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 South Central Chile Porphyry (acquiring 100%)
The Company has staked a number of areas (42,300 hectares) in South Central Chile, based on ASTER imagery and the Phelps Dodge database, which it believes is an under explored extension of the Upper Cretaceous/Lower Tertiary porphyry copper belt identified in the Coastal Cordillera of south central Chile, near the town of Talca.
The Company entered into an Area Wide Option Agreement with Freeport McMoran Exploration Corp. in August 2008 for further development of the Company's Talca Belt properties.
The essential terms of the Agreement for Freeport to acquire an interest in the Prospect Areas are as follows;
- Freeport may acquire a 70% interest in an Existing Prospect Area, except the Llancahue Prospect Area by;
- Completing, at its election, a Minimum Expenditure of US$50,000 per Prospect Area on or before July 18th 2009
- Completing, at its election, at least 2,000 meters of Initial Drilling on or before July 18th 2010 on a Prospect Area on which it has completed a Minimum Expenditure
- Completing, at its election, at least 5,000 meters of Advanced Drilling on or before July 18th 2011 on a Prospect Area on which it has completed Initial Drilling
- Freeport may acquire a 70% interest in the Llancahue Prospect Area by;
- Completing, as an obligation, at least 2,000 meters of Initial Drilling by on or before July 18th 2009
- Completing ,at its election, at least 6,000 meters of Advanced Drilling on or before January 18th 2011
- The Agreement includes an Area of Interest within which Coro may acquire additional New Prospect Areas for submission to Freeport which, if accepted, would be subject to the same terms as per 1. above, except that the earn in periods shall be calculated from their Acquisition Date(s) .
- Upon completing its acquisition of a 70% interest in a Prospect Area or Areas, Freeport and Coro may enter into a joint venture to further explore, develop, and exploit it (or them), subject to Freeport completing, at its election, a National Instrument 43-101 compliant Resource Estimate for a Prospect Area on or before July 18th 2014 (or 72 months from the Acquisition Date for a New Prospect Area). Coro shall have a one-time right and option to elect to require Freeport to fund Coro's share of all further expenditures necessary to bring the Joint Venture Property to the Commencement of Commercial Production, and to arrange Third Party non-recourse project financing to the extent reasonably available for the construction and development of the relevant project.
- In the event that a Resource Estimate for a Prospect Area does not demonstrate at least 750,000 tonnes of contained copper equivalent in Measured and Indicated categories, Coro shall have a buy back option, exercisable on or before July 18th 2015 to acquire Freeport's interest in the Joint Venture Property by paying US$0.02/lb of copper equivalent contained within 70% of the Measured and Indicated resources.
Geology and Mineralization
Prospects were staked based on extensive leached sericite-pyrite alteration, with more prospective area exhibiting exposed quartz-sericite & potassic alteration. Targets are Cu/Au primary sulphides, with some enrichment, in traditional quartz-sericite altered porphyries and their associated potassic cores; and in peripheral structural and breccia pipe traps.
The Talca Belt Prospect Area comprise extensive porphyry style alteration zones that have been subjected to first pass reconnaissance sampling by the Company which indicated the presence of anomalous copper geochemistry.
The Llancanhue Prospect Area, which in addition to hosting an extensive alteration zone, contains a small outcrop of attractive copper sulphide bearing potassically altered, hydrothermal breccia located immediately adjacent to a covered area, and is ready for drill testing.
There targets are at low elevations, have good road access and no infrastructure constraints. None of the Properties have any previous mining activity, and to the Company's knowledge none of them have been subjected to prior exploration.
What's next?
- Freeport to complete a minimum expenditure of US$50,000 per prospect area;
- Freeport to complete at least 2,000 meters of Initial Drilling in areas, on which it has completed a minimum US$ 50,000 expenditure and at Llancahue Prospect Area by Q209;
Related Releases
| August 11, 2008 |
Coro Announces Exploration Agreement with Freeport-McMoran Exploration Corp. for its Talca Belt Properties in Central Chile - NR-08-16 |
| November 05, 2007 |
Acquisition Of Andrea Copper Gold Prospect And New Claim Positions In South-Central Chile - NR 07-11 |
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South Central Chile Porphyry (acquiring 100%)