Chavin/PucarimaProspective for: Gold/Silver/Lead/Zinc
On November 18, 2015 the Company announced it had concluded a production royalty agreement with a private Peruvian company ("Operator") on the Chavin project. Under the royalty agreement, the Operator will pay a net smelter royalty of 3%, subject to an annual minimum of US$25,000, payable in advance. The Operator is also obligated to complete a minimum of 1,000m of diamond drilling on the project within one year of obtaining the necessary permits.
The Chavin (formerly called "Pucarima") Property covers an area of eight sq km within the central Andes mineral belt in northern Peru, and is host to a polymetallic vein system. Chavin is located 70 km NW of the Pierina gold-silver mine operated by Barrick Gold Corporation and 10 km SW of the Pashpap Cu-Mo porphyry project.
Silex Peru SRL had expended in excess of $400,000 between April 2010 and June 2011 at Chavin, and progressed the project to the drill ready stage, including community approval and drill permits, in advance of a planned 12 hole, 2650m drill program.
Previous small scale mining activity on the principal vein at Chavin included a 50 metre long adit to follow the mineralization, dating from the 1970's. In the 1990's, a small drill program resulted in three short holes being drilled, two of which missed the structure completely. The third hole appears to have been drilled primarily within the hanging wall of the vein and from surface averaged 1.14 g/t Au, 26 g/t Ag, 2% Pb and 1% Zn over 14.1 metres, before exiting the mineralization. This work is not NI-43-101 compliant and therefore may not be relied upon.
The property covers silicified and potassic altered sediments and a quartz-feldspar porphyry intrusive cut by a number of subparallel epithermal polymetallic veins.
The principal vein identified to date has been traced over 1000 metres averaging 2 to 5 metres in width. Preliminary channel samples over a length of 3 to 5 metres across this vein have returned polymetalic values from negligible to a maximum of 13.9 g/t Au, 1,645 g/t Ag, 25.7% Pb, 10.7% Zn and 0.2% Cu. These results indicate potential for the discovery of high grade 'bonanza-style' mineralization within this vein system. Quartz-vein stockworks within the host intrusive are also anomalous and will be evaluated for epithermal precious metals mineralization.
Since optioning Chavin in 2010, Silex had engaged the local community, contracted for an environmental impact study to cover the property, constructed 6.5 km of access road to the project and an additional 1.5 km within the property boundary, and built a base camp. In addition, Silex had carried out 1:1000 scale geological mapping, a topographical survey for control and collected and analyzed a total of 369 surface samples from the main vein and surrounding silicified and oxidized structures, as well as taking 25 samples from the existing 60m long adit.