Toronto-based Chutine Resources (VSE) has commissioned a feasibility study to determine the economic viability of a sizable porphyry copper deposit on the San Antonio de la Huerta property in the Mexican state of Sonora. Held by Chutine’s 49% owned Mexican affiliate Minera Sanex S.A. de C.V., the 7,000-acre property has been the site of gold and copper mining activity since the 17th century. Connected to available hydroelectric power and available water supplies, the property hosts a deposit estimated to contain 15 million tons of grade 1% copper.
To increase minable copper reserves on the property and explore a number of gold occurrences within its boundaries, Minera Sanex will complete 13,000 ft. of drilling as part of a phase one program.
An Arizona contractor has also been hired to examine the feasibility of extracting 16 tons of cathode copper daily using solvent extraction and electrowinning processes from an open pit in the Luz del Cobra mine area.
“We think this property is one of the most advanced in the State of Sonora,” said Holmes, referring to a number of active Canadian companies including Placer Dome (TSE) and Noranda (TSE).
To enable Minera to use solvent extraction and electrowinning in any future open pit operation, Holmes says the mine would have to be operated at 3,000 tons per day. “The drilling program should increase and enhance the confidence level of grade and tonnage in all categories,” he said.
In the event that Mexico changes its investment guidelines to allow foreign companies to own more than 49% of its domestic firms, Chutine has the option to acquire the 51% stake in Minera Sanex it doesn’t already own. It can do this by advancing to Minera one million treasury shares and a US$1-million loan.
Chutine can exercise the option by making payments of $6 million by June 30, 1993.
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