Vancouver Already moving forward on the Barreal Seco copper oxide project in northern Chile, Atna Resources (ATN-T) has picked up a 3,500-hectare land package in the historic Chanarcillo silver district, some 70 km south of Copiapo.
From 1865 to 1925, more than 100 million oz. silver were produced from oxide veins, chimneys and montos on the property. Historic cutoff grades in the deeper workings are reported to be in the range of 88-146 oz. silver per tonne.
A preliminary evaluation by the junior indicates that the project has potential for: an open-pit, silver deposit that may be amenable to heap-leach processing; and high-grade silver-zinc deposits in mantos and veins.
No recent exploration has been carried out over the property because of its complex land ownership.
Atna has consolidated the fragmented blocks and can earn 100% of the entire project by spending US$800,000 on exploration and making US$168,000 in cash payments over a six-year period. The vendors retain a 2% net smelter royalty.
Atna is gearing up for a sampling program aimed at defining drill targets.
The junior started exploring in Chile earlier this year when it acquired the Barreal Seco property.
Atna has completed a 22-hole, reverse-circulation drill program which confirmed that the oxide deposit should meet or exceed the resource estimates made by previous operators (17 million tonnes grading 0.7% copper using a 0.3% copper cutoff grade).
The company has been planning a core-drilling program to obtain sample material for metallurgical column leach testing.
The deposit occurs in a specularite-rich breccia body that is 600 metres long, 180-300 metres wide and 450 metres deep.
The oxide zone extends to 120 metres below surface. It is followed by a 10-to-20-metre-thick enrichment zone overlying the primary mineralization.
Copper oxide mineralization consists of atacamite, malachite and chrysocolla. Secondary sulphides are mainly chalcocite and covellite. Hypogene mineralization consists of chalcopyrite and pyrite with minor bornite.
Atna can earn 100% of the project by spending US$250,000 this year and completing a prefeasibilty study for the exploitation of the oxide resource.
After completion of this work, Atna has the option to enter into a 50-50 joint venture with the property owners.
The junior also has the right to purchase the owners’ 50% interest for US$5 million. This would be payable in five equal annual installments of US$1 million.
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