NP Energy Corporation Chilean Project Update
NP Energy Corporation acquired a 20% interest in two separate mining projects in Chile through negotiations concluded with Sierra la Platta S.A., Chilean subsidiary company of Last Frontier Oil Company Inc., signed an option agreement on November 28, 1996 acquiring some 2000 hectares of mining property, known as the Mina Claudia, located 45 kilometers S.E. of the town of Copiapo, Region III, Chile.
This property is 25 kilometers from the Phelps-Dodge 20,000 tonne per day Candalaria copper mine. Ore samples taken from the Mina Claudia range from trace to 4% with pockets as high as 15% copper. The property has been in small production by the Garcia family for several years and is producing about 200 tonnes per day in a high grade operation. This mining enables Sierra la Plata to open up new ore zones to further explore the property at no cost to the company. Major work programs planned include surface reconnaissance, mapping, drilling and expanded production. The potential exists for the development of major gold zones on the property and in excess of 50 million mectric tonnes of copper ore.
On November 27, 1996 Sierra la Platta signed an option agreement acquireing 23 mineral titles covering 400 hectares near the town of Andacolla, Region III[should be IV], Chile. These properties contain proven and probable gold ore reserves in excess of 6 million metric tonnes grading about 2 grams of gold per tonne. The Andacollo region has been in continuous production of gold and copper for the past 100 years.
Central to the property is the Dayton Mining Corporation Tres Perlas 15,000 tonne per day open pit operation. The Mercedes group of claims (under our agreement) lie on the flank of the Tres Perlas property and contain 1.3 million tonnes of ore grading 1.2 grams of gold ore per tonne as tested to date. Good potential exists to substantially increase the tonnage at depth. Reserves on the Toro property are about 1.45 million tonnes grading 2 to 4 grams per tonne. No substantial work has been done on the Beagle, Violeta, and Volcan blocks. These blocks appear to contain significant portions of the Andacollic gold mantos 1 and 2 which would present the potential of many millions of tonnes of manto style gold mineralization. Reserves for the Colorado property are 1.084 million tonnes grading 2.31 grams of gold per tonne. Excellent potential exists on the Colorado block for the development of over 1 million troy ounces of gold.
An association of mutual interests has been negotiated with the owners of the neighboring Churumata properties for the refurbishing of a milling facility that is already in place. This is a production facility that has beenused to process ore from the area in prior years and will now process ore from the Andacollo properties. Bulk sampling and production are expected to begin by the end of February.
For further information please contact Dave DiRicco, investor relations at 415-261-9608. |
