SEG 45 Final_qx4 - Society of Economic Geologists
SEG 45 Final_qx4 - Society of Economic Geologists
SEG 45 Final_qx4 - Society of Economic Geologists
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OCTOBER 2005 • No 63 <strong>SEG</strong> NEWSLETTER 37<br />
immediately south <strong>of</strong> the traditional<br />
Skellefte district has been staked by<br />
Mawson, including the Duobblon uranium<br />
deposit hosted in an ignimbrite<br />
flow.<br />
Many former “sleeping” uranium<br />
prospects in Sweden are now re-staked,<br />
mainly by Ge<strong>of</strong>orum Scandinavia and<br />
also Mawson Resources and Svenska<br />
Skifferoljebolaget.<br />
SOUTH AMERICA<br />
Regional Correspondent:<br />
José A. Perelló (<strong>SEG</strong> 1989 F)<br />
Regional Vice President South America<br />
Ant<strong>of</strong>agasta Minerals<br />
Ahumada 11, Piso 12, Santiago, Chile<br />
E-mail: jperello@aminerals.cl<br />
Contributions from<br />
Craig A. Feebrey (<strong>SEG</strong> 1996 F) – Chile<br />
Japan Oil, Gas and Metals National<br />
Corporation (JOGMEC)<br />
Darryl D. Lindsay (<strong>SEG</strong> 2001) – Ecuador<br />
EcuaCorriente S.A.<br />
Steve Jensen (<strong>SEG</strong> 1999) – Peru<br />
Teck Cominco Peru S.A.<br />
CHILE<br />
On the back <strong>of</strong> a controversial Specific<br />
Mining Tax, finally signed in June <strong>of</strong><br />
this year, and a great deal <strong>of</strong> negative<br />
publicity regarding Barrick Gold’s<br />
development <strong>of</strong> Pascua-Lama, with<br />
commodity prices the way they are, it is<br />
<strong>of</strong> no surprise to see the mining industry<br />
in Chile booming. One only has to take<br />
a look at developments in place or<br />
attempt to claim ground in any one <strong>of</strong><br />
the prospective mineral belts in Chile to<br />
realize the importance <strong>of</strong> Chile in many<br />
companies’ investment strategy. The<br />
Chilean Copper Commission<br />
(Cochilco) estimated that gold and copper<br />
mining investment in Chile could<br />
total US$15.22 billion between 2004<br />
and 2008!<br />
Among these investments, a major<br />
US$637M expansion <strong>of</strong> Los Pelambres<br />
(Ant<strong>of</strong>agasta plc-Japanese consortium)<br />
was approved in 2005, while major upand-coming<br />
projects in 2006 include production<br />
from BHP Billiton’s US$990M<br />
Spence and US$870M Escondida (bacterial<br />
leach) projects, and the US$1.4 billion<br />
development <strong>of</strong> Barrick’s 17-Moz<br />
Pascua-Lama gold project.<br />
Andina Minerals Corp. has reported<br />
results from drilling the Dorado East<br />
zone on its Volcan project (Andina<br />
Minerals Corp., 100% option) located in<br />
the Maricunga belt. Hole DVA-001<br />
returned 146 m @ 1.27 g/t Au from surface,<br />
with a second intersection occurring<br />
from 262 m returning 24 m @ 0.67<br />
g/t Au. The true thickness <strong>of</strong> the 146-m<br />
mineralized interval is estimated to be<br />
approximately 60 m. The company is<br />
planning further drilling during the<br />
2005–2006 season in order to expand<br />
the size <strong>of</strong> the Dorado East and Central<br />
mineralized zones.<br />
Antafogasta Minerals is on track to<br />
complete a US$15.3M prefeasibility<br />
study on its Esperanza deposit by<br />
October 2006. Approximately 40,000 m<br />
<strong>of</strong> drilling should be completed by early<br />
fall. A 2.2 km decline is currently under<br />
construction. Esperanza has an inferred<br />
in-pit sulfide resource <strong>of</strong> 367 Mt @<br />
0.64% Cu and 0.29 g/t Au.<br />
Barrick Gold has received significant<br />
negative publicity since announcing its<br />
plans to develop the Pascua-Lama gold<br />
deposit. Opposition has focused on<br />
Barrick’s plan to relocate part <strong>of</strong> a<br />
glacier in order to access the ore, arguing<br />
that this could have an impact on<br />
water supply to local farmers and harm<br />
the environment. Construction is due to<br />
commence in 2006, with the start production<br />
in 2009, with an output <strong>of</strong><br />
750,000–775,000 oz/yr <strong>of</strong> gold and<br />
32–34 Moz/yr <strong>of</strong> silver a year for the<br />
first 10 years <strong>of</strong> operation.<br />
In order to secure a stable, long-term<br />
copper supply to China, China’s<br />
Minmetals and Corporacion Nacional<br />
del Cobre de Chile (Codelco) formalized<br />
a maximum US$2 billion joint venture,<br />
with US$550M going toward<br />
Codelco’s Gaby project, which is in the<br />
pipeline to be developed around 2010.<br />
Geocom Resources Inc. announced<br />
the results from 512 m <strong>of</strong> drilling on<br />
their Escorpion project located in the<br />
Coquimbo district, <strong>of</strong> Region IV. Better<br />
intersections include hole ES-01, 7.8 m<br />
@ 0.94 g/t Au; hole ES-02, 10.8 m @<br />
2.03 g/t Au.<br />
International PBX Ventures<br />
announced the results from an additional<br />
1,350 m, five-hole, DD program<br />
on its Copaquire Cu-Mo porphyry project<br />
located 15 km west <strong>of</strong> the<br />
Collahuasi mine. Significant intercepts<br />
include Cerro Moly zone-hole CQ09,<br />
176.8 m @ 0.056% Mo from 28.6 m,<br />
including 30 m @ 0.122% Mo from 43.6<br />
m, and Sulfato zone - hole CQ05, 108 m<br />
@ 0.41% Cu from 224.8 m, and CQ10,<br />
93 m @ 0.48% Cu from 89.8 m. A more<br />
extensive and systematic 25,000-m drill<br />
program is planned on the Copaquire<br />
target during 2005.<br />
Mena Resources completed a 22-hole<br />
RC drill program on its Vaquillas-<br />
Cenizas gold-silver project. Ten holes<br />
were drilled in the Vaquillas area. Better<br />
intersections include hole VQ003, 54 m @<br />
0.69 g/t Au, and 24.4 g/t Ag from 106 m;<br />
and hole VQ009, 68 m @ 0.67 g/t Au,<br />
and 23.1 g/t Ag, from 108 m. Of the six<br />
holes drilled in the Cenizas area, only<br />
hole CZ005 intercepted significant mineralization,<br />
returning 198 m @ 0.<strong>45</strong> g/t Au.<br />
Drilling on the Rio Figueroa project<br />
(Metallica Resources Inc., 100%<br />
option), located approximately 85 km<br />
southeast <strong>of</strong> Copiapó, intercepted 348 m<br />
@ 0.30% Cu and 0.30 g/t Au, which<br />
included 70 m @ 0.59% Cu and 0.31 g/t<br />
in the Cerro Matta area. Nine holes<br />
totaling 2,884 m were drilled, with five <strong>of</strong><br />
these holes intercepting anomalous Cu-<br />
Au mineralization with Cu > 0.10% and<br />
Au > 0.10 g/t over intervals in excess <strong>of</strong><br />
100 m. Further drilling is planned. The<br />
Rio Figueroa project includes a cluster <strong>of</strong><br />
6 porphyry Cu-Au occurrences, in addition<br />
to an epithermal Au occurrence<br />
known as Quebradas. The best hole<br />
drilled at Quebradas, QG-02, returned 17<br />
m @ 1.98 g/t Au that included 8 m @<br />
3.70 g/t Au.<br />
Quadra Mining has announced an<br />
independent resource estimate on its<br />
Sierra Gorda Cu-Mo project. Sierra<br />
Gorda is estimated to contain indicated<br />
and inferred sulfide resources <strong>of</strong> 397.3<br />
Mt @ 0.38% Cu and 0.05% Mo (COG =<br />
0.34% Cu equiv), in addition to an indicated<br />
and inferred oxide and supergene<br />
resources <strong>of</strong> 217.24 Mt @ 0.36% Cu<br />
(COG = 0.2% Cu). A 15,000-m RC drill<br />
program will try and expand oxide<br />
resource and carry out further exploration<br />
in the area.<br />
Regalito Copper Corp. (previously<br />
Lumina Copper) is raising finance to<br />
purchase by water and surface rights<br />
and provide general working capital in<br />
connection with the development <strong>of</strong> its<br />
Regalito copper project.<br />
An updated resource estimate for the<br />
Cinabrio deposit <strong>of</strong> 6.51 Mt @ 1.49%<br />
Cu, 0.03 g/t Au and14.3 g/t Ag has<br />
been reported by SMC Gold Ltd. SMC<br />
Gold plans to develop Cinabrio as part<br />
<strong>of</strong> their Punitaqui operation already in<br />
production.<br />
South American Gold and Copper<br />
and Rio Tinto signed a letter <strong>of</strong> understanding<br />
earlier in the year to explore<br />
the Pimenton Cu-Au porphyry. Rio<br />
Tinto has agreed to drill four DD holes<br />
within the first year,<br />
to page<br />
after which they have 38 ...<br />
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