- Discovery of a large porphyry system
- Copper call option in an agreement with First Quantum Minerals
- Unexplored potential of 55,000 hectares of concessions
What Lucky Mineral does:
Lucky Minerals Inc (CVE:LKY) (OTCPINK:LKMNF) is fortunate to be at the right place at what appears to be the right time for gold and copper exploration, given the bullish long-term outlook for both metals.
Lucky Minerals is exploring its 100% owned Fortuna gold and copper project in Ecuador, comprising of 12 contiguous exploration concessions covering 55,000 hectares, on the same geological trend as other large discoveries in Ecuador including Lundin Gold’s Fruta Del Norte project and Solgold’s Cascabel mining project.
Ecuador is considered one of the few as-yet untapped mineral regions in South America, as less than 8% of the country has been explored. Since 2015, though, more than 28 large, international mining companies, including BHP Billiton, FMG, Anglo, Newcrest and Codelco, have established entities in Ecuador and have spent billions of dollars in exploration and construction costs.
Lucky Minerals is led by newly-appointed CEO Francois Perron, a long-time company director, with more than 25 years of experience in the investment industry focusing on mining. He is currently the chairman of Northern Superior Resources and a director at Goldstar Minerals.
How it is doing:
Lucky Minerals discovered a large porphyry system, which it calls El Buitre, about two years ago that is a phyllic-altered envelope measuring approximately 3 kilometres (km) by 2 km. El Buitre is located in a Miocene volcanic belt that spills into Peru and Chile, which contains some large, known porphyry systems.
The company believes this demonstrates the footprint of a major copper, moly and gold porphyry target, plus indications of precious metal (gold-silver) type mineralization to the west and south.
Lucky Minerals has also identified the approximately 22 km long Shincata Gold Trend, which has facilitated more than 300 years of alluvial and placer gold mining.
The company has an agreement with First Quantum Minerals, granting the copper miner an exclusive option to explore for copper deposits on the Fortuna Concessions until January 23, 2021, which would be followed by an earn-in period during which First Quantum would make a one-time cash payment to Lucky of US$1 million.
The earn-in period is for a maximum of five years, during which First Quantum must drill a total of 5,000 metres per year on the property, or it will be obligated to pay Lucky an annual payment of US$1 million with a one-time 12-month deferral option on payment of US$500,000.
As part of the option agreement, Lucky retains the rights to explore for gold on the Fortuna property and will retain a 100% interest in all primary-gold deposits as well as copper interests of less than a potential 500,000 tonnes of payable copper.
Should First Quantum exercise its earn-in, it would provide Lucky Minerals with non-dilutive funding for its gold exploration and a minimum 15% interest in the First Quantum primary copper discoveries, at no cost, through to the completion of a Feasibility Study. Lucky Minerals can increase its interest in the copper component to 30% with the payment of US$1.5 million to First Quantum.
Lucky Minerals has had recent exploration success with the outline of a large alteration area measuring about 2.8 km by 2 km at its Fortuna 4 concession, which it calls the Emma prospect, as it confirmed anomalous gold from rock chip samples.
As well, the company has outlined the Sherman Prospect, approximately 6.6 km southwest of the Emma Prospect, containing anomalous gold with samples of up to 1.6 grams per tonne (g/t) gold.
The Sherman Prospect has also uncovered what the company calls “significant stockwork type quartz veining,” with a rock chip sample returning 0.477 g/t gold. Lucky Minerals believes this is an early indication of an area with bulk tonnage potential.
The company said the next step in this area will include detailed field reconnaissance and sampling in order to define the scale of the structure, behaviour of the quartz vein stockwork and its gold content.
- 2,000 to 3,000 metres of scout drilling planned
- Multiple gold targets
- Quantum Minerals is currently conducting exploration work on Fortuna
What the boss says:
Following the release of gold surface sample results that outlined the Sherman Prospect, Lucky Minerals CEO Francois Perron said in a statement: "The team has outlined another significant prospect at Sherman. We are still in the early days of understanding how the gold is related to a set of veins that are being uncovered. What is important is not only the scale of size, of 20 km2 but also the evidence of the presence of gold. I am very excited that our first campaign in this area has already confirmed enough potential to warrant more exploration work in the future.”
He added: “Our COVID-19 health & safety protocols continue to allow the team to be effective in the field. I want to thank them personally for the work they are carrying out."
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