San Marco Options the Chunibas Project in Mexico to Antofagasta

San Marco Resources (TSXV:SMN)has announced that it has signed an earn-in agreement with a wholly-owned subsidiary of Antofagasta over San Marco´s Chunibas Project in Sonora State, Mexico.

According to San Marco, under the Agreement, Antofagasta can acquire a 70 percent interest in the project by expending or incurring US$8 million in exploration expenditures in respect of the project and making cash payments for an aggregate amount of US$200,000 over a period of 4 years.

Of the earn-in expenditures, a firm exploration expenditure commitment of US$700,000 will be used primarily for an initial drill program. Included in that US$700,000 will be the reimbursement to San Marco of US$100,000 to cover its costs of recent project exploration expenditures. The initial drill program is anticipated to start as soon as the rainy season ends, and local road conditions improve. San Marco will be the project operator, under the direction of a technical committee consisting of an equal number of members from each company.

San Marco CEO Chris Grijalva said:

“We are pleased to have Antofagasta as a partner and look forward to a successful, team approached exploration program on our copper-silver discovery at the Chunibas project. The project consists of stratiform, volcanic hosted copper-silver mineralization, similar to several ore deposits in northern Chile and is a style of mineralization not previously discovered in Mexico.”

Click here to view the full San Marco (TSXV:SMN) press release.