The Directors of Chala have been involved with the Achatayhua project for more than 3 years, during which time a significant amount of work has been conducted and money expended to refine and develop both the development strategy, and build relationships in country.
Scoping study work including environmental studies, metallurgical work, geological reports and economic modelling has been conducted in recent years.
Whilst in the absence of JORC (2012) resources the directors cannot publish the results of scoping work in full, both the Achatayhua and the Copper Joint Venture represent high grade opportunities which directors believe have the potential to become profitable mines in future years, subject to the usual development process including drilling to obtain JORC resources (where applicable) and further studies.
Geophysical modelling has indicated the potential for a large deposit or series of deposits (200Mt to 800Mt) to be present across the 8km of strike length at Achatayhua. Extensive surface sampling (>1000 rockchip/soil samples since 2009) indicates grades of 35% to 65% Fe and 0.2% to 0.5% Cu present in areas of outcrop (refer to presentation). In some areas where rock-chip sampling has been carried out, grades are >62% Fe and >1.0% Cu.