Valor Resources (ASX: VAL) has been granted the green light to uncover the Picha Project’s copper potential, having been approved by the Peruvian Ministry of Energy and Mines for a maiden drilling campaign in a key milestone for the promising Project.
This final approval follows up on the Company receiving its Declaracion de Impacto Ambiental (Environmental Impact Statement) in March, and will allow for the Company to drill up to 120 holes within the permits effective area, comprising up to 40 drill platforms drilling three holes each.
Figure 1: Picha approved drill program and DIA approved area
Picha’s maiden drill program will comprise 5,000 metres of diamond drilling and will target four of the Project’s key targets Cobremani, Cumbre Coya, Maricate and Fundicio, all of which showed significant channel and rock chip sample assays including 6m @ 1.3% Cu and 22.85g/t Ag from Cobremani and 6m @ 1.95% Cu and 29.5g/t Ag from Maricate.
Valor has already secured community social agreements for the entire area covered by the DIA giving it easy access to the effective area and is now in the final stages of planning the drilling program which it expects to kick off next month, with the explorer now hard at work selecting a drilling contracting and completing critical logistics.
The securing of this final approval comes at an interesting time for both the Project and Valor at large, with the Company recently moving to divest a number of its projects, to allow it to better focus on its uranium projects in Canada.
Just under a month ago, the Company announced it had entered an agreement to sell up to 80 per cent of its interest in both Picha and its sister project Characque Project to ASX-listed explorer, Firetail Resources for an upfront A$550,000 dollar cash payment on top of an additional $200,000 dollar exclusivity fee.
Valor saw further consideration in the form of 15 million Firetail shares and 20 million performance rights subject to certain conditions consideration equivalent to a 20.58% shareholding in Firetail on a fully-diluted basis.
The combination of this considerable shareholding in Firetail and a further 20 per cent interest in the Projects Valor still retain following the agreement allows the explorer to retain a significant hold on the Project and any potential exploration success it may see while freeing up resources to focus on its uranium and rare earth elements holdings in the Athabasca Basin, which already hosts a number of drill-ready targets.
The Company said that the structure it has implemented with the Firetail agreement will allow it to maximise the opportunity in Peru while freeing up resources to focus on its high-potential uranium and rare earths assets.
“Valor has developed an incredible pipeline of large-scale, high-impact porphyry, epithermal and CRD targets across the Picha Project tenements – and we are very much looking forward to unlocking the enormous potential of this project through the maiden 5,000m drill program scheduled to commence in September,” Valor Executive Chairman George Bauk said.
“Subject to the completion of the transaction announced recently whereby we are divesting up to an 80% interest in the Picha Project to Firetail Resources, the drill program will be implemented through Firetail and, of course, the Valor team will retain significant exposure through our ~20% shareholding in Firetail, board representation and a retained 20% interest in the Project.”
VAL’s Australian Stock Exchange-listed share price is currently trading at 0.06c (10:39 am UTC+ 8 hours).