Junior El Bravo Gold Mining (VSE) has agreed to acquire the Chanaral copper concession in northern Chile through the reverse-takeover of the Chilean company Southern Cross S.A.
The number of shares to be acquired by Southern Cross will be based on a valuation report on the project.
Southern Cross holds a 26-year lease on exploitation rights to a 450-acre maritime concession along the coastal beach at Chanaral.
The discharge of tailings from two copper mines in the interior accumulated on the beach between 1937 and 1975.
El Bravo carried out sampling work on the tailings last year by means of drilling and test-pitting; the program returned copper values ranging from 0.02% to 0.565%. This confirmed a 1972 program by BRGM of France, which estimated a drill-indicated resource of 60 million tonnes averaging 0.25% copper.
The company believes the copper can be recovered by in situ leaching and solvent extraction-electrowinning.
A 6-month trial leaching operation is planned for later this year. El Bravo is negotiating for private placement financing of $1.5 million.
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