Clean copper producer Ero Copper Corp. (ERO:NYSE), which is engaged in mining and development operations in the established mining states of Bahia, Mato Grosso, and Pará in Brazil, yesterday announced "the discovery of a regional nickel sulfide system within the Curaçá Valley over an initial strike length of five kilometers."
The company advised that the newly found Umburana system displays multiple surface expressions of nickel mineralization that extend outward in all directions.
Ero Copper reported that it conducted first-pass drilling at two of the newly identified areas referred to as the VB and Lazaro (LZ) Zones.
The firm advised that initial drill results from Hole VB-17 at the VB zone intersected 16.5m (meters) of 1.37% Ni eq (nickel equivalent) consisting of 1.22% Ni, 0.17% Cu (copper), and 0.03% Co (cobalt). These results included one 3.8m segment measuring 3.92% Ni eq that consisted of 3.60% Ni, 0.22% Cu, and 0.09% Co, which included an even higher 1.5m interval of 7.11% Ni eq.
A second hole at the VB Zone, VB-25, returned 30.4m of 0.72% Ni eq that included 5.1m of 2.28% Ni eq. and a 1.4m interval of 5.30% Ni eq.
Ero Copper additionally reported data from three initial holes drilled at the LZ Zone. The firm indicated that Hole LZ-03 returned 24.1m of 0.97% Ni eq, Hole LZ-06 intercepted 22.5m of 1.02% Ni eq, and Hole LZ-07 intersected 17.7m of 1.14% Ni eq.
The company noted that the newly uncovered nickel system is called the Umburana system. Umburana is located about 20km from Ero's current Caraíba processing operations. The firm advised that it discovered this new system during its 2021 and 2022 exploration programs using detailed field mapping, soil geochemistry testing, and airborne electromagnetic surveys.
"We believe today's results confirm the Curaçá Valley's potential to be a globally significant magmatic sulfide district for both copper and nickel," CEO Strang added.
The firm stated that its "first-pass" drill program was comprised of 48 drill holes designed to target areas where ultramafic rocks were mapped at surface.
The company indicated that it has discovered nickel mineralization outcrops at surface and that there is evidence of continuation in trenches and below. Ero Copper noted that it is currently operating four exploration drill rigs at the site and that, so far, it has only drilled to vertical depths of about 300m.
Ero Copper's CEO David Strang remarked, "This is a significant and pivotal moment for the company and, more broadly, for the region. To think that copper in the Curaçá Valley was first documented in the late 1700s and we are just now discovering nickel sulfide mineralization not far from where copper has been mined for over 40 years is truly remarkable."
"We believe today's results confirm the Curaçá Valley's potential to be a globally significant magmatic sulfide district for both copper and nickel," CEO Strang added.
The company's Chief Geological Officermike Richard commented, "From my perspective, this is the most significant development in the Curaçá Valley's regional exploration program to date … Based upon results to date, we have good geological evidence to support the "key" signatures for nickel potential that we expect will vastly enhance our nickel exploration program in the months and years ahead."
Ero Copper Corp. is headquartered in Vancouver, B.C, and is focused on the exploration, development, and production of high-margin copper projects in Brazil. The company owns a 99.6% interest in Brazilian copper mining company CSA and is the sole owner of the Caraíbamining complex in the State of Bahia in Brazil. The firm also owns interests in underground and open pit copper mines in Pará, Brazil, and owns approximately 98% of NX Gold S.A., which is focused on production at a gold and silver mine in Mato Grosso, Brazil.
Ero Copper started yesterday with a market cap of around $938.2 million, with approximately 90.74 million shares outstanding. ERO shares opened 2% higher yesterday at $10.65 (+$0.23, +2.21%) over the previous day's $10.42 closing price. It traded between $10.65 and $11.42 per share yesterday and closed for trading at $11.18 (+$0.76, +7.29%).
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