Patriot Resources has unveiled a substantial maiden mineral resource at its Tassa silver-gold project in Southern Peru, totaling 31.39 million ounces of silver-equivalent. This significant discovery marks a pivotal moment for the company, highlighting the project's potential in the global metals market.
Resource Details and Composition
The inferred resource estimate stands at 18.53 million tonnes, grading 52.68 grams per tonne (g/t) for the silver-equivalent content. Within this, the silver-only component is particularly impressive, comprising 25.5 million ounces at a grade of 42.73g/t. The polymetallic resource is silver-dominant but also includes valuable contributions from gold, copper, zinc, and lead.
Gold, while secondary, adds a healthy 40,000 ounces at a grade of 0.06g/t. This diverse composition underscores the project's richness and economic viability, with management noting that the resource confirms a large-scale epithermal system extending from the surface, with mineralisation open in all directions.
Mining and Exploration Plans
Notably, the resource is slated for extraction using open-pit mining methods, which are expected to allow for more efficient and cost-effective operations compared to underground mining. Patriot Resources is now gearing up to intensify exploration efforts at Tassa, with plans for step-out and infill drilling aimed at expanding the resource and upgrading its classification to a higher category.
The company acquired the resource at an equivalent cost of about US$0.04 per silver-equivalent ounce, a remarkable achievement given the current silver price of US$77.40 per ounce. This cost efficiency enhances the project's profitability and investment appeal.
Technical Insights and Historical Context
The maiden JORC (2012) inferred mineral resource, based on a 25g/t silver-equivalent cut-off, was derived from data from 26 diamond drillholes totaling 8,474.5 metres. It defines multiple structurally controlled zones that remain open along strike and at depth, with 12 zones identified. The C1 zone is the largest, accounting for 8.26 million tonnes grading 55.73g/t silver-equivalent and containing 14.79 million ounces.
Previous drill intersections have shown promising results, including 60 metres at 224.2g/t silver from 24 metres depth, with a 16-metre section grading 383.9g/t silver. Other notable hits include a 37-metre stretch at 113.5g/t silver and an 81.9-metre interval returning 0.41g/t gold. Several drill intervals ended in mineralisation, indicating potential for significant resource expansion.
Historic modelling by Teck Resources, a leading Canadian firm with a market cap of US$28.7 billion, outlined a larger conceptual mineralised envelope beyond the current resource models. Geminas Advisory, which completed the resource estimation, has projected an initial exploration target of 29 million to 46 million tonnes grading between 43g/t and 59g/t silver-equivalent, potentially yielding 40 million to 87 million ounces over a strike length of about 2.8 kilometres.
Future Steps and Broader Strategy
Looking ahead, Patriot Resources plans to advance drill permitting, obtain necessary approvals, conduct bulk density tests, and undertake detailed structural logging and modelling. While Peru remains the primary focus for its precious metals ambitions, the company has also secured a complementary base metals project in Zambia's Mumbwa copper district.
The Kitumba project in Zambia, located within the Katanga Supergroup of the Central African Copperbelt, positions Patriot as one of the largest landholders in the Mumbwa district. This strategic move aims to create a diversified portfolio of critical and precious metals, leveraging growing demand from AI advancements and renewable energy sectors.
With silver and copper poised to benefit from these global trends, continued exploration success could propel Patriot Resources into a more prominent role in the metals industry. The company's dual-focus approach in Peru and Zambia underscores its commitment to building a robust and economically viable resource base.
