Noranda, Corner Bay Minerals pool Mexican exploration

The wholly owned Mexican subsidiary of Corner Bay Minerals (TSE) has concluded an agreement with a unit of Noranda (TSE) whereby the companies will pool their current land holdings in the Roncesvalles area near Parral in Chihuahua state, Mexico.

Corner Bay’s landholdings include rights to 369 hectares on two concessions, El Pacto and La Crisis. These concessions are surrounded by a 2,400-hectare ground position staked by Noranda. The major also has a concession internal to El Pacto, called La Curra.

The concessions in the combined land package are reported to represent at least two known copper-bearing systems, although no drilling is known to have occurred to date.

The central portion hosts an area of significant copper mineralization observed on surface through geological mapping, geochemical sampling and geophysics. The area is believed to represent the upper reaches of a porphyry copper system.

To the east of this target area, another copper system has been recognized through surface geological mapping, prospecting and sampling. This second target is believed to have good potential for an oxide copper deposit which would be amenable to open-pit mining techniques and heap leaching followed by solvent extraction-electrowinning of cathode copper.

Noranda is required to spend the first US$2 million on work in the project area. It must also pay Corner Bay US$175,000 over a 3-year period to earn an initial 100% interest.

Corner Bay can then spend the next US$3 million over two years to earn back from Noranda a 50% interest in the project area, or convert to a 2% net smelter royalty.

Noranda will operate its initial program, after which the operatorship will revert to Corner Bay for its US$3 million of expenditures. Once the joint venture is formed, Noranda will become operator of the project. Corner Bay believes the agreement with Noranda represents “a strong step forward” for the company in that it increases its exposure to copper projects in Mexico. Collectively, the junior has three copper properties in the country which are being explored. All have been optioned to third parties.