Latin Metals (TSXV: LMS) (OTCQB: LMSQF) purchased the Solario copper project from private Argentinian miner Geoterra for $1 million Argentine pesos (CAD$5444).
Announced on Tuesday, the Solario project is located in the Salta Province in northwest Argentina, and is prospective for sediment-hosted copper deposits in central Salta.
The Solario copper project spans an extensive 170,000 hectares in Salta, expanding the company’s exploration footprint for sediment-hosted copper in the region.
Latin Metals’ nearby Mirador project has already shown promising mineralization, with a copper grade of 2.4 per cent based on initial reconnaissance sampling, validating the mineralization style.
Recognizing the untapped exploration opportunities in the central Salta rift area, Latin Metals aims to unlock the substantial potential for copper mineralization in this underexplored region. The geological characteristics and cretaceous rocks found in this belt closely resemble those observed in sediment-hosted copper deposits worldwide. This strategic focus aligns with the company’s goal of tapping into the unexplored territories.
To kickstart exploration efforts, Latin Metals plans to conduct a comprehensive and large-scale regional stream sediment sampling program encompassing both the Mirador and Solario projects. The objective of this program is to prioritize targets for further exploration and identify the most prospective areas. The company’s exploration approach incorporates geochemical screening to efficiently pinpoint high-potential zones.
“The planned exploration will be the first modern exploration directed towards the discovery of large-scale sediment-hosted copper mineralization in this part of South America,” said Keith Henderson, Latin Metals’ CEO.
Over the past months, we have been focused on growing our copper exploration footprint in Argentina, and the acquisition of the Solario project represents and significant step in that growth plan.”
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Central Salta rift has remained largely unexplored
Latin Metals recognizes that the central Salta rift has not received much attention in recent exploration efforts. As a result, the company believes that this geological belt remains largely unexplored.
The belt exhibits characteristics such as potential source rocks, host rocks, and structural settings commonly observed in sediment-hosted copper deposits worldwide. Latin Metals strategically prioritized the acquisition of this area based on the identification of significant geological similarities with sediment-hosted copper deposits found in other parts of the world.
The company intends to commence an extensive regional stream sediment sampling program encompassing both the Mirador and Solario copper exploration projects. This initiative aims to facilitate the prioritization of targets for subsequent exploration activities.
The potential host-rock sedimentary formations are typically concealed by vegetation, which could explain why previous mining companies have not detected mineralization in this area. The company firmly believes that its comprehensive geochemical screening approach will effectively identify the most promising areas for further investigation.
Copper has seen increased demand over the past year due to its prevalence in emerging renewable energy technologies and the push away from fossil fuels.
Pan American Silver (TSX: PAAS), First Quantum Minerals (TSX: FM) and McEwen Mining (NYSE: MUX) (TSX: MUX) are three other companies mining copper in Argentina.
Latin Metals shares dipped 3.2 per cent to $0.15 on Friday on the TSX Venture Exchange.
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