FMR Resources (ASX:FMR) has executed a conditional option agreement to acquire the Los Warbos Project in Chile’s Coquimbo region.
The company paid US$150,000 ($214,073) for a three-month option to acquire 100% of the 3,300-hectare mining concessions, with an additional 5,250 hectares of exploration applications held by FMR.
Initial rock chip sampling during due diligence confirmed widespread mineralisation, returning grades up to 10.77% copper, 4.01 grams per tonne gold, and over 100g/t silver from surface workings across the project.
Managing Director Oliver Kiddie says the project complements FMR’s La Lorena Project and Llahuin joint venture, providing exposure to a different structural corridor within the same metallogenic province.
“The attraction of Los Warbos for FMR was the apparent scale of the mineral system,” Kiddie says.
“Historical artisanal mining has demonstrated widespread high-grade copper, gold, and silver mineralisation, yet the project has never been systematically explored using modern geological, geochemical, or geophysical techniques, nor has it ever been drill tested.”
To exercise the option, FMR will pay an additional US$150,000 and issue 200,000 shares subject to shareholder approval. A further 150,000 shares are payable within 60 days of announcing a mineral resource estimate within five years of exercise.
Exploration is now underway, with the company commencing systematic mapping and rock chip sampling.
FMR is evaluating possible follow up workstreams, including complete surface geological mapping, multi-element geochemical analysis, and induced polarisation surveys, to define drill targets.
It also intends to conduct a helicopter magnetic and radiometric survey to refine structural interpretation.
FMR Resources is an explorer focused on battery and critical metals, with projects in Chile and Canada.
Write to Paula Fabe at Mining.com.au
Images: FMR Resources
