South32 has committed to a diamond drilling programme of up 5000 m at the Chlolo Porphyry Copper Project in southern Peru, making it the first project in Peru to be selected for drilling under the Strategic Alliance.
Drill permitting is now is progress and is estimated to take around six months to complete, with diamond drilling expected to commence before the end of 1Q18. As provided for in the Strategic Alliance Agreement (SAA), the parties will execute a joint venture document in regard to the Chololo Project before drilling commences. Under the joint venture, South 32 would need to spend US$4.0 million to earn a 70% interest in the Chololo Project.
The Chololo Project is located 30 km from the port of Ilo in southern Peru, where a recently completed Induced Polarisation (IP) survey highlighted a strong chargeability anomaly indicating potential for a buried porphyry copper system in the are (ASX release 5 July).
The IP anomaly is though to reflect a large-scale pyrite (=/- chalcopyrite) halo associated with the inferred buried porphyry copper system. Compute modelling of the IP data has confimed the large target size and strength of response, suggesting the potential for significant amounts of sulfide mineralisation within the source rocks.
The Chololo Project is one of three projects in Peru that have so far been selected by South32 as ‘exploration opportunities’ under the SAA. Work to bring two of these projects to the drill-ready stage is continuing, with IP and electromagnetic surveys underway at Cerra de Fierro and mapping/ sampling in progress at Los Otros.
AusQuest Managing Director Graeme Drew said the decision to drill the Chololo Project was a highly significant development for the Company in its ongoing hunt for Tier-1 scale mineral discoveries.
“We are very pleased that South32 have accepted the Chololo Project as being drill-ready. The IP target we have identified is a strong porphyry copper target, and we are looking forward to completing the permitting process and getting on the ground to start drilling as soon as we possibly can.”
Read the article online at: https://www.globalminingreview.com/exploration-development/21092017/south-32-commit-to-drilling-the-chlolo-project-in-peru/