Lumina acquires Relincho deposit

Vancouver — Lumina Copper (LUM-V) has inked a deal with Andes Pacific Development to acquire a 100% interest in the Relincho copper property, 630 km north of Santiago, Chile.

The 195 sq. km Relincho property contains a cluster of porphyry copper hydrothermal centers. One such centre has seen extensive exploration, enabling Lumina to commission an independent mineral resource estimate by AMEC

According to the agreement Lumina must pay US$6 million for a 100% unencumbered interest, consisting of US$750,000 cash and US$250,000 in cash or Lumina shares upon signing. Another US$5 million in cash or Lumina shares is required within three years of signing.

"Relincho is an outstanding copper property in an excellent location and is our third major copper property acquisition in Chile," commented Anthony Floyd, President & CEO of Lumina. "Five porphyry centres have been discovered at Relincho but only one has been drilled in any detail. This project has tremendous blue sky and Lumina looks forward to an aggressive exploration program and review of its economic potential."

Finnish-based Outokumpu discovered copper and molybdenum mineralization at Relincho in 1993. Exploration continued until 1997 when Outokumpu ceased all exploration in Chile.

So far a total of five porphyry centres have been discovered: Los Amarillos, Relincho, Las Guias, Marja, and Soledad. These targets all occur within a 5-km corridor of hydrothermal alteration. Outokumpu drilled 150 diamond and RC drill holes totalling 43,028 metres, mostly into the Relincho porphyry.

The Relincho porphyry covers a surface area of approximately 700 by 500 metres. Copper mineralization occurs mostly as primary sulphides, which are overlain by a 10 to 70 metre thick leached oxide cap. Primary sulphide mineralization consisting of bornite and chalcopyrite has been traced to a maximum depth of 700 metres. Associated with this mineralization is varying amounts of molybdenite, pyrite, digenite, and covellite. Oxide mineralization consists mainly of malachite and chrysocolla.

Lumina believes that there is excellent potential to discover additional copper mineralization on the property. The company’s main targets include:

• Extensions to the known hypogene mineralization at the Relincho, Marja, and Las Guias porphyries.
• Oxide copper mineralization hosted along the entire 5 km-long Relincho-Soledad porphyry system.
• Supergene porphyry copper enrichment zones beneath the leached stockwork zone at Los Amarillos.

"Relincho is our most significant acquisition to date, and is an excellent addition to our other two Chilean copper deposits – Vizcachitas and Regalito," said Floyd. "In addition to its acquisition of Relincho and its interest in Vizcachitas, Lumina Copper now has ownership of or rights to acquire 100% of nine other significant copper deposits and a major interest in a tenth, all located in the mining-friendly countries of Chile, Argentina, Peru and Canada. With the recent strengthening of the copper price, our focus will now expand to enable advancement of these deposits and evaluation of their potential for commercial development."