Copper explorer Pan Asia Metals has trebled the acreage at its Rosario copper project in Chile by filing 26 new exploration concession applications to extend its ground holding from 25 to 86 square kilometres.

According to management, the newly secured grants will expand its exploration potential by capturing prospective northern strike extensions to the Rosario Central and West trends. The leases hold promise for mineralisation where cross-cutting structures intersect with the main NNW trends.

The move to grab adjoining grounds to the project should perhaps come as no surprise after recent first pass geochemical results and rock chip assays gave the company a good indication of the potential mineralisation at Rosario.

The detailed 316-sample program covered soil, rock and stream sediments and included up to 0.19 per cent copper grabs in the soil and rock chip samples running as high as 17 per cent of the lucrative red metal.

The results subsequently led Pan Asia to reveal the discovery of a significant copper zone 3.6km in length and 150-250m in width, of which 2.6km is held by Pan Asia.

‘Aside from the additional perspective geology, these concession applications mitigate the time and cost risk to secure these zones at a later date.’

Pan Asia Metals managing director Paul Lock said

The company has also locked away additional leases including a corridor adjacent to Chile’s north-south energy grid, a nine square kilometre flat zone suitable for solar installations and regions with thick alluvial gravels offering groundwater prospects to secure the projects future infrastructure needs.

Pan Asia Metals managing director Paul Lock said: “The new application areas capture important geology as well as corridors and zones for future energy needs, and large areas of deep alluvial gravels with potential for water. Aside from the additional perspective geology, these concession applications mitigate the time and cost risk to secure these zones at a later date, when your neighbours know you need it.”

Sitting in Chile’s Atacama region, the Rosario copper project is starting to shape up as a Manto-style copper-silver deposit. This is a familiar style of mineralisation known for significant copper deposits in northern Chile such as the giant state-owned El Salvador mine, just 10km to the south of Pan Asia’s project which hosts 4.7 million tonnes of contained copper grading 0.59 per cent.

The project is also strategically positioned around 100km from Chile’s ENAMI’s El Salado copper ore processing plant and just 40km north of Codelco’s Porterillos copper smelter, potentially opening up the opportunity to add value to any concentrate product the company may decide to produce.

Once the outcome of a current induced-polarisation (IP) survey is known it is hoped the findings might also unveil some deep oxide zones which could then be amenable to simple and cheap heap leaching mining techniques. If so, these areas will play a key role in the prioritising of drill targets next year.

Regardless of whether Pan Asia looks at a heap leach or a third-party processing route to market, the company’s forward planning appears to be focused on a phased exploration approach which would confirm a commitment to low-cost production.

Adding to the progress on the ground in Chile, a week ago the company also announced a four-year $35-million funding package with New York-based private equity firm Global Emerging Markets (GEM).

According to Pan Asia, the new funding facility is potentially sufficient to pay for resource and pre-feasibility studies at Rosario and its Tama Atacama lithium project.

The deal appears to be something of a coup and suggests there are others out there who share a similar view to Pan Asia that Rosario and its broader South American exploration efforts have significant legs.

Pan Asia is also preparing to change its name to Flagship Minerals, which it hopes will reduce some noted market confusion surrounding the company’s geographic position.

With significant progress on the ground at the Rosario project and with funding now in place, it appears Pan Asia is gearing up for a significant period of exploration drilling next year. In the meantime, any sniff of significant mineralisation at Rosario from the upcoming IP survey will surely get the attention of the market.

Is your ASX-listed company doing something interesting? Contact: mattbirney@bullsnbears.com.au