Vancouver — Silver Standard Resources (SSO-V) has inked a deal with Santiago-based Sociedad Contractual Minera Challacolla (SCMC) to pick up the Challacolla silver project in Northern Chile.
Under the terms of the deal, the Vancouver-based company has paid $20,000 for a four-month due diligence period. The junior can then elect to earn 100% of the project by spending US$1.5 million over two years. The original claim owners retain a 2% net smelter royalty, while the vendors receive a 2% net smelter royalty that Silver Standard can by back for US$1.5 million.
Lying 130 km southeast of Iquique, the property hosts four north-south striking veins. The primary target is the Lolon vein, which has been traced for more than 2 km along strike and developed over a 700-metre section. Mineralization is hosted in quartz veins that average up to 13 metres in width and crosscuts rhyolites, dacites and andesitic rocks.
Based on 22 drill holes and underground sampling, a geological resource of 2.3 million tonnes grading 309.5 grams silver and 0.9 gram gold per tonne has been proposed.
Silver Standard has launched an underground sampling program with its eye of drilling the project in 2002.
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