Kobrea Exploration has announced the signing of a strategic alliance with BHP Metals Exploration to jointly advance exploration across the seven copper projects controlled by the Canadian company within the Malargüe Western Mining District (MDMO) in Mendoza Province. The agreement brings BHP's exploration division on board as a partner for an initial project generation phase and includes the option to subsequently advance up to four projects through individual earn-in agreements.
By Panorama Minero
The agreement follows Kobrea's completion of the most advanced exploration campaign conducted to date within MDMO. During the 2025-2026 field season, the company carried out the district's first drilling program at the El Perdido project, completing six diamond drill holes totaling 2,358 metres.
How the Partnership Will Operate
Under the agreement, BHP Metals Exploration will make an initial payment of US$3 million and fund a project generation program over an initial two-year period with a minimum investment of US$5 million. During this stage, Kobrea will remain the operator of the exploration program, while all activities will be overseen by a management committee composed of representatives from both companies.
At the end of that period, BHP will have the option to select up to four projects to advance through individual earn-in agreements. For each selected project, BHP may acquire a 75% interest by funding a minimum of US$40 million in exploration expenditures over an eight-year period. Once those commitments have been fulfilled, the parties will establish a joint venture in which BHP will hold a 75% interest and Kobrea the remaining 25%.
The Exploration Program behind the Agreement
The partnership builds on the exploration work undertaken by Kobrea since entering Mendoza. The company completed geological mapping, surface geochemical sampling, spectral surveys, and geophysical programs, which led to the definition of the initial drill targets at El Perdido.
As part of that effort, Kobrea also carried out a geophysical survey with the support of the Mendoza-based company Geoenergía, constructed access roads, installed high-altitude infrastructure, and established the exploration camp that made the 2025-2026 drilling campaign possible.
The program concluded with six diamond drill holes totaling 2,358 metres, making El Perdido the first project within the Malargüe Western Mining District to reach the drilling stage of exploration.
The results confirmed the presence of a copper-gold-molybdenum-silver porphyry system. Drilling intersected potassic and phyllic alteration zones, stockwork quartz veinlets, and mineralization associated primarily with pyrite and chalcopyrite. According to the company, the intensity of hydrothermal alteration and the abundance of sulphides increase with depth, while the core of the porphyry system has not yet been reached.
A Portfolio Built Around Seven Projects
Kobrea holds the right to acquire a 100% interest in seven projects covering more than 733 km² in southwestern Mendoza.
According to the company, the portfolio displays favourable characteristics for copper and copper-gold porphyry systems, with targets defined through extensive hydrothermal alteration footprints, copper, gold, and molybdenum geochemical anomalies, stockwork vein systems, hydrothermal breccias, and Miocene porphyry intrusions.
In September 2025, the company increased its private placement to C$8.5 million to finance exploration and drilling programs across these projects. That financing enabled the execution of the El Perdido drilling campaign and supported additional work at El Destino, where environmental baseline studies and an airborne magnetic survey are currently underway as part of the planning process for future drilling programs.
