Review of Geothermal Tenements Held by Hot Rock in Peru and Early Exploration Results

Abstract

Hot Rock Limited (ASX Code: HRL) a public company listed on the Australian Stock Exchange successfully established Hot Rock Peru SA (HRP) in 2009, to explore for prospective high enthalpy geothermal prospects throughout Peru. The volcanic geothermal setting in Peru is very similar to Chile and presents excellent potential for the discovery of geothermal reservoirs suitable for electricity generation. Subduction of the Nazca tectonic plate beneath the South American plate has produced an almost continuous line of active and dormant volcanoes along most of the length of both Chile and Peru. Within the volcanic belt of Peru, more than 500 geothermal springs have been identified. It is clear that Peru has high potential for the development of volcanic geothermal resources for both electricity generation and direct use in the same manner as has been undertaken over the past 50 years around the Circum Pacific Rim in countries such as New Zealand, PNG, Indonesia, Philippines, Japan, Russia, the western US, Mexico and Central America, where approximately 7,000 MWe of geothermal power has been installed and is now operating. An initial desktop analysis of geothermal prospects by HRL in 2009 and a series of subsequent reconnaissance field investigations located a number of high to moderate temperature geothermal fields in the southcentral area of Peru. These prospects have extensive surface geothermal activity with chemistries typical of large volcanic geothermal systems which have been developed elsewhere in the world. The evidence from chemical geothermometry studies to evaluate subsurface temperatures suggests minimum reservoir temperatures ranging between 180 to 250°C. At the time of writing, HRP is preparing detailed exploration surveys including geochemical studies, magneto-telluric resistivity surveys and is continuing land access investigations and community education programs in all granted and soon to be granted concessions.