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Reemergence of a New Copper District? by Gerardo Del Real
The Anaconda Copper Mine is an open-pit copper mine in Lyon County, Nevada that was owned and operated by the Anaconda Mining Company.
The mine is located in the historic copper district of Yerington, Nevada.
A company town, Weed Heights, was built to support the mining operation, which ran from 1952 until 1978.
The Anaconda Mine first opened in 1918 as the Empire-Nevada Mine. Mining operations ceased in 1978 due to low copper prices and declining grades.
The property changed hands several times before being abandoned in 2000 after Arimetco — which owned the property at the time — went bankrupt in 1997.
In 2011, Quaterra Resources (TSX-V: QTA)(OTC: QTRRF) purchased all the Yerington mining district assets.
A rush of new exploration in the area could result in the reemergence of this historic copper district. Most, if not all, of the district and surrounding area has not been explored using modern technology.
They say the best place to find an economic ore body is next to an economic ore body.
The Anaconda mine operated for 25 years and produced approximately 1.7 billion pounds of copper. A lot of material remains in tailings and on leach pads.
Quaterra Resources is one of four companies that control important land in the area.
The other three are Abacus Mining (TSX-V: AME) — through an option with Almadex Minerals — Nevada Copper (TSX-V: NCU), and the recently-spun out Mason Resources.
Quaterra, Nevada Copper, and Mason control approximately 17.7 billion pounds of copper in the Measured & Indicated category.
The infrastructure in the area is excellent. The jurisdiction is one of the best in the world and the exploration potential has attracted Freeport Nevada, a wholly-owned subsidiary of Freeport Minerals, which is wholly owned by Freeport McMoran (NYSE: FCX), a potential consolidator of the entire area if new exploration results in new discoveries.
In March, 2017 Quaterra commenced drilling of approximately 20,000 feet to test targets throughout the company’s 51-square-mile land package.
In June 2014, Quaterra and its subsidiary SPS entered into an agreement which gives Freeport Nevada an option to earn an initial 55% interest in SPS by providing $40.7 million in option payments to SPS.
In June 2016, Stage 2 of the agreement was potentially extended by another two years.
The Stage 2 extension option payments and any accelerated option payments will reduce the payments required for Freeport Nevada to earn its initial 55% interest in SPS.
Freeport Nevada can earn a further 20% in SPS (increasing its holding to 75%) by spending $99.5 million or by funding a feasibility study, whichever comes first. Before then, Freeport Nevada can terminate the agreement at its discretion.
Quaterra has invested some $36 million in the Yerington District since 2006 and while Freeport can terminate the agreement at its discretion, it’s clear that Freeport believes in the exploration potential.
Abacus will begin drilling the nearby Willow prospect — which I visited a few months back — in late summer. That drill program is one I will be watching very closely.
To continue reading please click link http://www.outsiderclub.com/re-emergence-of-a-new-copper-district/2363