Arauco acquires copper properties

Junior Arauco Resources (VSE) has broadened its South American portfolio by acquiring five copper properties covering 185 sq. km. in Argentina.

Arauco already has 22 properties in southern Chile, including two gold projects at the drill stage. Attracted by recent incentives to foreign investment in mining, the company has been active in neighboring Argentina since last year.

The five properties were staked to cover “significant” surface oxide copper occurrences, with sampling returning numerous values in the range of 1% to 2% copper.

The properties are well-situated with regard to access and infrastructure. Fred Hewett, Arauco’s chief operating officer, said they are probably amenable to solvent extraction-electrowinning (SX-EW).

Arauco is continuing to explore in Argentina and may acquire more properties. However, it must first secure sufficient land in the prospective areas, Hewett said.

Arauco recently agreed to develop what is known as the Aisen project, in a co-operative effort with the University of Chile and the Interamerican Development Bank (IDB). This US$2.3-million, 4-year program will focus on a relatively unexplored area of southern Chile. Funding will come jointly from Arauco, the university and a US$1.1-million grant from IDB.

The area has potential for hosting subvolcanic exhalative Kuroko and massive sulphide deposits as well as porphyry copper, skarn and epithermal precious metal deposits. Any claims staked as a result of the program will be owned by Arauco.

Hewett said Chilean geological students will benefit from learning Canadian techniques for detecting deposits in vegetated areas.