London-listed mining project specialist Cloudbreak Discovery (LSE:CDL) has acquired a new US copper project called Stateline Property in conjunction with Alianza Minerals, as part of its Southwest US Copper Alliance. The deal covers 22 unpatented mining claims from local prospectors in both Colorado and Utah.
This is the second property acquisition being made under the terms of the alliance between Cloudbreak Discovery and Alianza Minerals and will target hosted copper mineralisation. The two companies said that they will continue to identify, acquire and advance copper projects in the southwestern US states of Arizona, Colorado, New Mexico and Utah.
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Progress to date on the new project has been reported as excellent. Work is continuing to identify new copper exploration opportunities, and as ever with Cloudbreak Discovery’s strategy, it hopes to acquire and advance these prospects with strong partners.
The project has been acquired as part of Cloudbreak’s strategic alliance with Alianza Minerals, which sees either company introducing potential projects which are subsequently held 50/50. Funding of the initial acquisition and any preliminary work programs will be funded to the tune of 40% by the introducing partner, and 60% by the other party. Project expenditures are determined by committee, consisting of two senior management personnel from each party.
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Introducing the Stateline Project
The current Stateline Project includes 148 hectares in the Paradox Basin sedimentary package, located in San Miguel county in Colorado and San Juan county in Utah. It has favourable stratigraphy that is known to host sediment-hosted copper deposits, within a belt that already includes the Lisbon Valley Mine Complex, 8km to the northwest.
“This target presents an opportunity to drill test multiple horizons of favourable mineralization,” said Kyler Hardy, CEO of Cloudbreak. “Mineralization outcrops at surface and we are looking forward to gaining a better understanding of the geological setting at Stateline. The proximity and on-trend position of Stateline relative to the LVMC makes this a highly prospective project in our view.”
Exposed copper oxide mineralisation at the surface within host sandstone units bears a strong resemblance to copper deposits along trend at the LVMC mine, Cloudbreak said. Mineralized outcrops have yielded assay results up to 1.6% copper and 1.7g per tonne silver, and 0.45% copper and 2.1 g/t silver.
Mineralization visible in outcrop occurs as disseminated malachite, which may be amenable to modern open pit mining with Solvent Extraction Electro Winning (“SXEW”) processing similar to the LVMC. The mineralization noted to date is interpreted to be the southeast extension of the Flying Diamond mineralization, which is a current target of interest associated with the Lisbon Valley Mining Complex.
The project is road accessible year-round, via a network of roads through the valley, including those supporting access to the LVMC.