Advancing exploration at the Cuatro Hermanos property, 150 km east of Hermosillo, Mexico, will be the business of Magma Copper (NYSE), following the signing of an option agreement with property owner Morgain Minerals (VSE).
Under the agreement, Magma’s Mexican unit will spend US$2.7 million on exploration over five years and earn, at its option, either a 51% interest in the property or a 51% interest in Morgain’s Mexican subsidiary Minera Magmor. Magmor currently holds a 100% undiluted interest in the property, having bought out a 15% net-profits interest for US$155,000. Morgain has also acquired more ground, bringing the total area of the property to 76 sq. km.
The property has a porphyry-type copper-molybdenum deposit with preliminary reserves of 212 million tonnes grading 0.43% copper and 0.037% MoS2, including a 2.9-million-tonne oxide-zone reserve grading 0.49% copper. The reserves are geological estimates only, being inferred from 58 widely spaced drill holes on the south side of the porphyry. The north side of the porphyry has not yet been explored.
Be the first to comment on "Magma options Cuatro Hermanos"