The company, which easily raised $6 million at 20c per share to list six months ago, saw its largest every volume trade of the back of visual identification of over 200m of copper sulphide in its maiden hole at Lana Corinia between 50m and 250m in a hole that is targeted to be completed at 400-500m.

 

The company said the mineralisation was hosted in sheeted veins and breccia to about 200m depth, with chalcopyrite becoming more dominant as the hole deepens.

 

Culpeo, which was established by Tesoro Resources' founders Zeff Reeves and Geoff McNamara, designed its initial 4000m program to target an area where copper outcrops at surface associated with breccia pipes, and is believed to sit above an extensive copper bearing porphyry system that starts at about 200m depth.

 

The company's initial eight holes are designed to assess historical intersections such as 70m at 1.23% copper from surface and 178m at 0.72% copper and 284 parts per million molybdenum from 356m.

 

Underground wall sampling has returned 12m at 2.49% and 20m at 2.04% copper.

 

Managing director Max Tuesley said the maiden hole provided further confidence in the potential of Lana Corina to host a significant copper deposit.

 

The company only announced its right to earn up to 80% of the 5.5sq.km project, sitting within a prolific Chilean copper belt on March 21, and commenced diamond core drilling two days later. 

 

The project, which is 40km from the company's undrilled Quelon project, has historically produced a reported one million tonnes grading 1.5-2.5% copper.

 

It was secured with the hope it could offer rapid shallow resource growth, by exploring a 1km-long, 400m wide structural zone.

 

The Lana Corina deposit was discovered in the 1940s but it was not until the 1970s that any detailed work was undertaken, leading to underground shaft mining to a depth of 160m prior to 1985.

 

The known porphyry-style mineralisation extends more than 500m below the surface with grades between 0.5%-0.8% copper. 

 

Culpeo paid US$100,000 for its option, as part of a staged acquisition that could see it provide the vendor $4.7 million in cash and shares, plus completing $2 million in work over 60 months.

 

It also has an option over an adjacent tenement for a further $1.5 million and a 1.5% royalty.

 

Chile is the world's largest copper producer.

 

Culpeo shares were still up 132% this afternoon at A29c, valuing it at $7 million.

 

The stock has traded at 10-45c since listing in September, hitting its lowest level in recent days.