Westmin to buy into Chilean copper project

Westmin Resources (WMI-T) is acquiring the right to earn a 51% interest in the Vizcachitas copper porphyry project in central Chile.

The vendor, Denver-based General Minerals (gnm-t), will receive US$12.9 million in payments from Westmin. Also, Westmin will be required to spend at least US$7.5 million to advance the project through completion of a bankable feasibility study over a 5-year period.

General Minerals has identified a large mineralized copper porphyry deposit, with near-surface, higher-grade, chalcocite-bearing, secondary copper-enrichment grading in excess of 1% copper over 20-to-60-metre lengths.

Since acquiring the property in late 1995, General Minerals has completed 30 widely spaced drill holes. The porphyry system extends over an area measuring 1,400 metres in a north-south direction and 800 metres east-west.

General Minerals estimates Vizcachitas contains a resource of 310 million tonnes grading 0.52% copper and 0.013% molybdenum, including a near-surface enriched zone of 24 million tonnes grading 1.01% copper and 0.009% moly.

Westmin’s own resource estimate for Vizcachitas is said to confirm the estimate prepared by General Minerals.

Vizcachitas is 120 km northeast of Santiago. Between 8,000 and 10,000 metres of diamond drilling will be carried out in an effort to expand the copper resource.