RMG to acquire additional Chilean copper mines

THE DRILL SERGEANT: RMG Limited (ASX: RMG) has executed a Memorandum of Understanding (MoU) with another Chilean copper producer at Tuina.

Under the new MoU RMG will acquire all the mining leases of Minera Santa Lucia Ltda in the Tuina district, subject to due diligence and clean title.

 

Santa Lucia mine lease copper and silver assays. Source: Company announcement

The MoU is the third agreement RMG has signed with local groups, which the company said was part of its strategy to consolidate the copper mines of the Tuina district.

The new acquisition amalgamates of ownership of the currently known 1,300 metres of multiple continuously mineralised copper zones in the district, where a number of copper occurrences have been identified at surface with copper grades to 3.5 per cent copper and 46 grams per tonne silver.

It also delivers the addition of two small copper mines, extracting copper oxide ore to a nearby toll SX-EW plant.

It is close to ground already held by RMG and proximal to existing medium sized mining operations, which the company indicated would result in the removal of the lease boundary impediments for full access to optimally exploit its existing copper mineralisation.

“The acquisition of these latest mining leases at Tuina brings ownership of 1,300 metres of the mineralised San José Fault zone under one company for the first time in its history,” RMG executive director Peter Rolley said in the company’s announcement to the Australian Securities Exchange.

“This will enable a more complete mining optimisation of the mineralised zones and we are looking forward to commencing a drill program to assess the economics of open pit mining this entire zone and its possible extensions.”

RMG explained the new agreement complements two agreements it has already struck in the Tuina copper district (Chile Metals and Porvenir agreements) and delivers three strategic mining leases to RMG.

Minera Santa Lucia, owns three mining leases within the Tuina mining district.

All three leases are within the Tuina copper district and are adjacent or near to the mining leases already held under option or agreement by RMG.

There are two copper oxide mines in production on the Minera Santa Lucia leases, at Santa Lucia and Trebol.

Email: info@rmgltd.com.au

Website: www.rmgltd.com.au