Oct 27 2010
Western Uranium Corporation (TSX VENTURE:WUC) has announced that it has established a new corporate entity to conduct exploration activities in South America.
The new company, Meryllion Minerals Corporation ("Meryllion"), is currently a wholly-owned subsidiary of the Company and will be headed up by Willem Fuchter, PhD PGeo, a geologist with worldwide experience in gold and base metal exploration.
Meryllion has acquired an option to purchase the 14,000 hectare Cerro Amarillo-Cajon Grande copper-gold property located in the Malargüe District, in the Province of Mendoza, Argentina. Under the option agreement Meryllion has the exclusive right to engage in exploration activities on the properties for up to 52 months before exercising its option to acquire a 100% interest in the properties. The option is exercisabeable by Meryllion at any time, however, so long as the exploration program is ongoing, Meryllion will make payments to the owners of the property, which payments will total US$525,000 if the exploration program continues for at least 40 months. When the option is exercised, Meryllion will pay a final purchase price of US$2,500,000. The owners of the property will also be entitled to a 1% NSR in the event the properties are placed into commercial production. The Cerro Amarillo – Cajon Grande property is located at the southern end of the highly productive Late Miocene – Pliocene magmatic arc that hosts the El Teniente and Los Bronces porphyry giants in Chile. The yet-to-be tested property has drill targets indicated by geophysics (IP and magnetics), and contains a number of other unexplored prospective areas.
About the Cerro Amarillo-Cajon Grande Property
Cerro Amarillo-Cajon Grande is a gold-rich porphyry property containing two partially explored mineralized porphyry systems and four unexplored colour anomalies. The two porphyry occurrences are known as Cerro Amarillo and Cajon Grande. The property is located at a latitude of 35° 16' 25" S and a longitude of 70° 09' 22" approximately 25 kilometers due east of the Chilean border. The prospect lies at an elevation of about 3,400 meters above sea level in the foothills of the Cordillera.
The Cerro Amarillo occurrence contains a classical porphyry system that includes stockwork-, disseminated-, skarn-, breccia- and vein-styles of mineralization. Mineralization is typically zoned. The central porphyry plug contains abundant "A" type quartz-magnetite stockworks. Chalcopyrite occurs in the stockworks and is disseminated in the altered intrusive. Fresh sulphides are visible at surface.. However, within the surrounding hydrothermal breccia zone, deep weathering and abundant pyrite is expected to result in an excellent supergene trap for copper and gold leached from the central porphyry and the breccia itself. The skarns occur in an almost perfect ring at the intersection between vertical cylinder of breccia and the shallow dipping calcareous sediments. At the current level of erosion, almost the entire ring is exposed at surface. Garnet skarns are most abundant with lesser amounts of epidote, sulphide, hematite and magnetite. Sparse peripheral veins containing barite, hematite, galena and sphalerite occur out to a radius of approximately 1km from the centre of the system. Previous grab sampling indicates that these veins can contain high gold grades, although their volume is limited. Ground magnetics and alteration patterns suggest that there is potential for the system to enlarge with depth.
The data collected to date indicate fertile gold-rich Cu-Mo-Au porphyry systems located on the property situated at the southern end of the El Teniente/Los Bronces belt which have not been drill-tested. And with the advent of the austral summer, Meryllion will be mounting an exploration campaign that is expected to lead to first-stage drill testing of the Cerro Amarillo occurrence.
Source:
Western Uranium Corporation