Quaterra options MacArthur copper project

Vancouver A recently executed agreement with a private company gives Quaterra Resources (QTA-V) rights to acquire the past-producing MacArthur copper-oxide property in Lyon County, Nevada.

The project has been explored and developed by various companies since the 1960s. A previous operator developed an open-pit mine that began production in 1995. Mining ceased two years later, owing to weak metal prices and “excessive haulage costs” to a solvent-extraction electro-winning plant at Yerington, some 4.5 miles distant.

An estimated 5.5 million tons were mined from a resource of 29 million tons grading 0.28% copper, which includes 13 million tons grading better than 0.42% copper. These resources pre-date and are not compliant with National Instrument 43-101 reporting standards.

The copper mineralization is zoned and occurs in a quartz monzonite intrusive of Jurassic Age that has been intruded by a series of quartz mozonite, rhyolite and andesite dykes.

Quattera President Thomas Patton says a review of historic data suggests that the oxide mineralization outlined to date “may be part of a more extensive porphyry copper system.” Oxide copper mineralization was observed in outcrop beyond the present pit limits. The company also saw potential for primary sulphides and possible chalcocite enrichment.

Quaterra can acquire 100% of the project by making staged payments totaling US$1.78 million by mid-January, 2008. The agreement gives Quaterra the right to extend the option two additional years (assuming at least US$500,000 has been spent on exploration by that date), but the staged payments would then increase to US$2.75 million.

The vendor retains a 2% net smelter royalty, 1% of which can be purchased for US$1 million.

Quaterra is awaiting drill results from a recently completed, 4,500-ft. drill program at its Duke Island copper-nickel-platinum group metals project in southeastern Alaska. The program tested several targets previously discovered by early-stage programs.