THE BOURSE WHISPERER: Mining Group Limited (ASX: MNE) has entered into an option agreement to acquire up to 90 per cent of the El Roble copper project concessions in Chile.
The El Roble project is located within the world-class Atacama IOCG province approximately 25 kilometres east of the Chilean port city of Caldera.
The project area covers approximately 6,000 hectares of what Mining Group described to be “highly-prospective, unexplored geology”.
El Roble project location and the port of Caldera. Source: Company announcement
“We are very excited by the potential acquisition of the El Roble copper project in Chile,” Mining Group managing director Zeffron Reeves said in the company’s announcement to the Australian Securities Exchange.
“This project has the potential to deliver near term production and generate cash flows to fund further exploration activities and enable us to become self-funded within a short time frame.”
Mining Group claims high-grade copper mineralisation occurs at El Roble within a strike extensive vein system that has had historical production of approximately one million tonnes of ore grading more than nine per cent copper.
Two small underground mines are currently in small scale production at Descobridora and Veta Gruesa producing direct smelter copper ore at over nine per cent copper.
“Copper mineralisation at El Roble has been mapped over a six kilometre strike length with some startling copper grades being mined from small scale mining activities, with regularly shipped grades to local toll plants being in excess of 12 per cent copper and our due diligence work has confirmed this,” Reeves said.
“In addition, the El Roble copper project is close to existing world class producing mines, but it is also within close proximity to transport and processing infrastructure.
“As a result, this project has the potential to provide near term, high-grade copper production with limited capex spend.”
Mining Group has conducted surface due diligence over the project, from which the company has ascertained the vein system to be strike extensive, well mineralised with potential to host further high-grade copper orebodies.
“Mining Group’s strategy is to become self-funded through the discovery of economic widths of high-grade near-surface copper at the El Roble project using modern exploration techniques,” Reeves said.
“If we can succeed in executing our strategy, this project will be transformational to Mining Group.”
Mining Group explained the project has, at this stage, been unexplored using modern techniques.
The company indicated the interpreted strike extent of the system to the south west is covered by sand dunes and is untouched.