Torq Resources (TORQ.V) has announced it has acquired an option to earn full ownership of the Margarita IOCG project in Chile. Previous drilling has already encountered copper oxide mineralization with reported grades of 0.2-0.6% copper over a width of 30-120 meters up to a vertical depth of 210 meters. According to the company, none of the holes has hit primary copper sulphide yet.
This copper oxide target is interesting, but the location is a little bit of a nuisance as it looks like the map indicates only a portion of the oxide target is actually located on the Margarita claim package and only 13 of the 39 holes that have defined the mineralization are on the Margarita claims. According to the Torq press release, the footprint of the oxide mineralization results in an exploration target of 20-35 million tonnes of copper, but it’s not clear if this discusses the entire mineralized footprint or only the sections that are actually located on the Margarita claims.
As part of the agreement, Torq will have to make US$6.2M in cash payments and complete US$3.05M in exploration expenditures on the project for the Margarita claims.
The Cototuda claims can be acquired for a series of cash payments totalling US$900,000.
Disclosure: The author has no position in Torq Resources. Please read our disclaimer.