Marimaca Copper advances on Chile drilling news
Marimaca Copper Corp. [MARI-TSX] shares advanced on Monday after the company announced the discovery of the northern extension of the Pampa Medina deposit, located approximately 26 kilometres north of the company’s flagship Marimaca Oxide deposit located in Chile’s Antofagasta region. The company has also reported the results of a maiden scout drilling program at the Pias target, located northwest of Pampa Medina with the broader Sierra de Medina property block. Results from the scout drilling demonstrate the potential for delineation of near-surface copper oxide mineralization, the company said in a press release.
Marimaca shares advanced on the news, rising 3.8% or 19 cents to $5.08. The shares currently trade in a 52-week range of $5.89 and $2.77.
“The discovery of Pampa Medina Norte validates our exploration model targeting the key sedimentary and volcanic host units that we know to be productive for manto-style mineralization both locally and regionally – including recent tier 1 greenfield discoveries like Antofagasta’s Cachorro deposit,’’ said Sergio Rivera, Vice-President, Exploration at Marimaca Copper.
Drilling highlights include Hole SMR-01, which was drilled north of the known northern extent of the Pampa Medina deposit and represents a material extension of the sediment and volcanic-hosted manto-style mineralization. Highlight results include 400 metres of 0.49% copper from 250 metres, including 216 metres at 0.70% CuT from 250 metres (dominantly oxides), including 102 metres at 1.20% CuT from 250 metres, including 76 metres at 1.57% CuT from 276 metres.
SMR-01 intersected significant oxide copper and chalcocite mineralization from 272 metres to 462 metres, transitioning to dominantly chalcopyrite mineralization from 462 metres to 650 metres (final depth).
Marimaca was in the news last year when the company announced details of a $20 million strategic equity investment by Japanese conglomerate Mitsubishi Corp., leaving Mitsubishi with 5.0% of Maricama’s issued and outstanding shares, and adding to its existing holdings in the Latin American copper industry. The portfolio includes Escondida, Los Pelambres, Antamina, Los Bronces and Quellaveco.
According to a preliminary economic assessment that was released in early September, 2020, Marimaca is a development stage project that is capable of producing 430,00 tonnes of recovered copper over a total mine life of 12 years for an all-in-sustaining cost of US$1.29 per pound.
Marimaca has said the project is expected to benefit from low upfront capital development costs, and due to the favourable geometry of the orebody and relatively simple oxide processing through SX-EW, management believes the project will have very competitive operating costs
The PEA envisages a conventional open pit mine that would focus on oxidized mineralization, one that would utilize a conventional heap leach, SX-EW processing circuit. The company recently said an average of 84% recovery of the total copper was obtained in bottle roll testing completed on ore samples taken from the mineral zones comprising the expected early years of mine life.