November 2016: Australia-listed Emu NL (ASX: EMU) has signed a Heads of Agreement to acquire the Vidalita Au project in Region III.
Located 200km E of Copiapo, the project consists of two blocks of exploration claims which cover a total of 2,800h and are owned by Prospex SpA and BLC SpA, in which Altius Minerals Corporation (TSX: ALT) owns a 49% stake.
The two companies are supported by the Chilean government’s Fenix funds program which provides long-term credits for investment in mineral exploration in the country.
Under the agreement, EMU must invest US$1M in exploration work over the next two years and issue 15M shares to Prospex and BLC, which will also retain a 1% NSR over the properties.
It must also acquire ALTs rights under a previous option agreement with the Perez party, making annual payments US$190,000 through 2018 and an additional US$2M in November 2019 if the option is exercised.
Vidalita hosts alteration and mineralization styles that are considered geologically similar to other high sulphidation oxide Au deposits of the Maricunga Au belt.
Previously unexplored, geological mapping has defined an area measuring 2km by 2km with of combined advanced argillic alteration and intense silicification coincident with Hg, Bi and As, characteristic of Maricunga-style epithermal Au deposits.
Preliminary rock sampling return 14 out of 113 rock chips and grabs which return over 0.1g/t Au, with a maximum of 5.5g/t Au.
EMU is led by Chairman Peter Thomas and MD Greg Steemson, both founding directors of Sandfire Resources NL, which operates the Degrussa copper-gold mine in Western Australia.