The Parag Project is located in Peru, 145km north of Lima in the province of Huaura. This transaction secures EVR an advanced copper project with substantial historical drilling, and a Mining Licence.
The Parag Project totals 1399 hectares and is accessed by sealed roads as far as Sayán, unsealed roads to Churin, and the final 75km on dirt tracks. The overall distance by road from Lima is 350 km, with travel time of about eight and a half hours. The terrain consists of open hills, above the tree line, with an average elevation of 4,700m.
Historical drilling suggests the presence of an economic copper-molybdenum orebody, with significant value contributed by the molybdenum, currently more than five times the price of copper. Minor quantities of silver and gold have been recorded in most drill holes. EVR’s plan is to move rapidly towards defining a shallow resource on the breccias whilst developing a deeper, longer-term, porphyry copper target.
- Hole VIE-01: 317m @ 2.01% CuEq from surface incl. 27.3m @ 4.72% CuEq from surface
- Hole VIE-03: 89.4m @ 3.90% CuEq from 6.5m incl. 57.2m @ 6.03% CuEq from 6.5m
- Hole VIE-04: 95.6m @ 2.04% CuEq from surface incl. 21.6m @ 3.41% CuEq from 27.6m
- Hole VIE-09: 60m @ 0.78% CuEq from 3m
- Hole VIE-10: 54m @ 0.73% CuEq from 328m
- Hole VIE-18: 72m @ 2.26% CuEq from surface incl. 14m @ 4.28% CuEq
from surface and 24m @ 3.52% CuEq from 34m
Mineralised breccias outcrop over an area of approximately 1.7km by 1.5km in the southern corner of the Viento Licence. Three separate types of breccias have been identified. The most significant are tourmaline-pyrite breccias. These are generally polymictic breccias with subangular to subrounded clasts of hornfels, porphyritic intrusives with quartz eyes up to 4mm in diameter (quartz porphyry), strongly altered to quartz-sericite and clasts of possible tonalitic medium-grain intrusion also strongly altered to quartz-sericite, agglutinated in a tourmalinesilica cement with development of blackish tourmaline microcrystals. Presence of copper sulfides in the tourmaline mass, predominantly chalcopyrite and traces of bornite and molybdenite in traces, with moderate presence of fine pyrite. The quartz porphyry fragments show the presence of copper sulphides, chalcopyrite, and traces of bornite.
Another group of breccias are mapped as “Phreatomagmatic Bx”. These are Matrixsupported breccia; medium grain igneous cement with strong alteration to quartz-sericite, predominantly greenish sericite. It presents fragments of quartz porphyry, fragments altered to quartz-sericite, whitish sericite, possible medium-grain granodiorite, and the scarce presence of metamorphic rocks (possible hornfels). The shape of the fragments is generally subangular to subrounded. Traces of copper sulfides such as chalcopyrite and bornite, and pyrite.
A third class of breccia, restricted to a single outcrop within the claim area, is mapped as “polymictic bx” by Orión. The outcrop is described as Polimictic matrix-supported breccia, a matrix cemented by silica, presents angular fragments of quartzite and little sandstone. The sedimentary rock fragments show millimeter veinlets of granular quartz, occasionally with fine dark mineral in the central part and subrounded fragments of possible tonalite altered to moderate quartz-sericite.
EVR has reached agreement with GeoAndina Minerals for the acquisition of a 70% shareholding in the Parag project which will be placed into a newly established company. EVR will pay US$20,000 for a 3-month exclusivity agreement while due diligence is conducted.
- At the conclusion of due diligence and confirmation EVR intends to proceed, the parties will enter into a Definitive Agreement that includes the following terms:
- EVR will make a cash payment of US$150,000 to GeoAndina on signing the Definitive Agreement.
- An amount of US$50,000 per quarter is payable to GeoAndina until the mine achieves first production.
- GeoAndina Minerals will have a free carried interest to the point of Readiness to Mine (Bankable Feasibility Study including permitting), at which point GeoAndina may elect to fund its 30% share of project capital.
- If GeoAndina elects not to fund its 30% shareholding, then it can convert its 30% holding to a non-dilutive 12% carried interest in the project once a commercial production rate is reached, of 3000 tonnes per day of ore mined and milled over a 60- day period.
- EVR has the ability to terminate the agreement at its sole discretion.
- The Definitive Agreement will be subject to any regulatory and corporate approvals.
Molybdenum is usually found in an ore known as molybdenite which can occur as primary mineralisation, but most commonly is associated with copper ores in mines in Peru, Chile, Mexico and the USA. China is the world’s largest producer, with 40% of the market supply. Molybdenum is priced on the London Metals Exchange.
Declining grades at aging mines in the Americas come at a time of steadily growing demand. Usually, the grade of Molybdenum in copper orebodies is 0.01-0.025%, and Mo is separated to a concentrate in the flotation circuit.
Molybdenum has a very high melting point, which enables it to form strong, stable carbon compounds in alloys such as ultra-strong steel with resistance to corrosion and wear, used in missile and aircraft parts, nuclear reactor condenser tubes, engines, heating elements, drills and saw blades.
Molybdenum is a critical mineral required for a range of low-carbon technologies, especially wind and geothermal.
The greatest share of demand for molybdenum from electricity generation and energy storage technologies comes from wind (47.3 percent) and geothermal (41.7 percent), with all the other generation and energy storage technologies together accounting for only a small share (11 percent), according to a World Bank report.