A recently completed exploration program has encountered widespread copper mineralization on Minera Rayrock’s (TSE) Sierra Valenzuela property in northern Chile. The program consisted of geological mapping, trenching, channel sampling and diamond and rotary drilling.
Three holes were drilled to test for mineralization adjacent to and below the shallow mine workings known as Mina Rosario. All three holes hit copper mineralization with the best intersection in hole DDH-1, which cut 72.9 metres of oxidized material grading 2.88% total copper (2.44% soluble copper). Trenching and rotary drilling encountered oxidized copper mineralization at two locations north of the Mina Rosario occurrence. Fourteen additional rotary holes were drilled around the Rosario zone and at three other small copper occurrences on the property. Eleven holes intersected mineralization and assays are pending.
A US$700,000 diamond drill program has recently commenced to further test some of the newly discovered mineralized zones.
Exploration drilling will also be conducted shortly at the company’s Ivan and Zar copper deposits, 40 km southwest of the Sierra Valenzuela property. The Ivan deposit contains sulphide reserves of 934,700 tonnes grading 4.61% copper and oxide reserves of 3.4 million tonnes grading 1.97% copper (T.N.M., June 8/92).
To finance predevelopment costs at the Ivan deposit, Minera has issued 3.66 million special warrants at $1 each to raise $3.66 million. Each special warrant will entitle the holder to receive one common share of Minera at no additional cost.
Rayrock Yellowknife Resources (TSE), which owns 50.3% of Minera, and several employees have purchased 910,000 of the special warrants.
The proceeds of the warrant issue will also be used to purchase an additional 50% interest in a Chilean joint venture, which includes the Sierra Valenzuela property, and to fund further exploration work in Chile.
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