Odyssey Confirms 95.2 Million Pounds of Copper in Morocco
By Gene Arensberg
28 Jul 2006 at 11:50 AM EDT
resourceinvestor.com
HOUSTON (ResourceInvestor.com) -- Odyssey Resources [TSXv:ODX, OTC:ODYRF] announced Thursday an NI 43-101 compliant independent resource estimate for its Alous copper-silver project in the Anti Atlas region of southwestern Morocco. The Alous resource estimate is the first of two such independent resource estimates expected, the next one being for its gold-silver project in western Turkey, a project called Tavsan.
The Alous resource estimate indicates a total resource of 7,993,000 tonnes of copper-silver mineralization of which 5,407,000 tonnes are in the Indicated category with an average grade of 0.799% containing 95.2 million pounds of copper. Another 2,586,000 tonnes were classed as Inferred resources grading 0.545% copper which amounts to 31.1 million pounds of the red metal.
The study used a copper price of $1.86 per pound, a cut-off of 0.3% and an average strip ratio of 0.5:1. The low strip ratio is possible because the known deposits at Alous are literally at surface for the most part.
Could Be More
According to the company press release, Alous, one of seven known copper-silver deposits on Odyssey’s Moroccan property, is a “very close geologic analog” to the Mantos Blancos deposit in Chile, a large project that today boasts resources of 500 million tonnes grading 1% copper, but when first discovered contained a “known resource of barely 10 million tonnes.”
The company says that ongoing exploration work continues to suggest that Alous is just the portion sticking out of the ground of a larger mineral system and, similar to its Tavsan project in Turkey, considerable exploration potential is suggested by their findings.
Another Resource Estimate to Come
In Turkey, the company is awaiting results of the last 14 holes of a reported 100-hole confirmation drilling program at Tavsan for inclusion in a NI 43-101 resource estimate for that project. Historic resources for Tavsan have been reported in the past as about 340,000 ounces of gold based on drilling by Teck Cominco in the 1990’s. However, those resources were confined to one particular area called the “Main Zone.” Apparently this year’s drilling program included additional areas which presumably could increase the gold resources.
The company said in a May 12, 2006 RI update: “Collectively there could be 600,000 to 1 million ounces (in these surface structures) with the historic resource that Cominco drilled off being roughly 340,000 ounces in and around the Main Zone.”
In addition to the known at-surface gold deposits at Tavsan Odyssey’s juices are flowing over the discovery of what could be feeder structures which point to the possibility of a potentially larger and presumably richer source deposit at depth.
Referring to those Pinson-style feeder structures, in a July 21 audio interview, Odyssey president and CEO Avrom Howard said, “Gold didn’t get to the surface by magic. It got there by a series of structures that were hosts and conduits to gold bearing hydrothermal fluids. Based upon what we see in some of these structures … and based upon comparison to other similar geologic settings we’re quite convinced that these feeder structures that brought gold up from some depth in fact as well contain mineralization.”
Moving Ahead, Drilling and Development
According to Howard, Odyssey is planning to test the theory. “One of the next things that we’ll be doing at Tavsan is getting in and doing some exploration drilling to test these interpretive feeder structures at various depths and we are quite confident that we will be adding to the gold resource by doing so,” Howard said in the interview.
The company says that once both of the NI 43-101 compliant resource estimates are done it looks forward to taking both properties through the development process first through scoping studies and then onto completion of pre-feasibility studies. Regardless of whether additional deposits are found in the surroundings or at depth, according to Howard Odyssey believes the resource estimates will confirm that just the known resources have an “excellent prospect of economic viability.”
Alous in Morocco is an at-surface deposit with both major electric lines and a regional highway within one kilometer. Ample water supplies are also available nearby. A deep water port is two hours away by paved highway at Agadir, all of which suggests mining infrastructure costs would probably be on the low side compared to deeper, more remote and more difficult to access deposits.
Raising Their Profile
Along with advancing its exploration projects Odyssey has begun the process of raising its corporate profile.
“It’s certainly obvious to us that the asset value of our existing projects, let alone the exploration potential of them, is far and away beyond what the market recognizes, and I think it is up to us to make sure that the message gets out there more comprehensively,” Howard said.
Armed with one of two expected resource estimates, with the second one probably not all that far off, the company plans to meet with analysts, brokers and the retail side via planned information booths at gold and resource conferences. In addition, the company announced the appointment of George Mihaleto, a corporate development consultant, to assist in broadening Odyssey’s exposure in the investment marketplace.
As of May Odyssey showed about 63 million shares issued and outstanding, 86 million fully diluted. Management and directors own about 6%. Major shareholders include Dundee Corporation (16.1%), Tocqueville Asset Management (9.8%), Gabelli Gold Fund, Inc. (7.9%) and Rick Rule, through his Exploration Capital Management (4.8%).
ODX closed Thursday at C$0.13, up half a Canadian cent.
Disclosure: The author holds a long position in Odyssey Resources, but not in any other company mentioned in this article. |
