Rungue Project
Regional
The Rungue project, a bedded (“manto”) type copper deposit with +2% Cu exposed ores in regular sedimentary beds, is located only 40 miles from Santiago. Because of the benefit of good infrastructure, this project is amenable to copper cement production in 8 months from optioning.
The ores described are emplaced in a highly permeable sedimentary breccia host rock from Las Chilcas Formation (lower Cretaceous age), which facilitated the penetration of the mineralizing fluids.
The host rock forms strata (“mantos”) of local EW strike and 30 – 40 dip to the N. Therefore, the mineralized body is of “manto type”, which means a regular dip and thickness, and a great longitudinal extent; these characteristics greatly favor mechanized mining. The “manto ore body” thickness, as exposed in a 20 m. long by 7 m. deep open quarry and 20 m. addit is 15 m. thick (as a minimum). Other workings to the S and W suggest a 30 m. width and observed length of 60 m. This means an exposed proven reserve of approximately 75,000 tons at 2.5% Cu (equivalent to 3,300,000 Lb at an 80% heap leaching recovery rate).
Rungue Project Potential Primary Target Area
1) The straight mining of 75,000 tons of 2.5% Cu ores are estimated from the observation of underground workings and open cast mining exposures and from high-grade ore (15% Cu grade) being mined currently at small scale.
2) The exploration of the general area around the Rungue deposit based on the geologist studies can reach 4.5M tons of mixed/primary ores at 2% Cu grade.
The ores include copper oxides, mainly intense blue chalcantite (CuSO4?5H2O), subordinated malaquite (Cu2(OH2∙CO3)) of intense green color and lesser amount of azurite (Cu3(OH∙CO3)2 and light blue chrysocholla. These oxides are mixed with secondary copper sulfides such as chalcocite (Cu2S) and covellite (CuS). These entire mineral occur and are directly observed in mine workings up to 12 m. long. This ore body zone is technically known as the oxidation – mixed ore zone.
Some ore body sectors show copper grades of up to 15% total Cu; the average ore grade is estimated at 3% total Cu. Local miners currently hand pick the ores for shipping to the plant at Ventanas, with sale grades of 12 – 15% total Cu.
Verbal reports from local miners indicate this same mineralization extends down to 40 – 50 m. below the surface of the gentle hill slopes located W of the Rungue village. This mineralization zone would contain:
• 0.5 to 1.5% Cu mixed ores with native copper (Cu˚).
• 10 – 20 meters below secondary sulfides of 2 – 2.5% Cu average grade; mainly chalcocite and covellite with lesser chalcopyrite and pyrite.
• From 70 m. down primary sulfides would occur such as bornite (Cu5FeS4), chalcopyrite (CuFeS2), and pyrite (FeS2) with grades of 1.2 to 1.5% Cu.
Exploration claims (“pedimentos”)
We have established 6 square Km (600 hectares) of exploration claims. Only the Rungue project has gone so far as agreeing in principle with the owners on an option scheme (option price is 1.2MUS$ plus a small Royalty from production (15KUS$/month) during exploitation and before the option is executed).
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