News

Magma Energy receives exploitation permit for Maule project in Chile

Magma Energy Maule drill site, Chile (source: Magma Energy)
Alexander Richter 6 May 2010

Magma Energy Corp. has been issued an exploitation permit enabling development of a 50 MW geothermal operation on the 4,000 hectare Laguna de Maule (Maule) property, 300 km south of Santiago, Chile.

In a release, “Magma Energy Corp. announces that it has been issued an exploitation permit enabling development of a 50 MW geothermal operation on the 4,000 hectare Laguna de Maule (Maule) property, 300 km south of Santiago, by the Government of Chile. Maule adjoins the 100,000 hectare Pellado property and together these properties encompass the Mariposa Geothermal Reservoir upon which Magma previously reported a 320 MW Inferred Resource.

Magma is currently drilling the second of five slim holes wells into the Mariposa Reservoir. The first well drilled in 2009 discovered temperatures greater than 200 degrees C at a depth of approximately 650 meters. The 2010 slim hole program, plus related work, commenced in March and is expected to conclude by December at a cost of US$15 million. The target depth of each of the four slim holes is 1,500 meters. Drilling results will provide sufficient information for Magma to complete more detailed evaluation of the planned Phase 1 50 MW geothermal power plant. Mariposa is within 25 km of two planned hydro power plants and associated transmission lines.

Dr. Catherine Hickson, Magma’s Vice President Exploration and Chief Geologist, said, “This geothermal exploitation permit will enable us to proceed directly to construction of our operating plant once we complete our drilling program and studies on detailed capital and operating costs and environmental impacts. I look forward to seeing continuing positive results at Maule in the months ahead.”

Source: company release via MarketWatch