Cascada Silver has initiated Phase I of its drilling programme at the Mina Guanaca copper property in Chile.
The company aims to confirm and expand upon historical drilling results, which have indicated significant copper mineralisation.
Located 110km north-east of Copiapó, the project has seen limited exploration but holds potential for high-grade copper oxide deposits and an underlying copper-molybdenum porphyry system, the company said.
The historical drilling highlights at the project include an 82m section with 0.91% total copper and a 41m section with 2.3% total copper.
The current drilling aims to build on these results and explore untested targets, including the depth extension of the open-pit oxides and a potential copper-molybdenum porphyry.
Cascada CEO Carl Hansen said: "The primary objective of the 1,200m, Phase 1 reverse circulation drill programme is to test the down dip extension of the extensive copper oxide mineralisation exposed in the Mina Guanaca open pit.
“The programme will also test an induced polarisation chargeability low, located 200–300m beneath the open pit, which may be associated with copper porphyry mineralisation.
“Three drill holes ranging from 250–300m have been planned with additional holes to be collared based upon visual results from the initial drilling. Assays from the Phase 1 programme should be available during October 2024.”
Covering an area of 250 hectares, the Mina Guanaca property is currently the site of small-scale open-pit mining.
Cascada has the option to acquire full ownership of Mina Guanaca by fulfilling payment and drilling commitments over four years.
This option agreement requires payments by Cascada totalling $5.02m (C$6.76m) and an annual drilling minimum of 1,250m.
Upon completion, the vendor will receive a 2.5% net smelter royalty, with an option for Cascada to repurchase half for $2.25m after commercial production begins.
Research Capital Corporation will offer Cascada general capital markets services such as market intelligence, strategic corporate planning as well as general advisory.
