Quaterra Options Nevada Copper Deposit
Quaterra said that although limited production occurred in the mid-1990’s, the MacArthur porphyry copper system was last evaluated more than thirty years ago. The currently defined oxide mineralization may be only part of a larger system as evidenced by the extensive alteration footprint (10,000 feet northeast-southwest by 6,000 feet northwest-southeast) and presence of other large porphyry copper systems in the district (Yerington, Bear and Ann Mason). The company plans a first phase program consisting of data review and compilation, followed by an analysis of oxide reserves and a 2006 drilling program to evaluate the size and grade of the porphyry system beyond the pit boundaries.
A recently executed agreement with a Nevada limited partnership allows Quaterra to purchase a 100% interest in the property by making staged payments totalling US$1,785,000 by January 15, 2008. If US$500,000 in exploration expenditures has been spent by this date, the option may be extended until January 15, 2010 and the total of staged payments increases to US$2,755,000. The limited partnership will retain a 2% NSR production royalty, 1% of which may be purchased for US$1 million.
The MacArthur mine occurs in a quartz monzonite intrusive of Jurassic age that has been intruded by a series of north westerly-trending quartz monzonite porphyry, rhyolite and andesite dikes. The copper mineralization is zoned, with a chalcopyrite-rich (low iron to copper ratio) eastern area grading into a pyrite halo (high iron to copper ratio) to the north and west. Oxide mineralization overlies the chalcopyrite-rich area and consists of copper oxides and silicates (malachite, chrysocolla), copper wad and iron oxides
Quaterra president, Dr. Thomas Patton, noted that a review of the historic data suggests the oxide mineralization at Macarthur may be part of a more extensive porphyry copper system. Copper-oxide mineralization has been reported to be present in outcrop well beyond the present pit outline and potential also exists for primary sulfides and possible chalcocite enrichment. The US Bureau of Mines in 1950 trenched the property and drilled eight holes. During the period from 1954 to 1971, four mining companies, including Anaconda, drilled a total of 60 holes, at least half of which were within the outline of the current MacArthur open pit. Anaconda, operator at the time of the nearby Yerington porphyry copper deposit, drilled 280 vertical and angle holes to an average depth of 200 feet to define the MacArthur oxide deposit in 1971-1972, part of which was subsequently mined by Arimetco.
Quaterra also announced that the Duke Island drilling program has been completed. Seven core holes totalling 4,500 feet were completed between August 16 th and September 9 th . Assays should be available by mid-October.
On behalf of the Board of Directors,
Thomas Patton, President
Quaterra Resources Inc.
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