Land of Giants
Alcoutim Licence – Eastern Portugal
Auroch has the right to earn 75% through expenditure of AUD $2.8 million on the Alcoutim Licence in Easten Portugal.
The Alcoutim Licence is immediately along strike and down plunge from Lundin Mining’s – giant Neves Corvo deposit that has current global resources of (Lundin mining 2016 Resources and Reserves report):
- 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
The Iberian Pyrite Belt (IPB) is one of the largest and most significant mining districts in the world, and is renowned for its poly-metallic (Cu-Zn dominant) Volcanic Massive Sulphide (VMS) deposits with over eighty (80) known deposits and resources totalling in excess of 1700 million tons (Mt). It is home to ten (10) Giant deposits and three (3) 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).
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 dashed line) into the Alcoutim Licence covered by the younger rocks of the Baixo Alento Group
The Alcoutim Project covers 576 square kilometres and lies immediately east and down plunge of the Super-Giant Neves Corvo deposit in Eastern Portugal. The licence covers the interpreted down plunge extensions of the highly prospective Neves Corvo trend. Previous geophysical exploration has highlighted twenty-two targets that are characterised by coincident gravity and magnetic anomalies, modelling of the data suggests target depths of 700 to 1000m
Major gravity highs are shown within the Alcoutim licence in Figure 2, similar anomalies focussed 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 the Alcoutim license 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 give 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 first round of drilling due to commence almost immediately. Importantly the most intense gravity anomalies lie along the Neves Corvo structural trend Figure 5.
Figure 2 Location diagram for Land of Giants Project highlighting major magnetic anomalies and the vital Neves Corvo Trend – Also highlighted are the major gravity anomalies that will be 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 focus 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 their 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 projects advance 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