Chile - Resguardo Project

  • The Resguardo project consists of 2,905 hectares (11.3 square miles) of mineral concessions covering historic workings focused on oxide copper production at an elevation of 3000 metres.


    The Resguardo project is located 75 km north east of Copiapó in northern Chile, on the Middle Tertiary porphyry copper belt, which hosts the large scale El Salvador and Potrerillos copper mines.

    The project is located less than one hundred kilometres from the following copper and gold mines and deposits with similar characteristics typical of porphyries found in Chile.

    Mine or DepositTonnes (millions)Copper %Gold g/tSilver g/tMoly %Source
    El Salvador Copper Mine3,8360.450.101.500.022USGS
    Potrerillos Copper Mine1,0300.980.77 0.011USGS
    Caspiece1,4030.190.51  Goldcorp
    Cerro Casale1,1980.220.601.50 Goldcorp
    Inca de Oro Copper-Gold Project7690.360.10 0.11PanAust
    Candelaria Copper Mine (80%)7400.700.162.19 Lundin Mining
    Santo Domingo Project3910.300.04  Capstone Mining
    Maricunga245 0.70  Kinross Gold
    Marte/Lobo185 1.20  Kinross Gold
    La Coipa30.8 1.8064.80 Kinross Gold

    Project History

    Copper and gold grading 1-7% and up to 0.60 g/t respectively was mined in a shallow open pit measuring 150 x 60 metres and several tunnels to 50 metres below surface. This oxide copper mineralization at surface is surrounded by a large hydrothermally altered zone of clay and silica covering one square kilometre which is underlain by a large IP chargeability anomaly indicating a possible undiscovered sulphide copper porphyry at depth. This target has not been tested by previous exploration.

    The IP chargeability anomaly measures from 15-30 mv/V, is 300 to 600 metres wide by 1000 metres in strike length; begins at a depth of approximately 200 metres and is open to the southwest.


    Mineralization at Resguardo consists of fracture-controlled chimney and manto style oxide and sulphide copper along 1000 metres of strike length; two parallel structures up to 50 metres in width have grades from 0.40 to 2% copper. Previous exploration consisted of structural and alteration mapping, geochemical sampling, a three line 5.6 km IP/Resistivity survey, a 105 km ground magnetometer survey and two reverse circulation drill holes. The holes were drilled to a depth of 250 metres on the north fringe of the IP anomaly and intersected several tabular copper manto zones. The most significant zone, at a depth of 104 metres, grades 0.49% copper over 22 metres including 10 metres grading 1.03% copper from 106 metres.

    The Resguardo property has similarities to the Candelaria copper mine at Copiapo where a large sulphide copper deposit was discovered by drilling strong IP chargeability anomalies beneath surface copper mineralized manto zones.

    Purchase Agreement

    Orestone will have the option to purchase a 100% interest in the property from Sociedad Contractual Minera Resguardo (the “Optionor” or “CMR”) for a five (5) year period (the “Option Period”) and may exercise the Option by: 1) paying a total of US$5.0 million in Option payments (the “Option Payments”); and 2) completing 2,000 metres of drilling at any time during the Option Period. Option payments are as follows: i) an initial payment of US$70,000; ii) US$150,000 on or before the first anniversary of the agreement; iii) US$220,000 on or before the second anniversary of the agreement; iv) US$460,000 on or before the third anniversary of the agreement; v) US$1,100,000 on or before the fourth anniversary of the agreement; and vi) US$3,000,000 on or before the fifth anniversary of the agreement.

    Upon completion of the purchase of the property a net smelter royalty of 1.5% (the “NSR”) will be reserved in favor of CMR. Orestone shall have the right at any time up to the seventh anniversary of the Option to Purchase Agreement to purchase the NSR for US$6.0 million. Orestone will also have the right to mine ores from the property at any time during the option period and would pay a seven percent royalty on production for this right.

    A small exploration program did not yield the expected results and future plans for the project are under review at this time.

    Gary Nordin PGeo, is a qualified person under the NI 43-101 guidelines and has reviewed the technical content on this webpage.

© 2023 Orestone Mining Corp.
All rights reserved.