The Lukkacha Project is located 50 km from the regional capital of Tacna. The prospect comprises a large contiguous block of licenses. Major sealed roads and power lines traverse the project area. Alteration mapping and geochemistry have defined a zone of anomalism that will be pursued by geochemistry, geology and geophysics during an ongoing due diligence phase as government approval is actively sought for a drilling campaign.
The Target is a large tonnage Cu-Mo-Au porphyry deposit similar to other deposits also located within the major NW-SE trending Incapuquio fault system such as Cerro Verde/Santa Rosa, Cuajone, and Toquepala.
Interest in the Lukkacha prospect is a joint venture with a private Peruvian entity. WMT owns an exclusive right to a 51% stake in the project pending due diligence and governmental approval. WML equity increases to 70% after a USD$340k payment and consolidating a 100% stake after a total of USD$2.5M has been paid to the JV partner within a four year period.
The Geology is locally dissected by a series of related NE-SW trending faults that control the development of the widespread intense vein stockworks and hydrothermal alteration. The rocks are dominated by hydrothermally altered andesitic volcanics of the Cretaceous Toquepala Group. These rocks also host the porphyry Cu-Mo deposits at Cerro Verde/Santa Rosa, Cuajone and Toquepala mines located NW of the prospect.
Tourmaline-quartz-pyrophyllite breccia indicates the presence of a focused explosive release of potentially metal-rich hydrothermal fluids in the area of interest. Phyllic, propyllitic and advanced argillic alteration zones featuring concentric zonations of alteration facies with an outer propyllitic zone grading to an inner phyllic assemblage point to focussed intrusive activity with anomalous Cu-Au geochemistry.
Peru boasts having the mining industry as one of its leading industries. The General Mining Law of 1992 established procedures to make obtaining mining rights easier, and amendments in 1996 guaranteed protections to mining ventures and contracts. Companies mining and exploring in Peru include BHP Billiton, Rio Tinto, Newcrest, Anglo American, and Newmont.
Copper Prices will likely experience buoyancy in the long term. Increasing demand is supported by China, the information technology revolution and electrification, whilst supplies will be challenged by a decline in mine grades, higher costs and fewer discoveries.
People are in place to aggressively progress the Lukkacha project. Resources include WMT’s experienced staff as well as their JV partner and a project management contract with Western Mining Services, Denver (WMS). WMS personnel are predominantly ex-Western Mining Corporation, and are highly experienced in project management in the porphyry environment of Peru including safety, environment, community, QA/QC, and technical expertise.
The 2007 Work Plan at Lukkacha is designed to complete a due diligence process that will culminate in proving the existence of economic Cu-Mo-Au mineralisation. The work planned will be controlled and executed by WMT’s JV partner and includes:
• Detailed mapping and petrology Complete
• Stream sediment geochemistry Complete
• Geophysics (Induced Polarisation) Q4 2007
• Detailed mapping, sampling Q4 2007
• 2,500 m drilling programme 2008
Satellite derived alteration mapping at Lukkacha showing concentric zones of favourable alteration indicating prospective types of focussed intrusive activity. Anomalous geochemistry coincides with the alteration zones.
