Northern Peru grants Pashpap option

Vancouver — Northern Peru Copper (NOC-T) has granted a Japanese company an option to earn a 51% interest in the Pashpap copper-molybdenum property in the Ancash department of Peru.

The deal allows Japan Oil, Gas & Metals National Corp. (JOGMEC) to earn a 51% participating joint-venture interest in return for US$5 million worth of exploration spending and modest annual holding payments over four years.

In the first year, at least $500,000 must be spent and at least 25,000 metres must be drilled.

The Pashpap property hosts an Andean-style porphyry copper system with at least five porphyry centres. One of these contains a known resource of 101.4 million tonnes grading 0.64% copper and 0.049% molybdenum, based on a cutoff of 0.4% copper. This estimate is not yet compliant with National Instrument 43-101.

Once JOGMEC has earned 51%, the partners will each fund their share of the cost of developing the project further.

If either party elects not to fund ongoing work, that company’s interest will be diluted accordingly until it is less than 20%. At that stage, the withdrawing party will be reduced to a 2% net smelter return royalty.

While JOGMEC funds work at Pashpap, Northern Peru Copper intends to advance the Galeno property in the department of Cajamaraca. The project hosts a historic copper-gold resource of 486 million tonnes grading 0.57% copper and 0.14 gram gold per tonne, though this estimate, too, is not compliant with NI 43-101.

Northern Peru Copper is one of four separate companies resulting from a reorganization of Lumina Copper in mid-May.