Vancouver, BC based, International ENEXCO Ltd. [IEC-TSX; IEXCF-OTCQX; IE6 Frankfurt] is an exploration company with projects in Canada and the US. ENEXCO is currently focussing on its 100%-owned, flagship, Contact Copper Project in Elko County in northeast Nevada.

The 5,000-acre project was attractive enough, in 2010, with NI 43-101 compliant reserves of 27,011,000 proven tons at 0.305% copper for 164,701,000 lbs of copper and 27,138,000 probable tons of 0.280% copper for 152,199,000 lbs of copper. The reserves were derived from 52,976,000 tons of 0.282% copper measured resources and 82,233,000 tons of 0.251% copper indicated resources.

On September 26, 2011, things became a whole lot more interesting when, after four years of negotiation, International ENEXCO was able to consolidate the district by acquiring an adjacent ~ 8,000 acres from Allied Nevada Gold. ENEXCO's original mine design was limited, not for want of resources, but because Allied Nevada's property bordered the eastern end of ENEXCO's property. The acquisition increased ENEXCO's land holdings from 5,000 acres to ~13,000 acres and allowed ENEXCO to follow the copper mineralization 3,000 feet eastward from the previous reserve limits.

ENEXCO's COO, Bill Willoughby, stated that 344 drill holes have been completed on the property so far, for a total of 276,000 feet drilled.

An ongoing, 40,000 ft, exploration drilling program on the property is well underway and is expected to be completed in early May. A drill program of 20,000 feet was initially planned, but was doubled based on early results. At the time of my visit, the reverse circulation portion of the work program was complete with 50 reverse circulation holes drilled. Eleven core holes have been completed for a combined RC and core total of 34,675 ft. There was one drill turning on the property and Willoughby said he hoped to have six more holes drilled by the end of May.

Contact is an oxide copper project that will utilize solvent extraction and electrowinning to produce copper metal on-site. The project has excellent infrastructure. A major highway runs along the property's eastern border and a major power line runs along the same border, close to the highway. The property is dotted with old adits and workings that not only established a tradition and understanding of mining in the region but testify to the area's mineral wealth. The Contact Copper Project is in a mining friendly area in a mining friendly state. Bill Willoughby says, "We have been working continuously on baseline studies towards permitting." Some drill highlights reported on March 19th include:

• Hole ENR-15: 0.40% copper over 29.0 metres
• Hole ENR-19: 0.39% copper over 13.7 metres
• Hole ENR-26: 0.48% copper over 21.3 metres
• Hole ENR-27: 0.24% copper over 51.8 metres
• Hole ENR-30: 0.31% copper over 39.6 metres

On April 26, ENEXCO reported results from 19 holes, an additional 3,350 feet of drilling located between recently reported drilling at the east end of the project.

• Hole ENR-36: 0.73% copper over 15.2 metres
• Hole ENR-45: 0.20% copper over 115.8 metres
• Hole EN-157: 0.59% copper over 21.3 metres
• Hole EN-160: 0.62% copper over 12.2 metres

38,025 feet (11,590 metres) of the 40,000 feet drill program has now been completed. The company stated, "These results, along with the other holes being reported today, demonstrate continuity of mineralization extending from the 2010 reserve outline to the area east of hole EN-149... and confirm an additional strike length of over 3,000 ft (914 m) on the trend of the mineralization."

An updated NI 41-101 report, incorporating 2012 drilling results is expected this summer. A feasibility study is expected to be completed by the fall which will also incorporate this year's drill results as well as an improved pit design. The company's goal is to begin mine construction in 2014 with production to commence in 2015 with ENEXCO as the sole operator of the project.

ENEXCO is also exploring for gold and silver in Idaho and Nevada, and is advancing the Mann Lake Uranium Project located in Saskatchewan's prolific Athabasca basin with JV partner Cameco Corp. [CCO-TSX; CCJ NYSE] (as project operator) and Areva Inc.

ENEXCO has 32,348,883 shares outstanding, 38,248,883 shares fully diluted; officers and directors hold 23.5% of the company shares; Allied Nevada Gold holds 10%. As of April 1, 2012, the company has $2.2 million in the treasury.
At press time, ENEXCO released additional drill results including: from hole ENR-47 0.21% copper over 71.6 metres and 1.50% copper over 9.1 metres in hole ENR-49.

By Katherine Moore
RESOURCE WORLD MAGAZINE