EV Resources (ASX:EVR) has reached agreement to acquire a 70% share of the Parag Copper-Molybdenum Project in Peru.
The company has reached agreement with GeoAndina Minerals for the acquisition of a majority interest in Parag, which will be placed into a newly established company.
EV Resources will pay US$20,000 for a 3-month exclusivity agreement while due diligence is conducted.
The company reports the transaction secures an advanced copper project with substantial historical drilling, and a mining licence that will position its growing copper portfolio as the focal point of future activities.
EV Resources’ share price had risen 10.714% on the ASX as of 4pm AWST.
The Parag Project totals 1,399 hectares and is located 145km north of Lima in the province of Huaura. It is accessed by sealed roads as far as Sayán, unsealed roads to Churin, and the final 75km on dirt tracks. The overall distance by road from Lima is 350km, with travel time of about 8.5 hours.
The terrain consists of open hills, above the tree line, with an average elevation of 4,700m.
EV Resources reports the project was explored in two phases, first in the 1980s culminating in 8,300m of drilling and again in 2011 with an additional 10,170m of drilling. An extensive area anomalous in copper and molybdenum has been defined by channel sampling.
Historically, attention was focused on several mineralised breccias although other lithologies on site are mineralised, notably Hornfels and Dacite porphyry.
EV Resources reports historical drilling suggests the presence of an economic copper molybdenum orebody, with significant value contributed by the molybdenum, currently more than 5 times the price of copper. Minor quantities of silver and gold have been recorded in most drillholes. The company’s plan is to move rapidly towards defining a shallow resource on the breccias whilst developing a deeper, longer-term, porphyry copper target.
