling program is seeking extensions to the discovery and previously untested targets.
Montezuma has continuously delivered high grade intercepts from the project including 3 metres at 3.42% copper from 92 metres, 2 metres at 3.66% copper from 63 metres, and 2 metres at 4.74% copper from 102 metres.
Earlier highlights include a peak result of 6 metres at 6.08% copper and 631 parts per million (ppm) cobalt, within a broader intersection of 61 metres at 1.96% copper and 228ppm cobalt from 113 metres.
The significance of the discoveries is that they have confirmed copper mineralisation associated with the Butcherbird Shear Zone over a strike of at least 250 metres, within a broader prospective corridor striking in excess of 6 kilometres within the company’s tenure.
A Scoping Study has shown that a mine producing between 0.5 million tonnes and 1 million tonnes of lump and chip ore per annum could be developed at Butcherbird.
Ore was graded at 36% manganese and the mine life is expected to be at least 10 years.
The study projected a net present value of up to A$376 million and an internal rate of return of up to 50%.