Chilean Metals Inc. is a Canadian junior exploration company with nine copper-gold properties across two portfolios in Chile and Nova Scotia. The company has assembled a top-notch technical team with special expertise in exploring for massive copper-gold deposits in iron-oxide-copper-gold (IOCG) geological settings.
IOCG deposits are typically extremely large and high-grade with simple metallurgy, producing immensely profitable mines. These deposits primarily host copper, however, they can also contain economic levels of gold. BHP Billiton’s Olympic Dam in Australia is the largest known IOCG deposit and also ranks as the world’s fourth largest copper deposit.
Chilean Metals holds a significant land package in Chile’s proven and world-class Atacama IOCG belt. The company’s flagship project, the Zulema property, is located just 30 kilometers from the world’s second largest IOCG deposit—the low-cost producing Candelaria mine owned by Lundin Mining. Phase one drilling at Zulema has identified IOCG-style mineralization consistent with the known geology of the Candelaria system. Chilean Metals, under consultation with technical advisor Minotaur Exploration—an Australian miner highly experienced with IOCG-type deposits — is planning to undertake additional geophysical work prior to initiating a 3,000-meter drill program in Q3 2017. Chilean Metals completed a $1 million financing in June which will help fund exploration at Zulema.
The company’s Nova Scotia portfolio includes four properties in the province’s Cobequid – Chedabucto Fault Zone, a 250-kilometer long structure in which a large number of IOCG targets have been identified by Minotaur. Nova Scotia is a favorable mining jurisdiction with access to a skilled work force, rail and utilities. Nova Scotia has the potential to become a IOCG province. A successful discovery is all that is needed and Chilean Metals hopes to be behind that discovery. The Nova Scotian Department of Natural Resources is a supportive partner offering exploration assistance to the company.
Chilean Metals’ premiere property for this portfolio is the Bass River project for which it has signed a joint venture agreement (retaining 60 percent ownership). Modeling by Minotaur has identified three priority targets which will be the focus of a 2017 summer work program to be undertaken by the JV partner.
Chilean Metals’ discovery potential across two countries is not the only potential value on offer to shareholders. When the company sold the Copaquire copper project to Teck Resources for US$3 million, it retained a 3 percent net-smelter-return royalty—a significant hedge for CMX shareholders and a unique asset that sets the company apart from other junior explorers. Copaquire is contiguous with Teck’s Quebrada Blanca mine, which is expected to run out of mineable ore in 2019. Teck is currently exploring on the project which has an existing 43-101 resource.
Copper’s excellent supply and demand fundamentals continue to make it a compelling investment. Speaking at the International Metal Writers Conference in May 2017, Mercenary Geologist Mickey Fulp said copper demand will continue to rise in the United States as well as in emerging markets in China, India, Brazil and Indonesia. This demand comes alongside a growing supply shortfall.
Chilean Metals has assembled one of the best technical teams in the junior mining space for evaluating and advancing IOCG exploration projects. Team members have a track record for success in major discoveries both in Chile and geological settings similar to Nova Scotia. Dr. Chris Hodgson leads the Zulema project and was the first geologist to identify Santa Domingo, a major Chilean deposit which sold for over $700 million. Dr. Tony Belperiro, also the Executive Exploration Director for Minotaur, led the team that discovered Prominent Hill, one of the world’s largest IOCG deposits which sold for more than $1.2 billion.
Managed & Built by I2M Consulting, LLC | © 2010-
