Miners have welcomed reports that potentially damaging changes to the Chilean constitution have been defeated.
While political posturing continues in the South American nation, most pundits are confident that moves to nationalize the country’s mining industry have been overturned.
Reports from Chile say a majority vote clearly rejected the proposed overhaul to mining rights, including expanding Chilean state ownership.
The major victory for miners came in the defeat of controversial Article 27, which would have given the state exclusive mining rights over many significant minerals where Chile is a significant global source.
Reports say the environmental commission submitted multiple variations of Article 27 to the vote but they all failed to achieve the 103-vote supermajority needed to pass into the draft constitution.
The result is expected to have positive repercussions on the financial front for the South American nation, with mining a major driver of the Chilean economy, contributing to more than 50% of its exports and 9% of GDP.
While it has been sliding down the rankings in the annual Fraser Institute survey of attractive mining destinations, Chile is still highly rated amongst South American nations for its supportive public policy factors, such as tax rates and regulation, and the positive constitutional outcome is expected to lead to a new surge in mining investment.
World copper leader
The fears of a constitutional change in Chile has had the copper market on tenterhooks at a time when increasing demand is forecast to significantly impact future pricing. The country is the world’s leading copper producer by far, producing an estimated 5.6M metric tons of the base metal in 2021 and home to seven of the 20 largest copper mines in the world – with exploration surging in the region.
The positive result has particular relevance to the global renewable battery and electric vehicle (EV) sectors. Copper is a major component in EVs used in electric motors, batteries, inverters, wiring, and in charging stations. A pure electric vehicle can contain more than a mile of copper wiring in its stator windings.
Good news for Australian explorers
Culpeo Minerals (ASX: CPO), which listed on the ASX last summer, is concentrating on exploring potential high-grade copper systems in the coastal Cordillera region of Chile.
The company has a strong board and management team with significant Chilean country expertise and has an excellent in-country network.
The company’s position in Chile holds a strategic advantage offering:
- Scale of Deposits – multiple globally significant discoveries, still under-explored
- Infrastructure – established grid power, roads, rail and water that will enable low capital development intensity
- Mining Culture – Chile is the world’s number one copper producer
Culpeo recently announced the identification of multiple new geophysical targets from a detailed ground magnetic survey completed at the company’s Lana Corina Project. These targets have not been previously tested and are analogous to known copper mineralisation at the project, where recent drilling has yielded intersections of 257m @ 0.95% Cu and 81ppm Mo.
“Our first programme of ground-based geophysics has delivered very encouraging results, with the survey identifying 13 new targets that are analogous to the Lana-Corina-Laura Prospect which has produced significant copper drill intersections in recent programmes,” said Managing Director Max Tuesley.
“The targets are located within clear structural trends and have associated elevated surface geochemical signatures, making them compelling targets for drill testing.”
Tesoro going for gold
Tesoro Gold Limited (ASX: TSO) – formerly Tesoro Resources – has made the development of its quality precious metals assets its major focus. Chile is a gold rich country with production in 2020 adding up approximately 34 metric tons in 2020. Gold exports from Chile added up to some US$930M in 2020.
Founded in 2017 by the members of the board, Tesoro is focused on acquiring developing gold assets that have potential to be district scale mining projects and it rapidly advancing the El Zorro Gold Project.
Tesoro’s recent efforts has seen it undertaking ongoing extensional and infill drilling programmes at the El Zorro Gold Project and continued expansion of the Ternera Gold Deposit.
The late drill programme completed at the Ternera Gold Deposit has defined over 1.3km of strike, up to 750m wide and to over 500m deep. Ternera remains open in all directions.
Tesoro recently received assay results for 57 diamond drill holes from El Zorro during the quarter, including the best intercept to date of 63.93m @ 7.61g/t Au from hole ZDDH0288.
All holes reported significant intercepts of gold mineralization, as well as improving continuity of high-grade gold zones within Ternera.
Hot Chili on fire
Another ASX-listed firm with Chilean focus, Hot Chili (ASX: HCH), has also reported recent drilling success.
Hot Chili is developing the large-scale Costa Fuego Project – a copper hub comprising two major copper deposits: Productora and Cortadera.
Costa Fuego’s Indicated Resource is 391Mt grading 0.52% CuEq (copper equivalent), containing 1.7 Mt Cu, 1.5 Moz Au, 4.2 Moz Ag, and 37 kt Mo and the Inferred Resource is 334Mt grading 0.44% CuEq containing 1.2Mt Cu, 1.2 Moz Au, 5.6 Moz Ag and 27 kt Mo, at a cut–off grade of 0.25% CuEq.
The deposits are 14km apart and within 50km of port, making it one of the lowest-altitude major developments in the Americas.
Results from three new drill holes reported from Cuerpo 3 at Cortadera have confirmed expansion of the high-grade core ahead of a planned Pre-Feasibility Study (PFS) and resource upgrade for Costa Fuego later this year.
Managing Director Christian Easterday stated that Cortadera has a track record of outperforming expectation.
“The PFS in-fill drill programme across Cortadera has collected important geotechnical and hydrogeological information and has also continued to define and expand high grade resources.
“Upgrading our resources with wide drill intersections grading 0.8% to 1.0% copper equivalent is a great outcome, which demonstrates the quality and growth potential of Costa Fuego as one of the only low-altitude, material, copper developments in the world capable of near-term development.”
