AXG Mining has signed option agreements with Lara Exploration for the exploration of copper, gold and molybdenum porphyry projects in the Andahualyas Yauri mineral field located in south Peru.
This field currently hosts more tha four billion tons of inferred and indicated resources.
Under the terms of the option agreements, AXG will spend up to A$10.50m ($10.81m) and make cash / share payments of A$1.80m ($1.85m) to earn up to 75% of the Condoroma and Coporaque Projects thorough a two stage farm in.
AXG Mining will begin its maiden drill campaign at Condoroma and Coporaque commencing in April / May 2012.
Multiple drill ready targets have been defined at the prospects following recent reconnaissance exploration, reports Proactive Investors.
The projects are located adjacent to existing mining operations, which could provide a treatment option in the event of future project developments. RM Research is maintaining a speculative buy on AXG Mining before the company begins exploration activity in mid 2012.
Peru’s copper production scheduled to increase to more than 2.0 million tons per annum by 2015. The nation is the second ranked copper producer in the world behind Chile and fourth in terms of molybdenum production.
The Andahualyas Yauri mine field also hosts mines like Tintaya, Las Bambas, Antapaccay, Constancia, Haquria and Quechua project.