Gibraltar options Chilean copper project

An exploration program is planned for the Fortuna de Cobre copper project in Chile, Gibraltar Mines (TSE) reports.

Gibraltar’s wholly owned subsidiary, Compania Minera Gibraltar, has signed a letter of intent to option the property, situated 100 km east of Antofogasta, from two individuals. The property, which abuts Gibraltar’s Lomas Bayas property along the western edge, has 47 exploitation concessions and four exploration concessions.

Gibraltar says the deal is contingent upon establishing that the concession titles are clear.

Gibraltar must make payments totaling US$5 million, with the final payment of US$3.75 million due Jan. 1, 1998. The owners will also

receive a royalty of US$0.016 per lb. of recovered copper after the production of the first 312 million lb. copper. (The option payments, after the initial US$50,000, are subject to adjustment for inflation in the U.S.) Fortuna de Cobre is an old porphyry copper mine that produces cement copper from low-grade, water-soluble ores on a small scale. The agreement allows the owners to continue to mine and leach up to 24,000 tonnes per quarter throughout the option period.

The property was drilled previously by Anaconda and Phelps Dodge. Gibraltar will evaluate the property as a potential leachable copper deposit using solvent extraction-electrowinning, either on its own or as an addition to the Lomas Bayas development.