en.Wedoany.com Reported - Ero Copper (TSX, NYSE: ERO) has reported that the latest drilling results from the Furnas polymetallic project in northern Brazil extend mineralization beyond the boundaries of the existing resource model, enhancing the deposit's growth potential.
In a statement released Wednesday, Ero Copper said drill hole FURN-DD-00357 intersected a 90-meter mineralized interval at a depth of 726 meters, grading 0.74% copper, 0.5 grams per tonne gold, and 3.18 grams per tonne silver. Within this interval, the company also identified a 32-meter section grading 1.17% copper, 0.68 g/t gold, and 5.40 g/t silver. The hole extends the known mineralization in the Southeast Zone approximately 115 meters down-dip.
Under an earn-in agreement with Vale's (NYSE: VALE) base metals division reached in 2024, Ero can acquire a 60% interest in the Furnas project by completing exploration, engineering, and development milestones within five years. Ero stated it remains on track to complete the required drilling program by the end of the year, roughly two years ahead of the original schedule.
National Bank Financial mining analyst Shane Nagle said in a note Wednesday that the drilling supports the conversion of inferred resources, which could further improve project economics. The company is expected to complete the necessary earn-in expenditures under the agreement with Vale Base Metals by year-end.
The latest results suggest Furnas could become Ero's next major copper mine, as the company benefits from its agreement with Vale and advances the project toward a pre-feasibility study.
The Furnas project is located in Pará State, Brazil, approximately 70 kilometers southeast of Vale's Salobo operation and about 190 kilometers northeast of Ero's Tucumã mine. Regional infrastructure includes paved roads, a substation, and rail access.
A preliminary economic assessment released in February outlined a 24-year mine life for Furnas, with average annual production of 52,000 tonnes of copper, 84,000 ounces of gold, and 374,000 ounces of silver. Ero aims to complete a pre-feasibility study by 2027.
The latest drilling results cover approximately 24,000 meters. As of the end of May, Ero had drilled over 75,000 meters at Furnas and received assay results for about 52,000 meters. Ten drill rigs are operating on site, and the deposit remains open at depth and along strike.
Other notable expansion results include drill hole FURN-DD-00354, which intersected a 45-meter mineralized interval at a depth of 459 meters, grading 0.98% copper, 0.36 g/t gold, and 1.72 g/t silver. This includes a 20-meter section grading 1.78% copper, 0.25 g/t gold, and 3.12 g/t silver. The intercept is located approximately 80 meters beyond the current inferred resource boundary in the Southeast Zone.
Ero also reported positive results from the Central Zone, located between the established Northwest and Southeast mineralized corridors. Drill hole FURN-DD-00368 intersected a 41-meter mineralized interval at a depth of 380 meters, grading 0.94% copper, 0.44 g/t gold, and 1.58 g/t silver. This hole is located approximately 220 meters below the current inferred resource and more than 1.1 kilometers west of the Southeast Zone resource.
CEO Makko DeFilippo said in a press release that each drilling result reinforces the deposit's scale, quality, and growth potential. Grade continuity remains strong within the Southeast and Northwest zones, while new expansion drilling near planned infrastructure in the Central Zone highlights opportunities to build on an already compelling PEA mine plan.
Ero Copper shares fell 1% on the Toronto Stock Exchange Wednesday morning to C$36.13, valuing the company at approximately C$3.8 billion (about US$2.7 billion). The stock has traded in a range of C$17.66 to C$53.69 over the past year.
This article is compiled by Wedoany. All AI citations must indicate the source as "Wedoany". If there is any infringement or other issues, please notify us promptly, and we will modify or delete it accordingly. Email: news@wedoany.com
