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Faraday Copper (TSX: FDY; OTCQX: CPPKF) has released a fresh round of assay results from its flagship Copper Creek project in Arizona, with drilling highlighting the potential to connect two conceptual open pits in an upcoming resource estimate.
The phase two program comprises six drill holes to expand the openpit resource base.
In a release this week, the company said three drill holes highlighted the potential for expanding the near-surface resource along the eastern breccia trend and potentially consolidating Copper Prince and Mammoth open pits.
The top three hits entail hole FCD-23-032 at the Pole breccia, which cut 101.31 metres at 0.45% copper and 6.7 grams silver per tonne from surface, including 17.7 metres at 1% copper, 3.3 g/t silver and 0.1 gram gold per tonne from 68.16 metres downhole.
hole FCD-23-033 cut 42.03 metres at 0.4% copper and 3 grams silver per tonne from 74.03 metres, and 28.97 metres at 0.2% copper and 1 gram silver per tonne from 130.83 metres depth. This intercept falls outside of the existing resource estimate area.
Hole FCD-23-034 returned 43.29 metres at 0.3% copper and 1.1 gram silver from 75.58 metres at the B-24 breccia, also outside of the resource estimate.
The company said its focus for the third quarter will be on integrating and analyzing various data sets, including airborne magnetic, electromagnetic, drill core, geochemical, and spectral data. This analysis will rank and prioritize targets for a Phase III drill program, set to begin in the fourth quarter, covering a 20,000-meter area.
Faraday will also start a metallurgical program and continue analyzing historical drill cores for gold.
Canaccord Genuity mining analyst Dalton Baretto said in a note to clients that drill holes 32, 33, and 34 intercepted mineralization above the pit cut-off grade at the Pole breccia, which lies between the Copper Prince and Mammoth pits. This finding increases the possibility of connecting the two pits in a subsequent resource estimate, potentially extending the open pit mine life.
The latest results build on late May results that indicated mineralization outside the resource estimate area and bodes well for future resource growth.
The project has a combined openpit and underground resource of 421.9 million measured and indicated tonnes grading 0.45% copper, 0.008% molybdenum, 1.1 grams silver per tonne (0.485 copper-equivalent) for contained metal of 4.2 billion lb. copper, 74.6 million lb. molybdenum, and 15.5 million oz. silver (4.4 billion lb. copper-equivalent).
Combined inferred resources add 83.6 million tonnes averaging 0.34% copper, 0.007 moly and 0.6 gram silver (0.36% copper-equivalent) for 628.2 million lb. copper, 13.4 million lb. molybdenum and 1.7 million oz. silver (669 million lb. copper-equivalent.)
Based on a fully risked net asset value, Baretto has set a target price of C$1.75 per share and rates Faraday as a ‘speculative buy’ due to the significant implied return to his target.
Despite coming off a recent high at C$1.18, at C81¢ per share on Friday, the stock is still up 62% over the past 12 months. It has a market capitalization of C$142 million ($107m).
