Local takeover target Tethyan Copper has doubled the resource estimate at its Pakistani Reko Diq copper-gold joint venture project at a time of record copper prices.
Tethyan managing director David Moore told the market the Reko Diq project was now estimated at 2.4 billion tonnes of ore containing 27 billion pounds of copper and 21 million ounces of gold.
"This is an outstanding result. On the basis of these numbers we believe Reko Diq now ranks as one of the largest copper-gold deposits ever discovered," he said.
"Of particular note is the fact that we have over 1.2 billion tonnes in the Indicated Resource category. It is also important to realise that all of this material, if it proves economic, will be mineable from the surface using standard high-production open pit mining methods".
The new resource estimate, conducted by Snowden Mining Industry Consultants, is the result of a major drilling programme at the site completed by Tethyan late last year.
Tethyan is currently the subject of a $101 million hostile takeover bid from Skafell Pty Ltd, a subsidiary of Hong Kong-based investment banking and asset management group Crosby Capital.
The price of copper on the London Metal Exchange has recently traded at above $US4,700 a tonne, the highest-ever price for the commodity.
Gold - the other commodity found at the deposit - has rarely been in better shape either, the price of which is currently at 25-year highs.
Shares in Tethyan ended the day marginally lower at 70 cents, although still above the 64 cent Skafell bid price.
