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.
On 13 July 2011, the Company announced the execution of an Option Agreement to purchase the Llahuin Amapola 1-4 exploitation concessions covering approximately 772 hectares. 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.
On 25 July 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 was 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.
The Company continues to grow the Llahuin Resource and in this regard, the Cerro de Oro and Ferrocarril Zones have the potential to significantly increase the resource which is currently mainly derived from the Central Porphyry Zone. Additionally, the Company continues to identify prospective properties in the Coquimbo Region, the goal being to build a mining district around a processing plant to be built at Llahuin.
On 5 November 2012, the Company announced the execution of a joint venture with Canadian Global Miner; Lundin Mining Corporation.
On 1 April 2015, the Company announced that Lundin Mining had elected not to proceed further with the Llahuin Joint Venture after funding in excess of $7M of exploration. The Company is seeking a new partner at Llahuin and is actively reviewing complementary properties which would add to the Project's economics.