Kookaburra takes option on copper projects in Ecuador

A recent option agreement sets the stage for Kookaburra Gold (VSE) to acquire up to a 65% undivided interest in each of the Chaucha and Fierro Urco copper porphyry projects in Ecuador.

The junior signed a letter of intent with AG Armeno Mines (VSE) whereby it may enter into formal agreements to acquire interests in both projects on or before Oct. 27, 1993.

The Chaucha deposit was drilled by the United Nations in the late 1970s, and contains a large copper-oxide blanket (measuring 900 metres by 500 metres and 50-100 metres thick) grading 0.6-1.5% copper. The oxide zone is underlain by a copper-sulphide porphyry system of unknown dimensions.

This property lies at an elevation of 1,500 metres, and is well located with respect to infrastructure.

The Fierro Urco deposit, at a higher elevation of 3,000-3,800 metres, contains an estimated 105 million tonnes at 0.45% copper.

To earn 50% in either project, Kookaburra must make cash payments of $375,000, spend $3.5 million on exploration and issue Armeno 200,000 of its shares over four years.

The additional 15% interest in each property can be acquired through a $2.5-million cash payment for each property, as well as an equal amount spent on exploration and development on each property.