SRK assisted a private equity client with their corporate strategy and investor support on their advanced-stage, exploration project targeting cobalt-copper mesothermal vein systems.
The La Cobaltera mining district is comprised of cobalt (Co) and copper (Cu) vein systems along multiple exploration trends and is considered one of the top cobalt prospects in Chile. With artisanal mining activity from the 1840s to mid-1900s, significant small-scale historical production occurred in the district at grades averaging >6% Co and >2% Cu. The client is conducting the first modern exploration program in the region and required assistance determining which of the many exploration targets presented the best potential economic case(s) to support capital costs for expediting an initial mine start-up.
SRK has delivered a broad array of services to the La Cobaltera project, including:
- Drilling campaign audits, gap analysis, and recommendations for management and organization improvements;
- Field visits for geological prospecting, exploration targeting, and drillhole program design;
- Reviews of surface sampling and geophysical data;
- Technical and historical data compilation;
- Regional exploration planning and prospectivity ranking utilizing exploration conceptual modeling of potential “synthetic” mineralized material;
- Realistic assumptions were applied using dummy data and extrapolating from available early-stage known data projected along vein extensions;
- Resulting synthetic zones were subjected to economic analysis with elevated cost and pricing inputs to stress test the models and assist in exploration target ranking;
- Outlining opportunities and risks with exploration strategy for the client-controlled land package; and
- Corporate planning and support with investor meetings.
The studies culminated in a Technical Report on Exploration following the Canadian National Instrument 43-101 disclosure format. Due to the potential positive economics of the conceptual exploration model scenarios and the exploration work completed to date, SRK provided a phased drilling plan and comprehensive budget for subsequent La Cobaltera work programs. Chilean Cobalt Corporation is focused on drilling the high-priority targets identified in the synthetic analysis and has a detailed, field-verified exploration plan for future execution.
