Meryllion Minerals Corporation ("Meryllion"), currently a wholly-owned subsidiary of the Company has acquired an option to purchase the Providencia silver-copper prospect located in the Puna of northwestern Argentina.
The property comprises mineral concessions amounting to 3000 hectares situated 4200m above sea level and some 260 km by good road from San Salvador de Jujuy, the capital of the Jujuy Province. It has access to gas pipelines; power lines, railroad, as well as highway access to Chile relatively close by. The focus of the project is the La Providencia silver deposit which was discovered in 1969 and which between 1986 and 1997 produced some five million ounces of silver from ore grading between 400 g/t and 500 g/t Ag.
The deposit is hosted by Plio-Pleistocene, poorly consolidated, continental sediments, consisting of sandstones and conglomerates preserved in an 18 km-long pull-apart basin within a basement of Ordovician clastic sediments; this basin hosts a number of occurrences of what have previously been interpreted as redbed-type copper (silver) mineralization.
At the main La Providencia workings, mineralization occurs in poorly consolidated conglomerate units. Mineralization can be traced by mine workings (shallow pits) and drilling for at least 900m in a north-south direction and is open to the north where it disappears under younger unmineralized sedimentary cover. Mineralization is also open to the east where it has been traced for some 400m in gently dipping units.
The property has received the attention of a number of companies, including St Joe's, Shell, and Peñoles. More recently, Cardero Resources completed a program of exploration which included limited drilling of both diamond and RC holes. While most of their work was concentrated on the concessions surrounding the mine, three RC holes were completed at the mine. Hole PR-RC-03 collared within northern part of the South Pit at La Providencia intersected 1 710 g/t Ag at 218m and 1 675 g/t Ag at 222m down the hole. Mineralization at La Providencia thus appears to be open along strike, laterally, and at depth, and Meryllion believes that there is excellent potential to further define large tonnage, open-pitable resources in the near surface environment as well as higher grade mineralization at depth.
 Providencia Old Mill Site |
 Providencia Land Position |
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Under the terms of the option agreement, Meryllion has the right to acquire a 100% interest in the property by making staged payments over the next 60 months. While the property is subject to an NSR of 1.5%, Meryllion also has the option to buy out this royalty in full. Concordia's management believes that Meryllion Minerals can acquire and successfully manage a number of earlier stage exploration projects in South America. This approach increases the Company's exposure to opportunity and success within the region while managing the risks associated with early-stage exploration. |
 Providencia Pit Geology |