Rio Tinto forms Peru copper joint venture

Valor Resources has established a joint venture with Rio Tinto
subsidiary Kennecott Exploration Company at its Berenguela
copper-silver-manganese project in south-eastern Peru.

The Berenguela project boasts a measured, indicated and inferred
JORC resource of 45.9 million tonnes at 0.77 per cent copper, 86
grams per tonne silver, 0.28 per cent zinc and 5.1 per cent
manganese.

Its current resources only occupy 2.1 per cent of Berenguela’s
total 6594 hectares land package, showing significant potential for
resource expansion.

Kennecott will pay Valor Resources $US700,000 ($970,560) before
February this year, and will spend $US2 million on Berenguela’s
exploration over the next 12 months.

During this time, Kennecott will be solely responsible for the
design and implementation of the exploration program.

As part of the Rio Tinto group, Kennecott has access to a depth
of exploration and mine development personnel, as well as the
required levels of capital for the project going forward.

Kennecott can opt for a 50:50 joint venture with Valor Resources
by submitting an additional payment of $US3 million. It can also
increase its stake in Berenguela by 25 per cent by spending an
additional $US5 million within three years.

“This is a very exciting time for Valor Resources and the
undeveloped Berenguela copper-silver project,” Valor Resources
director Nicholas Lindsay said.

“We welcome Kennecott’s involvement in the project’s
development going forward and we are encouraged about the exciting
near and longer term prospects for Valor Resources’
shareholders.”

Valor has completed over 9100 meters of infill and expansion
drilling at Berenguela. A rigorous metallurgical testwork program
is also under way.

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Rio Tinto forms Peru copper joint venture
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Source: FS – Mining B.
Rio Tinto forms Peru copper joint venture



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