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).
Geological Setting
Maiden Exploration Campaign Discovers Significant New Copper-Gold-Molybdenum Porphyry System
Initial Drill Hole Returned Broad Zones of Porphyry Mineralisation Including 226 Metres of 0.43% CuEq and 146 Metres of 0.30% CuEq
The Company’s maiden drill campaign at La Coipita consisted of two initial deep holes to test a potential large copper-gold-molybdenum porphyry target. Based on the successful results, additional drilling is now being planned for the upcoming field season, which is expected to start in late-September 2022.
The results were announced on June 28, 2022. Highlights include:
- Hole DDHC 22-002: intersected a continuous copper-gold porphyry zone of 226m grading 0.43% CuEq marking a significant new discovery on the project.
- Mineralisation remains open at depth, as the hole ended within a separate interval of 146m of 0.30% CuEq down to a depth of approximately 1,200m.
- Porphyry style mineralisation was encountered within the host rocks believed to be adjacent to the central porphyry intrusive progenitor, which has not yet been intersected.
- Hole DDCH 22-001 intersected high sulphidation mineralisation with multiple high-grade narrow zones of copper and gold veining.
- Drill results were targeted at a surface geochemistry pattern interpreted as being a reflection of an underlying porphyry system, with estimated approximate dimensions of 2.0km by 1.5km.
- Additional drilling in this new major porphyry system is being planned for the upcoming field season, with the objective of intersecting the central porphyry intrusive progenitor.
2023 - La Coipita Exploration Program
The 2023 exploration program at La Coipita consisted of one deep hole at the Yaretas target (DDHC 23-001). As announced on July 12, 2023, the hole returned a broad interval of copper-molybdenum porphyry mineralization of 694.3 metres grading 0.16% copper and 81 ppm molybdenum. The hole intersected a broad zone of pyrite and associated chalcopyrite mineralisation in fine disseminations and stockwork veining in a major porphyry system. Secondary coatings and replacements of these sulphides with covellite and chalcocite is widespread and a subsequent phase of quartz veining hosts molybdenite. The mineralisation occurs mainly in a granite which is host to the progenitor porphyry intrusion that was not intersected in this hole.
La Coipita Drill Assay Section (Looking West)
Additionally, aside from drilling the Yaretas target, the Company conducted reconnaissance surface geochemical sampling and geological mapping over other target areas within the La Coipita concession block which encountered multiple anomalous results. At the Valle Hermoso target, located approximately 25 kilometres south of Yaretas, a high-grade grab sample contained 3.49% copper, 0.42 g/t gold and 20.6 g/t silver. The samples at Valle Hermoso are interpreted as being part of a high sulphidation system related to an underlying porphyry body and represent a valid exploration target for potential future drilling.
Summary of Select Samples from La Coipita Above 0.5% Cu
| Target | UTM Coordinates | Sample (#) | Cu (%) | Au (g/t) | Ag (g/t) | |
| Valle Hermoso | E381628 | N6591373 | 7806 | 3.49 | 0.42 | 20.6 |
| Valle Hermoso | E381625 | N6591392 | 7805 | 0.67 | 0.25 | 2.3 |
Note: The reader is cautioned that grab samples are selective by nature and do not necessarily represent the true metal content of the mineralized zones.
Transaction Summary
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:
| Timing | Payments (US$) |
| Paid upon signing | $65,000 |
| March 2021 | $100,000 |
| March 2022 | $200,000 |
| March 2023 | $400,000 |
| March 2024 | $1,000,000 |
| March 2025 | $2,500,000 |
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$5,000,000 thereafter until start-up of construction of the Project.
The second agreement, announced on August 17, 2021 includes the following payments for a 100% interest:
| Timing | Payments (US$) |
| Paid upon signing | $50,000 |
| August 2022 | $75,000 |
| August 2023 | $200,000 |
| August 2024 | $400,000 |
| August 2025 | $800,000 |
| August 2026 | $1,500,000 |
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.
Notes:
- Mineralization contained on nearby properties is not indicative of similar mineralization being found on the La Copipta Project