Montezuma Mining Company raises the stakes at Butcherbird with 47m at 1.81% copper intercept

Montezuma Mining Company (ASX: MZM) continues to build momentum at the Butcherbird Copper Project, with some impressive copper intersections from reverse circulation drilling.

The latest highlight is the broad 47 metres at 1.81% copper from 113 metres, which includes a stunning high grade intercept of 6 metres at 6.08% copper and 631 parts per million cobalt.

What is so significant about the intersection is that it was discovered at the very start of the recent drilling campaign, with assays still pending for 17 of the 19 hole program - which covered around 2700 metres.

Providing a further prospectivity boost to the project, previously completed IP, Aeromagnetic and EM surveys highlight numerous copper/cobalt targets over 6 kilometres of strike - which remains open.


Scoping Study points to robust economics

In another plus for the company, just last week a Scoping Study for the development of the extensive manganese mineralisation at the project.

The study was completed by independent consultancy Engenium Pty Ltd and investigated the development of a mine producing between 0.5 million tonnes and 1 million tonnes per annum of lump and chip ore grading a nominal 36% manganese with a mine life of at least 10 years.

The study has projected an NPV of up to A$376 million with an IRR of up to 59%, based on the Yanneri Ridge JORC Inferred Resource of 64.7 million tonnes at 11.2% manganese (8% manganese cut off).

A yield of 20% of extractable product at 36% manganese was assumed based on the DMS studies, underpinning potential production of over 12 million of lump and chip product with a 1:1 stripping ratio from this deposit alone.

Importantly, Montezuma expects resource upgrades based on further drilling to add to the potential product inventory, and may support a longer mine life and/or increased production rates.


Analysis

Montezuma Mining will now aggressively push towards production with further engineering investigations and a more detailed Feasibility Study as well as actively investigate potential financing avenues to fund the capital requirements of a manganese mine at Butcherbird.

With the Butcherbird project now having a projected net present value of A$376 million against a market cap of just A$20 million, the company's stock price appears to have significant upside.

Originally published at: http://www.proactiveinvestors.com.au/companies/news/21433/montezuma-mining-company-raises-the-stakes-at-butcherbird-with-47m-at-181-copper-intercept-21433.html