The Mexican subsidiaries of Corner Bay Minerals (TSE) and Magma Copper (NYSE) have reached an exploration agreement concerning the Cerro Verde copper property, southeast of Hermisillo in Sonora state.
Magma can earn a half interest by spending US$1 million on exploration and paying US$300,000 cash over five years. Magma is also required to complete a prefeasibility study.
Cerro Verde is thought to be underlain by a porphyry copper system. Mapping and sampling have delineated a mineralized breccia which covers an area 1,100 metres long by 300 metres wide.
Diamond drilling will focus on near-surface oxidized copper mineralization which is situated beneath a large hill. Once exploration has started on the oxide portion of the deposit, the lower sulphide mineralization will be examined.
If Magma advances the project and earns its interest, the two companies will form a 50-50 joint venture to develop and mine the deposit.
Be the first to comment on "Partners explore Cerro Verde"