Salta Exploraciones S.A. (Salta), Cascadero's 50% owned Argentine subsidiary and Lumina Copper's 100% owned Argentine subsidiary, Corrientes Argentine S.A. (Corrientes), have agreed to enter a Memorandum of Understanding (MOU) to conduct a 50/50 Joint Venture (JV) exploration program on the Francisco I and Francisco II properties in north western Argentina. The properties are, immediately adjacent to the west of Lumina's 1.7 billion tonne Taca Taca Cu-Mo-Au deposit. Funding is pro-rata between Corriente and Salta, which each hold a 50% interest Francisco I and Francisco II. Corrientes was appointed as program operator.
The objective of the MOU is to complete the required investment plan for both properties as dictated by article 217/218 of the Argentine mining code, which requires expenditures of AP$ 3,120,000 on Francisco I by November 17th 2012 and AP$ 2,740,000 on Francisco II by May 3rd 2013. The total expenditure is approximately US$ 1,300,000 of which Cascadero Copper is required to provide US$ 325,000.
The first part of the exploration program was recently completed and consisted of a limited-scale geochemical program using Mobile Metal Ion technology (MMI) on Francisco I and II, and property scale gravity and magnetic geophysical surveys. Francisco I consists of 1,313 hectares and Francisco II, which adjoins Francisco I to the south, is 1,000 hectares.
The JV completed an MMI survey that covered a small area in the north west part of Francisco I and about one-third of the Francisco II claim immediately to the west of the JV and Taca Taca common boundary. The data were complied and interpreted by Mark Fedikow of Mount Morgan Resources Ltd. The MMI data from the Francisco II survey delineated a multi-sample silver and gold high-response anomaly with an approximate area of 500 metres east west by 2,000 metres north south. Lower contrast but scattered As, Cu, Mo, Pb and Zn responses are associated with the silver-gold anomaly.
Drilling is expected to start on Francisco I on October 20th. The drill targets on Francisco I are a combination of gravity and magnetic anomalies and areas of surface rock grab samples that assayed copper and gold values. Outcrops are not common in this area.
The drill program on Francisco II is proposed as a series of step out holes and offset locations at 150 metre spacing to the west of Lumina's existing grid where exceptional results were reported in a Lumina news release from reverse circulation drill hole TTRC-19, which assayed 0.83% CuEq over an interval of 222 metres. The drill hole locations Francisco II are designed to test the continuation of this mineralization along an apparent northwesterly structural trend. In addition, three reconnaissance style drill holes at 300 metre spacing are planned to test the contact relationship with the volcanic sediments and the underlying granite host rock.