OcrosProspective for: Porphyry Copper/Gold/Silver
On November 17, 2015, the Company announced it had signed a binding Memorandum of Understanding ("MOU") with Compañia Minera Casapalca S.A. ("Casapalca"), based in Lima, on the Ocros project. Under the MOU, Casapalca may earn a 51% interest, with an option to increase its interest to 70%, by the completion of work programs and cash payments. In brief, Casapalca can earn their 51% interest by completing 6,000m of diamond drilling and making cash payments totalling US$250,000 within 3 years of receipt of the initial Ocros drill permit. Casapalca has the option to increase its interest to 70% by making a further payment of US$300,000, and completing an additional 4,000m of drilling (or work equivalent) in the fourth year.
An abandoned adit dating from mining activities that occurred in the 1950's on the eastern edge of the concessions was re-opened in 2014 by an independent operator seeking access to high grade copper ore, without the permission of the Company. The old workings, referred to locally as the Eldorado Mine, is over one kilometer east, and about 300 metres lower than the nearest of seven drill holes completed by the Company in 2007 and 2008.
In August 2014, eighteen representative two-metre long horizontal rock chip samples were taken over a distance of about 300 metres along the adit. The exposed rock in the adit is characterized as feldspar-hornblende-porphyry, with strong potassic alteration throughout, and mineralization in the form of disseminated chalcopyrite-bornite, as well as chalcopyrite and bornite in sulphide vein stockwork and quartz veins. Native copper is also observed in the samples. Copper assays from the eighteen (18) samples ranged from 0.01% to 4.72%, with an average of 0.99%, and included anomalous gold and silver.
Subsequent to the August 2014 sampling, the Company completed a more detailed, rigorous, and systematic rock chip sampling program of the entire length of the historic Eldorado Mine adit referred to as the '200 Level Adit'. An additional forty four (44) representative five-metre long horizontal rock chip samples were taken on the 200 Level Adit.
Together with the samples reported in October 2014, a total of 62 horizontal adit wall chip samples that each average 2.2kg in weight, were collected along the exposed portions on the entire 326m open length of the 200 Level Adit.
Compilation of the complete (62) sample results from the two phases of sampling confirmed the earlier sampling results, with the combined sampling results yielding 326m of 0.68% copper over the entire length of the 200 Level Adit. Included in the 326m was a 141m interval of 1.1% copper located towards the western extension of this adit. Over the 326m, the reported gold and silver values averaged 0.12 g/t gold and 4.1 g/t silver.
More recently, the 150 Level Adit has been reopened, and a compilation of 59 samples on the 150 Level Adit yielded 325 of 0.56% copper, 0.1 g/t gold, and 3.7 g/t silver. The 150 Level Adit, runs from east to west, parallel to the 200 Level Adit, but about 50m lower in elevation, and about 50m further east.
Condor geologists are of the opinion that the systematic sampling from the two adits confirms a considerable porphyry type center. The copper mineralization in both adits is very uniform and typical of mineralization associated with the potassic core of many other well-known copper porphyry deposits.
In June of 2015, Condor was advised by a third party that had visited and sampled the project in 2013, that results from an Argon-Argon radiometric dating test had estimated the age of the Ocros quartz feldspar porphyry at 34.95 million years. This is of note, as this is similar to the age of the copper porphyry projects in the Miocene belt of northern Peru.
In June 2015 the Company's 85% owned subsidiary formalized an arrangement with the local mining company that had opened the adits. Under the agreement, with a one year term, the local mining company was given the right to exploit the el Dorado vein within a limited and defined area of Ocros (approximately 7.6 hectares), in consideration of a monthly royalty payable to the local community, and payment of the annual concession taxes on all the Ocros concessions.
The 19.7 sq km Ocros property is located 180 km NW of Lima at elevations ranging between 2250m and 3550m and on the continental-scale West Fissure fault system, host to the majority of South America's most significant copper resources
85% interest. The property vendor holds a 1% net smelter returns royalty, and a 15% interest carried to commercial production. Condor has the right to purchase the royalty at any time for US$2,000,000. The property vendor's interest is fully-carried and non-contributing until the completion of a feasibility study, at which time the property vendor will receive an additional 1 million shares. All costs incurred by Condor on behalf of the property vendor following completion of the feasibility study will be recouped with interest from the property vendor's 15% share of production proceeds.
The property covers an intensely altered, copper-mineralized target measuring 6 sq km in area, with mineralization presently exposed over a vertical extent of more than 700m. High grade "exotic" copper mineralization, comprising secondary copper-rich chrysocolla cementing gravels at the bedrock-gravel interface is also present, representing a second separate high-grade copper exploration target.
Summary of Work to Date:
Sampling of the property in July 2007 returned widespread anomalous Cu, Au, Ag, Mo, Pb and Zn assays within the area targeted for drilling. A total of 118 of the 128 samples collected (92%) returned values in excess of 100 ppm Cu, including 76 samples (59%) in excess of 500 ppm, 51 samples (40%) in excess of 1000 ppm, 18 samples in excess of 0.5% Cu and 11 samples (9%) assaying more than 1% Cu.
A Phase I drill program designed to test the continuity of the highly anomalous surface copper mineralization at depth commenced in November 2007 and was completed in April 2008. A total of 7 holes totaling 2,803 meters of diamond core drilling were completed. The best intercept was found in drill hole OCR-001 with 251.3 m grading 0.15% Cu, including 54 m of 0.41% Cu from 316.0 to 370.0 m depth. The remaining holes included OCR-002 with 81.9 m grading 0.11% Cu, OCR-003 with 102.0 m of 0.11% Cu, OCR-005 with 12.0 m of 0.16% Cu, OCR-006 with 10.0 m of 0.21% Cu and a second interval deeper in the hole which returned 19.6m grading 0.12% Cu.
The nearest of seven drill holes completed in 2007/2008 is over one (1) kilometer west, and at higher elevation, than the eastern entrance to the 200 Level Adit. The closest drill hole (OCR-001) was drilled to a depth of 400m, and reported 251m of 0.15% Cu from 150m to 400m, which included 54m of 0.41% Cu at the bottom of the hole. This drill intersection would be located over 700 meters from the western termination of the 200 Level Adit. This drilling intersected only sporadic potassic alteration.
The sampling information from the 200 Level Adit and the 150 Level Adit, and recently exposed outcrops from road construction near the adit entrances, indicates that the center of the copper enriched porphyry system is interpreted to be entirely preserved at depth and located further to the east, and at a lower elevation, than the area originally tested by Condor's 2007/2008 drill program.