A recently completed agreement-in-principle gives International Curator Resources (VSE) the right to purchase a 100% interest in the Boleo copper-cobalt property in Baja, Mexico, from Minera Terra Gaia S.A.
International Curator can use one of three options to complete the purchase of the property.
The least expensive option is to purchase 10% of the property for staged payments totalling $1.2 million to Feb. 15, 1995, plus a final payment of $20 million for the balance of the property.
To maintain the option, the company must issue the vendor one million shares and incur $6.5 million in staged work expenditures to Feb. 15, 1997. The vendor retains a 3% net operating interest during the first three years of production, 9% for the next three and 18% thereafter.
International Curator notes that the Boleo is a sediment-hosted stratiform deposit and, as a result, has the potential to be very large. In addition, with more than 6.5 square miles of unexplored ground on the property underlain by the prospective rock package, the company sees excellent potential to add to reserves.
Historic production at Boleo from 1886 to 1947 totalled about 13.6 million tons grading an average of 4.81% copper. Cobalt was not extracted, but USGS sampling indicates grades were in the order of 0.12%.
Preliminary reserves, estimated on drilling and underground sampling, total about 12.1 million tons grading 3.32% copper and 0.1% cobalt. The option is subject to execution of a formal agreement as well as exchange approval.
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