Firetail Resources (ASX: FTL) has unveiled progress in the development of its newly acquired Picha Copper Program in Peru, initiating on-site preparations for the exploration camp and preparing for the inaugural diamond drilling campaign, scheduled to begin in early October of this year.
A Strongly Supported Acquisition
The deal comprised of an acquisition agreement of $550,000 in cash, 15 million Firetail shares and 20 million performance rights subject to certain vesting conditions.
It awarded Firetail with up to an 80 per cent interest in Valor’s Picha Copper Project and Charaque Copper Project in southern Peru.
With shareholder approval now in place, the acquisition is set to be finalised in time for drilling commencement, with the Company aiming for completion by the first week of September.
Figure 1: Firetail Resources Peruvian project locations
Picha Project Prospects
In early August of this year, Valor Resources obtained approval from the Peruvian Ministry of Energy and Mines to commence a significant maiden drilling initiative comprising 120 boreholes in the Picha area.
Firetail, in a strategic move, has chosen a highly esteemed local drilling contractor and accorded them “preferred status,” with this contractor set to spearhead the initial drilling campaign.
The diamond drilling endeavour is anticipated to cover a distance of approximately 5,000 metres and will involve the establishment of up to 40 drill platforms, each accommodating three planned boreholes. The primary objective of this program is to explore and assess four distinct target zones: Cobremani, Cumbre Coya, Maricate, and Fundicion.
Figure 2: Picha approved drill program and DIA approved area
The focus of the testing at these Prospects is to examine a range of potential mineralisation styles including copper-silver stratabound, carbonate replacement type, epithermal and porphyry.
The Exploration Manager for Firetail and Valor, Robin Wilson, said both Company’s are excited about what the drilling targets could yield.
“These are compelling targets with significant geophysical anomalies and supported by strong surface geochemistry including significant channel sampling results. We are very excited about what the upcoming drilling might reveal,” he said.
- Cobremani Target — Drill-hole PDH-04 (surface geochemical anomaly including channel sample of 41.6m @1.12% Cu and 22.85g/t Ag, and strong geophysical anomaly at -200m depth).
Figure 3: Cobremani Target
- Maricate Target — Drill-hole PDH-35 (surface geochemical anomaly including channel sample of 17.6m @ 1.95% Cu).
Figure 4: Maricate Target
- Cumbre Coya Target — Drill-hole PDH-48 (surface geochemical anomaly including channel sample of 32.85m @ 0.61% Cu and 209 g/t Ag and chargeability anomaly) and Drill-hole PDH-76 (geochemical and chargeability anomaly at -250m depth).
Figure 5: Cumbre Coya Target
- Fundicion Target — Drill-hole PDH-70 (chargeability anomaly at -250m depth), Drill- hole PDH-87 (geophysical chargeability anomaly at -250m depth), Drill-hole PDH-91 (geophysical chargeability anomaly at -300m depth) and drill holes PDH-102 and 112 (chargeability anomaly at -150m depth).
Figure 6: Fundicion Target
Executive Chairman, Brett Grosvenor, also commented, “We are delighted to announce the strong support for the acquisition of the Copper Projects in Peru, and we are looking forward to starting our exploration activities on the ground in the near-term.”
“With the integration of the existing Valor geological team into Firetail, we have inherited an experienced team that has ensured the activities in Peru continue to progress, with the exploration camp build and detailed drill planning well underway.”
“I need to acknowledge the technical rigour which has gone into the exploration approach at Picha by the in-country team with the support from Valor’s Perth office. It is a real credit to Valor, and the Firetail Board is privileged to have this continued involvement after closure of the acquisition.”
“The targets identified represent the outcome of outstanding multi-disciplinary geological work which has significantly de-risked the exploration process and positioned the project to make a significant discovery.”
“The Board, including our soon to be appointed Director George Bauk, are very excited to bring the significant work completed on Picha into the drill phase, unlocking the enormous potential of this asset.”
FTL’s Australian Stock Exchange-listed share price is currently trading at 12 cents (9.50am UTC+ 8 hours).