A subsidiary of Corner Bay Minerals (TSE) has signed a letter of intent with a subsidiary of Magma Copper (NYSE) concerning the Cerro Verde copper project near San Javier in Sonora state.
The companies are hopeful of proving up reserves of an oxide copper deposit close to surface; the potential also exists for a sulphide deposit underlying the oxide zone. The region already hosts considerable infrastructure. Corner Bay’s work to date has concentrated on surface geological mapping and sampling of oxide copper minerals. The work has outlined an area that is roughly 1,000 by 300 meters; this zone hosts a topographically prominent 300-meter-high hill called Cerro Verde.
The subsidiaries, Minera Corner Bay S.A. de C.V. and Minera Magma Mexico Exploracion S.A. de C.V., will focus initially on the hill’s oxide copper potential.
The agreement gives Magma Copper the right to earn a 50% interest in Cerro Verde by spending an unspecified amount on work programs and completing a prefeasibility study during a 5-year period. In addition, Magma will make cash payments. Magma will act as operator.
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