Guyana Goldstrike Inc, dba Copper-X Mining Inc. (TSX-V:GYA), told investors it has entered into an agreement for metallurgical testing at the Jupiter copper project to assist with its due diligence review.
Guyana Goldstrike (GYA), which is in the process of changing its name to Copper-X, announced on July 24 that it had entered into a binding letter of intent to acquire the Jupiter project, located south of Antofagasta in northern Chile. Closing of the transaction remains subject to a number of conditions, including completion of due diligence.
The company said samples from the project will determine whether ore from Jupiter is amenable to direct extraction of copper utilizing an environmentally benign, single-step method.
It explained that the extraction method utilizes a molten salt reaction with subsequent electrolysis in a single metal container. The metallurgical analyses will determine whether samples from Jupiter will separate and plate.
GYA said initial testing will also determine the appropriate comminution size using three different crushed material sizes. The testing will utilize original samples from Jupiter without upgrading beyond basic crushing to determine whether the material is amenable to direct extraction of copper, the company added.
It highlighted that Targets 1 and 2 at the 4,000-hectare property host robust copper grades in proximity to historic workings and mine developments.
Target 1 has evidence of copper mineralization in a corridor of at least three kilometres by two kilometres, it added.
Numerous targets at the project are interpreted to be present in proximity to contact zones of mafic intrusives and La Negra volcanics, which GYA said was favourable for hosting hydrothermal solutions rich in copper.
Further, the area near the project hosts world-class mine operations including Michilla, Antofagasta’s Antucoya, Mantos Copper’s Mantoverde and Mantos Blanco, Teck’s Carmen de Andacollo, Lundin’s Candelaria, Anglo American’s El Soldado, and major projects including Marimaca Copper Corp’s Marimaca, Hot Chili’s Productora-Cortadera and Capstone’s Santo Domingo, the company noted.
GYA reminded investors that the transaction constitutes a fundamental acquisition, under the policies of the TSX Venture Exchange, on the basis that it intends to devote the majority of its capital to the transaction and development of the Jupiter project.
Contact the author at stephen.gunnion@proactiveinvestors.com