Magma Energy with update on Chilean and Peruvian exploration

Magma Energy with update on Chilean and Peruvian exploration Magma Energy Maule drill site, Chile (source: Magma Energy)
Alexander Richter 18 Jun 2010

Magma Energy provides update on its exploration work in Chile and Peru, highlighting the exploitation permit for its 50MW Maule project in Chile, as well as a Peruvian field campaign beginning this month.

Magma Energy Corp. (TSX: MXY) provides an exploration update on our properties in Chile and Peru, in a release this week.

According to the release, “In Chile, Magma has an exploitation permit enabling development of a 50 MW geothermal operation on the 4,000 hectare Laguna de Maule (Maule) property. 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.
Mariposa slim hole drilling in 2009 resulted in discovery well, MP-01.

Magma recently completed MP-02 to a depth of nearly 900 meters and encountered temperatures and zones of permeability indicating a high quality geothermal resource. Data from MP-01 and MP-02 will be integrated to further develop the Mariposa reservoir model. MP-02 is located at the edge of the Mariposa Reservoir and was drilled first due to road access limitations at the time.

Drilling is about to begin at MP-03, located in the heart of the Mariposa Reservoir, with a target depth of 1,500 meters. An all-season 25 km access road now connects the future drilling pads MP-04 and MP-05 to the current exploration activities. Magma’s Icelandic experts have assisted in designing the drilling program for MP-02 through MP-05. The Mariposa development budget is $15 million; costs to date are $8.5 million.

In Peru, a four person exploration team will be performing a field campaign beginning in late June. The work will focus on surface geological and geophysical work, as preparation for a drilling campaign in 2011.

Dr. Catherine Hickson, Magma’s Vice President Exploration and Chief Geologist commented, “We are fortunate to have such high quality geothermal land in Latin America coupled with an experienced team to develop projects. Magma is well positioned to become a leading power producer in this area.”

Source: Company release via PR Newswire