A letter of intent has been signed between La Serena Copper-Gold S.A. and Regeena Resources (VSE), which allows the latter to obtain an option to earn a 70% interest in La Cucaracha, a copper-gold property in northern Chile.
The 40-hectare project, which consists of the Cucaracha 1 to 9 claims, is in the Atacama region, about 25 km north of Domeyko. La Serena has an option from the registered and beneficial owner of the property.
Mineralization consists of chalcocite, malachite, azurite, turquoise, chrysocolla, and free gold hosted by an epidote-grossular skarn assemblage developed in a sequence of flat-lying volcanics and marine sediments. Initial sampling by Regeena yielded values averaging 1.8% copper and 1.6 grams gold per tonne.
The deposit is being worked using small-scale mining methods. The ore is mined, stockpiled and then trucked to a local mill where the gold is recovered by gravity methods. The copper is not currently being recovered. Regeena will spend US$200,000 on exploration and development, including geophysical and geological surveys, drilling, assaying, bulk sampling and any other work deemed necessary to complete a property evaluation. To earn the interest, it must pay US$50,000, issue 1 million Regeena shares, and spend US$2.3 million on exploration and development (including the US$200,000 evaluation) over three years.
The company can earn a 20% interest by spending US$1.2 million over a 2-year period.
A formal option agreement between Regeena and La Serena is expected within six months.
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