Arequipa unveils drilling results

Peruvian explorer Arequipa Resources (TSE) has revealed some encouraging drill results from its copper prospect known as Los Calatos.

Situated in the southern part of the country, the property spans 8,300 hectares and is one of five porphyry copper prospects in which the Peruvian subsidiary of Phelps Dodge (NYSE) can earn up to a 60% interest. To do so, it must spend at least US$10 million on exploration and pay US$1.6 million over four years, as well as deliver a feasibility study and pay a “success fee” of US$5 million.

Follow-up drilling will test certain areas at greater depth. (A shallow water table made for unreliable sampling below the water level, although most of the high-grade zones were above the table.)

Among the more significant results from the 26-hole, reverse-circulation program are the following:

Hole Interval Width Copper
(m) (m) (%)
2 150-102 52 0.65
102-168 66 0.27
4 56-62 6 0.92
194-152 58 0.66
152-194 42 0.34
7 72-86 14 0.23
132-150 18 0.24
10 16-84 68 0.18
12 64-76 12 0.36
16 22-32 10 0.33
62-96 34 0.37