{kanada_flagge}Pampa Metals (CSE: PM; FRA: FIRA) has found traces of a deep-seated copper porphyry on its first-ever drill program this summer. The company drilled two projects from its extensive portfolio in Chile: Cerro Buenos Aires (CBA) and Redondo Veronica (RV). Seven RC wells totaling 1,956 meters were drilled this summer on the 6,600-acre Redondo Veronica (“RV”) project in northern Chile. The drill holes were drilled at wide intervals of at least one kilometer to test three target areas within RV. The deepest drill hole is 385 m and the average depth per drill hole is 279 m (see Figure 3 from NR).
Pampa has discovered initial evidence of deep porphyry systems in two of the three targets at Rendondo Veronica: at Cerro Redondo North and at Redondo Southwest. Assay results from the upper portions of the Cerro Redondo North target include copper up to 0.16% Cu along with anomalous arsenic values indicative of the upper portions of a porphyry system. The Redondo Southwest target is characterized by several deep geophysical anomalies (including a deep IP), with drill holes to date only reaching the upper outer margins of the anomaly.
Figure 1: Pampa has a portfolio of eight projects along the copper belt in Chile.
Further deeper diamond drilling over these two targets will be required to test the center of the geophysical targets, which is on a copper porphyry source.
Summary: Pampa’s very technically written press release runs 10 pages. Few investors will likely bother to read the details. At most, a cursory reading will reveal that 0.16% copper has been discovered. That doesn’t sound like much at first. But there are likely to be professional readers who will appreciate Pampa’s technical success. All of Pampa’s drill holes have been “blind”, meaning there are no signs of mineralization at surface because thick layers of gravel cover the mineralization. This is exactly where Pampa’s opportunity lies: obvious targets around super deposits like Escondida have long been discovered. If Pampa geologists are correct in their guess, the copper could potentially lie 700 to 1000 meters. For comparison, Escondida currently mines at 700+ m depth (open pit), Chuchicamata (Codelco) currently mines at 900+m depth, but also there are several profitable underground copper mines in northern Chile, like El Teniente. Pampa has announced plans to advance to the “bowels” of the porphyry systems in the next campaign.
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