Caspian Oil & Gas (ASX: CIG) is primarily focused on oil and gas exploration in the Kyrgyz Republic, Central Asia, where the company wholly owns the West Mailisu licence.
Caspian Oil & Gas (ASX: CIG) is turning to minerals development with the acquisition of a copper project in Chile.
The company will acquire an option over the 18.05 square kilometre Naltagua Copper Project in Chile, which targets up to 80 million tonnes of manto-type copper–silver deposits grading between 0.8 and 1.3% copper, by purchasing unlisted Australian company Equus Resources.
This comes as its Kyrgyz Republic oil and gas permits approach expiry or commercial exhaustion.
Located close to one of Chile’s main copper producing belts and established infrastructure, the project was previously mined between 1905 and 1945 and remains largely unexplored and undrilled.
So far, 10 exploration targets have been identified at Naltagua, three of which are drill-ready.
Drilling is scheduled to start immediately on the Yerba Prospect once the acquisition is completed.
Mapping and channel sampling of 541 metres of underground workings and numerous surface samples have delineate a 50 metre wide by 150 metre long zone of disseminated bornite mineralisation with weighted average grade of 1.1% copper and 9.9 grams per tonne (g/t) silver.
This is a relatively small part of the mineralised system and is open along strike and down plunge.
The other prospects are Cerro, where 24 samples of outcropping volcanic breccia collected along a ridge-top traverse over a distance of 242 metres returned a composite grade of 1.6% copper and 23g/t silver, and Lomas where ground follow-up of a coherent, broad Induced Polarization chargeability anomaly led to the discovery of a previously unknown copper working at the exact point where the source of the anomaly had been predicted to crop-out at surface.
The Lomas results indicate that IP will be a critical and relatively low-cost ‘mapper’ of potential ore systems at Naltagua.
Caspian will offer its shares to Equus shareholders, giving them 45% of Caspian’s share capital following completion of the deal.
Equus in turn has an option to acquire 100% of 14 mining licnces covering 18.05 square kilometres, or about 75% of the known areal extent of the 4 kilometre by 2 kilometre Naltagua copper system for a total of US$4.4 million (A$4.26 million).
On commencement of commercial production at Naltagua, a 1% net smelter royalty is payable to the licence holder subject to a maximum payment of US$5 million.
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