CHILE – Toronto’s New Gold has completed the sale of its 30% interest in the El Morro copper-gold project in Chile to Goldcorp of Vancouver. Having sole interest in El Morro has allowed Goldcorp and Teck Resources, also of Vancouver, to create a 50:50 joint venture that includes El Morro and Teck’s Relincho copper-molybdenum project.
The two advanced exploration projects are located about 40 km apart in the Atacama region. Combining them will reduce the environmental footprint, lower costs, and enhance community benefits. The combined operation will be known as Project Corridor.
Goldcorp paid US$90 million to buy out New Gold. The El Morro deposit contains an estimated 599 million tonnes at 0.49 g/t Au or 8.9 million oz of gold in proven and probable reserves. Besides the reserves, the deposit contains 92 million measured and indicated tonnes at 0.41 g/t Au (1.2 million oz) plus 678 million inferred tonnes at 0.30 g/t (6.5 million oz).
Proven and probable reserves at Relincho are 1.24 billion tonnes grading 0.37% Cu and 0.017% Mo and containing more than 10.1 billion lb of copper and 464 million lb of molybdenum. The measured resource is 79.9 million tonnes at 0.27% Cu and 0.009% Mo (475 million lb of copper), the indicated portion is 317.1 million tonnes at 0.34% Cu and 0.012% Mo (2.4 million lb of copper), and the inferred portion is 610.8 million tonnes at 0.38% Cu and 0.13% Mo (175 million lb of copper).
Click here to read the Project Corridor presentation.