Key insights
- Pecoy Copper announced positive metallurgical review results for its Peru project, showing potential for improved gold recovery. While the stock has surged, InvestingPro suggests it's overvalued. Further testing is planned. Limited direct impact on US equities, but signals broader risk appetite in junior mining stocks.
VANCOUVER - Pecoy Copper Corp. (TSXV:PCU; FSE:D5E; OTCQB:PCUUF) announced today the results of a Phase 1 metallurgical review of its Pecoy copper-gold-molybdenum-silver project in Peru, according to a press release statement.
Global Resource Engineering Ltd. conducted the independent review, which re-examined historical test work and identified potential improvements in gold recovery while maintaining copper concentrate quality. The review estimates gold recovery from South Breccia material could reach approximately 73%, compared with historical locked-cycle flotation test results of approximately 40% to 43%.The positive metallurgical findings come as Pecoy’s stock has surged 100% over the past year, trading at $179.07. According to InvestingPro analysis, the stock currently appears overvalued relative to its Fair Value, with shares up 40% in the last six months alone.
The updated Phase 1 recovery estimates show copper recovery of 92%, gold recovery of 72%, silver recovery of 84%, and molybdenum recovery of 73% for primary material. These figures remain subject to validation through Phase 2 metallurgical test work.
The review identified flash flotation, cleaner-stage mass pull optimization, reagent selection, and pH control as key areas for follow-up testing. The analysis suggests that improved gold recoveries may be achievable while maintaining copper concentrate grades.
The review also identified the potential for a separate molybdenum flotation circuit, which could produce a molybdenum concentrate in addition to a copper concentrate. Indicative molybdenum recoveries of approximately 72% to 74% were identified, though this option requires further evaluation.
Pecoy Copper plans to initiate a Phase 2 metallurgical test program using material from its current drilling campaign. The program will include confirmatory flotation testing, rougher kinetic work, cleaner flotation optimization, and additional mineralogical studies.
Historical metallurgical studies completed between 2014 and 2017 included flotation, mineralogical, comminution and column leach testing on composite samples. The Phase 1 review does not constitute an updated mineral resource estimate or economic assessment.
The Pecoy project hosts an inferred resource of 865 million tonnes at 0.34% copper, located in Peru’s Arequipa region.
In other recent news, Pecoy Copper Corp. has announced the appointment of Javier del Rio to its board of directors. This development is effective immediately, as stated in a press release. Del Rio is currently the Senior Vice President of the US Business Unit at Hudbay Minerals Inc. He brings a wealth of experience in mining operations, project development, executive leadership, and corporate strategy to Pecoy Copper. As a Peruvian national, del Rio has significant mining experience in Peru, aligning with Pecoy Copper’s operational focus in the region. This strategic addition to the board is part of Pecoy Copper’s ongoing efforts to enhance its leadership team with experienced professionals. Del Rio’s appointment is expected to bolster the company’s capabilities in navigating the complexities of mining operations. These recent developments reflect Pecoy Copper’s commitment to strengthening its governance and operational strategies.
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