THE BOURSE WHISPERER: Elementos Limited has entered into an earn-in joint-venture with HMC Gold SCM on the Cerrillo Tamaya copper project located in Chile.
Elementos can earn a 50 per cent interest in the project by spending US$7 million on exploration and development within a three year period.
The Cerrillo Tamaya copper project comprises 5,690 hectares of mining concessions and 1,200 hectares of exploration applications.
Location map of the Cerrillo Tamaya project Chile. Source: Company announcement
It is located in the Cerrillo Tamaya historic mining district, 55 kilometres south of the regional capital and port of Coquimbo, which is endowed with exploration, mining, and development infrastructure.
Elementos described the Tamaya project’s prospective features to include:
– Having been subjected to historic mining focused on high-grade copper ores – reported production of 2 million tonnes at 12 per cent copper (Non-JORC compliant) – leaving potentially significant volumes of lower grade material;
– There is oxide and sulphide mineralisation evident at surface over the main four kilometre long vein system;
– The project has potential for secondary veins and deeper mineralisation along the main trend, as well as bulk-tonnage breccia and stratiform mineralisation; and
– The area has never been explored using modern day techniques.
“Exploration activities at Tamaya will test the remnants of the known mineralisation whilst exploring for new targets,” Elementos Limited said in its ASX announcement.
“A number of targets can be drilled quickly.
“Tamaya represents another exciting new opportunity for the Company in Chile, in addition to the recently announced Mercedes project, with the potential to discover bulk-tonnage, copper oxide and sulphide mineralisation in a proven mining district with stable jurisdiction.”
Elementos said it has plans for two parallel strategies at Tamaya, which include investigating the potential for delineating a copper oxide resource capable of development into a solvent extraction and electro-winning operation and exploration for sulphide copper-gold mineralisation for on-site treatment by flotation into concentrates.