Partners Chase Resource (TSE) and BHP Minerals are expanding their ground position in the Philippines by acquiring more than 110,000 hectares in Aurora and Nueva Ecija provinces.
The claims are at the southern end of the Sierra Madre coastal range.
Although no modern exploration has been conducted on the property, several significant prospects have already been identified by geologists employed by both Chase and the vendor.
Targets include two large zones of copper-gold porphyry-style alteration, as well as several northwest-trending structures parallel to the adjacent Philippine Fault.
Sampling on two of the structures returned massive sulphide mineralization over a strike length of more than 1 km and a width exceeding 60 metres. Rockchip sampling returned values of up to 4.1% copper, 16% zinc and 0.24 gram gold per tonne.
Regional exploration, including mapping and stream sediment-sampling, is under way. BHP and Chase will fund the work on a 70-30 basis.
Under the agreement with the property vendor, the joint venture will make option payments totalling US$2.35 million over a 5-year period, as well as complete US$5.8 million in property work over a 6-year period.
On completion of the payments and the expenditures, the vendor can elect to sell a 100% interest to the joint venture for US$25 million, or a 75% interest for US$10 million. The vendor’s retained 25% interest would be carried through to the completion of a feasibility study.
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