Partners eye 512 zone

Vancouver — The first two holes of a planned 2,000-metre drill program by diversified miners Teck-Cominco (TEK-T) and Inco (N-T) will target the 512 zone at Brasilca Mining’s (BSL-V) Tucuma iron oxide-copper-gold property in the Carajas mineral province of north-central Brazil.

Designed to test the extent of the recently discovered zone, the first hole is drilling 260 metres northeast of a previous drill hole, which cut 16 metres grading 1.3% copper and 7.1 grams silver per tonne. The second hole will be collared 175 metres southwest of the discovery hole.

Based on a recently completed geophysical survey over the 512 zone, three anomalies define a target measuring 550 metres in strike length.

Acting as equal partners, Teck and Inco can earn a 51% stake in the promising property by spending US$3.5 million and making cash payments totalling US$500,000 over a three-year period. The partners can then boost their interest to 75% by making cash payments totalling US$6 million and completing a bankable feasibility study. Teck and Inco have also agreed to purchase 500,000 units in Brasilca priced at 30 each. A unit comprises one share and one warrant, which is exercisable at 40 for a one-year period. Teck is running the field activities for the project.

The partnership has its eyes on “Olympic Dam-type” deposits. The gigantic Australian mine hosts combined reserves and resources of 2.3 billion tonnes grading 1.3% copper, 0.5 grams gold and 2.9 grams silver per tonne.

Brasilca previously drill tested a combination of magnetic geophysical anomalies and soil geochemical anomalies, as well as zones of hydrothermal alteration, at the prospect.

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