Cyprus Amax Minerals (CYM-N) has optioned the Opata copper project in Mexico’s Sonora state from Vancouver-based junior Jaba (JBA-A).
Cyprus can earn a 50% interest in the 44-sq.-km project by spending US$2 million on exploration and paying the owners of the property US$300,000 over four years. The company must also complete 6,000 ft. of drilling within the next four months.
Cyprus can earn an additional 20% by completing a bankable feasibility study and paying Jaba US$2 million within six years. After the earn-in, Cyprus becomes responsible for its pro-rata share of the remaining property buyout costs.
The Opata property hosts a zone of altered granodiorite with associated breccia pipes measuring 5 km in diameter. Alteration and mineral assembleges suggest the property may contain a classic porphyry system. Very limited drilling by a previous owner encountered chalcocite mineralization in one of the breccia pipes.
Jaba Chairman John Guilbert is excited about the project, which is situated in a remote area of eastern Sonora, south of the existing copper mines La Caridad and Cananea.
Jaba has additional property holdings to the east and northwest of Opata, in the San Juan-Bautista silver district.
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