RE: What If? - What do we know? One may formulate some projections about the (hypothetical) potential of Francisco I & II but there are still a lot of works and time, investigations, drillings, tests,… to be performed (and millions to be invested) to discover the reality of the resources available in those two properties.
1. Francisco I & II potential
However, it appears the LCC already believes that it is worth investing in those properties (since it acquired 50% interest at an interesting price) and, as per Press Release of Jun 6, 2012, announced that it has discovered two new copper mineralized zones:
- To the northwest of Taca Bajo, towards Francisco II. The results, initially supposed to be released in October, are still pending.
- To the north. But this has been already contradicted by their August 3, 2012 Press Release, where they considered that “the northern limit of copper mineralization may be defined”
… with a possible extension of the copper mineralization to the south. But this has not been entirely confirmed within the drilling results published in August.
It appears that the main focus has been set on Francisco II. As per CCD October 18 Press Release (amongst others) :“The drill hole locations Francisco II are designed to test the continuation of this mineralization along an apparent northwesterly structural trend.”
Therefore, the next milestones that will offer additional information related to the potential of Franciso II are:
- LCC publication of the next drillings results (that should normally be soon released) and especially from the northwest…
- And, mainly, the publication of the JV Preliminary exploration program results (timing unknown)
2. Price paid by Lumina for 50% Interest in Francisco I & II Concessions
According to the Financial Statement March 2012 - https://www.luminacopper.com/i/pdf/LCC-FS-Mar31-12.pdf - Page 13 - Point 7
“During the six months ended March 31, 2012, Corriente acquired additional mineral concessions located adjacent, or in close proximity, to the Taca Taca Property. The total cost of these acquisitions was $2,470,403 (which includes $560,004 related to the issuance of 42,169 Lumina common shares as consideration for a portion of the concessions acquired – see Note 11)”
Note: those new shares were issued at $13.28.
As complemented within the Financial Statement June 2012 (https://www.luminacopper.com/i/pdf/LCC-FS-Jun30-12.pdf) – Page 13 – Point 7 (emphasis added):
“Two of the mineral concessions acquired by Corriente were acquired as to a 50% interest only. The Company has determined that these concessions are jointly controlled assets which are accounted for in accordance with IAS 31 Interests in joint ventures whereby the Group recognizes its share of the jointly controlled assets,….”
Note: No reference to Cascadero. However, we already know that those two concessions are Francisco I & II (please refer to NI 43-101 - Technical Report - Effective Date: 11 April 2012)
“The acquisition cost of the jointly controlled mineral concession assets was approximately $293,000. To June 30, 2012, no other expenditures have been incurred with respect to the jointly controlled mineral concessions. The Group is required to fund its share of certain spending commitments to maintain the mineral concessions in good standing in the following approximate amounts: $372,000 by November 17, 2012 and $326,000 by May 2, 2013.”
Note: Taking into account the (still unproven) potential of those properties, isn’t it surprising that Cascadero was not in the position (for unknown reasons?) to acquire the remaining 50% of Francisco I & II for such a reduced investment (+/- $300,000)?
3. Missing press release
From the above and from the compilation of official information available, it appears that (prior to Cascadero Press Release, dated October 18) Lumina’ shareholders have already been given the possibility to become aware (but it has never been clearly said) about the possibility (if not the existence) of a Joint Venture for Francisco I & II with Cascadero.
However, LCC never mentioned the name of the partner and never press released additional information about Exploration JV… This will come at one point in time...