BASE METALS SPECIAL — MIM of Australia eyes Keltic ground

Through a subsidiary, Mount Isa Mines of Australia has secured an option to earn an interest in five Panamanian properties. The properties are, in turn, held by a 60%-owned subsidiary of Western Keltic Mines (WKM-V).

The Comarca de San Blas properties cover 1,250 sq. km. Previous work by the United Nations established the region’s potential to host porphyry copper-gold deposits and epithermal gold mineralization.

The major can earn a 51% interest by spending US$3 million on exploration within three years, including at least $500,000 in the first year. It can increase this to 60% by a spending another $3 million on exploration. MIM must also pay a total of $500,000 to Keltic, in stages.

Once MIM has earned a 60% interest, it will have six months to decide whether to participate in the joint venture or revert to a 20% carried interest. It must also pay a “success fee” for every resource found in the concessions.

The proven reserve stands at 200 million tons grading 0.6% copper-equivalent, or 500,000 oz. gold (grading 1 gram per ton).

Western Keltic has rights to explore more than 3,400 sq. km. of ground in 14 concessions in three districts of Panama. The list includes the Rio Veraguas and Guayabal concessions in the central mining district and seven new properties in the Azuero Peninsula region.

The most advanced of the new properties in the Azuero Peninsula region is Guasimo, previously explored by the United Nations. This work led to a limited drill program, which intersected 4 metres of 2.8% copper and 11.8% zinc of possible volcanogenic massive sulphides.