Oro Verde readies for drilling at highly prospective Chuminga copper gold project in Chile

Oro Verde (ASX: OVL), formally Ezenet (ASX: EZE), will start to drill test the highly prospective and advanced Chuminga copper gold project in Chile later this month, which recently assayed 190 metres at 1.07% copper and 0.20 grams per tonne (g/t) gold from trenching.

Importantly, the copper and gold results are similar to historical results - and thereby confirm the bulk tonnage potential of the breccia mineralisation.

Oro Verde's wholly owned Chilean subsidiary Green Mining Ltd, will engage the Sali Hochschild drilling company, of the Errazuriz-Hochschild Mining Group to drill seven holes for a total of about 1,400 meters of diamond drilling.


Rio Tinto first identified potential of Chuminga

The potential of Chuminga was first identified by Rio Tinto Zinc Mining and Exploration and AUR Resources (now part of Teck Cominco), with the project well positioned in the coastal area of northern Chile, 60 kilometres north of the regional mining town of Taltal and 115 kilometres south of the port of Antofagasta.

The region has excellent infrastructure and most importantly hosts several world class copper mines such as Mantos Blancos, Chuquicamata and Escondida.

Oro Verde acquired an option to purchase a 100% interest in the advanced Chuminga Project by way of a cash payment of US$1.0 million and issuance of $300,000 in shares at $0.05 cents per share.

Oro Verde is also progressing with a one for three share consolidation, which was approved at the general meeting, reducing the number of shares to around 61 million.


Consideration for Chuminga

For 20% ownership of Chuminga, Oro Verde will issue 2.1 million shares at $0.20 as payment to the Errazuriz-Hochschild Group. The remaining 80% can be acquired in the next 18 months.


Vega project in Chile's prolific El Indio Gold Belt adds spice
Not to be overlooked, Oro Verde also has some interest in a second project known as Vega, which is strategically located in Chile's prolific El Indio Gold Belt.

Drilling at Vega is forecast to kick off in late January, with follow-up drilling and geophysical work during the year. Oro Verde will look to move to 100% ownership of Vega as soon as possible.


Up to $7 million capital raising underway

Oro Verde is currently looking to raise $5 million through a capital raising at $0.20 for the issue of 25 million shares, with the company also open to a further oversubscription of 10 million shares - adding a potential $7 million capital injection the progress the company's activities.

Oro Verde said that the public offer is expected to be open until Friday 9 December.

Originally published at: http://www.proactiveinvestors.com.au/companies/news/23225/oro-verde-readies-for-drilling-at-highly-prospective-chuminga-copper-gold-project-in-chile-23225.html