The Palta Dorada Au-Ag-Cu Property is located in the Ancash Mining Department in Northern Peru and covers an area of approximately 1200 hectares. The Property is accessible from the Aguila Norte Processing Plant (“Plant”) by approximately 180 kms of mainly paved roadway.
Location of the Palta Dorada Project
Peruvian Metals has the option to earn 50% by spending $250,000 US. A memorandum of Understanding (“MOU”) establishes a joint effort to explore and develop the property. Any sales from metal concentrates produced from the bulk sampling activity will be shared between companies.
Limited surface mapping and sampling has identified several oxide Au-Ag veins hosted in granodioritic rocks. The previous owner completed a number of workings allowing for access to several levels for exploration and bulk sampling. The main working is a 53 metre shaft where miners hoisted mineral to the surface. Seven chip samples have been taken from quartz veins containing sulphides in the shaft at various depths. Results from these samples range from 3.06 g/t Au to 24.1 g/t Au, 36 g/t Ag to 865 g/t Ag and 0.22% Cu to 4.94% Cu over an average width of 60 centimeters. The weighted average of the quartz-sulphide vein is 10.51 g/t Au, 329 g/t Ag and 1.71% Cu over the 60 centimeters. The mineralized ENE-WSW mesothermal vein exposed in this main working has been observed over an 800 metre strike length on surface. The oxide-sulphide transition occurs at approximately 25 metres below surface. Samples taken in the oxide zone returned up to 55 g/t Au.
Artisanal Workings over 800 meter strike length
There was on our initial site visit approximately 65 tonnes of mineral had been selectively extracted; hand sorted and sacked outside of the main working ready for shipment to tolls mills in Southern Peru. Two composite samples were taken from various sacks and returned an average grade of 26.7 g/t Au, 23.76 oz/t Ag and 3.16% Cu. A third random composite sample was taken from these sacks and used for metallurgical work. The work performed on this sample by Procesmin Ingenieros Laboratories had a head grade of 23.21 grams/MT Au, 29.04 oz/MT Ag and 4.95% Cu. Metallurgical work showed that two concentrates can be produced. The first and more valuable concentrate graded 125.59 grams Au/MT, 4,808 grams Ag/MT and 24.41% Cu. A second Au-pyrite concentrate was also produced graded 11.46 grams/MT Au, 565 grams Ag/MT and 2.90% Cu.
Artisanal workings on a second WNW-ESE structure north of the main working exposed strongly oxidized quartz veins. Four composite samples taken from mineral sacks containing heavily oxidized material ready for shipment ranged from 8.65 g/t to 17.3 g/t averaging 12.4 g/t Au. A bottle-roll metallurgical sample with a head grade of 13.0 g/t Au and 102 g/t Ag returned a 92.15% gold and 65% silver recoveries over 36 hours.
Mineral Sacks ready for shipment to Toll Mills located in Southern Peru
Compressor at the Main Structure
Looking down the 53 meter shaft