The Masa Valverde polymetallic volcanic-hosted massive sulphide deposit is located in the central part of the Iberian Pyrite Belt in south-western Spain, approximately 70km from Seville and 40km from the port of Huelva. CMR’s permit covers an area of 14km2.

The deposit was discovered in July 1986 by the consortium Peñarroya-ADARO, a former Spanish State-owned mining company, after drilling a geophysical residual gravity anomaly of 0.8mGal extending over 1,000m x 850m in an area of steep topography. A total of 25 drillholes were completed between 1986 and 1993 of which 19 tested the main gravity anomaly and 6 to test satellite anomalies. A total of 13 of the 19 holes intersected massive sulphide and 3 holes intersected a well-developed stockwork.

The drilling to date has defined a body of massive and stockwork sulphides covering an area of at least 1,200m by 200m, lying within an anticlinal axis and plunging 30º northwest from depths of about 430m to 800m. The mineralized envelope is effectively open in all directions.

CMR has evaluated the geology, geochemistry and geophysics of Masa Valverde and estimates the massive sulphide and cupriferous stockwork ore bodies to have resources of approximately 100Mt and 50Mt of ore respectively.

A preliminary resource model developed by CMR technical staff has calculated the following Inferred Resources (massive sulphide and stockwork):

Cutoff Tonnage Cu% Pb% Zn% Ag g/t Au g/t
3.0% Zn 12 Mt 0.57 1.28 4.30 41.9 0.86
0.5% Cu 80 Mt 0.76 0.38 1.28 22.4 0.43
1.0 g/t Au 16 Mt 0.45 0.86 1.49 46.1 1.26

Potential also exists for a high-grade deposit in the adjacent area of the massive sulphide mineralization as well as for upgrading and extending the stockwork mineralization.

CMR has joint-ventured Masa Valverde with a major mining and commodity-trading group. An extensive program of investigation works is underway to further define the mineral resources.