The information on the Escalones Project contained herein was derived from the NI 43-101 compliant Amended Technical Report entitled “Resource Estimate On The Escalones Porphyry Copper Project” effective date June 28, 2013 and amended on July 11, 2014 and filed on SEDAR. Please refer to the Technical Report for important Qualified Person, technical and other disclosures.
|Location:||Metropolitan Region, 97 km SE of Santiago in Central Chile, 9 km west of the Argentinian border|
|Status:||Seeking strategic partnership to advance towards feasibility|
|Targets:||Deposit is open at depth and laterally.
Several magnetic anomalous areas for follow-up drilling.
|Outlook:||Structure a strategic partnership to share in the future success of Escalones|
The Escalones copper-gold porphyry project lies 35 km east of El Teniente, one of the world’s largest underground copper mines and within the renowned Chilean, porphyry copper belt that runs north-south in the central Andes Mountains. The project has excellent infrastructure, including road access, electricity, access to seaports, and a gas pipeline that crosses the 70 square km property.
The Escalones deposit was discovered in 1996 through greenfield exploration work by Ralph Fitch, former President and CEO, and Felipe Malbran, Vice President of Exploration, South America.
Escalones hosts a four-square-kilometer area of hydrothermal alteration with coincident geophysical anomalies that has demonstrated significant grades of copper, gold and silver in replacement-style “skarn” mineralization hosted in limestones and in porphyry related mineralization.
The exposed mineralization at Escalones occurs in limestones and interbedded shales that have been intruded by andesite and dacite porphyry bodies, which are known to host ore at the El Teniente copper mine. Copper mineralization at Escalones occurs primarily as chalcopyrite, bornite, covelline as well as copper oxides near surface. The hydrothermal alteration exposed at surface includes intense zones of quartz-sericite, potassic, and calc-silicate alteration assemblages.
An Amended Technical Report prepared by Hard Rock Consulting, LLC titled, “Resource Estimate on the Escalones Porphyry Copper Project,” and dated July 11, 2014 with an effective date of June 28, 2013 (the “Escalones Technical Report”) expanded and upgraded the initial inferred resource identified in 2011.
Escalones Mineral Resource as of June 28, 2013*
|Resource Category||Tonnes (Millions)||Cu (%)||Au (g/t)||Ag (g/t)||Mo (%)||Cu (Mlbs)||Au (Ozs)||Ag (Moz)||Mo (Mlbs)|
*The mineral resource estimate on the Escalones Project was prepared in accordance with the standards of NI 43-101. Please refer to the Escalones Technical Report available here and on SEDAR.com for important Qualified Person, technical and other disclosures.
A program of metallurgical testing on Escalones material was completed in 2013. The program was focused on the recovery of the copper, gold, silver and molybdenum by conventional flotation and conventional sulfuric acid leaching.
The standard sulfuric acid leach metallurgical test achieved average copper extraction of 79 to 95% from mixed copper oxide-sulfide mineralization. Copper flotation was also successful and rougher-cleaner flotation testing of the porphyry material achieved 25-34% copper concentrate grades at high recovery and low findings of all key impurities.
The Escalones deposit remains open to expansion laterally and down dip, with an untested northern extension of more than 10km to the north. Interpretation of ZTEM resistivity and aeromagnetic surveys show several large areas of yet untested conductivity and magnetic anomalies which may represent potential additional mineralization.