Conglomerate awarded option to take controlling stake in Spanish mine

SOUTH American conglomerate Antofagasta has been awarded an option to take a controlling stake in the La Zarza copper, gold and zinc mine in southern Spain which is controlled by Irish company Ormonde Mining; after the two reached a joint venture exploration agreement.

The Chilean group’s Antofagasta Mining division has agreed to invest $7 million (€4.7m) on the expanded exploration programmes at La Zarza over the next three years, with a minimum of $1m being spent in the first year. As a result, Antofagasta will have the right to take a 51% interest in the mine and an additional option of upping that to 75%.

“We’re very pleased that Antofagasta has chosen to become involved at La Zarza.

“Ormonde has previously concentrated its endeavours on the area of higher grade copper-gold mineralisation located within the eastern end of the much larger La Zarza massive sulphide deposit.

“However, there are several exploration targets with significant potential for additional copper mineralisation within this massive sulphide body and we very much look forward to seeing exploration drilling resuming at La Zarza,” said Ormonde’s managing director, Kerr Anderson.

Ormonde — which recently announced a lowering in first-half losses from €379,000 to €242,000 — initially announced it had done a deal with an unnamed party on La Zarza back in July.

It confirmed yesterday that Antofagasta will extend the previous exploration area covered by Ormonde, to cover the entire extent of the 3km La Zarza sulphide deposit.

Meanwhile, Irish precious metals exploration company, Minco — which operates the Pallasgreen zinc find in Limerick — has announced that its Mexican-based subsidiary, Xtierra, has entered into an option agreement giving it the option to acquire the El Dorado gold project in Mexico.

The property is located within the Central Mexican Mineral Belt and has an existing small-scale underground gold mining operation developed on one level of the vein.

It is located close to Xtierra’s existing properties in the country.