Great Southern Copper PLC (LSE:GSCU)'s recent exploration at its Suyay prospect in the San Lorenzo project area in Chile yielded "highly encouraging" results, according to chief executive Sam Garrett.
Reconnaissance sampling delivered returns from artisanal mine waste dumps and outcrops at Suyay of up to 4.13 grams per tonne (g/t) of gold (Au) and 1.75% of copper (Cu).
These high-grade findings are associated with structurally-controlled quartz-sulphide stockwork zones. This is set within a phyllic to advanced argillic (clay-silica-sericite) alteration that spans over 2.5 square kilometres.
This clay-silica-sericite alteration was previously identified as a spectral anomaly during a regional target selection survey.
The results from Suyay suggest the potential for gold-rich porphyry or an intrusive-related style of mineralisation. Adding to the prospect's appeal is its strategic location within the coastal metallogenic belt, offering easy access to road, power and port infrastructure.
"The high-grade gold-copper results from Suyay are highly encouraging and validate the strategy of targeted exploration of the spectral anomalies," said CEO Garrett.
"The anomalous geochemistry combined with our early understanding of the geology and controls on mineralisation suggest that there is potential at Suyay for a high-level gold-rich porphyry or intrusive-related system."
The Suyay prospect, which spans 6.27 square kilometres (626.5 hectares), was recently acquired by Great Southern Copper through an auction. It is part of the broader San Lorenzo project.
"More detailed follow-up exploration is now being planned for Suyay which will include further prospect-scale mapping, rock and soil sampling programmes," said Garrett.
"Geophysical surveys, such as magnetics and induced polarisation, will also be considered subject to the results of the next phase of exploration work. In addition, GSC holds a pipeline of similar spectral anomalies under concession at San Lorenzo which we will now start to validate with reconnaissance exploration programmes."