Savant Explorations Ltd. (TSX VENTURE:SVT) ("Savant") has initiated a copper exploration and discovery strategy in the Southwest United States, which contains some of the premier copper districts in the world. As the first step to this strategy, Savant, through its wholly owned U.S. subsidiary Keystone Mines Inc., has successfully negotiated three earn-in agreements (collectively referred to as the "Agreements") with Eurasian Minerals Inc. (TSX VENTURE:EMX)(NYSE MKT:EMXX) ("Eurasian") through its wholly owned subsidiary Bronco Creek Exploration Inc. ("BCE") for three high-quality properties. Under the terms of the Agreements, Savant may earn up to a 100% interest in each of the Jasper Canyon, Buckhorn and Frazier Creek copper porphyry properties, through a two stage earn-in over a maximum 10 year period, subject to certain royalties retained by BCE. The main terms of the Agreements and a summary of the properties are provided below.
The first year work commitments and cash payments required for all three properties is less than $250,000 and will be easily funded from Savant's current working capital, which includes a recently received tax refund of $304,000 (see Savant's news release dated October 24, 2013).
The Opportunity
The Southwest United States is well-endowed with large porphyry copper deposits that occupy the top end of the grade and tonnage curve. More than 20 deposits contain in excess of one billion tonnes of resources, 14 of which have an average grade exceeding 0.50% Cu. Many of the deposits contain significant gold, silver and molybdenum by-products. Although most of the known deposits occur in exposed basement rocks, up to 70% of the region is concealed beneath post mineral cover that has seen only limited exploration. There is no geological reason for deposits not to occur in these covered areas. The relatively recent discovery (1996) of the giant high-grade Resolution Deposit (1.7 billion tonnes grading 1.52% Cu) under cover in Arizona demonstrates this hidden opportunity, although there is no assurance that further exploration will lead to discovery or development of such a deposit. New understanding of the geological framework of the region and a significant database of regional geophysics provides a better understanding of ore-controlling structures and basement geometry and provides focus on the highest priority areas.
The region is rated highly by the Fraser Institute as a favourable mining jurisdiction for taxation, regulation and labour. Exploration permits are easily attainable, and with an agreeable climate and good access and infrastructure (roads, rail, power, and existing smelters) year round exploration and development is possible.
Leading Savant's new copper exploration and discovery strategy is President and CEO, Jack McClintock, former Exploration Manager of BHP Billiton's mineral exploration group. Mr. McClintock was the team leader on the discovery of the Spence Copper-Molybdenum mine in Chile (annual production of 180,000 tonnes of copper), a blind discovery made under pediment (alluvium) cover similar to that found in the Southwest U.S. Mr. McClintock states.
