Chacay - Coro to Sell Chacay Project
In February 2013
, Coro agreed to sell its Chacay property to Compania Minera Relincho SA, a subsidiary of Teck Resources Limited ("Teck") for US$2.5 million cash plus a 1.5% net smelter return royalty; subject to title due diligence and is expected to close by March 25, 2013
Drilling to date at the 100% owned, Chacay copper porphyry property has identified two zones of chalcocite mineralization (Nacho and Lucho zones) and a third untested area of leach capping. The Nacho zone (~900m X 700m area) contains a chalcocite enrichment blanket (copper oxide). The other two zones remain principally untested.
Coro was evaluating the potential synergies between the copper oxide mineralization at Chacay and the Teck Resources Relincho Project; a distance of 12km, in Region III, northern Chile. The Relincho project is currently under development with prefeasibility design indicating production would average 180,000 tonnes per year of copper and 6,000 tonnes per year of Molybdenum over a 22 year mine life.
- Enrichment blanket drill results included 154m at 0.63% Cu (CHC-RC-17) and 144m at 0.67% Cu (CH DDH-03) Oct. 12, 2011)
- Additional drilling is required to define an initial resource at the Nacho zone oxide enrichment blanket and test other two zones (Lucho and South East Target)
The Chacay property is located in Region III in Northern Chile, located 12km southeast of Teck Resources Relincho copper-molybdenum project and 50km east of the city of Vallenar at an elevation of approximately 2,600m above sea level. Chacay comprises 3,400 hectares of exploration and exploitation concessions. The Property is subject to a 2% net profits interest on any production, to a maximum of $2 million payable to First Quantum Minerals Ltd.
Chacay and Relincho
Coro has drilled 24 reverse circulation drill holes for a total of 5,758m, (all but 2 of which were drilled to test the Nacho zone), as well as 4 diamond drill holes for a total of 1,975m, all drilled at the Nacho zone. Additional drilling will be required for an initial resource. In April 2011, the Company filed on SEDAR its Technical Report; for further information please see this link http://www.coromining.com/i/pdf/110429ChacayCopperProject43101.pdf
Figure 3: Nacho Zone Drill Hole Locations (in Copper Oxide Chalcocite Enrichment Blanket)
Click to Enlarge
The relationships between the various principal rock types and the alteration assemblage, is shown on the above schematic long section through the Nacho Zone (above).
Chacay is a porphyry copper deposit of probable Eocene age. It is located on the margins of the same Los Morteros batholith, is also oriented WNW, but occurs at an approximately 1200m higher elevation than Relincho. As a result, the porphyry system at Chacay is much less eroded and is largely hosted by rocks which have been affected by moderate to strong phyllic alteration that produces a much more intense clay anomaly on the ASTER image. (See Figure 1)
The Relincho project is a porphyry copper-molybdenum deposit that was acquired by Teck Resources in April 2008 for CAD$415 million plus a 1.5%NSR. Mineralization at Relincho is associated with several Eocene age hydrothermal breccia bodies and potassically altered porphyry intrusives, emplaced in the Cretaceous age Los Morteros batholith, which is the large light toned area shown on the ASTER image (showing clay alteration intensity) below. The deposits are aligned along a WNW trend and have associated weak clay alteration which can be seen on the Aster image, below.
Ground magnetics surveys (2007/11) present an overall northwest texture with a number of clearly defined lineaments probably related to faulting. A zone of magnetically smooth texture in the central-eastern part of the survey area, seems to represent magnetically destructive alteration and coincides well with the Nacho zone of mineralization.
Known secondary copper mineralization coincides with magnetic lows at both the Nacho and Lucho zones. The SE Target area also is coincident with a poorly defined magnetic low, perhaps masked by partially magnetic overburden.