Antofagasta commits $200 million to advance Cachorro Copper Project in northern Chile

The Cachorro copper deposit is located at an altitude of 1,500 metres, in northern Chile.

Chilean mining company Antofagasta plc (LON: ANTO) has announced a $200 million investment over the next seven years to advance exploration at its Cachorro copper project, located in the Atacama Desert in northern Chile.

This major initiative follows the submission of an Environmental Impact Statement (DIA) in January for the project, strategically positioned between Antofagasta’s Centinela and Antucoya operations. The close proximity to these existing assets could allow the company to leverage infrastructure and processing synergies, enhancing operational efficiency and cost-effectiveness.

If the DIA receives regulatory approval, Antofagasta will initiate an extensive surface and underground exploration campaign. Plans include more than 700 drill holes, infill drilling to enhance geological modelling, and the construction of a horizontal tunnel reaching a depth of 300 metres.

As part of its environmental and social responsibility strategy, Antofagasta will conduct baseline environmental studies, archaeological assessments, groundwater monitoring, and will promote local employment and procurement opportunities throughout the exploration phase.

Situated at an elevation of 1,500 metres, about 100 km northeast of the city of Antofagasta and 1,100 km north of Santiago, the Cachorro project has emerged as a high-potential copper asset. Since exploration began in 2017, the company has delineated a mineral resource of 255 million tonnes with an average grade of 1.26% copper, plus silver by-products at 4 g/t.

According to S&P Global Market Intelligence, Cachorro ranks among the largest greenfield copper discoveries of the past decade and is considered one of the most important manto-type copper deposits within Chile’s coastal metallogenic belt.

This new phase reaffirms Antofagasta’s commitment to sustainable copper development and reinforces Chile’s position as a global leader in copper production, critical to the world’s energy transition and decarbonization goals.