Estrella Resources (ASX:ESR) has exchanged a second option agreement with Sociedad Quimica y Minera de Chile (NYSE:SQM) to extend the copper/gold project Altair in Chile via the addition of three new brownfield prospects.
The option agreement provides Estrella the exclusive right to explore and develop the Colupo, Dania and Ivannia prospects, which are surrounded by the existing Project Altair.
The Colupo prospect is under a 5 year option period, while the Dania and Ivannia prospects both have a 4 year option period.
Other key terms of agreement includes Estrella's right to earn a 100% working interest in all metal discoveries within Altair, which is subject to SQM's 49% claw back rights or royalty payments.
With the addition of the three new prospects, the enlarged Project Altair's total area has increased to 2,655 square kilometres.
The Altair project is located 90 kilometres north-northeast of Antofagasta and is along the Atacama Fault Zone that encompasses a significant portion of northern Chile's coastal iron oxide copper gold belt.
Following the exchange of the second option agreement, exploration activities have already started at Altair, and a number of initial exploration targets have already been identified.
Estrella is well funded to carry out the exploration program holding $3.11 million in cash at the end of March 2013 quarter.
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