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Lucero

Prospective for: Gold/Silver

Update:

In November 2019, Compañia Minera Casapalca S.A. terminated the production royalty agreement on the Lucero project; Casapalca had paid the annual minimum royalty of US$75,000 over the past four years, but had not put the project into production. Casapalca does not retain any residual or ownership interests.

Condor is coordinating with Casapalca for the transfer of data and work completed at Lucero by Casapalca.

Location:

The Lucero property is located in the Chila Range of southern Peru, is approximately 130 kms northwest of the city of Arequipa and 600 kms southeast of Lima. The property is in the Chachas District, Castilla Province of the Department of Arequipa, about 22 kms southeast of Buenaventura's Orcopampa mine.

Ownership:

The 21 sq km project was acquired by staking and is 100% owned by Condor.

In February 2017 the Company reached agreement with Sandstorm Gold Ltd. to sell a package of royalties, including a 50% interest in the Lucero production royalty, commencing in the fifth year of the production royalty agreement. On termination of the Casapalca production royalty agreement, Sandstorm's interest at Lucero converted to a 0.5% NSR.

History:

Condor acquired via staking a 100% interest in 22.7 sq. km, 3 concessions, within the ex-Shila Au-Ag epithermal mining district in Peru. The property is 130 km NW of Arequipa and 25 km SE of Buenaventura's Orcopampa mine, at elevations ranging between 5000m and 5500m. Buenaventura operated three underground mines on the concessions, and stopped mining in approximately 2005. The Shila Mining Camp includes several precious metal vein mines, of which the Sando Acalde, Pillune and Apacheta-shila were among the better known. The extracted ore was processed at a small plant east of the concessions and during the last five years the reported production averaged approximately 20,000 ounces of gold and 470,000 of silver per year at average grades of 14.7 g/t gold and 450 g/t silver. Historical mining was focused on low sulphidation vein deposits and to the best of our knowledge, there was no exploration below the area worked. We believe that potential remains for the discovery of additional high grade ore shoots below, and in the vicinity of the three former producing principal vein mines on the Lucero concessions, and in the numerous other veins and structures located on the property. Condor geologists have also identified a previously unmined and unexplored high-sulphidation epithermal zone in the north-west part of the concession with anomalous gold/silver values.

Signs of older workings indicate that the gold veins were known from well before, and were likely worked in colonial times.

A sampling program in late 2016 by an unrelated third party confirmed the bonanza grade precious metals reported from earlier mining operations, and reinforces our belief in the potential for Lucero to host additional reserves in the many structures (over 80 veins have been mapped at surface), and also in the prospectivity of the high sulphidation epithermal bulk tonnage target.

Geology/Mineralization:

High grade 'bonanza-style' direct shipping ore was mined here in the past from low to intermediate sulphidation quartz-carbonate (rhodochrosite) massive sulphide veins. Lucero is one of many areas of low-sulphidation epithermal Au-Ag deposits hosted in Tertiary volcanics of the Central Andes Cordillera of southern Peru.

Recent activity:

A third party sampling program was conducted in late 2016, under a confidentiality agreement with Casapalca and the Company. The sampling locations were dispersed over the concessions, and tested six different target areas. In total, 60 samples were taken and analyzed, with the majority (50) being outcrop channel samples. Most of the outcrop samples (forty-four of fifty) were taken at surface, while several of the outcrop samples (six of fifty) were taken from the wall rocks and mineralized structures inside the former underground workings. The balance of ten (non-outcrop) samples consisted of 8 grab samples take at surface, and 2 grab samples from inside the old workings.

From the sixty samples, reported gold values ranged up to 144 g/t Au, with 21 of the samples reporting gold values greater than 1.0 g/t Au.

Silver values ranged from 0.1g/t Ag to greater than 10,000 g/t Ag, with 23 of the samples reporting silver values greater than 50g/t Ag. Sample number 3938, a 1.8m rock channel sample taken at surface from the principal vein in the Sando Acalde area, reported 18.9 g/t gold, and greater than 10,000 g/t silver (the upper analytical limit of the laboratory analysis utilized).

Preliminary evaluations of the property by Condor's exploration team comprised prospecting the property and sampling other veins and structures, including the surface areas surrounding the above-mentioned former producing mines. Dr. Richard Culbert, Condor's Qualified Person, visited Lucero in 2011 and his sample results were consistent with Condor's sample results, in that the grades were as expected for a property that has supported mining via direct ore shipping. Comparison of Dr. Culbert's sample results with Condor's sample results also shows nugget effect.

The following table was prepared by Dr. Culbert:

Sample
g/t Gold
g/t Silver
Notes
Culbert 1
1.76
224
Sando Acalde ore sorting dump
Culbert 2
Condor 5706
17.2
0.2
969
14
Sando Acalde vein on surface
Culbert 3
Condor 5708
1.17
1.70
95
197
Quartz vein at 802120 East, 8293450 North
Culbert 4
Condor 4709
33.8
43.2
519
437
Pillune area, vein above old tunnel
Culbert 5
Condor 5710
2.3
2.3
74
68
Same area as Culbert 4, different vein
Culbert 6
Condor 5655
5.9
25.0
23
76
Calcite-pyrite vein at 802215 East, 8295638 North
Culbert 7
2.8
7
Vein float composite at 800625 East, 8297125 North
Culbert 8
32.2
3500
Baratina area, 3 small veins with sulfides, 801120 East, 8296890 North
Culbert 9
Condor 5715
30.1
33.4
842
860
Baratina veins
Culbert 10
Condor 5828
6.1
1.8
22
6
Baratina veins
Culbert 11
17.5
498
Baratina area, 801015 East, 8296885 North
Culbert 12
0.4
62
Pyritic material from shaft on no. 8 vein
Culbert 13
0.1
9
Siliceous sample from no. 8 vein. 801573 East, 8296825 North
Culbert 14
0.6
36
Similar to Culbert 13


During the preliminary prospecting work, an epithermal high sulphidation alteration zone with low sulphidation structures was identified on the property, and returned peak sample values of 33.4 g/t Au and 3,500 g/t Ag. This alteration zone, measuring approximately 1300m by 1400m in size, exhibits no evidence of prior sampling or drilling and is believed to host potential for a bulk tonnage disseminated gold-silver deposit.

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This page was created on Mon Apr 6, 2020 at 6:04:50 PM Pacific Time.