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 d porphyry copper-gold targets that have been identified from previous exploration work. maintains its primary focus on exploring and advancing the Diablillos silver-gold project.
Highlights of the La Coipita project:
- The project encompasses over 70,000 hectares in the prolific world-class Miocene porphyry-epithermal belt
- 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
- The Yaretas Claims cover the most prospective parts of the La Coipita mineralised system. Potassic, intermediate argillic and silicic alteration with widespread iron oxides occur, with strong leaching of primary minerals and copper oxides in places outcrop at the target areas.
La Coipita Overview
The project encompasses a large of approximately 70,000 hectares 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 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.
In January, 2022, AbraSilver commenced its maiden drill program on the Project, which is expected to consist of approximately 3,000 meters of HQ diamond core drilling in six, 500-meter-deep holes. While the initial holes are currently being planned to a depth of approximately 500 meters, the Company will evaluate drilling progress to see if deepening any holes is warranted to test for deeper underlying porphyry mineralisation.
The initial drill program will test several high-priority targets including the Yareta high sulphidation target area where previous drilling obtained a number of high-grade copper and gold intercepts. Reconnaissance exploration work completed by AbraSilver has shown that mineralisation in this area is expected to be more widespread than the zone previously drilled in 1997.
The locations of the initial six drill holes are shown in the Figure below.
La Coipita Drilling Targets
The company has entered into two separate option agreements with arm’s length private owners.
The first agreement, announced on March 02, 2020 includes the following payments to acquire a 100% interest:
|Paid upon signing||$65,000|
As per the terms of the Option Agreement, the Vendor will retain a 1.10% net smelter return royalty (the “NSR Royalty”). AbraSilver has assigned to Altius Resources Inc. (a wholly owned subsidiary of Altius Minerals Corporation) an exclusive right to repurchase the royalty for US$3,000,000 at any time during the term of the option agreement, or US$5,000,000 thereafter until start-up of construction of the Project.
The second agreement, announced on August 17, 2021 includes the following payments for a 100% interest:
|Paid upon signing||$50,000|
As per the terms of the Agreement, the Vendor will retain a 1.10% net smelter return royalty on the Yaretas Claims and AbraSilver has an exclusive right to repurchase the royalty for US$5,000,000 at any time.
- Mineralization contained on nearby properties is not indicative of similar mineralization being found on the La Copipta Project