A copper gold project, the Santa Gracia Project is in the central portion (Region IV) if Chile, 22 km northeast of the provincial capital of La Serena. The Santa Gracia Project includes 2 artisanal mines, La Cuyana and San Sebastian and the Chacay Gold Prospect and covers an area of 35 square kilometres.
The Santa Gracia Project is located within a well-developed north-northwest trending structural corridor that extends for some 150km from South of Andacollo to Los Choros Creek in the north, incorporating the Andacollo copper and gold deposits and the El Arrayan (Southern Hemisphere), Gavilanes, Chinchillon and La Higuera prospects.
The primary exploration model associated with the Santa Gracia project is a porphyry copper deposit. Given the immediate proximity of the Los Loros porphyry deposit, it is likely that the mineralisation may be accompanied by molybdenum. The presence of porphyry style alteration and high level intrusives of appropriate composition support the potential for a discovery of this style.
The secondary exploration model associated with the Santa Gracia and neighbouring Chacay properties involves parallel, high grade mesothermal gold lodes developed towards the northern end of the property, possibly parallel to and overlying the shallowly plunging extent of the Los Loros porphyry.
An initial drilling program of 13 holes at Santa Gracia did not yield the opportunity for quickly moving on to a resource drilling stage and has been relegated in priority for further exploration works.