Florence Copper Project Advances Towards Development
VANCOUVER, July 20, 2011 /CNW/ --
VANCOUVER, July 20, 2011 /CNW/ - Curis Resources Ltd. (TSX: CUV)
('Curis' or the 'Company') reports a formal update on activities at the
Company's flagship advanced stage Florence Copper project in central
Arizona, USA.
'We are very pleased with our progress in advancing the Florence Copper
project (FCP) with the goal of completing the feasibility study and
necessary amendments to permits to enable near term production' said Michael McPhie, President and CEO of Curis. 'A number of significant milestones have been achieved over the past
several months. These have further affirmed the development plan and
timeline outlined by Company management earlier this year and
supporting our confidence in the engineering viability of this world
class in-situ copper recovery project'.
In summary these developments include:
-- Advancing a project feasibility study with targeted completion
in Q4 of this year.
-- Advancing the engineering and development work including
preparing to issue a request for proposal for an EPCM contract
to design and build Phase 1 of the Florence Copper project.
-- Nearing completion of a drill program at the Florence project
site that indicates both the anticipated copper mineralization
and geological structure of the oxide copper zone.
--
-- Continuing to advance project permitting with Arizona State and
Federal agencies, this is on track for completion in late
2011/early 2012.
McPhie continued. 'As copper markets continue to strengthen, our company is one of the few
in the world with the opportunity and ability to advance a low cost
high value copper project in the near term. We expect Curis to be able
to benefit from continued investor interest in pure copper play
companies.'
Key milestones and updates for the Florence Project are as follows:
FEASIBILITY STUDY UPDATE
Numerous feasibility level optimization and design studies for the
Florence Copper project are now in advanced stages of engineering
review and are targeted for completion this fall. The studies are
being led by M3 Engineering of Tucson, Arizona with support from a
number of prominent engineering firms and consultants with extensive
experience in SX/EW technology, hydrogeological engineering and in-situ
extraction methodologies (see Press Release issued by Curis on April
12, 2011). These individual studies will be compiled into a
comprehensive feasibility study report scheduled for completion in Q4
2011.
The focus of the current studies is to provide 15% capital and operating cost estimates based on the new trade-off
studies and updated project plans. These studies build on the
pre-feasibility studies completed by Magma Copper Company (1994) and
BHP Copper (1997) and updated by SRK Consulting on September 30, 2010
with the issuance of 'NI 43-101 Preliminary Economic Assessment for the
Florence Project'. In support of the current design efforts,
particular attention has been focused on optimizing or otherwise
refining:
-- the general plant layout arrangement
-- project infrastructure
-- plant logistical controls
-- manpower
-- construction and operating materials requirements
-- acid and energy requirements (including sourcing)
-- water balance
-- water treatment
-- metallurgical processes
-- well and well field design
-- well field operation and controls
-- life-of-project copper extraction plans
-- project schedules
-- operating and post-closure land use
A geological drilling and testing program is also underway at site (see
below) and will provide input into an updated block model which will
support a revised life-of-project copper extraction plan.
PHASE 1 - EPCM CONTRACT
The first phase of the project is scheduled to be constructed at the
Florence site beginning in Q1 of 2012, following the receipt of amended
commercial operating permits currently under review by State and
Federal agencies. This would be considered as the project 'start-up'
phase. It will consist of a 24-well copper extraction field
constructed to simulate full scale operations. Copper rich solutions
from recovery wells will be piped to a new Solvent
Extraction/Electrowinning (SX/EW) facility for copper recovery and the
plating of pure copper cathode. This phase will also allow the
opportunity to field verify several operating parameters and provide
supportive engineering data for inputs into final plant design and
development.
An Engineering Procurement and Construction Management (EPCM) bid
package for Phase 1 is currently being prepared by Curis staff.
Several prominent Arizona firms that specialize in process engineering
and construction have been identified for inclusion on the bidders
list. Plant designs will include equipment, processes, control systems
and performance factors that will be trialed for acceptance and
inclusion in the design of the commercial plant. Contract award is
expected in August with primary construction to start in early 2012. A
mid-2012 start-up date for the SX/EW plant is forecasted.
DRILL PROGRAM
A 6-hole, 8,000 foot core drilling program was initiated at the Florence
Copper project site in late April of this year and is currently in
progress. The program consists of 3 holes in the area of the proposed
Phase 1 development program, 2 holes on Arizona State Land under
mineral lease to Curis, and 1 hole in the area of the former BHP Copper
in-situ recovery well field that was operated in 1997. The program is
expected to be completed by early August.
Results
The copper oxide zone which is the target for extraction by in situ
recovery methods at Florence as observed in the core from this drill
program is 400 to 800 feet in thickness and is characterized by
chrysocolla veins, chrysocolla and tenorite fracture coatings, and
copper clays replacing plagioclase grains in Precambrian quartz
monzonite host rock. The quartz monzonite was mineralized by Laramide
granodiorite porphyry dikes and intrusive bodies similar to those seen
elsewhere in southern Arizona copper porphyry deposits. The host and
intrusive rocks are highly fractured, and hence, suitable to the
in-situ copper recovery method.
Click the following link to see HQ size core obtained through recent
drill program from the Florence Copper Project site: http://files.newswire.ca/980/July_20_2011_Picture.pdf
'The high frequency of prolific fracture patterns and densities observed
during the most recent drilling program further confirm that the
Florence copper oxide deposit represents the ideal conditions for
in-situ recovery of copper. The porous nature of the deposit creates
significant hydraulic communication both laterally and vertically
across geologic structures and rock types throughout the oxide deposit,' stated Dan Johnson, PE, Curis' Manager of Environment and Technical
Services at the Florence Copper project.
The drilling program is in support of a feasibility study that is being
completed prior to initiating the first phase of development in early
2012. The core holes currently being drilled in the two alternate
sites are examining the potential ore blocks for geological continuity,
grade, fracture density, rock quality characteristics and other key
geological parameters. Results are being used for geological
characterization, predictive modeling and to provide details for Phase
1 construction bid preparations.
SRK Consulting (SRK) of Tucson, Arizona is assisting Curis with the
geological and geotechnical logging and sample collection of the drill
core. Samples have been sent to Skyline Assayers & Laboratories in
Tucson for analysis. Visual inspection of the percentage of
chrysocolla mineralization in the drill core by SRK geologists
indicates the estimated grade ranges fall within the ranges noted by
previous operators. Assays are pending.
A single hole has been drilled in the 1997 BHP in-situ well field to
analyze geochemical reactions and flow patterns that would have
occurred during the BHP production test.
The drill program was supervised by Robert Cluff, P.Geo, Hunter
Dickinson Inc., who is a qualified person and has reviewed the drill
program section of this disclosure.
PROJECT PERMITTING UPDATE
i.) State and Federal Operating Permit Amendments
Curis began discussions with key State and Federal agencies regarding
the need to amend and update permits for the Florence Copper project
back in April 2010. In January 2011, Curis submitted a comprehensive
application to the Arizona Department of Environmental Quality (ADEQ)
to amend the existing Aquifer Protection Permit (APP) for the Florence
Copper Project. The submission of this application formally commenced
the amendment review process by ADEQ. In early March 2011, ADEQ
acknowledged to Curis that it had completed the 'Administrative
Completeness Review' process of the permit documents, and was engaged
in the technical review process.
In March 2011, Curis submitted a separate application to the U.S.
Environmental Protection Agency (EPA) to transfer, with amendments the
BHP Copper's Florence Copper Inc. Underground Injection Control (UIC)
Class III Permit to Curis Resources (Arizona) Inc. The submission of
this application formally commenced the amendment review process by
EPA. In May 2011, EPA acknowledged to Curis that they had completed
their 'Administrative Completeness Review' process of the permit
documents and was engaged in the formal technical review process.
Both the APP and UIC permits were previously granted to BHP Copper for
the Florence Copper Project in 1997. These two permits are the primary
permits required for an in-situ recovery operation and will allow Curis
to proceed towards the Phase 1 development program and ultimately full
commercial production. Curis has been interacting in parallel with
experienced technical individuals of both federal and state regulatory
agencies to address questions and supply all necessary information in a
timely review process to expedite the reissuance of these permits for
public review and comment in the fourth quarter of 2011. As a result
of the positive and respectful relationships that have been developed
between Curis and these two regulatory agencies, the final permits
remain on schedule to be re-issued by late 2011/early 2012.
ii.) Town of Florence
In May of this year, Curis submitted an application to request a major
amendment to the Town of Florence's General Plan as well as to re-zone
a portion of the Company's property that is situated within the
boundaries of the town. The consideration of these applications is now
underway by Town of Florence staff.
Community Affairs and Outreach
Curis has an extensive community outreach program underway. This
program is being led by an experienced team of professionals employed
by Curis and supported by several well known Arizona based consulting
firms.
Curis is committed to full openness and transparency in all of its work
and to date has held five 'open houses', taken more than 350 people on
personalized site tours and given numerous presentations to community
organizations.
'The Florence Copper project has been recognized as a tremendous
opportunity for local communities and the State of Arizona in terms of
near term economic development and stable, high paying head of
household jobs,' commented McPhie. 'The project enjoys a strong majority of support within the local
community and region and' as a company and as a management team, we
fully appreciate the need to maintain an active dialogue with all
groups and are fully committed to openness and transparency in all of
our activities.'
For more information about the Florence Copper Project and its projected
economic impacts and benefits to the local community, please go to www.florencecopperproject.com.
About Curis
Curis Resources Ltd. is a mineral development company associated with
Hunter Dickinson Inc., a diversified global mining company with a
25-year history of mineral development success. Curis is focused on
the acquisition, development and operation of high-quality
next-generation copper properties in progressive jurisdictions around
the world. It is currently focused on advancing its 100% owned
Florence Project in Arizona USA to production.
For more project-level information, sign up for the Florence Copper
Projects' e-Newsletter.
For further details on the Company, please visit www.curisresources.com or contact Susie Bell, Manager of Investor Relations, at (604) 684-6365
or within North America at 1-800-667-2114.
Michael McPhie
President & CEO
No regulatory authority has approved or disapproved of the information
contained in this news release.
This release includes certain statements that may be deemed
'forward-looking statements'. All statements in this release, other
than statements of historical facts, that address exploration drilling,
exploitation activities and events or developments that the company
expects are forward-looking statements. Although the Company believes
the expectations expressed in such forward-looking statements are based
on reasonable assumptions, such statements are not guarantees of future
performance and actual results or developments may differ materially
from those in the forward-looking statements. Factors that could cause
actual results to differ materially from those in forward-looking
statements include fluctuation in market prices, exploitation and
exploration successes, continuity of mineralization, uncertainties
related to the ability to obtain necessary environmental, land use and
other permits, approvals, licenses and title on a timely basis and
delays due to third party opposition, changes in government policies
regarding mining and natural resource exploration and exploitation,
continued availability of capital and financing, and general economic,
market or business conditions. Investors are cautioned that any such
statements are not guarantees of future performance and actual results
or developments may differ materially from those projected in the
forward-looking statements. For more information on the Company,
investors should review the Company's continuous disclosure filings
that are available at www.sedar.com.
To view this news release in HTML formatting, please use the following URL: http://www.newswire.ca/en/releases/archive/July2011/20/c6410.html
Susie Bell
Manager, Investor Relations
Tel: 604-684-6365
Email: Susiebell@hdimining.com