Llahuin is a highly prospective copper/gold project that is located close to the city of Illapel, in the Coquimbo Region, 250 kms north of Santiago, at an elevation of 1,300m.
The Company purchased the Llahuin Amapola 1-4 exploitation concessions covering approximately 772 hectares in 2011. The Central Porphyry Zone is the main target of a cluster of four potential targets within the Amapola 1-4 concessions, that have been defined by surface reconnaissance and mapping. The secondary target is the Cerro de Oro Zone, one kilometre south of the Central Porphyry Zone.
All of the targets are part of the same porphyry copper/gold system and exhibit similar geology, with small to medium sized early dioritic stock with propylitic to potassic (biotite) alteration emplaced in a North-South regional fault system. Argillic-quartz sericite alteration zones are evident in the upper zones and borders of the hydrothermal system within the volcanic wall rocks. At the Central Porphyry Zone, a NNE trending elongated late granodioritic stock intrudes the early dioritic porphyry. This mineralization is mainly associated with veinlet systems.
In 2012, the Company announced that applications made for concession areas immediately south and contiguous with the existing Amapola 1-4 concessions had been successful. The resulting Amapola I and II concessions were named the Ferrocarril Zone and cover approximately 600 hectares. Previously these concessions were held by a Tier 1 mining company which relinquished the concessions and to the Company's knowledge, performed no exploration works there. The Ferrocarril Zone provides a tertiary target for the Llahuin drilling campaign.
According to the type of deposit, alteration, mineralization, geographic location and geological age, the Llahuin mineralized bodies can be defined as a porphyry copper system, rich in gold, similar to the Carmen de Andacollo ore deposit, located 350km north of Santiago, which has a resource of 400 million tonnes grading 0.38% copper plus gold credits.
On 10 September 2012, the Company delivered a NI43-101 JORC compliant Resource Upgrade of 145Mt grading 0.40% copper equivalent.
On 8 February 2018 the Company announced that it had signed, through its wholly owned subsidiary, Minera Llahuin SCM, an option agreement with Hudbay Minerals Inc. (TSX, NYSE:HBM) through its wholly owned subsidiary, Hudbay Chile SpA, to acquire up to 70% of the Llahuin Project.
The Option Agreement provides a path for Hudbay Chile to earn a 70% interest in the Llahuin Project by making a series of cash payments to SUH (via SUH's 100% owned Minera Llahuin SCM) totalling US$5.8 million over 5 years and committing to spend a minimum of US$3.5 million on exploration work over the first 3 years.