AbraSilver has entered into an option agreement to acquire a 100% interest in the La Coipita project, located in the mining-friendly San Juan province, Argentina. The project is located in the prolific Miocene porphyry-epithermal belt and hosts multiple drill-ready porphyry copper-gold targets that have been identified from previous exploration work. AbraSilver believes the Project will be of interest to large mining companies and intends to look for a strategic partner to advance the La Coipita project, while the Company maintains its primary focus on exploring and advancing the Diablillos silver-gold project.
Highlights of the La Coipita project:
- A large 51,550 hectare project strategically located within the prolific Miocene porphyry-epithermal belt, one of the world’s most endowed copper-gold belts
- Located approximately 16 km north of the Los Azules deposit (McEwen Mining Inc.) and 90 km from Los Pelambres (60% Antofagasta PLC) (1) which is located across the border in Chile
- Two partially exposed porphyry Cu-Au (Mo) systems and evidence of at least three other poorly exposed porphyry systems
- Historic drill intercepts up to 127m @ 0.42% Cu and 0.22 g/t Au, including 41m @ 1.08%Cu and 0.35g/t Au (2) from shallow drilling at the Yareta high sulphidation target.
La Coipita Overview
The large 51,550 hectare project is in the western portion of Calingasta Department, located in the mining-friendly San Juan Province of Argentina adjacent to the Chilean border. Access to the area is via Calingasta, the nearest town, along 125 km of unpaved road to the Los Azules Cu-Mo porphyry project (Indicated Resource of 962 Mt @ 0.48% Cu) (1) and then north along a dirt road to the La Coipita Cu-Au project. Elevation across the property ranges between 3,500 and 4,500 MASL with moderate to high relief.
La Coipita Location Map
The project lies within the Miocene porphyry-epithermal belt of Argentina and Chile. During the mid-Miocene, the area developed an active magmatic arc, on its western side, and a back-arc extensional environment, to the east. Contemporaneous with the deposition of volcanic/volcaniclastic rocks was the emplacement of porphyry Cu-Mo-Au and/or epithermal Au-Ag (Cu) systems (e.g. Los Pelambres/El Pachón Cu-Mo porphyry, Los Azules Cu-Mo porphyry, El Indio/Veladero/Pascua Lama HS Au cluster).
Previous Exploration Work
Previous exploration work on the Project was completed by subsidiaries of the following companies: Viceroy Resource Ltd (1995-1997), Vale S.A. (2007- 2009), and Teck Resources Ltd (2009- 2016). Numerous target areas have been identified on the Project from the previous work. The only target that has been tested by drilling is the Yareta target, where nine (9) closely spaced RC drill holes totaling 1,984m were drilled by Viceroy in 1997. The highlights intercepted from four closely spaced holes (<200m) are summarized below:
Table 1 – Historical Drill Results(2)
|Hole ID||From (m)||To (m)||Interval (m)||Cu (%)||Au (g/t)||Ag (g/t)||CuEq*|
*Note: CuEq calculated using $1500/oz Au, $3/lb Cu, $18/oz Ag.
The company entered into the option agreement with an arm’s length private owner. In order to exercise the option to acquire a 100% interest in La Coipita, the Company is required to complete the following payments:
|Paid upon signing||$65,000|
Numerous target areas have been identified on the La Coipita project from the previous work. These target areas have coincident geophysical, geological and geochemical features that are consistent with the presence of Cu-Au mineralized porphyry-type intrusive either at depth, beneath a Au-Cu HS epithermal system (Yareta target) or as marginal, structurally uplifted, inter-mineral porphyry phases such as the Dona Rosa North and Quebrada Yareta South targets.
Drilling to test some of these targets was proposed by both Vale and Teck but never completed.
La Coipita priority target areas:
- Yareta - HS epithermal / porphyry transition
- Doña Rosa North – Porphyry
- Quebrada Yareta South – Porphyry
- Rio del Viento – Porphyry
- Rio del Viento South – Porphyry
- Adan - Porphyry
Target Location Map
- Mineralization contained on nearby properties is not indicative of similar mineralization being found on the La Copipta Project
- The historic drill results presented in the table above have not been independently verified by the Qualified Person for this release, and remain subject to independent verification. The drill results were originally published in a news release by Oro Belle Resources Corporation dated June 24, 1997. Oro Belle Resources Corporation was a 50% owner at the time of the announcement, through a wholly owned subsidiary who held a 50% Joint Venture interest.