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Golden Rim Resources gears up to explore major porphyry target in Chile amidst bullish copper market

Last updated: 13:56 22 Apr 2021 AEST, First published: 12:56 22 Apr 2021 AEST

Golden Rim Resources Ltd - Golden Rim Resources gears up to explore major porphyry copper target in Chile
Hand specimen from the Loreto alteration zone showing intense argillic alteration (clay -silica–sercite) and neotocite (black copper oxide).

Golden Rim Resources Ltd (ASX:GMR) is set to recommence work on its Paguanta Copper and Silver-Lead-Zinc Project in Chile following a review of 1,169 historical rock chip samples.

This comes at a time of strengthening copper prices and a bullish price forecast of US$15,000/tonne.

Paguanta is at the northern extension of the West Fissure in Chile - the world’s largest concentration of major porphyry copper-molybdenum deposits. 

Golden Rim will initially focus on the Loreto porphyry copper target where preliminary assessment has highlighted: 

  • 3.5 x 3.5-kilometre leached cap interpreted as an alteration footprint of a large deeper porphyry system;
  • Remnants of copper oxide veins at surface and encouraging molybdenum in rock chip samples highlighting the centre of the porphyry cell;
  • Igneous breccia outcrops which contain potassic-altered porphyry clasts with chalcopyrite suggesting a copper mineralised porphyry core at depth; and
  • Multiphase porphyry dykes, with traces of chalcopyrite, dated as Late Oligocene – Early Eocene age - the same age as the major porphyry copper deposits in the belt.

The Loreto target has not been previously explored, and the surrounding ground is controlled by two of the world’s largest copper companies – BHP Group Ltd (ASX:BHP) (NYSE:BHP) and Codelco.

“Potential for Tier 1 copper deposit”

Golden Rim managing director Craig Mackay said that while the company was focused on progressing its advanced gold projects in West Africa, the strengthening copper price and bullish price forecasts of US$15,000/tonne had encouraged it to evaluate a previously unexplored, porphyry copper target at Loreto, within the Paguanta Project in Chile.

He said: “Golden Rim believes that Loreto could well represent the last unexplored outcropping Eocene-Oligocene porphyry system in northern Chile and it has potential for the discovery of a Tier-1, world-class, Collahausi-type porphyry copper deposit.

“Not surprisingly, Loreto is surrounded and over-pegged by BHP and Codelco, two of the largest copper companies in the world.

“Golden Rim’s initial exploration to generate drill targets at Loreto can be conducted at little cost.

“Should a copper porphyry deposit be discovered, we could quickly generate significant value for our shareholders.”

Loreto porphyry copper target area at Paguanta. 

Regional prospectivity  

Whilst the Loreto porphyry target has not previously been explored, the area has been on the radar of the major companies which tightly hold the area surrounding Paguanta. 

These majors, which include BHP, Anglo American PLC (LON:AAL) (JSE:AGL), Glencore PLC (LON:GLEN) (JSE:GLN) (OTCMKTS:GLCNF) (FRA:8GC), Vale SA (NYSE:VALE) (BVMF:VALE) and Freeport Resources Inc (CVE:FRI) (OTCMKTS:FEERF) (FRA:4XH), are all looking for another Collahausi-style copper deposit. 

Not surprisingly, Paguanta’s mining rights - particularly the Loreto target - have been over-pegged by the majors. 

The Paguanta project is 30 kilometres northeast from BHP’s Cerro Colorado Mine (measured and indicated resources of 519 million tonnes at 0.55% copper) and 130 kilometres north from the Anglo American and Glencore’s Collahuasi Project (measured and indicated resources of 2,340 million tonnes at 0.66% copper) and Teck Resources Ltd’s (TSE:TECK) (OTCMKTS:TCKRF) Quebrada Blanca cluster (measured and indicated resources of 1,494 million tonnes at 0.4% copper). 

Golden Rim’s Paguanta mining permits cover 5,500 hectares within a fertile porphyry district which is the source of several copper-molybdenum porphyry projects, including Codelco’s La Planada and Yabricoya projects (just 37 kilometres and 25 kilometres respectively to the south) and Anglo American’s Queen Elizabeth Project (10 kilometres to the east).

Exploration upside 

Loreto is positioning as the most promising copper porphyry target at present, but it is one of five hydrothermal cells the company has identified at Paguanta that are prospective for copper mineralisation, including:

  • Patricia/Patricia East: Previous exploration and historical mining has principally focused on the polymetallic epithermal-intermediate sulphidation mineralisation which hosts a measured, indicated and inferred mineral resource of 2.4 million tonnes at 5.0% zinc, 1.4% lead, 88 g/t silver and 0.3 g/t gold. There is potential for porphyry-style mineralisation to be discovered at depth and/or laterally to the existing mineralisation with a large IP chargeability anomaly to the east of Patricia (Patricia East) untested; 
  • Cumbre: A high-level hydrothermal cell to the south of Patricia which is possibly more prospective for epithermal silver-lead-zinc mineralisation, but it remains untested and a deeper porphyry system which is also a target:
  • La Rosa: 3 kilometre x 1 kilometre colour anomaly to the north of Patricia, with intense argillic alteration, copper oxides, pyrite and strong limonite, suggesting leach capping over the pyrite shell of a porphyry system; and
  • Doris: Limited and shallow previous drilling (drilling intercepts include 3 metres at 1.3% copper and 160 g/t silver and 1.7 metres at 2.5% copper and 50 g/t silver) suggests it may correspond to a classic porphyry related peripheral copper- silver vein system like the ones seen in Collahuasi - as such, Golden Rim believes there is potential for a porphyry copper system to be discovered at depth below the volcanics. 

Proposed exploration at Loreto

Golden Rim is preparing access agreements with landowners before commencing exploration at Loreto. 

The proposed initial work includes geological mapping (1:5,000 scale), geochemical sampling, clay hyperspectral analysis, ground magnetics and 3D Induced Polarisation (IP)/Resistivity geophysical surveys, which is expected to commence in May.

The company then plans to commence a short program of diamond drilling on priority targets identified in the earlier work.

GMR shares have been as much as 20% higher today to 1.3 cents.

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