REG - Great Southrn.Copper - GSC Signs Purchase Option Agreement for Artemisa

Great Southern CopperAnnouncement

12/06/2024 07:15

For best results when printing this announcement, please click on link below:
http://newsfile.refinitiv.com/getnewsfile/v1/story?guid=urn:newsml:reuters.com:20240612:nRSL1134Sa&default-theme=true

RNS Number : 1134S  Great Southern Copper PLC  12 June 2024

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.

 

12 June 2024

 

Great Southern Copper plc

("GSC" or the "Company")

 

GSC Finalises Purchase Option Agreement for Artemisa Concessions, Especularita

 

Strategic 1,665 ha of new concessions includes drill-ready targets

 

Great Southern Copper plc (LSE: GSCU), the company focused on
copper-gold-lithium exploration in Chile, is pleased to announce that it has
signed a binding Purchase Option Agreement with the vendors for the Artemisa
concession group following a 90-day due diligence period. The new Artemisa
concessions are located with the Company's Especularita project area in
northern Chile.

 

Highlights:

·    1,665 ha of new concessions comprising five prospect areas added to
Especularita Project

·    Right to earn 100% of mining rights subject to payment of annual
option and concession fees

·    Highly prospective for porphyry Cu-Au, IRGS and IOCG type deposits

·    Expands GSC's Victoria IRGS prospect 2km to the west and 1.5km south
with abundant artisanal mining and high-grade Cu-Au in rock chip samples up to
3.5% Cu and 0.5g/t Au

·    Extends GSC's Lipa lithocap-porphyry Cu-Au target 2km to the west
with evidence of artisanal mining of hydrothermal breccia with grades up to
0.6% Cu

·    Adds two new breccia-porphyry Cu-Au targets at Breccia Amarilla and
Viuda

·    High-grade skarn-IOCG style Cu-Au mineralisation sampled from
historical mine workings at Rulos mine prospect represents possible northern
extension of GSC's Aurelia prospect

·    Permitting work has commenced for phase 1 exploration drilling at
Lipa, Victoria, Aurelia, Viuda and Breccia Amarilla, with a view to drilling
as soon as possible, subject to permitting

·    Completion of the Cerro Negro Purchase Option Agreement due to be
finalised soon

 

In February of this year GSC announced signing of a binding Letter of Intent
("LOI") with terms for the 100% acquisition of the Artemisa group of
concessions(1). Following a 90-day technical and legal due diligence period,
including confirmatory rock chip sampling, the Company has finalised the
acquisition of the concessions with the signing of a Purchase Option
Agreement. The Artemisa agreement gives GSC the option to acquire 100% of the
mining rights to 1,665 ha of granted exploration and mining concessions that
comprise five separate prospect areas - Victoria, Lipa, Breccia Amarilla,
Viuda and Los Rulos - that all sit within the Company's Especularita project
area (Figure 1).

 

Also, within the Especularita project area, the Company has extended its due
diligence period for the Cerro Negro prospect acquisition(1) due to the high
volume of geological fact-checking involved.

 

Sam Garrett, Chief Executive Officer of Great Southern Copper, said: "We are
excited to finalise our purchase of the Artemisa group of concessions and look
forward to commencing exploration activity immediately. Preparations for
drilling approvals are already underway for scout RC and diamond drilling
programmes to commence as soon as permitting allows. We look forward to
updating the market on progress at these exciting prospects."

 

Artemisa Prospects

The new Artemisa concessions comprise five distinct Cu-Au prospects
prospective for porphyry Cu-Au, IRGS and skarn-IOCG type deposits. All the
prospects are characterised by historical artisanal mines and/or small-scale
workings and anomalous rock chip geochemistry;

 

Victoria prospect (IRGS / Porphyry Cu-Au target):

Intrusive-related Cu-Au vein-breccia type mineralisation identified at this
prospect is a west and south-westerly extension of GSC's previously reported
Victoria(2,3,4) prospect. Two styles of NNE-trending vein-breccias are
observed; an earlier set of copper-molybdenum bearing
chalcopyrite-pyrite-hematite veinlets, veins and breccias which may be
indicative of porphyry Cu-Au type mineralisation, and a later event of
copper-gold mineralised quartz-sulphide-carbonate vein-breccias which is
thought to be intrusion-related (IRGS) as described previously at Victoria and
Teresita prospects.

 

High-grade copper and gold with grades up to 6.9% Cu and 4.57g/t Au have
previously been reported from rock chip samples of silica-carbonate vein
breccias at Victoria(3,4). Historical assays from the newly acquired western
extension of Victoria plus due diligence sampling by GSC of veins and mine
dump material has recorded grades up to 3.5% Cu and 0.5g/t Au (Figure 2). The
prospect has not been drill tested.

 

Lipa (Porphyry Cu-Au target):

This prospect encompasses the westward continuation of the widespread Colorada
lithocap alteration observed at the Company's Lipa prospect. It is highly
prospective for porphyry Cu style mineralisation. The claims are underlain by
andesitic volcanic rocks intruded by diorite and granodiorite intrusions.
Intense advanced argillic alteration with quartz-alunite and several percent
disseminated pyrite (seen outcropping along ridge tops) zones downward into
local phyllic alteration with poly-directional porphyry-style quartz-pyrite
"stockworks" observed in two areas to date (Plate 1).

 

Although copper grades are typically depleted within the leached lithocap
zone, copper mineralisation is observed within a hydrothermal breccia pipe
outcropping at the southwest margin of the prospect area. The pipe has been
exploited by historical artisanal miners and reconnaissance rock-chip sampling
of the breccia pipe by GSC returns values up to 0.6% Cu (Plate 2).

 

Breccia Amarilla prospect (Breccia / porphyry Cu / IRGS target):

The Breccia Amarilla prospect comprises one concession (300 ha) located 6km to
the north-northwest of the lithocap alteration system at Especularita and
within the northwest-trending Especularita-Piuquenes corridor, a broad
structural zone controlling known porphyry style mineralisation including the
Colorada lithocap.

 

The centre of the Breccia Amarilla prospect contains abundant "clots" and
"blebs" of massive chalcopyrite filling vughs and voids in what appears to be
the brecciated cupola of an intensely silica-clay altered intrusive that could
represent the top of a porphyry or intrusion-related breccia system. Copper
and Iron oxides are abundant on fracture surfaces (Plate 3), and the
alteration zone recognized to date covers at least 1km(2) in area.

 

Artisanal workings are observed, however, there is no evidence of historical
exploration drilling.

 

Viuda prospect (Breccia / Porphyry Cu-Au target):

The Viuda prospect is a porphyry Cu-Au target comprising a resistive and
prominent hill of silica-sericite-clay alteration (lithocap) similar to GSC's
La Colorada lithocap alteration (Plate 4). Copper oxides are locally observed
in quartz-limonite bearing veinlets and hydrothermal breccias exposed in
artisanal workings with grades from reconnaissance samples collected by GSC
range up to 3.6% Cu and 1.5 g/t Au.

 

There is no evidence of historical exploration drilling at the Viuda prospect.

 

Los Rulos prospect (Skarn / IOCG target):

The Rulos prospect comprises stratiform replacement skarn and IOCG style Cu
and Au mineralisation similar to that discovered at GSC's Aurelia prospect(5)
located 5km to the south.

 

Small scale mining has recently been active targeting copper oxide
mineralisation. High grade Cu-Au mineralisation occurs as copper oxides and
chalcopyrite hosted in west-dipping replacement skarn beds that can measure up
to several metres thick (Plate 3r). Reconnaissance grab samples from ore
stockpiles reports grades up to 7.2% Cu and 1.2 g/t Au.

Figure 1: Location map of Artemisa concessions (yellow) relative to existing
Especularita project (orange). Prospects include porphyry Cu-Au targets
(yellow stars), IRGS targets (red stars) and skarn-IOCG targets (green stars).

 

Figure 2: Geology map of expanded Victoria and Lipa prospects with copper rock
geochemistry (l) and gold rock chip geochemistry (r). The newly acquired
"Artemisa" concessions for this prospect area are is outlined in yellow.

 

 

Plate 1: Quartz-pyrite stockwork vein alteration in phyllic (sil-ser-clay-py)
altered volcanics outcropping at GSC's Lipa prospect. This style of alteration
is strongly indicative of the outer haloes of porphyry Cu type mineralisation.

 

 Plate 2: Quartz-chalcopyrite hydrothermal breccia from historical mines at
Lipa with abundant sooty black Copper-manganese oxides. Copper grades up to
0.6-0.9% Cu have been recorded from samples of dump material.

 

Plate 3: Oxide copper mineralisation outcropping at Breccia Amarilla (l), and
mine dumps of high grade skarn mineralisation at Rulos (r).

 

Figure 4: The Viuda prospect defined by its resistive outcrop of
silica-sericite (argillic) alteration.

 

 

References:

1.     RNS 0741E (22 February 2024): GSC expands Especularita Project with
two new agreements.

2.     RNS 2146H (22 November 2022): Early exploration at Especularita
identifies Cu-Au targets.

3.     RNS 0445V (03 April 2023): Rock chip assay grades up to 6.9% Cu and
1.85 g/t Au from Victoria.

4.     RNS 0032C (05 February 2024): Rock chip sampling at Victoria.

5.     RNS 4473Q (18 October 2023): High grade rock chips up to 6.73% Cu
at Aurelia, Especularita.

 

 

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 (https://gscplc.com)

 

Competent Person Statement

The information in this announcement that relates to exploration results is
based on and fairly represents information reviewed or compiled by Mr Sam
Garrett, a Competent Person who is a Member of the Australian Institute of
Geoscientists and a Fellow of the Society of Economic Geologists. Mr Garrett
is the CEO and a shareholder of Great Southern Copper PLC. Mr Garrett has
sufficient experience that is relevant to the styles of mineralisation and
types of deposit under consideration and to the activity being undertaken to
qualify as a Competent Person as defined in the 2012 Edition of the
"Australasian Code for Reporting of Exploration Results, Mineral Resources and
Ore Reserves". Mr Garrett has provided his prior written consent to the
inclusion in this announcement of the matters based on information in the form
and context in which it appears.

 

This announcement includes information that relates to Exploration Results
prepared and first disclosed under the JORC Code (2012) and extracted from the
Company's previous LSE announcements as noted, and the Company's Prospectus
dated 20 December 2021. Copies of these announcements are available from the
LSE Announcements page of the Company's website: www.gscplc.com
(http://www.gscplc.com) .

 

The Company confirms that it is not aware of any new information or data that
materially affects the information included within the Prospectus dated 20
December 2021.

 

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.

This information is provided by RNS, the news service of the London Stock Exchange. RNS is approved by the Financial Conduct Authority to act as a Primary Information Provider in the United Kingdom. Terms and conditions relating to the use and distribution of this information may apply. For further information, please contact
rns@lseg.com (mailto:rns@lseg.com)
 or visit
www.rns.com (http://www.rns.com/)
.

RNS may use your IP address to confirm compliance with the terms and conditions, to analyse how you engage with the information contained in this communication, and to share such analysis on an anonymised basis with others as part of our commercial services. For further information about how RNS and the London Stock Exchange use the personal data you provide us, please see our
Privacy Policy (https://www.lseg.com/privacy-and-cookie-policy)
.   END  AGRGPUPCQUPCUAP