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Kerr expands mineralisation at Copperstone

Cashed-up junior Kerr Mines (CN:KER) says it has expanded the mineralised extent of the Footwall Zone at its Copperstone gold-copper project in Arizona ahead of an imminent production decision for the previously-mined project.
Kerr expands mineralisation at Copperstone Kerr expands mineralisation at Copperstone Kerr expands mineralisation at Copperstone Kerr expands mineralisation at Copperstone Kerr expands mineralisation at Copperstone

Copperstone has existing significant infrastructure

Staff reporter

Kerr has said a new resource and prefeasibility study were also on track for completion this quarter.

The company said the latest results from Phase I surface drilling extended the mineralised zone of the Footwall Zone by 255%, and discovered a new, separate Footwall mineralised zone with 105m of strike and 240m of dip.

Among the highlights, a 36.6m interval grading 7.5g/t gold and 0.26% copper also included 7.6m at 31.2g/t gold and 3m at 74.9g/t.

President Martin Kostuik described the mineralisation increase and discovery as "an amazing step" towards increasing shareholder value.

The company announced it had transformed itself in October, posting a strong turnaround in its financial position, reducing debt and increasing its cash to C$5.1 million (US$4.1 million), up $4.7 million (US$3.8 million) from a year earlier.

It followed that up with an oversubscribed private placement late last year at 30c per share that raised just over C$6.1 million (US$4.9 million), exceeding the $5 million (US$4 million) target due to high investor interest.

Copperstone is said to have produced 500,000 ounces of gold from an open pit and beneath this has a 313,000oz resource at 10.35g/t gold which saw limited mining in 2012-2013 by a previous owner.

Kerr announced positive initial metallurgical results in November, including gold recoveries of up to 91% and an evaluation into copper recovery from the gold-bearing zones.

Shares in the company slid about 1.5% to C33c but are at the higher end of their 52-week range of 11.5c-41c.