UPI reported that Chilean outlook for gold and copper production described as strategic to national interest has improved with forecasts of greater exploration and refining activities in 2012.
The Latin American country had its state copper producer's ratings upped amid assessments of a continuing lead in copper production and its positive effect on the economy.
Canadian Casablanca Mining outlined plans by its wholly owned Chilean subsidiary, Santa Teresa Minerals, SA to finish preparations for exploitation of its Casuto gold property in IV Region Coquimbo, Choapa province about 120 miles northwest of Santiago.
The Casuto project includes 22 contiguous exploration concessions more than 6,200 hectares. The deposit is thought to extend through the valley and into Chigualoco Bay for about 8 miles. Abundant historic pits, shafts and underground workings are evidence of the historical exploitation.
The Casuto Chigualoco River basin and estuary, protected over the years from sea tides holds gold deposits carried by the river instead of being carried out to sea. Gold in the Jurassic rocks of the area is thought to be of a high grade.
In a gold rush from 1836 to 1846, Casuto grew to about 6,000 workers in a town with more than 40 stores and trading houses. Skimpy records cite gold output during the period to have averaged 24 to 48 pounds a day.
The Casuto gold boom slowed due to river sedimentation and waterlogging of shafts. Current government plans call for a vigorous recovery in gold exploration and production.
US Geological Survey statistics indicate Chile, fourth in the world in terms of untapped gold reserves after Russia and ahead of the United States is looking to boost its gold output.
In 2011, Chile mined 50 tons of gold but its potential could be as high as 3,750 tonnes. That would place Chile, 17th largest gold producer, closer to the top 10 the government's stated target.
