CONDOR RESOURCES INC. : http://www.condorresources.com/ : QwikReport
Prospective for: Copper/Gold/Silver
Condor signed a comprehensive agreement with Chakana Resources S.A.C. ("Chakana") with respect to the Company's Soledad project in April 2017.
Under the terms of the agreement, Chakana has the option to earn a 100% interest in Soledad over a period of 4.5 years, subject to a 2% net smelter return royalty in favour of the Company. To earn the 100% interest, Chakana is required to complete 12,500m of drilling (or work equivalent), make cash payments totaling US$5.375 million, and issue 500,000 Chakana shares to Condor.
In March of 2019, the Company and Chakana amended the NSR terms of the April 2017 agreement. In exchange for 900,000 Chakana shares and US$275,000 cash, on exercise of the purchase option, Condor will retain a 1% NSR on the concessions. Chakana will have the right to buy down Condor's NSR to a 0.5% NSR by further payment of US $1million. In the event Chakana does not exercise their option to acquire the Soledad concessions, Chakana will retain a 1% NSR royalty on the concessions, which royalty Condor will have the option to reduce to a 0.5% NSR by payment of US$1 million.
Chakana commenced their initial drill program in August 2017. To February 28, 2019 Chakana had completed 25,211 metres of drilling in 94 holes (SDH 017 to SDH-110) in breccia pipes #1, #3, #5 and #6. These holes were designed to provide detailed information on the geometry and mineralized grades of these tourmaline breccia pipes. Results from all 94 drill holes were published in several Chakana press releases between October 6, 2017, and April 2, 2019.
Chakana commenced a 20,000m, Phase 3 drill program on June 24, 2019, with the first drill hole of Phase 3 on Breccia #7, located on Condor's concessions. Chakana have indicated they intend to drill targets on the ground to the south of Condor's concessions after receipt of permitting.
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 original 7.13 sq km concession was acquired by sealed bid auction in late 2011. In late 2016, an additional concession of 3.16 sq km was acquired, adjacent, and to the west of the original concession. Both are 100% owned. Condor signed a comprehensive agreement with Chakana in April 2017. Compañia Minera Casapalca S.A. ("Casapalca") of Lima terminated their option on Soledad effective February 3, 2017.
Casapalca completed a four hole, 2,807m drill program at Soledad in June 2016. (holes SDH-013 to SD-016).
SDH-013 and SDH-014 were near vertical holes, located on the surface exposure of Breccia's 5 and 6, respectively, and located 500 meters from each other. SDH-014 is 200m higher in elevation than SDH-013. These holes were designed to provide more information on the extent of the breccias, and to test for evidence of porphyry style mineralization and alteration at depth.
SDH-013 was mineralized from surface to 119m at 2.1 g/t AuEq, including a 59m interval averaging 2.8 g/t AuEq. The drill core from this hole shows increasing intensity of stockwork to depth, and phyllic alteration with assemblages of tourmaline and pyrite, also increasing to depth.
SDH-014 was drilled to a depth of 824m at Breccia 6, where prior drilling in 2014 (SDH-005) was limited to a 60° dip, 86m hole, which tested the geometry of the breccia. SDH-014 was mineralized from surface to 164m, and tested 1.5 g/t AuEq over 164m. Anomalous intervals of copper and molybdenum at roughly 600m and 700m depth, combined with the increasing intensity of the stockwork at depth, phyllic alteration with assemblages of tourmaline and pyrite, also increasing at depth, are interpreted as strong indicators that the potassic mineralized core of the porphyry may be nearby.
SDH-015, located in the north-east part of the project, approximately 1km to the northeast of SDH-014, was designed to test an epithermal high sulphidation target. SDH-015 was completed to a depth of 443m and returned no significant results. In 2014, SDH-003, in same area as SDH-015, had returned a 5m interval of 3.9 g/t Au.
The fourth hole, SDH-016 is located near Breccia 1, approximately 900m east of SDH-013 and was completed to a depth of 940m. SDH-016 also encountered phyllic alteration below the breccia, but importantly, below the phyllic alteration, the drill logs report potassic assemblages, with occurrences of quartz-secondary biotite-magnetite-pyrrhotite-pyrite-chalcopyrite, which is interpreted as the transition to, and part of, the potassic core of the porphyry.
This hole confirmed the extent of the polymictic Breccia 1, both to depth and width, and also confirmed encouraging potassic porphyry style mineralization and alteration at depth. The hole contains significant mineralization from surface to 490 metres depth where the drill hole ultimately exited the breccia. Results from surface to 490m are summarized as 490m of 1.6g/t AuEq, and detailed as 490m of 0.74g/t Au, 30.3g/t Ag, and 0.39% Cu.
Results from SDH-016 indicate the nature of mineralization is complex, with the relative content of gold, silver and copper showing variance throughout the hole. Notable amounts of lead and zinc were also encountered at depth, including 200m of 0.5% zinc from 290m.
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, 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 assisted in prioritizing the drill targets for Casapalca's 2016 drill program.
In mid June 2014, a twelve hole, 2084m diamond drill program was completed at Soledad by Mariana Resources.
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.
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.