CONDOR RESOURCES INC. : http://www.condorresources.com/ : QwikReport
Prospective for: Porphyry Copper/Gold/Silver
Compañia Minera Virgen de la Merced S.A.C. ("Merced") commenced a drill program at Ocros in July 2017, and completed 3 diamond drillholes (2,110m) by February 2018. In March, Merced completed a magnetometry survey over an area of 3.1 sq km. After receiving the results of the mag survey, Merced resumed drilling in late April 2018. Results from Merced's 3 drill holes are pending.
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.
A comprehensive agreement was completed with Compañia Minera Virgen de la Merced S.A.C. ("Merced") on May 17, 2017, replacing an MOU signed in January. Pursuant to the agreement, Merced will have the option to earn up to a 70% interest in the Ocros concessions over four years, by making cash payments totaling US$550,000, and completing 10,000m of drilling. The agreement stipulates a mandatory first year work program of 2,000m of drilling (completed).
Condor concluded a transaction with Sandstorm Gold Ltd. ("Sandstorm") in January 2017, and part of that transaction included the assignment to Sandstorm of the buyback right on the Ocros 1% NSR. If Sandstorm exercise the buyback right, the 1% NSR in favour of the vendor would be replaced with a 1% NSR in favour of Sandstorm.
In April 2016 the Company signed a comprehensive agreement with Compañia Minera Casapalca S.A. ("Casapalca") on the Ocros project; Casapalca terminated the agreement effective February 3, 2017.
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:
Merced completed 3 diamond drill holes (2,106m) between July 2017 and February 2018.
Casapalca completed one near vertical drill hole of 500m on the project in December 2016.
An earlier Phase I drill program completed in 2008 was designed to test the continuity of the highly anomalous surface copper mineralization at depth. A total of 7 holes totalling 2,803 meters of 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.
An abandoned adit from mining activities that occurred in the 1950's on the eastern edge of the concessions was re-opened 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 drill hole (OCR-001) completed in 2008.
In August 2014, 18 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 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 was 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 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 2008 drill program.
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 Eocene - Oligocene belt at Abancay deflexion and continuing to northern Peru.