THE BOURSE WHISPERER: Diatreme Resources’ 100 per cent-owned subsidiary, Chalcophile Resources has entered into a Memorandum of Understanding with Antofagasta Minerals S.A.
Antofagasta Minerals S.A. is the mining division of London-listed Antofagasta plc.
The MoU is in respect of a proposed farm-in over Diatreme’s Clermont copper project in central Queensland, which hosts the Rosevale Porphyry Corridor (RPC).
Clermont project location plan showing prospects. Source: Company announcement
Diatreme discovered the Rosevale Corridor in 2008, when it identified the corridor to have potential for large buried porphyry copper – gold – molybdenum mineralised systems.
The company has carried out significant exploration since this time, including geological mapping and sampling, ground geophysics and over 6,000 metres of diamond drilling.
These efforts discovered mineralisation at a number of individual prospects within the RPC, and many prospects still require further drill testing.
“Within the Clermont tenements, Antofagasta will specifically target the highly prospective “Rosevale Porphyry Corridor”, a geological zone hosting copper, gold, silver and molybdenum porphyry-style mineralisation, along with adjacent geologically related mineralisation,” Diatreme Resources said in its ASX announcement.
Under the agreed terms, Antofagasta will commit US$400,000 over a six month period (nominated as the Initial Assessment Phase) to fund exploration mainly over the RPC.
This will include geological mapping of outcrop, relogging of all Diatreme’s RPC diamond drill core and reprocessing and assessment of existing data.
“Diatreme considers the exploration funding and expertise that Antofagasta brings to the Clermont tenements to be of immense value in advancing the identification, delineation and development of a large polymetallic porphyry-style mining operation in the Clermont area,” the company continued.
“With Antofagasta recognising the high prospectivity of the Clermont tenements and in particular the Rosevale Porphyry Corridor, Diatreme believes its commitment to enter into a farm-in arrangement has added confidence to realizing the potential of this new Queensland porphyry copper/gold belt.”