THIS ANNOUNCEMENT CONTAINS INSIDE
INFORMATION AS STIPULATED UNDER THE UK VERSION OF THE MARKET ABUSE
REGULATION NO 596/2014 WHICH IS PART OF ENGLISH LAW BY VIRTUE OF
THE EUROPEAN (WITHDRAWAL) ACT 2018, AS AMENDED. ON
PUBLICATION OF THIS ANNOUNCEMENT VIA A REGULATORY INFORMATION
SERVICE, THIS INFORMATION IS CONSIDERED TO BE IN THE PUBLIC
DOMAIN.
22 February 2024
Great Southern Copper
plc
("GSC" or the
"Company")
GSC Expands Especularita Project with
Two New Agreements
New prospects include former
Antofagasta Minerals copper-silver mine
Great Southern Copper plc (LSE: GSCU), the
company focused on copper-gold-lithium exploration in Chile, is
pleased to announce that it has signed two binding Letters of
Intent (LOI's) which further consolidate the Company's Especularita
project and include two high priority prospects, Cerro Negro and
Artemisa.
Highlights:
·
Purchase option agreements extend GSC's existing
claims and enable the Company to earn 100% of the Cerro Negro and
Artemisa properties, subject to completion of annual option
payments over 4-5 years
·
Cerro Negro includes the high-grade Mostaza Cu-Ag
deposit previously mined by Antofagasta Minerals
·
Artemisa includes alteration and historical
artisanal copper workings adjacent to existing GSC targets at
Victoria and Lipa
·
Cerro Negro and Artemisa further consolidate GSC's
control of the extensive Colorada lithocap and provide additional
evidence of potential for porphyry copper+gold mineralisation at
depth below the advanced argillic alteration blanket
·
Artemisa agreement also includes the Viuda, Brecha
Amarilla, Paclas and Los Rulos prospects that include additional
porphyry copper+gold and skarn targets
·
Cerro Negro and Artemisa further enhance GSC's
drilling pipeline which includes the Teresita-Abundante scout RC
programme that is now completed with assays pending
·
Sampling, geophysics and metallurgy surveys are
being planned to fast-track these new prospects for
drilling
Next
steps:
The Company plans to fast-track its exploration
efforts across the Cerro Negro, Artemisa and Viuda prospects,
including sampling, geophysics and metallurgy programmes, with the
aim of drill testing the prospects within 12 months of signing of
the LOI agreements. Due diligence of the prospects is currently
under way.
In addition, scout RC drilling at the
Teresita-Abundante prospects has now been completed and assays are
pending. The drilling has been designed to provide proof-of-concept
information for intrusive-related gold+copper systems (IRGS) at
Teresita and tourmaline breccia pipe copper mineralisation at
Abundante.
Sam Garrett,
Chief Executive Officer of Great Southern Copper,
said: "It has taken years of patient work to
bring these strategic concessions into GSC's Especularita project
and we are very excited to commence exploration of these compelling
targets in conjunction with our existing target
pipe-line.
"Both the Cerro Negro and Artemisa prospects
provide us with key geological insights into the potential for
porphyry copper-type mineralisation occurring at depth beneath the
Colorada lithocap and expand the area available for exploration.
Cerro Negro includes the historical Mostaza mine with high-grade
Cu-Ag hosted in advanced argillic altered rocks as expected below
the base of the lithocap and above a porphyry copper.
Artemisa includes breccia-type copper mineralisation exposed
beneath extensive lithocap alteration.
"The Colorada lithocap is vast, one of the
largest under-explored lithocaps in Chile's coastal metallogenic
belt, and could potentially conceal one or more porphyry copper
centres. We know from the Carmen de Andacollo Cu-Au mine to the
north that similar alteration zones can be associated with large
copper deposits, and these two new prospects provide yet more
evidence that such mineralisation could exist at
Especularita.
"We plan to assess rapidly both properties with
detailed sampling, geophysics and metallurgy programmes with a view
to completing proof-of-concept scout drilling of both targets
within the next 12 months, including possible deep-drilling
targeting buried porphyry copper systems."
Cerro Negro
Option Agreement:
A binding LOI has been signed with the vendor
with the following summarised terms:
· The
Company earns the option to purchase 100% of the mining rights to
exploitation concessions (total 83 ha) subject to the payment of
annual option fees over a five year period totalling US$2m
comprising payments of:
o US$50,000 - 90
days after signing of LOI (due diligence period)
o US$50,000 -
within 12 months following the signing of the Contract
o US$100,000 -
within 24 months following the signing of the Contract
o US$100,000 -
within 36 months following the signing of the Contract
o US$200,000 -
within 48 months following the signing of the Contract
o US$1,500,000 -
within 60 months following the signing of the Contract
· The
vendor retains a 1% Net Smelter Royalty (NSR). GSC may purchase 50%
of the NSR for US$500,000 within three years of exercising the
option
· A
90-day due diligence period commences at the signing of the
LOI
Artemisa
Option Agreement:
A binding LOI has been signed with the vendor
with the following summarised terms:
· The
Company earns the right to purchase 100% of the mining rights to
exploitation and exploration concessions totalling 2,865 ha and
comprising five geographically distinct areas (Artemisa, Viuda,
Brecha Amarilla, Paclas and Los Rulos) subject to the payment of
annual option fees over a four year period totalling US$2.2m
comprising payments of:
o US$50,000 - 90
days after signing of LOI (due diligence period)
o US$100,000 -
within 12 months following the signing of the Contract
o US$150,000 -
within 24 months following the signing of the Contract
o US$400,000 -
within 36 months following the signing of the Contract
o US$1,500,000 -
within 48 months following the signing of the Contract
· The
vendor retains a 1% NSR. GSC may purchase 50% of the NSR for
US$2.5m within 3 years of exercising the option
· A
90-day due diligence period commences at the signing of the
LOI
Especularita
project
The Company's Especularita project, located in
Chile's coastal metallogenic belt approximately 250 km north of
Santiago, is centred upon the La Colorada lithocap - a large,
sub-horizontal blanket-like zone of intense advanced argillic
alteration that covers over 75 km2.
Similar advanced argillic lithocaps, or remnants of
them, occur above many porphyry copper deposits which can be
totally concealed beneath the alteration. Examples of
advanced argillic lithocaps above major porphyry copper deposits
include the nearby Carmen de Andacollo Mine located 90 km north of
Especularita.
GSC's exploration team has been systematically
exploring the Colorada lithocap and its environs, building up
evidence for the existence of a buried porphyry copper deposit in
the area. These new acquisitions expand on this work and secure
access to new exploration ground.
Figure 1: Summary map of GSC's
concessions (orange) relating to the Especularita Project, Chile.
New concessions relating to the Artemisa LOI are highlighted in
yellow and the Cerro Negro concessions in mauve. The location of
the lithocap advanced argillic alteration is indicated by the red
dashed polygon.
Enquiries:
Great Southern
Copper plc
|
|
Sam Garrett, Chief Executive Officer
|
+44 (0) 20 4582 3500
|
|
|
SI Capital
Limited
|
|
Nick Emerson
|
+44 (0) 1483 413500
|
|
|
Gracechurch
Group
|
|
Harry Chathli, Alexis Gore, Henry
Gamble
|
+44 (0) 20 4582 3500
|
Notes for
Editors:
About Great
Southern Copper
Great Southern Copper PLC is a UK-listed
mineral exploration company focused on the discovery of copper-gold
and lithium deposits in Chile. The Company has the option to
acquire rights to 100% of two projects in the under-explored
coastal belt of Chile that are prospective for large scale
copper-gold deposits. In addition, the Company has the option to
acquire rights to 100% of a lithium project located in the Salar de
Atacama district of Chile. Chile is a globally significant mining
jurisdiction being the world's largest copper producer and the
second-largest producer of lithium.
The two, early-stage Cu-Au projects comprise
the San Lorenzo and Especularita Projects, both located in the
coastal metallogenic belt of Chile which hosts significant copper
mines and deposits, including Teck's Carmen de Andacollo copper
mine, and boasts excellent access to infrastructure such as roads,
power and ports. Significant historical small-scale and artisanal
workings for both copper and gold are readily evident in both
exploration project areas.
The Company's Monti Lithium project is
strategically located in the pre-Andean region of Salar de Atacama
which is Chile's premier lithium-producing region with
well-established lithium mining operations and
infrastructure.
Great Southern Copper is strategically
positioned to support the global market for copper and lithium -
both critical battery metals in the clean energy transition around
the world. The Company is actively engaged in exploration and
evaluation work programmes targeting both large tonnage, low to
medium grade Cu-Au and Li deposits as well as high-grade Cu-Au
deposits.
Further information on the Company is available
on the Company's website: https://gscplc.com
Forward Looking and Cautionary
Statements
Some statements in this announcement regarding
estimates or future events are forward-looking statements. They
include indications of, and guidance on, future earnings, cash
flow, costs and financial performance. Forward-looking statements
include, but are not limited to, statements preceded by words such
as "planned", "expected", "projected", "estimated", "may",
"scheduled", "intends", "anticipates", "believes", "potential",
"predict", "foresee", "proposed", "aim", "target", "opportunity",
"could", "nominal", "conceptual" and similar expressions.
Forward-looking statements, opinions and estimates included in this
report are based on assumptions and contingencies which are subject
to change without notice, as are statements about market and
industry trends, which are based on interpretations of current
market conditions. Forward-looking statements are provided as a
general guide only and should not be relied on as a guarantee of
future performance. Forward-looking statements may be affected by a
range of variables that could cause actual results to differ from
estimated or anticipated results and may cause the Company's actual
performance and financial results in future periods to materially
differ from any projections of future performance or results
expressed or implied by such forward-looking statements. So, there
can be no assurance that actual outcomes will not materially differ
from these forward-looking statements.