AbraSilver made an auspicious initial drilling at La Coipita in the summer of 2022, unearthing a continuous copper-gold porphyry zone spanning 226 meters and grading 0.43% copper equivalent, a breakthrough that marked a significant discovery on the project. The subsequent drilling in 2023 zeroed in on the Yaretas target, yielding a broad interval of 694.3 meters grading 0.16% copper and 81 ppm molybdenum.
AbraSilver CEO John Miniotis expressed his elation at the opportunity to broker a substantial exploration agreement with Teck to propel the large-scale La Coipita project forward in a rich copper porphyry district. This strategic collaboration is poised to mark a significant milestone for the project, vastly enhancing its potential for a major copper discovery.
Under the option agreement, Teck will have the opportunity to acquire an 80% interest in La Coipita by bankrolling cumulative exploration expenditures amounting to $20 million over a five-year period. The financial obligations also include phased cash disbursements to, and an equity placement in, AbraSilver totaling $3 million (comprising an initial payment of $500,000), in addition to potential cash payments of up to $6.3 million to the underlying project vendors.
Following an initial transition period, during which AbraSilver will lend support for field operations, Teck is slated to take the reins as the operator of La Coipita throughout the option period. Upon the exercise of the option, both parties will form an 80/20 joint venture, with each funding its pro-rata share of future expenditures on the project.
La Coipita is just one of many projects being propelled by AbraSilver in Argentina. The company’s primary asset is the 100%-owned Diablillos silver-gold project in Salta province, which boasts a measured and indicated resource of 53.3 million tonnes grading 87 g/t silver and 0.79 g/t gold, containing roughly 148 million oz. of silver and 1.4 million oz. of gold.