Western Pacific eyes Chilean properties

Western Pacific Mining Exploration (WPC-M) has signed an agreement to earn interests in a small polymetallic producer and two former producers near Vallenar, in central Chile.

The agreement, which is still subject to due diligence and regulatory approval, calls for cash payments of $600,000 to the vendor and work commitments of US$1.9 million on the three properties over the next three years.

Western Pacific (Wespac) can earn a 37.5% interest in the Primavera mine property by paying $400,000 and placing US$1.1 million in escrow to fund a development program. The project has been tested by more than 3,200 metres of drilling, plus underground mapping and sampling. This work defined a resource of 796,509 tonnes grading 2.6% copper and 6.4 grams gold per tonne, hosted in a 3-to-4-metre-wide shear zone along a 700-metre strike length to a depth of 130 metres. The shear zone has not been tested below 130 metres, except for three holes.

Wespac and its partner plan to develop and mine the deposit from a ramp at the rate of 250 tonnes per day for the first full year (starting in 1998), and at 500 tonnes per day thereafter. Initial production will be processed at a nearby custom mill until one is built on site within the first year of operation.

Wespac can acquire a half interest in the San Antonio property by paying US$200,000 and completing US$700,000 of exploration and development work.

The San Antonio vein hosts reserves of 7.8 million tonnes grading 0.47% copper; oxide reserves are estimated at 600,000 tonnes grading 1.16% copper; and an additional 60,000 tonnes grading 1.7% copper are believed to exist in surface dumps.

Little exploration and development work has been carried out on site, and Wespac plans to test several veins that are believed to be equally prospective as San Antonio.

The company can earn a 50% interest in the third property, Carrizal Alto, by funding US$100,000 of exploration. The property is a turn-of-the-century producer of copper, silver, gold and uranium.

Existing waste dumps contain 420,000 tonnes grading 1.3% copper and 600,000 tonnes of tailings grading 0.6% copper. A feasibility study will examine the best manner to process the material. Westpac also sees potential in the area of old workings and on-strike extensions.

The Chilean properties would add another dimension to Westpac’s property portfolio, which includes 11 permits in the Solomon Islands, east of Papua New Guinea.