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Marimaca Copper (TSX: MARI) has made another discovery at its namesake project close to the coastal city of Antofagasta, in central Chile. It found the northern extension of the Pampa Medina deposit, 26 km from its advanced Marimaca oxide deposit (MOD).
The company aims to complete a definitive feasibility study (DFS) for its flagship project soon.
Marimaca also reported results from the first scout drilling at the Pias target, northwest of Pampa Medina, within the Sierra de Medina property.
BMO Capital Markets views the discovery as a significant positive for the company. Mining analyst Rene Cartier says the northern extension of the Pampa Medina could meaningfully expand the resource potential.
“Coupled with the recent announcement to acquire the Madrugador project, the consolidated ownership in a prospective district of complementary leachable copper resources underpins the prospects for growth and expansion in future production,” Cartier said Monday in a note to clients.
At C$5.14, Marimaca Copper’s stock closed 3.2% up on Monday in Toronto. The company has a market capitalization of about C$517 million ($360 million).
Hole SMR-01 was drilled by the team 400 metres north of the known northern extent of the Pampa Medina deposit. It intersected significant oxide copper and chalcocite mineralization from 272-462 metres deep. It then transitioned to primarily chalcopyrite-bornite mineralization from 462-650 metres, the company said.
Highlights from hole SMR-01 include 400 metres at 0.49% total copper from 250 metres. This includes a higher-grade section of 216 metres at 0.7% total copper from 250 metres (mostly oxides). It also includes 102 metres at 1.2% total copper from 250 metres down and 76 metres at 1.57% total copper from 276 metres.
Within that, 18 metres at 5.11% total copper was from 320 metres. There was also 100 metres at 0.36% total copper from 550 metres (mostly sulphides). This included 32 metres at 0.62% total copper from 618 metres and 2 metres at 3.43% total copper from 648 metres.
The results from tree drill holes remain pending at Pampa Medina. They targeted both west and north step-outs. The company is considering an expanded exploration program at Pampa Medina Norte in 2025.
“The discovery of Pampa Medina Norte validates our exploration model targeting the key sedimentary and volcanic host units that we know to be productive for manto-style mineralization both locally and regionally – including recent Tier 1 greenfield discoveries like Antofagasta’s (LSE: ANTO) Cachorro deposit,” Marimaca vice-president for exploration, Sergio Rivera, said in a news release.
He said the company plans to take the coming weeks to define the strategy for an expanded exploration program. It is to test further north and at depth. This follows up on the high-grade bornite-chalcopyrite mineralization found at the hole’s base.”
CEO Hayden Locke said the company is reviewing its Pampa Medina strategy, including the new Madrugador concessions, due to these results.
“What is clear is that the system at Pampa Medina and its surrounds has the potential to grow significantly,” Locke said. “We are in the process of upgrading the historical resource, but this may be put on hold as we continue to explore the limits of the system.”
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