EL MORADO PROJECT
Description of project:
Our main project comes after the review and evaluation of most mining districts of the Third Region of Atacama associated with IOCG deposits (Iron, Oxidates, Copper and Gold).
Inside the property and the district in general, you can see lots of oxidized mineralization outcrops with copper, gold and iron, type veins and mantles, with surface workings that have mostly been mined on a small scale without recognizing the sulfides area.
Its location near the sea, excellent climate, feasibility of maintaining continuous productive activity throughout the year and no settlements of indigenous communities made this project is really interesting.
Location:
The Project locates in “El Morado Mining District”, in the Freirina sector, Huasco Province, Third Region of Chile at a elevation of 1.000 m.a.s.l. For accessing to the area it is necessary to drive about 35 kms from the Domeyko town, through road of bischofite; then you take a secondary road to the northeast by El Morado Valley, and after going over 10 kms you get to the property.
Mining Property
Three mines constitutes this project, The Cecilia, Rincon and Rinconada mines. The three mines are covered by 17 constituted mining concessions. The total area covers a surface of 1.679 hectares.
Mineralization:
The mineralization of our properties and a great part of the mineralization of the district (Cu, Fe, Au) is located on rocks of the Punta del Cobre formations, which lie over concordantly to La Negra formation and disconcordantly to the former one, over the Canto del Agua formation.
The mineralization of Cecilia, Rincon and Rinconada mines corresponds principally to copper oxides, finding contents no less important than gold and iron. The exploitation is superficial; therefore not yet been discovered roof sulfides. The principal mineralization of copper is chrysocolla, with subordinated copper-wad contents (oxides and hydroxide of Mn with Cu), neotocite (hydrated silicate with oxide of disseminated Mn, Fe and Cu) and limonites with copper (hematites, jarosites, ghetites).
Laboratory analysis:
In order to obtain a first estimate of the resources with copper mineralization, it was necessary to check most of the veins and mantles which discover the workings and roads on both properties.
The analyzed samples correspond to 20 points with superficial workings in copper oxidized. It should be noted that in this preliminary report, not all mineralization sectors were sampled.
Mining activities:
The property has been mined on a small scale in Cecilia Rincon and Rinconada Mine, extracting more than 70,000 tons of oxides copper with an average grade of 1%. This mineral has been sold to the Dos Amigos plant located south of Domeyko, 35 km from the property.
In the property and surroundings there is not drilling for recognizing the sulfides zone at depth, but to the northeast side (Mine Callejas family property), which exploded for 20 years, since 1940, veins up to 8 meters thick and up to 500 meters depth with grades between 3 and 5% copper sulfides. The projection of the veins into our property indicate deep sulfide mineralization in veins and mantles.
Geophysical Prospection:
Geophysics was developed through the IP method in Rincon and Cecilia Mines. Each line has 700 meters, with dipoles located every 50 meters; therefore, information is obtained up to 150 meters deep.
Both sections can be seen in greater conductivity showing target zones of up to 100m wide.
According to information supplied by the geophysics, we recommend drill holes of 500 meters to recognize the area with oxides and copper sulfides in depth.
Potential Ressourse:
Surface outcrops with copper oxides and projection of mineralization at depth along about 2 geophysical lines ( IP method ) allow deliver a preliminary estimate of minimum resources of 80 million tons with an average grading over 1% total copper, with potential resources exceeding 120 million tons.
According to the strategic location of the property within the IOCG deposits, to the structural controls (System Atacama Fault), to the lithological and associated mineralization, these properties can perfectly accommodate a mineral deposit similar to Mantoverde Mine or mines of the Punta Del Cobre district.
