Posted in | News | Copper | Mining Business

Capstone Enters into Option Agreement with SQM for Project Providencia in Chile

Capstone Mining Corp. ("Capstone") is pleased to announce that it has entered into an option agreement (the "Option") with Sociedad Química y Minera de Chile S.A. ('SQM") to earn up to 70% of a property, Project Providencia (the "Property").

The initial option is on 350,000 hectares (3,500 square kilometres) in Chile's II Region and would be reduced overtime to a maximum of 50,000 hectares if a joint venture is formed.

The Property is located 50 kilometres east of the city of Taltal, approximately half way between Capstone's Santo Domingo Project and Anglo American's Mantos Blancos copper mine. It rests at a mean elevation of 1,800 metres above sea level, with mostly gentle topography and it benefits from the Pan-American Highway cutting through the centre of the block.

Due to the unique nature of SQM's core business as a producer of specialty fertilizers and inorganic industrial chemicals, significant portions of the large Property in the Cretaceous belt have been exclusively held by SQM for decades for the value of their surface deposits of nitrates and iodine, among other minerals. The Property has seen little to no modern exploration for bedrock hosted, metallic mineral deposits, or even comprehensive geological mapping, prospecting and geophysical surveying, despite being centrally located in one of the world's largest copper mining districts. Capstone's strategy will be to cover the very large holding with several state-of-the-art airborne, remote sensing technologies to identify discrete anomalies or areas of prospectively for more detailed ground follow-up.

"Capstone's strategic goal is to expand its asset base and selectively add to our portfolio of exploration projects in the Americas," said Brad Mercer, Sr. Vice President, Exploration of Capstone. "This is an excellent opportunity to look at a very large under-explored land package in the world's most prolific copper jurisdiction, with an option to make a more significant investment in stages if exploration results warrant. The proximity to Capstone's Santo Domingo Project and other copper mines offers potential synergies should exploration prove successful."

"Capstone geologists believe that the property is prospective for a variety of styles of mineralization, including iron oxide-copper-gold ("IOCG"), porphyry copper and Mantos Blancos type. Activities will be led by our Chilean geology team who were instrumental in the discovery of Santo Domingo IOCG deposit," he added.

Terms of the Agreement

Capstone has paid SQM US$1million upon signing and will immediately commission a high resolution, combined magnetic and radiometric airborne survey over the block. Both surveys will be useful in providing a basic geological framework from which to start exploration but the magnetic survey will be particularly useful in identifying anomalies of interest since the principal target is a magnetite rich IOCG deposit, similar to Santo Domingo.

Capstone will be the operator of the project and may earn up to a 70% interest in the Property over 7.5 years in incremental steps by spending on exploration and land holding costs. There are three options that may be exercised at Capstone's sole discretion. At any time during the term of the agreement, Capstone has the right to withdraw from the project, whereby the agreement will terminate and management of the project will return to SQM.


Please use one of the following formats to cite this article in your essay, paper or report:

  • APA

    Capstone Copper Crop.. (2019, February 17). Capstone Enters into Option Agreement with SQM for Project Providencia in Chile. AZoMining. Retrieved on May 30, 2024 from

  • MLA

    Capstone Copper Crop.. "Capstone Enters into Option Agreement with SQM for Project Providencia in Chile". AZoMining. 30 May 2024. <>.

  • Chicago

    Capstone Copper Crop.. "Capstone Enters into Option Agreement with SQM for Project Providencia in Chile". AZoMining. (accessed May 30, 2024).

  • Harvard

    Capstone Copper Crop.. 2019. Capstone Enters into Option Agreement with SQM for Project Providencia in Chile. AZoMining, viewed 30 May 2024,

Tell Us What You Think

Do you have a review, update or anything you would like to add to this news story?

Leave your feedback
Your comment type

While we only use edited and approved content for Azthena answers, it may on occasions provide incorrect responses. Please confirm any data provided with the related suppliers or authors. We do not provide medical advice, if you search for medical information you must always consult a medical professional before acting on any information provided.

Your questions, but not your email details will be shared with OpenAI and retained for 30 days in accordance with their privacy principles.

Please do not ask questions that use sensitive or confidential information.

Read the full Terms & Conditions.