On Jan. 20, 2010 Magma Energy Corp. announced that it had been awarded the 100,000 hectare Pellado property, 300 km south of Santiago, by the Government of Chile. Pellado adjoins the Maule property upon which Magma previously reported a 140 megawatt (“MW”) Inferred Resource. Now (5 May) Magma Energy has exploitation permit from the Government of Chile enabling development of a 50 MW geothermal operation on the 4,000 hectare Laguna de Maule (Maule) property, 300 km south of Santiago.
Slim hole drilling and a magnetotelluric geophysical program carried out by Magma in 2009 discovered a large heat anomaly (the “Mariposa Geothermal Resource”) that straddles the Pellado and Maule properties. Magma’s consultant, Sinclair Knight Mertz (“SKM”), estimates that Mariposa contains an Inferred Resource of 320 MW of electrical generation capacity, including the previously reported 140 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╟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.
The area of the Mariposa Property corresponds to an active volcanic zone. The region is composed of several large super-imposed volcanic structures. Several fumaroles and hot springs are noted around the volcanic systems, evidence of past volcanic activity. Fumaroles are found on the concessions and hotsprings are located nearby. Work done to date suggests the presence of a magma chamber five to ten km in depth that may be the driving force for the geothermal system found in the area. Significant volumes of pyroclastic material constitute the underlying volcanic sequences and may represent potential reservoir rocks.
Schlumberger Water Services completed a geophysical resistivity survey on the Mariposa Property in March 2009. Magma also undertook geological mapping, structural analysis and water and gas chemistry analysis. Gas chemistry indicated high temperature (greater than 230°C) subsurface fluids. The resistivity survey also indicated a very large (greater than 26 km2) anomaly.