Ivanhoe Electric (NYSE: IE) (TSE: IE) has partnered with Sociedad Química y Minera de Chile (NYSE: SQM) to search for copper beneath Chile’s Atacama Desert, targeting ground long hidden from traditional exploration tools.
The companies announced on Tuesday they will deploy Ivanhoe’s Typhoon geophysical surveying system across selected SQM mining concessions in northern Chile. Additionally, the program will use data inversion software from Computational Geosciences Inc. to interpret the results.
The concessions cover about 2,000 square kilometres in one of the world’s driest regions. Much of that land sits beneath caliche, a salt-cemented surface layer common in arid environments.
Caliche strongly resists electrical signals, which makes conventional geophysical surveys ineffective at depth. Consequently, explorers have struggled to identify sulfide mineralization hidden below the surface.
Ivanhoe says its Typhoon system can overcome that barrier. The technology generates a powerful electrical charge capable of penetrating highly resistive ground.
Accordingly, the system can detect signals linked to buried copper systems that weaker transmitters miss. Further, the approach aims to reduce drilling risk by improving subsurface targeting.
The surveyed concessions already host SQM’s potassium nitrate and iodine operations. Meanwhile, the land sits along major porphyry copper and polymetallic manto belts in the Atacama region.
Several of the world’s largest copper mines operate nearby, according to Ivanhoe. As a result, the partners see strong geological potential beneath the caliche cover.
Ivanhoe executive chairman Robert Friedland said Chile’s long copper history masks untapped resources beneath surface sediments. He added that rising global demand pushes explorers to look deeper and in new ways.
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SQM will committ USD$9m over three years
Friedland also said the Typhoon platform, combined with advanced data processing, can reveal features invisible to other technologies. However, he framed the effort as a methodical exploration campaign rather than a guaranteed discovery.
SQM will support the exploration by committing USD$9 million over three years. In addition, the companies will form a joint technical committee to oversee budgets and work programs.
During the exploration phase, Ivanhoe will operate Typhoon surveys approved by both parties. Subsequently, Computational Geosciences will handle data inversions. SQM will manage any follow-up drilling within designated areas. Consequently, the Chilean miner retains operational control at the drilling stage.
If the partners identify a copper deposit exceeding one million tonnes, Ivanhoe can elect to form a 50/50 joint venture. To exercise that option, Ivanhoe must pay twice SQM’s exploration spending to date.
Once formed, the joint venture would fund activities on a pro rata basis. Furthermore, SQM could operate the project if it maintains at least half the equity. Investors reacted positively to the announcement. Ivanhoe Electric shares rose about three per cent in New York trading, lifting its market value close to USD$3 billion.
Meanwhile, SQM shares gained roughly one per cent, valuing the company at about USD$23.8 billion.
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