As part of its strategy to tie up additional ground along the Sonora porphyry copper belt, Chutine Resources (VSE) has agreed to option a 400-hectare property near Moctezuma, Mexico.
Under the agreement, Chutine will pay the US$2,376 land tax on the property on top of two instalment payments totalling $40,000 over a 3-year period. At the end of three years, the vendors will be paid US$200,000 and retain a 2% net smelter return up to a maximum of $500,000.
The Gran Descubrimiento (Great Discovery) property hosts a 1,500×60-metre (4,900×200-ft.) area of copper-gold-silver mineralization, Chutine says. Results from a 1967 drill program include a 180-ft. intersection grading 2.17% copper and a 59-ft. interval grading 3.4% copper.
Exploration manager Alfonso Rosas, who has had several years of experience in Mexico, says the time has never been better for junior mining companies to pick up ground. Aside from a program that allows 100% foreign ownership of mineral properties for up to 12 years, the new mining law has tightened assessment requirements. This means more and more ground is opening up as individual claimholders fail to meet assessment demands.
“People have to work the properties in order to keep them,” he told shareholders at the company’s annual meeting. “Before it was cheap.” Chutine plans to continue exploration and acquisitions within the north-south trending porphyry copper belt that also hosts both the Cananea and Nacozari copper mines. Together these two mines produce about 6% of the world’s copper.
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