Kerr Mines Inc. will kick off the second phase of its underground resource expansion drilling program at the Copperstone mine in Arizona in mid-January.
The 15,000-meter program will conclude in the third quarter. It is targeting an increase in the project's 38,000-gold-ounce-per-annum mine life by up to four years, to a total life of eight years.
The program will also target areas along strike and downdip to potentially grow the existing inferred ore tons and gold ounces, which can then be converted to higher-confidence resource categories with future drilling.
The existing operating permit modifications are expected by the end of the first quarter, and the remaining permits required for mine operations and gold production do not require modification, the company said Jan. 8.
Additionally, Kerr Mines intends to conduct metallurgical testing in the first quarter to evaluate a gold processing plant design and do additional test work to review the potential monetization of copper as a byproduct revenue stream.
In early November 2018, the company signed a term sheet with Sprott Private Resource Lending (Collector) LP for up to US$25 million in funding to develop the Copperstone project.