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Copperstone expansion results give Kerr confidence

Kerr Mines (TSX: KER) says initial results from a 10,000m underground resource expansion drilling programme are supporting its confidence to be able to extend the mine life at its Copperstone project in Arizona.
Copperstone expansion results give Kerr confidence Copperstone expansion results give Kerr confidence Copperstone expansion results give Kerr confidence Copperstone expansion results give Kerr confidence Copperstone expansion results give Kerr confidence

Kerr is aiming to increase Copperstone’s mine life

Staff reporter

The emerging gold miner said a highlight was 12.2m at 11.76g/t gold, including 3m at 38.3g/t, indicated the zone was higher grade and thicker than first thought.

Copperstone has a 2018 proven and probable reserve of 175,093 ounces grading 6.79g/t, supporting an estimated mine life of 4.5 years.

Kerr is targeting a proven and probable reserve of 320,000oz to take the mine life beyond eight years.

It is aiming to get the previously-mined Copperstone back into production by the fourth quarter.

It signed a term sheet for up to US$25 million in project financing with Sprott Private Resource Lending last year, ending discussions with Pandion Mine Finance over a possible $27.6 million package.

A prefeasibility study last year put initial capex at $22.7 million, the internal rate of return at 40% and all-in sustaining costs at $875/oz.

Kerr had C$3 million (US$2.2 million) in cash and investments at the end of December.

Its shares are trading at the lower end of its 52-week range of C10.5c-25c, last trading at 12.5c to capitalise it at $34.6 million.