The standout hit from underground infill drilling was 53m at 3.1% copper equivalent, or 0.6% copper, 0.2% lead, 7.3% zinc, 14 grams per tonne silver and 0.2gpt gold from 288m, including 14m at 6.6% copper equivalent.
The hit, as well as another hole which returned 53m at 1.9% copper equivalent from 237m, represent the two thickest intersections in the project’s history.
The company said the results pointed to a substantial conversion of inferred resources to indicated.
Sulphur Springs has a resource of 13.8 million tonnes at 2.5% copper equivalent, or 1.5% copper, 3.8% zinc, 0.2% lead and 17gpt silver, including 9.4Mt in the indicated category.
Develop is aiming for a mid-year resource upgrade, with about 60% of the drilling results received to date.
“These results highlight the significant potential to grow and develop Sulphur Springs,” Develop managing director Bill Beament said.
“An increase in the indicated resource will ultimately give us more flexibility with the underground mining schedule, enable us to grow the current 10-year mine life and move us closer to finalising project funding.”
Argonaut is expecting a 10-20% increase in tonnage and successful conversion of inferred resources to indicated and measured.
Exploration in previously undrilled areas returned 43m at 1.8% copper equivalent from 360m, including 5m at 5% copper equivalent, and 40m at 1.5% copper equivalent from 366m, including 4m at 5.8%.
Mineralisation remains open down-plunge and along strike.
Beament said the results pointed to further resource increases later this year.
“We hope to be constructing the exploration decline in the June quarter,” he said.
“This will enable us to accelerate drilling and complete our review of the mine plan and funding options.”
The proposed 1500m decline is expected to cost $7.5-8.5 million and will be funded from cash reserves, which stood at $16.5 million at the end of December.
