Norfolk Metals expands into Chile with strategic copper acquisition
Norfolk Metals (ASX: NFL) has moved to complement its two Australian assets with an interest in a large Chilean copper project with significant oxide and sulphide resource potential.
The company will fund $3 million in exploration expenditure over a three-year period to acquire 70% of the issued capital of Transcendence Mining, which holds the rights to the Carmen copper project (CCP).
It also has the option to acquire the remaining 30% on completion of the earn-in.
Transformational opportunity
Executive chair Ben Phillips said the transformational acquisition opportunity also adds a highly experienced in-country team to expedite resource growth and development potential.
“We have secured the right to earn in to a highly prospective, scalable, value-accretive and easily accessible copper project in one of the most prolific copper-producing areas in the world.
CCP hosts a historical copper oxide mineral resource estimate of 5.6 million tonnes (Mt) at 0.6% copper and has significant copper oxide and copper sulphide exploration potential, with over 7.5km of untested strike length.
Cost-effective development
Test work has demonstrated high copper solubilities within the copper oxide ore zone, conducive to proven heap leaching processing methods and cost-effective development.
“With further drilling we are aiming to rapidly expand the oxide resource in the near term,” Mr Phillips said.
“We believe there is also significant sulphide potential, with several high-grade intercepts worthy of follow-up drilling programs.”
Exploration committee
Norfolk and Transcendence will form a joint operating committee to oversee and coordinate targeted exploration programs at the project over the initial 3-year term.
Led by Jason Greive and David Fowler, the Transcendence team will leverage their previous experience in Chile, as well as their operating and project management expertise.
Alex Raab, who has more than 30 years’ exploration and resource development experience in Latin and North America, is to be appointed as the company’s General Manager of Exploration in Chile.
Prime neighbourhood
The deal covers a large-scale concession package 46.6 square kilometres in area located 82km from the major mining centre of Vallenar in Chile’s Atacama Region.
The project area sits only 16km south of the Relincho copper project, which is held by the Nueva Unión joint venture between Teck and Newmont Goldcorp.
The company has firm commitments for a $1 million capital raising in support of the transaction, with Transcendence Mining directors and the Norfolk board participating.