JOHANNESBURG (miningweekly.com) – BHP Billiton joint venture (JV) partner Aston Bay Holdings has reported evidence of high-grade copper at the Storm copper project, in Nunavut, Northern Canada, following preliminary drill results from this year’s summer field season.
TSX-V-listed Aston Bay, which owns 25% of the project, while BHP owns the remaining 75%, is managing the exploration programme at the project.
The company noted Tuesday that the assay results, which included 3.07% copper and 12.26 g/t silver from 93 m downhole, showed visible copper mineralisation. The other assay results indicated 1.17% copper at 4 m and 0.44% copper at 20 m.
The JV has drilled a total of 1 952 m in 12 drill holes, of which three are reported. The exploration programme also covers 2 005 soil samples.
Aston Bay highlighted that BHP’s financial, logistical and geological support was “of great benefit” to the company and furthered BHP’s developing strategy of investing in promising exploration projects.
“BHP’s investment in copper exploration indicates to us renewed focus on increasing or at least replacing copper production in future years. The drive to replace fossil fuels with renewable energy and more efficient vehicles is likely to lead demand growth for copper going forward,” said Aston Bay.
The 140 000 ha Storm copper project is located on the north-west corner of Somerset Island, Nunavut. The property is host to a large area of carbonate-hosted copper mineralisation and a zone of zinc-silver mineralisation.
It has good access to shipping lanes, and the landscape provides favourable conditions for a road and protected deepwater port.
In December 2015, Aston Bay agreed with the original property vendor and optioner, Commander Resources, to consolidate ownership of the underlying core landholdings for the Storm copper property.
Under the terms of the new consolidation agreement, Aston Bay will issue 11-million shares to Commander for a 100% interest in the core landholdings.
BHP Billiton agreed earlier this year to fund copper exploration by Aston Bay Holdings, which could see the diversified miner owning a majority stake in the firm.