Finnish conglomerate Outokumpu Mines plans to earn a 55% interest in the San Carlos property from Orcana Resources (VSE).
The property is situated in Mexico’s Sonora state, and Outokumpu can earn the interest by completing a prefeasibility study by the end of 1997. The company will spend US$450,000 on the property this year and will also make option payments of US$35,000, which are due in June.
If Outokumpu does not complete the study by the due date, it must have spent at least US$5.5 million to maintain its option.
Orcana’s work has concentrated on defining a blanket of oxide copper mineralization exposed by a limited amount of underground development. Underground sampling over a width of 100 ft. and a length of 250 ft. returned an average of 1.54% copper.
The vertical extent of the zone is indicated by Orcana’s first drill hole, which returned a 108-ft. intersection grading 0.94% copper.
Assay results from another three holes are pending.
The copper-bearing zone has been traced 4,000 ft. to the south.
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