In 2016, Chilean Metals acquired 100% of (4) Priority target IOCG Properties in the western extension of the Cobequid-Chedabucto Fault System (CCFZ) in Nova Scotia. This is an identified IOCG Crustal Fault System identified by the Nova Scotia DNR & Minotaur Exploration (Australia). The CCFZ comprises of a series of crustal-scale faults along a 250km x up to 25km wide that divides Nova Scotia into 2 distinct terranes (Avalon & Meguma). When the Nova Scotia DNR & Minotaur Australia re-defined the CCFZ as a potential IOCG belt, the entire thinking of the area has changed We believe there will be several significant ICOG Copper – Gold discoveries in this system over the near term. There has been over $10M in exploration in this system in the past few years to advance these projects. There has been assay results of up to 30% Cu & 20g/t AU in this system.
“I believe many will be surprised at the results the Cobequid-Chedabucto Fault Zone (CCFZ)
properties will deliver over the next few years. I believe there is the real potential for 2-3 deposits discovered in this system in the near term.“ stated Patrick J Cruickshank, President & CEO, Chilean Metals Inc.
Bass River JV:
In fall of 2016, Chilean Metals signed a JV Agreement with Tejas Gold Co., (Texas Based PE Group). Chilean Metals received 100,000 shares in Tejas Gold Co & $25,000 Cash Option Payment. After $400,000 in Expenditures on the Bass River Project, Tejas will earn a 35% Interest in Bass River. Chilean Metals is the Operator, along with the Technical Advisory Committee. The Bass River (Castlereagh Target is the largest VTem anomaly delineated from over 2000 line kilometers of data. Previous work to the southwest at Gamble lake identified a mineralized system (Lead, Zinc & Silver). Work at Bass River was successful in identifying a new volcanic center in the Cobequids which is presently being studied by the DNR geologists as part of their regional re-mapping program in the Cobequid Highlands.
Chilean Metals has just press released this past week. The High Priority Targets are defined as (BRN_VT01), (BRN_VT03) & (BRN_VT06). Minotaur Exploration Ltd (Australia) has processed the Geophysics. CDI inversions were conducted on all targets in order to better determine the target depth, dip and extent. Three component fixed loop ground EM will be executed over these targets as recommended. The Target definitions are
Once the Geophysics are processed by Minotaur Exploration (Australia) Chilean Metals – Tejas will commence a minimum 2000m Drill Program.
THE TECK ROYALTY “HEDGE”
Their fourth asset is a royalty which they sold to Teck Resources for around $3 million, leaving them with a 3% NSR (net smelter return) royalty on production. Teck has the right to purchase one third of the NSR for Cad. $3,000,000, thereby presenting the Company with near-term cash flow potential. By way of comparison, total sales in 2013 at Quebrada Blanca, Teck’s nearby copper mine and SXEW operation, were $422 Million. The royalty, whether 3% or reduced to 2% through Teck exercising its right, has potential to provide significant future benefit to the Company in terms of non-dilutive exploration funding and/or dividends to our shareholders, and may provide a model for the Company’s future accretive growth— That’s the real kicker/”hedge” as CMX’s management team likes to call it. Other than having superior assets, that’s what’s sets CMX apart from most juniors on the venture.