Exploration news from Peru

Solid inks deal for copper deposit

A letter-of-intent agreement with Lara Exploration (LRA-V) sets the stage for Solid Resources (SRW-V) to earn up to a 75% interest in the Lara copper deposit in the southern coastal region of Peru.

Based on a technical report filed by Lara this spring, the deposit hosts an inferred resource of 18.6 million tonnes grading 0.53% copper, which includes higher-grade blocks of 6.5 million tonnes of 0.91% copper and 4.8 million tonnes of 1.04% copper.

To earn an initial 55% interest, Solid must make cash payments totalling $500,000 and spend $2 million on exploration, including 8,000 metres of drilling, over three years. This can be increased to 75% by completing a feasibility study and paying $1.5 million over two additional years.

The company plans to explore the property to increase resources and then carry out a bankable feasibility study for a potential open-pit, heap-leach mine using solvent extraction-electrowinning processing.

Quadra drops Magistral

After spending US$4 million on exploration, Quadra Mining (QUA-T) has dropped an option to acquire an interest in the Magistral copper-molybdenum deposit in Ancash, Peru. The bulk-tonnage project is once again wholly owned by Inca Pacific Resources (ipr-v, iprff-o).

A scoping study released earlier this year placed measured and indicated resources at 108 million tonnes grading 0.66% copper, 0.054% moly and 3.4 grams silver, at a 0.4% copper cutoff grade. Inferred resources add another 62 million tonnes of 0.61% copper, 0.041% moly and 2.7 grams silver, at the same cutoff grade.

Quadra carried out 14,000 metres of drilling and various scoping, metallurgical and geological modelling studies before concluding that the project did not meet its investment criteria.

Candente advances Canaricao

An engineering firm has been retained to prepare a scoping study for Candente Resource‘s (DNT-T, CDOUF-O) Canariaco copper project in northern Peru.

The study will examine a potential copper heap-leaching operation that would process cathode copper using solvent extraction-electro-winning technology. The deposit hosts an inferred resource of 76.5 million tonnes grading 0.61% copper and 0.1 gram gold per tonne, as well as potential for additional resources. Drilling to upgrade and expand resources is ongoing.

Candente is also gearing up for a 2,500-metre drill program to test an extensive gold-copper porphyry-style system at its wholly owned Alto Dorado project in northern Peru.

The company acquired the project in 2003 by issuing 100,000 shares and granting a 2.5% net smelter return royalty to vendor Hecla Mining (HL-N). International Royalty (IRC-T) later acquired the royalty from Hecla for US$1.5 million.

The drill program will test geochemical and induced-polarization (IP) chargeability anomalies and further test areas where two previously drilled holes (5 km apart) returned anomalous gold and copper values.

Gold Hawk acquires Tamboraque mine

While still subject to a due diligence review, Gold Hawk Resources (CGK-V, CGHRF-O) has inked a preliminary agreement to acquire a private Peruvian company that owns the Tamboraque polymetallic mine and related assets, 90 km east of Lima.

The Toronto-based junior has 45 days to complete a due diligence review of the project. The US$5-million purchase price is payable in stages, starting with a US$2-million payment upon signing of a formal agreement. Another US$1.5 million is due six months later, with the balance due one year after the formal agreement is signed.

The Tamboraque mine comes with a 31.62-sq.-km land package and a modern 600-tonne-per-day crushing plant and flotation mill that includes a Biox circuit. The mine complex was built at a cost of about US$30 million in 2002. The mine has 37 developed stopes, while the mill could be ready to operate within a few months of a production decision.

The mine has gold-silver-zinc-copper-lead reserves and resources that are not yet compliant with National Instrument 43-101 reporting standards. The project is served by a paved highway and railway line. Other assets included a permitted tailings pond and a private hydro electric plant within 300 metres of the mill. A major power line also runs through the property. Two smelters are situated nearby.

Northern Peru Copper drills Galeno

A second-phase drill program by Northern Peru Copper (NOC-T, NPUCF-O) has returned encouraging results from the Galeno copper-gold-molybdenum project in northern Peru.

The best of four recent holes hit 330 metres grading 0.84% copper, 0.19 gram gold per tonne, and 0.02% molybdenum, or 1.07% copper equivalent. This includes 210 metres of 1.02% copper, 0.23 gram gold and 0.02% moly, or 1.28% copper equivalent. Copper equivalent is calculated using a copper price of US$1 per lb., US$400-oz. gold and US$6 per lb. moly, and is not adjusted for metallurgical recoveries.

The company drilled two holes to twin and deepen rotary holes drilled by a previous operator, and says both holes showed “excellent correlation with the older rotary holes, and also significantly deepened the zone of high-grade copper-gold mineralization at Galeno.”

The drill program is continuing with two rigs. Some 26 holes totalling about 10,000 metres have been drilled to date on the project, with an additional 5,000 metres planned for the current phase of the program.

Amera stakes copper-gold bet

Amera Resources (AMS-V, AJRSF-O) has staked the 17-sq.-km Acero porphyry copper-gold property in the southern Department of Cusco. The early-stage project lies within the Santo Tomas porphyry copper belt, and is 8 km west of the company’s Cruz de Mayo gold-copper project near the town of Velille.

Preliminary surface sampling returned grades of up to 1.15% copper over 30 metres and 0.74% copper over 50 metres. Work to date consists of preliminary mapping, rock and silt sampling in an area that has seen limited drilling. A surface exploration program is planned to assess the property and define targets for subsequent drilling.