Chile an obvious exploration target

The most most striking aspect of Chile, the worlds leading producer of copper, is its geographical shape.

A mere 200 km wide (on average), it extends for more than 5,000 km along the coastline directly on the Pacific Rim Of Fire, host to many the worlds largest mineral deposits. The country is a virtual plethora of subduction zones and epithermal activity, which make the country an obvious target for exploration.

State-owned Codelco accounts for more than 75% of total Chilean production. In addition, Codelco has the rights to 31% of the total known concessions in the country, of which a mere 4% are currently being exploited and an additional 3% are subject to exploration activity. It leaves an impressive 27% of total known concessions, some of which are gold, waiting to be developed.

The great attraction for mining companies are the deposits themselves. Due to their geological emplacement, they are usually near-surface, large tonnage and with mid-to-high grades.

Many of the gold deposits are amenable to heap leach operation which are less capital intensive, quicker to bring on-stream and enjoy low operating costs. From a report by securities firm Levesque, Beaubien Geoffrion Inc.