MMG Chile Exploration has started an airborne geophysical survey over Condor Resources‘ Brahma/Austral porphyry copper project in southern Chile.
Under the survey, which is expected to be completed by the end of September 2013, about 3,000 line-kilometres will be flown at 150m line-spacings.
Condor Resources recently signed an agreement with MMG, which will give the company a 270-day exclusivity period to conduct a mandatory due diligence programme at the project.
The due diligence includes the airborne survey, and follow up mapping and sampling.
If MMG decides to proceed with an option agreement, it will be required to complete cumulative exploration expenditures of $7m, and a preliminary economic assessment, both within six years of execution of the deal, in order to earn a 70% interest in the project.
The Brahma/Austral project concessions cover about 186km² located south-east of the city of Talca in southern Chile.
The project is situated on the southern extension of the West Fissure fault system, the continental scale structure which controls most of the large copper deposits located within the central Andes of Chile including the El Teniente mine.
MMG owns and operates the Century, Golden Grove and Rosebery mines in Australia, the Kinsevere mine in the Democratic Republic of Congo and the LXML Sepon mine in Laos.
The company’s major development projects include Dugald River in north-west Queensland, Australia, and the Izok Corridor base metals project in Nunavut, north-west Canada.