Nobel Signs Option Agreement to Acquire La Salvadora Copper Project, Chile
October 13 2021 - 7:00AM
Nobel Resources Corp. (TSX – V: NBLC) (the
“Company” or “Nobel”) is pleased to announce that the Company,
through its wholly owned subsidiary, Mantos Grandes Resources Chile
SpA (“Mantos”), has entered into a definitive option agreement (the
“Option Agreement”) to acquire 100% of the La Salvadora project
(“La Salvadora” or the “Project”).
La Salvadora Project
La Salvadora is an iron oxide copper gold
(“IOCG”) project located approximately 2 hours drive from Nobel’s
flagship Algarrobo project where diamond drilling has recently
commenced (Figure 1). La Salvadora occurs in the vicinity of the
large Manto Verde (Anglo American) and Santo Domingo (Capstone
Mining) IOCG deposits (Figure 2). The area is well serviced by all
weather roads and can be worked year-round. The region is well
established as a mining area where community support is known to be
strong and there is good access to infrastructure, including
electricity, water and ports or mining infrastructure in
country.
The La Salvadora project is located in a very
prolific mineralized belt within Chile and has highly prospective
targets and copper mineralization ready to drill with a minimal
amount of geophysics and geochemical work to refine the drill
targets. IOCG deposits are attractive targets due to the strong
copper and gold association, as well as the fact that they can
extend to significant depths (more than 1 kilometer at Manto Verde
for example which provides for significant tonnage seen at deposits
in the area).
Figure 1: Location map showing the La Salvadora Project
as well as Nobel’s flagship project at
Algarobbohttps://www.globenewswire.com/NewsRoom/AttachmentNg/b6183e5b-828d-429c-b3b4-6a398d1078a3
Figure 2: Location map showing the La
Salvadora Project as well as major projects and operations in the
regionhttps://www.globenewswire.com/NewsRoom/AttachmentNg/8051ba1d-cb88-480e-b97b-bf264d378b86
The Project hosts numerous copper mineralized
zones and occurs in a highly mineralized district. A copper oxide
zone extending 750 meters along strike and approximately 40 meters
wide trending in a northwesterly direction was identified during
previous work on the Project. This mineralized zone occurs on the
edge of a magnetic anomaly where the only hole drilled down dip was
SLVA-RC-0002 which intersected 72 meters grading 1.21%
copper and 0.21 g/t gold. This is one of the very attractive
targets on the property. A second
distinct buried magnetic anomaly approximately 1 kilometer to the
south has only a single drill hole in it (SLVA-RC-0010) which
intersected 20 meters grading 0.6% copper and 0.15g/t gold at
shallow depths. Both target areas are wide open for
expansion. The Project is immediately adjacent to a mining
operation owned by a private Peruvian mining company that is
reportedly mining grades of 2% copper and toll milling at a local
facility.
Figure 3: Cross section showing drill
hole SLVA-RC-0002 down dip from where the copper oxide
mineralization is exposed in trenches and intercepted in shallow
drill
holeshttps://www.globenewswire.com/NewsRoom/AttachmentNg/5adb38e0-25ea-45a0-b900-faabfecfa23a
Figure 4: Magnetic map of a portion of
La Salvadora showing SLVA-RC-0010 on the southern magnetic anomaly.
The series of white drill holes show the distribution of
near-surface copper oxide
mineralizatonhttps://www.globenewswire.com/NewsRoom/AttachmentNg/2d6c79d5-b09d-4209-b6b1-b60aed15a674
Option Agreement
Pursuant to the Option Agreement, the Company
must make the following payments to the optionor to acquire a 100%
interest in the Project:
- USD$70,000 in
cash on the date the Option Agreement is registered with the
Chilean mining authority (the “Registration Date”). This step has
been completed and the funds have been paid;
- USD$80,000 in
cash 6 months from the Registration Date;
- USD$120,000 in
cash 12 months from the Registration Date;
- USD$130,000 in
cash 18 months from the Registration Date;
- USD$200,000 in
cash 24 months from the Registration Date;
- USD$300,000 in
cash 30 months from the Registration Date;
- USD$300,000 in
cash 36 months from the Registration Date; and
- USD$3,300,000
in cash 42 months from the Registration Date.
Upon the completion of the payments above, the
Company will own 100% of the Project and must grant to the optionor
a 2.0% NSR royalty on future mineral production on the Project. The
Company has a right to repurchase a 1.5% NSR on the Project from
the optionor for USD$2 million in cash. The Company
can, at its sole discretion, decide not to exercise the option and
terminate the Option agreement and not make any of the remaining
payments.
Nobel will be the operator of the Project during
the term of the Option Agreement.
This transaction is arm’s length and remains
subject to regulatory approval by the TSX Venture Exchange.
Qualified Person
The scientific and technical information in this
news release has been reviewed and approved by Mr. Vernon Arseneau,
P.Geo, as defined by National Instrument 43-101 of the Canadian
Securities Administrators.
About Nobel
Nobel Resources has the right to acquire 100%
interest in the Algarrobo Iron Oxide Copper Gold Ore (IOCG), a
potential IOCG style high grade copper property in Chile. The
country is a top mining jurisdiction as it is strategically located
within 25 km from port and has world-class IOCG deposits within the
Major Candelaria belt. Chile’s mining capabilities benefit from
close to surface, high grade mineralization within the mining face
and has the necessary permitting in place.
For further information, please
contact:
David GowerChief Executive
Officerdgower@nobel-resources.com www.nobel-resources.com
Cautionary Note Regarding
Forward-looking Information
This press release contains “forward-looking
information” within the meaning of applicable Canadian securities
legislation. Forward-looking information includes, without
limitation, regarding the prospectivity of the Project, the
mineralization of the Project, the terms of the Option Agreement
and the Company’s ability to exercise the option, the Company’s
ability to explore and develop the Project and the Company’s future
plans. Generally, forward-looking information can be identified by
the use of forward-looking terminology such as “plans”, “expects”
or “does not expect”, “is expected”, “budget”, “scheduled”,
“estimates”, “forecasts”, “intends”, “anticipates” or “does not
anticipate”, or “believes”, or variations of such words and phrases
or state that certain actions, events or results “may”, “could”,
“would”, “might” or “will be taken”, “occur” or “be achieved”.
Forward- looking information is subject to known and unknown risks,
uncertainties and other factors that may cause the actual results,
level of activity, performance or achievements of Nobel, as the
case may be, to be materially different from those expressed or
implied by such forward-looking information, including but not
limited to: general business, economic, competitive, geopolitical
and social uncertainties; the actual results of current exploration
activities; risks associated with operation in foreign
jurisdictions; ability to successfully integrate the purchased
properties; foreign operations risks; and other risks inherent in
the mining industry. Although Nobel has attempted to identify
important factors that could cause actual results to differ
materially from those contained in forward-looking information,
there may be other factors that cause results not to be as
anticipated, estimated or intended. There can be no assurance that
such information will prove to be accurate, as actual results and
future events could differ materially from those anticipated in
such statements. Accordingly, readers should not place undue
reliance on forward-looking information. Nobel does not undertake
to update any forward-looking information, except in accordance
with applicable securities laws.
NEITHER TSX VENTURE EXCHANGE NOR ITS REGULATION
SERVICES PROVIDER (AS THAT TERM IS DEFINED IN THE POLICIES OF THE
TSX VENTURE EXCHANGE) ACCEPTS RESPONSIBILITY FOR THE ADEQUACY OR
ACCURACY OF THIS RELEASE.
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