Alongside Timok cooper-gold project which Lundin might take over, Reservoir recently reported on its second exploration drilling results Cukaru Peki.
Just over a month after Lundin Mining signed a US$262.5 million pact to take Freeport McMoRan’s stake in the Timok project off the US-based company, Reservoir has, once again, made the investment community stand up and take note of the project.
The highlight of the 12 infill holes focused on the Upper Zone at Cukaru Peki was a 136m intercept (true thickness of 119.3m) grading 6.05% Cu and 6.80g/t Au from 463m depth. Within this, was a 49m hit (from 509m depth) that came with an average grade of 13.74% Cu and 11.82g/t Au.
These high grade hits – which bolster a maiden inferred resource of 65.3 million tonnes at 2.6% Cu and 1.5g/t Au at Cukaru Peki – present Reservoir with both a dilemma and an opportunity.
The Toronto-listed company, which owns 45% of the Timok joint venture, is currently weighing up an option to match Lundin Mining’s offer for Freeport’s 55% stake in the JV, but knows it would have to break out of its prospect generator model and potentially dilute its shareholders, or find a partner, to match the pact.
Either way, such high grade hits will reinforce the point deposits like Cukari Peki don’t come along very often.
Source: Mining journal