(MENAFN- ProactiveInvestors - Australia) Equus Mining (ASX: EQE) is on the cusp of drilling at its Yerba Project in Chile with the granting of a permit by the Chilean Government and the securing of land access agreements with all three surface landowners.
A purpose-built drill rig with a 1,200 metre depth capacity (NQ) is mobilising to site and is expected to begin the 5,000 metre stage one program by 26 March.
Initial drilling is planned for the northern 300 metres of a 1,200 metre-long target zone comprising hydrothermal alteration known to be associated with outcropping copper mineralisation.
This zone has already been mapped using induced polarisation resistivity geophysics.
The first drill holes will test a broad zone, 48 metres at 1.35% copper, of never-before drilled andesite mineralised with disseminated copper sulphide (bornite).
This mineralisation is exposed in an open-pit and several underground workings that were operated during the early 1900s.
Araya
Meanwhile, Equus has also inked a purchase agreement to acquire the surface rights to 100% of the land covering the Araya Project, which is located in the same province as the Yerba Project.
The purchase agreement covers 96 hectares for around US$210,000.
The Araya Project is the company's second copper project within the extensive Naltagua Copper District.
Copper workings and outcropping copper mineralisation have been mapped and sampled over a strike-length of 1,300 metres and the zone remains open to the north and south.
Both the Yerba and Araya projects show many geological similarities to the large, mantotype, Anglo American-owned 200 million tonne at 1.35% El Soldado copper-silver deposit located 135 kilometres to the north of Naltagua.
Following the recent sale of a 90% interest in Equus' subsidiary, Leo Shield Exploration Ghana, the company has cash reserves of about $1.8 million.
This is sufficient to fund Equus' budgeted corporate and exploration activities for the remainder of 2013, including the 5,000 metre diamond drilling program at Yerba.
With the company's focus on the Naltagua copper district in Chile, its investment in Leo Ghana is considered to be non-core.
Equus plans to continue funding core exploration activities through the ongoing sale of non-core assets, including listed shares, gold royalties and an oil drilling rig and exploration camp, which are valued at about $7 million. Â
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