SoledadProspective for: Gold/Silver/Copper
By agreement dated February 9, 2016, Compañia Minera Casapalca S.A. ("Casapalca") of Lima may earn a 51% interest in Soledad, with an option to increase its interest to 70%, by the completion of work programs and cash payments. In brief, Casapalca can earn a 51% interest by completing 9,000m of diamond drilling and making cash payments totalling US$375,000, over the next 3 years. Casapalca has the option to increase its interest to 70% by making a further payment of US$350,000, and completing an additional 6,500m of diamond drilling (or work equivalent) in the fourth year.
Casapalca are expected to commence their drill program at Soledad in the first quarter of 2016.
An Induced Polarization geophysics survey was completed on the project in December 2014 by Val D'Or Geofisica. The survey was designed to provide information to a depth of 500m from surface, and comprised 6 lines at 400m spacing, for a total of 12.3 line kms. Additional in-fill IP lines were completed in March 2015 on the Faro target, which is located in the south-west area of the concession, and to the west of the 2012 geophysics work. And also over the area of Breccia #5 and #6, at the Soledad Central target. This work has assisted in prioritizing three drill targets with deep porphyry potential: Soledad Central, Faro, and Cima Blanca.
In June 2014, a twelve hole, 2084m diamond drill program was completed at Soledad.
The first stage of the drill program tested the surface targets. The first hole successfully confirmed historical results from Breccia #1. (33 m of 3.5 g/t Au, 22.8 g/t Ag, and 0.95% Cu).
Holes two and three tested the Cima Blanca zone, interpreted to be a high sulphidation epithermal zone. SDH-002 was drilled to a depth of 88.5m to test a prominent chargeability anomaly coinciding with a zone of argillic alteration at surface. SDH-003 was drilled approximately 100m east of SDH-002 in the centre of the argillic alteration zone to a depth of 273m, and returned 5m of 3.9g/t Au at 43m. This interval in SDH-003 is interpreted as the mineralization expected in the upper levels of a porphyry system.
SDH-004 and SDH-006 tested Breccia #3, an area of multiple sub parallel quartz-tourmaline breccias associated with EW trending structures. Both holes in Breccia #3 intersected minor zones of mineralization.
SDH-005 tested Breccia #6, and was drilled to 85.5m, with the first 76m similar to Breccia #1, exhibiting intensely mineralized breccia which tested 1g/t AuEq over the 76m. (76m of 0.53 g/t Au, 33.4 g/t Ag, and 0.02% Cu.) SDH-005 is about 100m higher in elevation that SDH-001, leading to speculation there may be a copper mineralized zone below.
SDH-007 tested Breccia #5, and returned 96m of 1.5 g/t AuEq (0.92 g/t Au, 15.2 g/t Ag, and 0.2% Cu. Gold-copper values are consistent, averaging 0.9g/t Au and 0.2% copper over the 96m.
SDH-008 tested Breccia #2, an area of sub parallel E-W quartz-tourmaline structures with breccias., and intersected 28m of moderately silicified andesite with tourmaline-pyrite, anomalous in Au, As, and Mo.
The objective of the latter stage of the drill program was to discover a breccia-hosted and/or porphyry hosted bulk tonnage mineralization at depth associated with the cluster of mineralized breccias expressed at surface.
SDH-009 tested Breccia #1 at depth, and was drilled at a steep angle (80°) below SDH-001, and from the same setup as SDH-001, in order to test for possible higher grade feeder zones and indications of underlying porphyry mineralization. SDH-009 intersected 174m of mineralized breccia (from 92m to 266m) that averaged 4.4 g/t AuEq (0.74 g/t Au, 114 g/t Ag, and 1.2% Cu). This hole intersected three zones of strong quartz-tourmaline-sulphide mineralization, and included 29m of 9.8 g/t AuEq (1.85 g/t Au, 301g/t Ag, and 2.1% Cu) starting at 236m.
SDH-010 was aborted at 55m due to logistic issues.
SDH-011, located 350m east-south-east of SDH-012, was drilled to a depth of 242m in Breccia #2. This drillhole intersected silicified host rocks with andesite with tourmaline-pyrite, and anomalous silver to about 63m, with the best intercept being 6m of 19 g/t Ag from 29 to 35m.
Hole 12 (SDH-012) tested Breccia #5 and was drilled at a steep angle (85°) below, and from the same setup, as SDH-007. Breccia #5 is approximately 830m west-north-west of the first deep hole (SDH-009) in Breccia #1. SDH-012 intersected 161m of mineralized quartz-tourmaline breccia (from 87m to 248m) that averaged 2.1 g/t AuEq (1.3 g/t Au, 13 g/t Ag, and 0.38% Cu), and exhibits quartz-sericite alteration in clasts with a quartz-tourmaline-massive-sulphide (pyrite and chalcopyrite) matrix.
All the permits are in place to commence a Phase II drill program at Soledad.
The Soledad Property is located in the Cordillera Negra metallogenic province in the central Peruvian Andes and about 34 km to the south of the Pierina gold-silver mine operated by Barrick Gold Corporation.
The 7.13 sq km project was acquired by sealed bid auction in late 2011, and is 100% owned.
The earliest documented work on the Soledad property dates back to the 1960's when it was explored for copper. In 1996, a junior exploration company carried out surface sampling, an IP geophysical survey, and a drill program to test one of several hydrothermal quartz-tourmaline breccia pipes (Breccia #1) on what was then a much larger property. Five holes were drilled on the current Soledad property and the best three holes returned a 61.5m interval grading 1.92 grams per tonne (g/t) gold (Au), 145.8 g/t silver (Ag), and 1.82% copper (Cu); a 28.5m interval grading 5.0 g/t Au and 1.10% Cu; and a 33m interval grading 2.54 g/t Au. The eight other breccia pipes on the Soledad property were not drill tested until 2014.
In 2012, a geophysical survey was completed by Condor, and comprised a total of 25.45 line kilometers of induced polarization (IP) and magnetics, along with prospecting, mapping and sampling. The prospecting and geophysics led to the discovery of a previously unrecognized zone of intense advanced argillic alteration system within the topographically highest elevations (4500m) in the northeastern sector of the property that measures approximately 650m by 450m. Quartz-alunite is pervasive within this zone, along with vuggy quartz and local granular silica which is interpreted to represent a high sulphidation epithermal system possibly overlying silica ledges or breccias and an intrusive at depth. Geochemical rock chip samples are anomalous in gold and silver within this pervasive advanced argillic alteration zone.
The property comprises a number of mineralized hydrothermal breccia bodies in an extensively altered system associated with abundant gossans and quartz veins, multiple quartz-tourmaline structures up to 500m long and 10m wide, as well as polymetallic veins with Ag-Cu-Pb-Zn mineralization. The alteration system measures approximately two kilometers in diameter. Site visits and sampling by Condor geologists confirmed the potential high grade precious and base metal values within Breccia #1, which had been partially drill tested in 1996, but also led to the discovery of an additional eight (8) similar breccia bodies, measuring up to 200m in diameter and also anomalous in gold and silver values.