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).
2022 Exploration Program
In January, 2022, AbraSilver commenced its maiden drill program on the Project. As announced on April 27, 2022, based on encouraging visual data at the time of drilling, the drill program was modified to test a deep porphyry target. Hole DDHC 22-001 was terminated at 865 metres, while DDHC 22-002 was terminated at just over 1,200 metres depth.
The two deep drill holes at La Coipita were targeted at a surface geochemistry pattern interpreted as being a reflection of an underlying porphyry system. This has been confirmed by visual inspection at the time of drilling and assay results for both holes at La Coipita have been prioritized.
Hole DDHC 22-002 intersected large-scale copper-gold porphyry style sulphide mineralisation together with molybdenum from 517m depth to the end of the hole at 1,202.5 meters depth. The mineralisation is in rocks that are host to the porphyry intrusion which has not yet been intersected. Hole 22-002 stopped in mineralisation and was terminated for technical reasons. Additional drilling in this potential major porphyry system is planned for next field season, which is expected to start in September 2022, with the objective of intersecting the central porphyry intrusive progenitor.
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