LATIN AMERICA — Noranda options Chilean copper-gold prospect

Noranda (NOR-T) and Metallica Resources (MR-T) has signed an agreement to explore the Morro copper-gold property in north-central Chile.

The major can earn a 70% interest in the 185-sq. km property by spending US$20.3 million on exploration over five years.

The agreement includes the adjacent Fortuna property, which, until recently, was held in a 50-50 joint venture with BHP Minerals, a subsidiary of Broken Hill Proprietary (bhp-n). Noranda must spend US$1 million exploring that property.

Among Noranda’s other requirements is completion of a feasibility study.

In March, drilling by Metallica at El Morro encountered a 192-metre interval grading 0.64% copper and 0.22 gram gold per tonne.