Ero Copper has entered a definitive earn-in deal with Vale Base Metals’ subsidiary Salobo Metais to acquire a 60% interest in the Furnas Copper Project in Brazil’s Carajás Mineral Province.

The agreement aligns with the terms outlined in October 2023.

Located 50km from VBM’s Salobo operations and 190km from Ero’s Tucumã project, Furnas is an iron oxide copper-gold project covering around 2,400 hectares of land.

It is located near existing infrastructure, enhancing its development prospects.

Ero earlier said that its initial focus will be on two high-grade zones within the mineralised body, aiming to increase confidence in these areas through infill drilling and to explore their potential at greater depths.

The company’s initial work programme includes infill drilling to enhance the understanding of the south-east and north-west zones, which have shown high-grade mineralisation ranging from 20m to 60m in thickness.

This drilling will also test the potential for increasing grades and thickness at depths beyond the current 300m.

As per the term sheet signed earlier, the exploration programme will be conducted by Ero in three phases.

In the first phase, a minimum of 28,000m of exploration drilling will take place to produce a scoping study within 18 months of a definitive agreement.

The second phase will involve an additional 17,000m of exploration drilling to produce a pre-feasibility study within 18 months of completing the first phase.

Under the third phase, Ero plans to conduct another 45,000m of exploration drilling to produce a definitive feasibility study (DFS) within 24 months of completing the second phase.

Upon completion of the DFS, subject to technical review and Ero’s approval, the parties will enter a joint venture agreement, where Ero will receive a 60% interest in the project.