You are on page 1of 18 No.

61 / March 2018

5 Project
9 Challenges of
the new cycle 13 Exploration

Attract investment
ow that Chile occupies
the eight place in the
Fraser Institute's annual
ranking of attractive
destinations for mining invest-
ments, a challenge for the inco-
ming government will be to reacti-
vate foreign investment and ratify
the country's leadership in the mi-
ning industry.
According to the Ministry of Mi-
ning, led by Baldo Prokurica, with
Pablo Terrazas as secretary,
measures that revitalize the indus-
try are required. The team will
work on a National Mining Policy
for the period 2018-50 with the
aim of attracting US$40B in invest-
The goal of the government is to
increase the investment rate by
three percentage points by the end
of the presidential period—not
only in mining. Currently, the mi-
ning sector generates approxima-
tely one tenth of the country's GDP
and half of its exports.
Following the recommendations of
SONAMI and Alianza Valor Minero,

© 2015 Chile Explore Report All Rights Reserved 1 No.61 / March 2018

the new authorities have also recog- Modernize the current regulation
nised the need to create a Project In Chile, Mining Concessions or Pedi-
Management Office to speed up the mentos generate a form of income
approval process for mining permits. both for the owner and the federal
According to figures issued by Cochil- government. However, not all Pedi-
co, the mining investment portfolio mentos are filed with the intention to
for the next 10 years (totaling explore and/or exploit minerals. Offi-
The new authorities US$64.8B) contains initiatives valued cial figures reveal that out of a surfa-
have also at US$ 11.7B, some of which have yet ce area of 75,610,240 hectares (ha)
to be given environmental approval. dedicated to land use, 30,720,729ha
recognised the need The rejection of the Dominga mining are exploration (15,285,300ha) and
project in the Region IV has genera-
to create a Project ted a distrust in the institutional fra-
exploitation (15,435,492ha) conces-
sions, but only 23% of these are acti-
Management Office mework, therefore, the reform of the vely used for those purposes.
Environmental Impact Assessment Concessions are speculative in nature
to speed up the System (SEIA) will be another topic of due to the absence of work pro-
approval process discussion for the new government.
The lack of clarification regarding Pro-
grams, which reduces investment
possibilities. In fact, during the past
for mining permits. ject approval terms could negatively year, only 38% of small and medium
affect investment decisions for com- sized exploration businesses reported
panies, as investors would not know activity. Acting as part of the Explora-
until the last moment whether their tion Business Registry, Cochilco iden-
projects are approved or rejected, tified 114 companies, 79 of which are
regardless of the amount invested or junior (69.3%), operating with caution
the obstacles they had to overcome. and focusing on advancing their pro-
Foreign direct investment demands jects without taking major risks.
legal certainty.


© 2015 Chile Explore Report All Rights Reserved 2 No.61 / March 2018

Joe Mazumdar, analyst and co-editor of time when they are not advancing Mining concessions in Ecuador are
of Exploration Insights, believes the the Project,” he suggests. In Chile, granted by the Ministry of Mining
cost of acquiring concessions may be exploration and exploitation conces- through a bidding process which
detrimental to many junior compa- sions are issued by judicial resolu- grants rights that cover up to
nies, who have limited budgets. tions from the Civil Court for a pe- 5,000ha for a term of 25 years,
“Gold sector exploration is mainly riod of two years and half the alloca- which can then be renewed. The
being driven by junior companies, so ted area can be renewed for an addi- legislation establishes that conces-
if you cut them out of the equation, tional two years. sions may be sold, assigned or trans-
you get less exploration at these There are various legal mechanisms ferred, provided that the owner
projects,” he explains. in place throughout South America holds environmental licenses and
According to Mazumdar, junior com- that could be used as an example. In submits an annual report of explora-
panies have to contend with an anti- Peru, mining concessions (from tion activities and investments.
quated system that includes an over- 100ha to 1,000ha) are granted by To attract a larger investment, the
lap of mining and exploration con- the Geological Institute of Mining mining department of Chile must
cessions in certain zones, “The go- and Metallurgy (INGEMMET), with devote more attention to security of
vernment should provide more fun- the concession requiring work and tenure while modernizing the acqui-
ding to its mining agencies to make an operation fee for two consecutive sition of mining and exploration con-
the process of granting concessions years to avoid lapsing. The same oc- cessions making them simpler, qui-
better and faster. Also, it should try curs if a minimum production level is cker and more efficient.
to prevent companies from holding not achieved by the end of the fi-
concessions for protracted periods fteenth year.

Property Concentration
Statistics provided by SERNAGE-
OMIN indicate approximately
48,500 exploration concessions
operate in Chile, 50% of which are
in the Tarapacá (I) and Antofagas-
ta (II) regions. Property is concen-
trated in 16 companies which
control more than a third of all
exploration and exploitation con-
cessions in the country.

© 2015 Chile Explore Report All Rights Reserved 3 No.61 / March 2018

Modernize institutionalism supervisory role of the agency as (US$43.9B), with 63.4% of this capi-
During the next four years the super- part of the targets set by the inco- tal provided by Chilean companies
visory role of Cochilco will be reinfor- ming government. (US$31.2B), 11.2%, by Canadian
ced and the creation of a Geological Cochilco also expects to receive companies (US$5.5B), and the re-
Service of Chile and a National Mi- sanctioning powers that go beyond mainder divided between Australian,
ning Service will be considered, tasks those available when they are not British, Japanese and Korean compa-
which are currently assigned to Ser- given the required information to nies.
nageomin. perform audits or conduct invest- Chile and Peru are the two largest
The Ministry of Mining will also seek ment evaluations. It also anticipatesglobal copper producers, but now
to strengthen the independence of an increase in the number of inspec- that Peru is on the verge of a political
Codelco's corporate governance by tors (it currently has 13). crisis, local Chilean industry could
implementing a dividend policy to "It's not about arriving and penalis-benefit.
replace the Reserved Copper Law ing. It is necessary to understand "This is an opportunity for Chile to
(Ley Reservada del Cobre). what resources are available to act repair the mistakes of the last four
"The law gives us the broadest inves- later... We have strengthened the years, as the crisis scenario in Peru
tigative powers and we want to en- institution, but we want to continue leaves Chile attractive not only for
sure that Codelco complies with the improving," says Hernández. explorers but also for established
regulations, but also make sure that companies," said Maurizio Cordova,
its procedures, operations and com- Regional competition CEO of Auryn Mining. .
mercialization are correct,” said Ser- Close to 90% of mining investment in CER
gio Hernández, VP of Cochilco, when Chile over the coming years will be
CER asked about strengthening the dedicated to copper projects

© 2015 Chile Explore Report All Rights Reserved 4 No.61 / March 2018
Project Showcase

Available Exploration Alliance Area with SQM

Prospect Generation through advanced explorations

Metals Exploration Alliances

 8 active option agreements
 390.000 ha in exploration alliances
 +36 M$ in exploration expenditures
 6 active negotiations

Metals Exploration
 Prospect generation through
advanced explorations
 Over 70.000 meters drilled since
 +52 prospects identified in 3 years
 Current exploration work plan
covering 500.000 ha

Maria Jose Alvarez Jose Dias Cifuentes

Metal Business Development Manager Metal Business Development Geologist
Darryl D. Lindsay, PhD, PGeo
Metal Business Development Director

© 2015 Chile Explore Report All Rights Reserved 5 No.59 / Enero 2018

© 2015 Chile Explore Report All Rights Reserved 6 No.61 / March 2018

Is Chile still a mining country?

María Paz Pulgar B.

ccording to Banco Central While true that the crisis of the local as well as its wealth of mineral re-
de Chile, mining production mining industry was a partly the re- sources. However, we cannot put our
still represents approxi- sult of international conditions, we feet up, as we cannot assume to re-
mately 50% of Chile´s na- cannot ignore that Chile has been ceive investment and develop mining
tional exports, despite the depressive losing its competitiveness against in the country without doing any-
period in recent years for commodi- other countries. Indeed, as shown by thing to maintain our position as an
ties in general, and particularly for the Fraser Institute survey that ranks attractive destination.
copper. a country’s investment attractiveness Chile’s competitiveness ranking
for mining ventures, Chile has con- didn´t drop by chance, nor was it
stantly dropped positions since 2013; solely caused by the behavior of the
when it was listed as fourth place. In commodities market in recent years.
a space of only four years, it had Its decline is also largely the result of
dropped to 39th place by 2017. More- purely local factors. The goose that
over, that same year, Chile lost its laid the golden eggs was neglected;
position as a regional leader, being assumed to be a certainty given our
taken over by Peru, which was significant market position, despite
ranked 28th. the multiple warning lights that have
Even so, on an international level been flashing in various sectors for
Chile continues to be recognized as years now.
one of the principal destinations for To mention just a few reasons that
mining investment and has an im- make us less competitive on an inter-
portant prestige given the serious- national level: the inorganic growth
ness of its markets and institutions, and excess of sectoral permissions
needed to develop mines, of which

“We need to take

action and look
for proactive
that can encourage
mining investment
and recuperate
the leading position
that we used
to occupy.”
Maria Paz Pulgar

© 2015 Chile Explore Report All Rights Reserved 7 No.61 / March 2018

there are now more than 200, that on a country-wide level is to take a thorities in charge. Therefore, initia-
depend on various factors, each with conscious, clear and proactive deci- tives are required that institutionally
their own requirements, time-frames sion to promote mining and other strengthen mining and give clear signs
and criteria; environmental authoriza- investments. Then, the Government of legal certainty and promoting in-
tions that are tremendously difficult must coordinate various ministries vestment. These should include initia-
to obtain, subject to excessive prepa- and fiscal entities in order to achieve tives to develop a special environ-
ration and process times and award- joint and consensual work. mental evaluation tool for projects
ing little certainty regarding the re- We do not need great legislative considered "strategic"; reinforce the
sult; the judicial process of environ- reformations to start this process. We technical component both within the
mental issues (particularly with regard can begin with the basics; that the Evaluation Commissions (responsible
to the aforementioned authoriza- government send clear signs of sup- for environmentally rating the pro-
tions); the current discussion on the port to the industry and instruct its jects subject to evaluation) and in the
legal status of water utilisation; the agencies to have a collaborative atti- Committee of Ministers
disincentives of the tax reform in tude. The first step we need within (administrative body that reviews the
terms of attracting foreign invest- the mining industry is the support of resources involved in relation to envi-
ment; the effects particularly related an authoritative administrator in or- ronmental authorisations, be it favor-
to union issues that caused the labour der to work together to attract and able or unfavorable); mechanisms
reform; the lack of territorial planning encourage investment. This collabora- that discourage the maintenance of
that establishes clear criteria and that tion in no way implies breaking any inactive mining concession areas as a
promotes mining; the tired claims current legislation, disregarding the way to promote exploration; the im-
against new work, and so many other necessary environmental protections plementation of territorial planning
difficulties that we encounter every in place, or leaving aside dialogue to efficiently regulate the coexistence
day. with local or indigenous communities. of several rights and interests, not
Now that the global situation is im- It simply requires collaboration with forgetting that mining cannot choose
proving, we cannot sit back and wait all public organisms, with the under- its location; the elimination or sub-
for conditions to improve in Chile by standing that we all seek Chile’s de- stantial modification of the denuncia-
inertia, simply driven by the market. velopment. tion of new work; among others.
We need to take action and look for After this, it will be necessary to eval- It is up to us if we want to play again
proactive measures that can encour- uate all these changes so this cooper- in the Champions League or stay in
age mining investment and recuper- ative environment can be maintained the UEFA.
ate the leading position that we used organically in the long term, without
to occupy. The first thing we can do depending on the good will of the au-


© 2015 Chile Explore Report All Rights Reserved 8 No.61 / March 2018

Chilean mining and the challenges of the new cycle

Jorge Cantallopts, COCHILCO

he demand for copper, and electromobility and electricity pro- In terms of driving investment for ex-
metals in general, is set to be duction, which both use technologies ploration purposes, the main chal-
especially strong in the com- heavily reliant on these ores. All of lenge is to stay competitive, ahead of
ing years. There are various these elements contribute to an opti- other countries that are simultane-
reasons for this stability; such as con- mal scenario for global mining activi- ously working to secure a share of the
tinuing urbanization in China and oth- ty. new investments needed to satisfy
er Asian countries—such as Indonesia, Given these circumstances, Chile growing demand.
Pakistan and particularly India—and needs to identify the obstacles to en- Chile continues to have an enormous
the improvement in European and US sure the best use of its ore reserves in geological potential and institutional
economies. An additional factor is the order to maintain or even improve its strength, which are the pillars that
boost that minerals such as copper, competitive position and leadership in support attractive mining districts.
lithium and cobalt are experiencing the context of a society that is in- However, despite these attributes its
due to the ever-increasing growth in creasingly informed and conscious of project development position has
non-conventional energies to power the benefits and costs involved in been falling in relation to the market.
mining. This relative loss in attractiveness is
partly caused by the lack of institu-
tional stability required for mining
development, which has previously
afflicted many mining districts. Today
these districts are working to become
more secure and attractive. In this
sense, Chile requires greater efforts in
administrative efficiency and institu-
tional transparency to allow for both
continual improvement and the crea-
tion of a differential factor.

© 2015 Chile Explore Report All Rights Reserved 9 No.61 / March 2018

Efforts are additionally needed in the nise and comply with the positive
areas of geological potential to “The future of copper aspects of our legislation, for exam-
strengthen competitivity, in which and other mineral ores ple, which takes advantage of the
the quality, timeliness and manage- role that the smaller mines play soci-
ment of information from institutions looks very positive oeconomically, such as gathering ge-
such as SERNAGEOMIN—whose for the decades ahead, ological information.
efforts and advances can be clearly The future of copper and other min-
observed in recent years—must im- representing eral ores looks very positive for the
prove. Even so, this is not the only an enormous opportunity decades ahead, representing an
factor that affects geological poten- enormous opportunity for our coun-
tial—access to mining property is
for our country, try, but we need to improve our sys-
also an element that discourages but we need to improve tems to maintain and increase our
capital attraction for exploration in our systems to maintain market share, attractiveness and cre-
Chile. Instruments are needed that ation of value. It is clear that the
will incentivise the effective use of and increase our market world needs mineral ores and it is
mining property, given that produc- share, attractiveness and not yet decided where these ores will
tivity measures will have little impact come from. Overcoming the chal-
if we are unable to make efficient use creation of value. lenges ahead will give us the oppor-
of territory, our scarcest resource. It is clear that the world tunity to export our knowledge and
It is worth mentioning that the effec- experience to become leaders not
tive use of mining property does not needs mineral ores only in ore production, but also in
necessarily imply changes in legisla- and it is not yet decided exploration, mining, metallurgy and
tion. Efficient incentive mechanisms sustainability.
and instruments for exploration and where these ores
exploitation can be found that recog- will come from.”
Jorge Cantallopts,


© 2015 Chile Explore Report All Rights Reserved 10 No.61 / March 2018

Volatility in Lithium: A Gift or A Curse?

Chris Berry, House Mountain Partners

ith the sentiment than today’s entire global supply of What was inevitable in the lithium
around lithium almost lithium. world was that as demand continued
universally bullish, the So, if it is a given that security of sup- its strong increase, lithium share pric-
recent hammering of ply is a major issue for downstream es would follow. What was unex-
lithium equity share prices can be lithium consumers, why have lithium pected was the market reaction to the
traced back to one or two reasons: equity valuations suffered recently? In new agreement between CORFO and
either as a sign that valuations had answering that question, I am remind- SQM. Initially, the terms of the agree-
exceeded reality, or a specific catalyst ed of a phrase used by Ruchir Sharma, ment spooked the market into think-
has injected a dose of reality into the Chief Global Strategist at Morgan ing oversupply was imminent and ad-
markets. It is possible for both to be Stanley Investment Management: ditional supply from a large number
true, and while I think this is the case, “The inevitable never happens and of junior mining plays would not be
anyone with a long-term bullish view the unexpected always does.” necessary. The permission granted to
of the lithium sector can view the re-
cent carnage as a gift.
Until mid-2015, lithium equities were
essentially left for dead despite the
hype surrounding Tesla’s plans for
multiple Gigafactories. As lithium is an
oligopoly, it was thought that the
market leaders such as SQM or Albe-
marle could easily add production
capacity to meet any future demand
driven by electric vehicle adoption, so
broad-based capital injections were
not necessary.
The rest, as they say, is history, and it
seems that every week a new supply
chain participant, whether it be an
OEM or a cathode manufacturer, an-
nounces aggressive expansion plans
to meet future customer demand.
Global automakers such as BMW, VW,
Daimler, and Ford committing to
spend up to $90B USD on electrifying
their auto fleets, and Umicore spend-
ing smaller but historically significant
sums on cathode capacity expansion
are only a few examples—and this
excludes aggressive Chinese plans to
have seven million EVs on the coun-
try’s roads by 2025. Depending upon
your assumptions around battery size
and chemistry, China’s ambitions
alone could consume slightly more

© 2015 Chile Explore Report All Rights Reserved 11 No.61 / March 2018

SQM to ramp lithium production view of lithium demand quadrupling USD per year) to meet the demand
capacity to 216,000 tonnes per year by 2025 is defensible, coupled with scenario. Clearly, it will be more than
by 2025 was viewed as a negative the fact that enormous investments just strategic lithium buyers who will
catalyst for the sector, but this ig- are being made along the lithium need to invest and allocate capital in
nored the permitting of necessary, supply chain as shown previously. an industry of just $2B in size. This is
enormous capital requirements In order for the oversupply thesis to a major question going forward in
(perhaps over $1B USD) and onerous come true and sustain itself, one the lithium sector: who will the ma-
new royalty structure which penaliz- must assume that the hundreds of jor investors be?
es price maximization. thousands of tonnes of lithium car- Adding to the financing challenge is
The sell-off in the lithium sector was bonate equivalent (LCE) supply fore- the fact that other pieces of the lithi-
broad based and the fall in share cast to come to market between now um supply chain have never seen this
price from peak to trough can be and 2022 does so successfully, on type of stress or requirement for in-
seen in the chart below for select time and on budget. The history of vestment. How the downstream as-
companies: supply additions in the lithium sector pects of the supply chain, such as
indicates that this is not likely to hap- conversion facilities and cathode
pen—one needs only to look back to manufacturers, handle this growth
the last lithium boom from 2010 to will be key to successfully electrifying
2012 to see how easy it can be to the future of mobility and energy.
raise and misallocate capital in a bull Though debatable, volatility in mar-
market. Roughly $1B USD was raised kets is a positive force. It punishes
during the last cycle and less than poor capital allocation and rewards
20,000 tonnes of LCE came on optimal allocation. Additionally, vola-
stream. tility forces market participants to
With the cost of renewable energy innovate and create new models or
and lithium ion batteries falling in businesses that can prosper in a sup-
price, aided by regulation and tech- ply chain that is consolidating and
nological advances, this level of capi- growing as we speak. This consolida-
tal destruction cannot be allowed to tion in the lithium industry is set to
Fundamentals still matter happen again. Should lithium de- be the next investment theme as a
Fundamentally, however, nothing mand quadruple by 2025, by my esti- vertical integration strategy offers
has changed with respect to the lithi- mates, the industry will require $9B the most opportunity and allows a
um demand scenario. The consensus USD of capital (or slightly over $1B hedge against commodity cycles and

Wealth Minerals

© 2015 Chile Explore Report All Rights Reserved 12 No.61 / March 2018
Exploration news

First sample of lithium carbonate from Maricunga

ithium Power International
(ASX: LPI) has produced its
first sample of lithium carbo-
nate from the Maricunga Brine
The samples were processed by the
vastly experienced process company
GEA, in Germany, who produced
sample results of 99.4% purity, in
keeping with industry standards of
battery grade specifications and simi-
lar to those produced by Albemarle
and SQM in Chile.
Peter Ehren, Principal Process Consul-
tant to the Maricunga Project, explai-
ned the steps involved in processing
the samples: “The brine was concen-
trated at the pilot plant solar for al-
most 12 months and was subse-
quently treated at the GEA lab in
Duisburg, Germany, to purify it and
precipitate lithium carbonate.”
LPI´s Chief Executive Officer, Martin
Holland commented: “Now we are
able to produce a value added, refi-
ned product, which we believe meets
cathode manufacturers’ rigorous ma-

Lithum Power International

terial specifications.”
While completing the Definitive
Feasibility Study and optimisation of
the process, the Maricunga JV is si-
multaneously moving forward with
its EIA of the project, to be comple-
ted and submitted to government confirmed strong economic returns At this time, Maricunga is the most
agencies during the present quar- for production of 20,000tpa LCE and advanced project in Chile with the
ter. In January, the company re- 74,000tpa KCI during a period of 3 exception of the SQM and Albemarle
leased a PEA of the project, which years. mine expansions.

© 2015 Chile Explore Report All Rights Reserved 13 No.61 / March 2018
Exploration news

Lithium Chile expands

Helados lithium brine property

ithium Chile Inc. (TSXV: LITH),
has announced an enlarge-
ment of 5,900 additional hec-
tares at its Helados lithium
brine property, an expansion which
makes the total of the property
22,700 hectares.
Near-surface brine sample lithium
from the newly acquired land assay
up to 760 mg/l Li while assessments
of samples on other parts of the site
have measured up to 1280 mg/l Li.
Terry Walker, V.P Exploration, has
stated that the strong lithium enrich-
ment of the near-surface brine sam-
ples along the Salar Tara – Laguna
Helada Basin axis, “support… man-
agement´s belief that our Helados Helados project. / Lithium Chile Inc.
property has potential to host large
high-grade lithium resources.”
Lithium Chile has the largest privately
-owned lithium exploration property
portfolio, with a land package that
now totals to 140,100 hectares. Drill-
ing is expected to begin in March “Helados property has potential to host
2018. large high-grade lithium resources.”
Terry Walker, V.P. Exploration.

© 2015 Chile Explore Report All Rights Reserved 14 No.61 / March 2018
Exploration news

MGX seeks lithium brine assets in Chile

long with four Chilean min- “The chilean mining industry is one of The new government taking office
ing companies, MGX Miner- the most robust in the world, with this month has laid out plans to re-
als Inc. (CSE: MXG; FKT: the market infrastructure in place to form the country´s mining industries,
1MG; TCQB: MGXMF) will facilitate foreign investment,” stated with the incoming Minister of Mines,
commence brine testing at multiple MGX CEO, Jared Lazerson. Mr. Baldo Prokurica publicly confirm-
salars throughout Chile, which are Around 50% of lithium reserves are ing intentions to rollout a new mining
currently at various development located in the mining-friendly region development plan to foster and drive
stages. Joint testing has been under- of Chile, responsible for one-third of foreign investment.
taken to allow for future potential global annual output.
joint-venture locations.

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© 2015 Chile Explore Report All Rights Reserved 15 No.61 / March 2018
Regional news

Chakana intercepts 76m @ 0.93 g/t Au, Condor Resources

1.04% Cu, and 53.1 g/t Ag receives drill permit

hakana Copper Corp (TSXV: cepts 135m @ 1.02g/t Au, 35.2g/t Ag

PERU) has published assay and 0.60% Cu, including 59.0m @ ondor Resources Inc.
results from the six addition- 1.15g/t Au and 12.1g/t Ag and finally (TSXV: CN) has announced
al holes at its Soledad Cu-Au- SHD17-032 intercepts 28.0m @ the reception of a permit
Ag project in central Peru, while re- 3.39g/t Au and 13.0g/t Ag. which extends the 2015
sults for the first ten holes were pre- The results have been found con- EIA, as granted by the Peruvian
viously released. sistent with earlier findings, as Presi- Ministry of Energy and Mines. The
Results from the six new holes are as dent and CEO David Kelley reports, extension has expanded to include
follows: SDH17-027 intercepts 12m “…confirming the high-grade nature an increased number of drill pads
@ 3.54g/t Au and 78.1g/t Ag includ- of the mineralization in the first of that may be constructed under
ing 9.6m @ 1.60g/t Au, 6.0g/t Ag and nine mineralized breccia pipes to be terms stipulated by the EIA.
0.29% Cu; SDH17-028 intercepts drilled by the company” before men- Pucamayo East is a high sulphida-
14.0m @ 4.48g/t Au and 27.3g/t Ag, tioning the indication of possible tion epithermal gold-silver project
including 27.15m @ 0.76g/t Au, blind pipes due to the occurrence of situated some 180 km south east of
74.0g/t Ag and 2.51 % Cu; SDH17-029 strongly altered andesite with sheet- Peru´s capital Lima, in the depart-
intercepts 14.4m @ 5.84g/t Au and ed-quartz-sericite-sulphide veining, ment of Ica. Pucamayo East resides
38.8g/t Ag, including 26.1m @ 0.63g/ which will be tested by PERU on a Tertiary volcanic belt which
t Au, 226.6g/t Ag, 3.69% Cu, 0.84% Zn throughout the year. hosts several major epithermal gold
and 0.76% Pb; SDH17-030 intercepts The Soledad project is situated 35k deposits in Peru.
14.0m @ 3.29g/t Au and 68.6g/ Ag, south of the Pierina mine in the A footprint of the large lithocap at
including 20.0m @ 0.71g/t Au,18.1g/t metallogenic belt of Peru. the project reveals a number of
Ag and 0.44% Cu; SDH17-031 inter- attractive drill targets; Phase I drill-
ing is set to probe for higher grade
mineralized zones below the weakly
mineralized lithocaps and will assay
the breccia outcrops that have
Chakana Resources

product gold and silver anomalies.

© 2015 Chile Explore Report All Rights Reserved 16 No.61 / March 2018
Regional news

Tinka intercepts 5.0m @ 20.2 % Zn

inka Resources Limited (TSXV
published assay results of an
additional nine drill holes
from its ongoing drill program at the
Ayawilca zinc project in central Peru.
Four holes (107, 109, 110 and 111)
were drilled at the new Zone 3 dis-
covery area, where drilling of the A18

Tinka Resources
-112 hole has now commenced, while
the other five were drilled at the
South West and Central Ayawilca.
Weather permitting, a second drill rig
is scheduled to start in March 2018.
Massive sulphide drill intercepts have
yielded the following results: Hole
A18-111 (Zone 3) intercepts 5.0m @ 0.6m @ 5.5% Zn, 4.8% Pb, 305g/t Ag 1.15% Cu and 513g/t Ag from 530.4m
20.2% Zn, 0.3% Pb, 74g/t Ag and and 0.48% Sn from 615.4m depth; depth.
420g/t In from 173.8 metres depth; and 0.35m @ 6.5% Zn, 9% Pb, 557g/t TK President and CEO Dr. Graham
Hole A18-110 (Zone 3) intercepts 6m Ag and 0.76% Sn from 681.6 m depth; Carman comments: “The discovery of
@ 5.6% Zn and 50g/t In from 436m while Hole A18-110 (Zone 3) results high grade mineralization in lime-
depth; and 4m @ 8.4% Zn and 126 g/t include 0.35m @ 17.1% Zn, 7.5% Pb, stones and in deep veins at Zone 3 is
In from 454m depth, including 0.5m very exciting, as it opens up a lot
@ 41.7% Zn and 366g/t In from more exploration potential at the
456.2m depth; Hole A17-107 (Zone 3) “The discovery of high project,” before adding the two key
intercepts 16.0m @ 0.65% Sn and objectives that TK has for 2018, “(1)
0.09% Cu from 576m depth, includ- grade mineralization in Continue our exploration drill pro-
ing 2.8m @ 2.4% Sn and 0.01% Cu limestones and in deep gram targeting additional zinc re-
from 582.5m depth. veins at Zone 3 is very sources at Ayawilca with 15,000 me-
High-grade polymetallic veins from exciting, as it opens up ters of drilling planned; and (2) Ad-
Hole A17-109 (Zone 3) include: 0.7m vance the project with desktop min-
@ 4.8% Zn, 8.8% Pb, 674g/t Ag and a lot more exploration ing studies and detailed metallurgical
0.76% Sn from 577m depth; and 1.2m potential at the project.” tests that will form the basis of a Pre-
@ 5.2% Zn, 10.1% Pb, 621g/t Ag and Graham Carman, CEO. liminary Economic Assessment
0.29% Sn from 611.2m depth; and planned off the second half of 2018.”

© 2015 Chile Explore Report All Rights Reserved 17 No.61 / March 2018
Regional news

Cabral Gold Inc.

Emerita Resources completes (TSXV :CBR)
the Salobro Project scoping study
Cabral Gold Inc. (TSXV: CBR) has
announced the start of its 2500m
trenching program and soil sam-

n a move to accelerate develop- pling in advance of drilling and the
Cuiu Cuiu project in Para, Brazil.
ment at the Salobro zinc project,
Emerita Resources Corp. (TSXV:
“We aim to have Trenching will initially focus on the
EMO) has begun its exploration the mine Pau de Merenda target; where the
following values have been inter-
project, recently completing an initial
scoping study including a conceptual development cepted: 30.2m @ 1.11g/t Au in
Hole #19-07; 47.1m @ 1.76g/t Au
mine plan. permits within in Hole #20-07; 8.5m, @ 5.07g/t
Upcoming steps on the fast-tracked
time line include: the completion of 24-36 months.” Au in Hole #22-07 and 4m @
6.42g/t Au in Hole #72-10. The Pau
the acquisition of the Salabro Project
and completion on NI43-101 tech-
Michael Timmins, de Merenda target is included in
the NW trending sold-in-soil
nical report, both scheduled for the CEO. anomaly which can be found in
of end of this month; commence dia-
mond drilling the first week of this the Central deposit, extending ap-
month; announce the NI41-101 pre- Michael Timmins, CEO of EMO, says: proximately 4km.
liminary economic assessment by the “…we are very excited to have the In the next few days, trenching is
end of Q3 2018; begin permitting pro- opportunity to utilize our award- expected to take place at the
cess in Q3 2018 for Environmental winning mine building team in Brazil Machiche target, a historic garim-
Impact Assessment / RIMA study; to fast track the development of Sa- po working which has been sub-
complete and announce prefeasibility lobro… Given the confidence we have ject to one previous drill hole,
study by Q3 2019 and obtain permits in the scoping work and the well- Hole #52-09, which intercepted
for mine development by Q2 2020. established process for permitting in 3.3m @ 7.43mg/t Au. Trenching is
The Salabro Project is open for fur- this region of Brazil we aim to have additionally planed at the Gua-
ther expansion, and the development the mine development permits in rim / 6 Irmaos targets and a pro-
program intends to advance the pro- hand within 24-36 months.” gram of channel sampling is ex-
ject the quickest way possible. pected at Jerimum Cima.
Cuiu Cuiu is located some 25km
NW of Eldorado Gold Corpora-
tion´s Tocantinzinho gold deposit.

© 2015 Chile Explore Report All Rights Reserved 18