Ilo Sur Copper Project, Peru. JV - First Quantum Minerals (FQM)
FQM have funded geophysics survey and partial extraction geochemistry on the Pachamancha – MT03 Copper project in Peru. This target has now developed into a joint venture with FQM to drill if further sufficient coincident support for the target is identified.
FQM Joint Venture Terms:
Antares Peru (FQM 100% owned subsidiary) to complete geophysical survey and following which may elect to proceed with a rights assignment and an option to earn an initial 51% of the project by completing 4,000m of drilling within 6 months of obtaining drilling approvals.
Antares may exercise the first option within a maximum of 48 months after obtaining advanced stage drill permits, and will earn 51% on completion of drilling and technical studies to support a JORC resource estimate of >1Mt contained copper equivalent.
PLR to receive staged payments totalling US$0.5 million over the option period, as an additional condition precedent to exercise the option.
Antares can earn up to a total of 80% of the project when technical documentation of work completed is provided to support a decision to mine.
PLR free carried up to decision to mine. Antares will have an option to buy PLR’s remaining 20% share based on an independent valuation. PLR will then retain a 2% NSR royalty. Antares will have the right to reduce the NSR to 1% by paying US$40 Million cash to PLR.
A 5 km diameter circular feature observed in the analytical signal processed from aero-magnetic data (Figure 1), shows a donut shaped low (possibly a phyllic alteration zone) surrounding a central high (possibly a potassic alteration zone). Interpreted Andean and cross arc structures also intersect in the target area. Together these features qualify as a potential large copper porphyry target in an area of the Southern Peru copper belt that is completely covered by recent sediments.
Figure 1: Analytical Signal image of aeromagnetic data with 5 km diameter donut shaped low possibly representing the phyllic alteration zone, surrounding a central high possibly representing the potassic alteration zone of a copper porphyry system. NW trending Andean structures, and NE trending cross arc structures bound the central high. The area is completely covered.
The geology is dominated by extensive alluvial and young volcanic deposits in the low coastal ranges, obscuring the underlying rocks and any host mineralisation (Figure 2). Outcropping intrusive rocks to the immediate west of the target area together with a geomorphological assessment of the area suggest the cover may be less than 200 m thick.
Figure 2a – Oblique aerial view of the Project area (cyan), showing relatively flat, covered terrain around the anomaly (red). The Pan-American Highway crosses the top of the view (yellow).
Antares is continuing with an IP survey over the target which is expected to provide targets for a subsequent drilling campaign to confirm the presence of a suitable mineralised system.
The Pachamanca/MT-03 target area is located between 400 m and 600 m altitude in uninhabited desert of the Tacna Region, adjacent to the Panamerican Highway and high tension transmission lines. There are 80 km of sealed highway between the project area and the port of Ilo. Such magnificent infrastructure located so close to the project would significantly reduce development capital compared with other large porphyry deposits located higher in the Andes.
Southern Peru’s Prolific Copper District
The Western flanks of the Andes in Southern Peru host a number of Tier one Porphyry copper deposits including Cerro Verde (4Bt @ 0.39% Cu, 0.01% Mo), Toquepala (3.4Bt @ 0.47% Cu, 0.023% Mo) and Cuajone (2.4Bt @ 0.48% Cu, 0.017% Mo), each of which produced 261,348, 136,135 and 171,545 tonnes of copper respectively in 2013, and together accounted for over 40% of Peru’s 2013 copper production.
In addition the Quellaveco (947Mt @ 0.63% Cu, 0.02% Mo), Tia Maria (639Mt @0.39% Cu, 0.19 g/t Au), and Los Calatos (1.4Bt @ 0.47% Cu, 0.023% Mo) projects are under development.
All these projects are within 130 km of Pachamanca/MT-03.
Location of Pachamanca/MT-03 Project within Latin’s over 47,000 hectare concession holding in the prolific Southern Peru copper district.