Alcoutim Cu-Zn Project

Alcoutim Cu-Zn Project

Auroch has the right to earn 75% of the Alcoutim Copper-Zinc Project through expenditure of AUD $2.8 million in Easten Portugal.

 

The Alcoutim Project is located in one of the world’s largest and most significant mining districts, the Iberian Pyrite Belt (IPB) and is immediately along strike and down plunge from Lundin Mining’s Super Giant, the Neves Corvo deposit, that hosts current global resources of:

 

Copper zones – 90,551 Mt @ 2.5% Cu, 1.1% Zn & 116 M oz of Ag @ 43 g/t

Zinc Zones – 118,205 Mt @ 5.9% Zn, 0.3% Cu & 216 M oz Ag @ 57 g/t

(Lundin mining 2016 Resources and Reserves report)

 

Known as the “Land of Giants”, the IPB is renowned for its poly-metallic (Copper and Zinc dominant) Volcanic Massive Sulphide (VMS) deposits and contains over 80 known deposits and resources totalling in excess of 1,700 million tons (Mt). It is home to 10 Giant deposits and three Super Giant deposits:

 

Neves Corvo (8 Mt contained Cu+Zn metal);

Aljustrel (8 Mt contained Cu+Zn metal); and the original

Rio Tinto Mine (>3 Mt contained Cu+Zn metal).

Iberian Pyrite Belt

Figure 1. The geology of the Iberian Pyrite Belt, highlighting the major mines and the location
of the Alcoutim Project on the Portugal-Spain border. Note the continuation of the Neves
Corvo Volcanics into the Alcoutim Licence.

 

Alcoutim Licence

The Alcoutim Project covers 576 square kilometres and lies immediately east of the Super-Giant Neves Corvo deposit. The licence covers the interpreted down plunge extensions of the highly prospective Neves Corvo trend. Previous geophysical exploration has highlighted 22 targets that are characterised by coincident gravity and magnetic anomalies and modelling of the data suggests target depths of 700 to 1,000m

Major gravity highs are shown within Alcoutim in Figure 2, similar anomalies were the focus of the initial Neves Corvo exploration. A series of small deposits of remobilised copper are present in the south of Neves Corvo which are spatially related to a series of NE-SW trending faults that post-date the VMS mineralisation. Similarly, deposits of remobilised copper are found in the south of Alcoutim, which were mined in several places such as Cova dos Mouros. It is possible that these small deposits represent remobilised copper from mineralisation at depth and provide further evidence to the prospectivity of the main gravity and magnetic anomalies.

Within the licence area there are multiple coincident gravity-magnetic and EM targets that are the focus for the Company’s first round of drilling. Importantly the most intense gravity anomalies lie along the Neves Corvo structural trend Figure 5.

Magnetic Anomalies
Figure 2 Location diagram for Alcoutim Project highlighting major magnetic anomalies and the vital Neves Corvo Trend.  Also highlighted are the major gravity anomalies that are the focus of the initial drill testing. Note the presence of several small oxide copper deposits to the south west of the main gravity targets and the similarity to the situation at Neves Corvo.

 

Exploration in Portugal

Portugal is a modern European country with first class infrastructure, judicial security, transparent mining laws. Known for its tourism and wines Portugal has a Government which sees mining as significant part of its forward looking economic prosperity and welcomes new investors.

Throughout Portugal exploration activity is at a high level considering the relative small extent of the country (92,2000 Km2). Several international companies (Lundin Mining, Almonty Industries, Medgold Resources, Dakota Minerals, Colt Resources & Avrupa Minerals) conduct exploration, focusing on base and precious metals and more recently, lithium.

Despite this, the country remains largely overlooked and underexplored. The mining of mineral resources in Portugal was initially carried out by the Phoenicians, but was intensely developed by the Romans, so the country has a long tradition in mining.

Portugal has world-class well-developed infrastructure; modern roads, efficient power and communication networks and easily accessible ports and airports and is ranked 26th out of 160 countries by the World Bank in its 2014 Logistics Performance Index. The country has significant and favourable European Union and Portuguese government financial incentive programs, which can be benefited from as the project advances towards the development and production phases.

 

Republic of Portugal Facts:

Government: Parliamentary democracy, member of EU
Population: 11 million;
Capital: Lisbon (~2.5 million)
GDP: US$ 289 billion (2015);
GDP Growth: 1.5% (2015);
GDP per Capita: US$ 28,000 (2015)
Corporate Tax: 25%
Royalty on Base Metals: negotiated

 

Currently operating large mines in Portugal:

  • Neves Corvo – Cu, Zn, Ag, Sn. Ag, Au
  • Aljustrel – Zn, Cu, Ag
  • Panasqueira – W, Sn, Cu