CORBETT GEOLOGICAL SERVICES Pty. Ltd.

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COMMENTS ON THE

GEOLOGY AND EXPLORATION POTENTIAL

OF THE QUEVAR PROJECT,

SALTA, ARGENTINA

G. Corbett
October 2009
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SUMMARY

The Quevar project hosts extensive hydrothermal alteration within a partly dissected
stratovolcano. Mineralisation at Quevar occurs as initial high sulphidation epithermal
which hosts low grade Au-Cu and has evolved to locally elevated Ag grades within
polymetallic Ag lower sulphidation epithermal style.

Analysis of the controls to low sulphidation Ag mineralisation contributes towards the

development of a conceptual geological model as an aid to continued exploration as:
• Competent lithologies which might fracture to host low sulphidation veins are
provided by the earlier high sulphidation silicification. Various styles of Quevar
breccias are interpreted as related to dacite dome-phreatomagmatic breccia
systems.
• Overall flat ore shoot are localised by early high sulphidation alteration within teh
steeper dipping portions of generally north-dipping listric-like EW faults (Yaxtche
and Claudia), while hanging wall splays (Sharon) dip south. Steeper dipping
portions of these ore shoots are localised by the intersection of later stage NE
cross structures which host the main low sulphidation Ag mineralisation.
• Style of mineralisation influences precious metal grade not only as the evolution
from high to lower sulphidation but also the evolution within the low sulphidation
style from initial low silver tetrahedrite to later freibergite, the Ag-rich end
member of tetrahedrite, while associated red sphalerite is indicative of a moderate
temperature of formation. Other similar polymetallic systems host elevated Ag
grades with low temperature yellow to white sphalerite suggesting continued
exploration should focus upon evaluation of the lower temperature upper and
marginal portions of the hydrothermal system.
• More efficient mechanisms of Ag mechanism account for elevated precious metal
grades. Throughout Quevar the mixing of rising ore fluids with oxidising low pH
waters responsible for the deposition of kaolin accounts for the development of
elevated Ag grades. The recognition of local MnO suggests rising ore fluids have
also mixed with bicarbonate waters which are common in the vicinity of dacite
domes as a typical feature of low sulphidation polymetallic Ag deposits.

Some targets for continued exploration include:

• The upper portions and extremities of the Yaxtche structure where it is interpreted
elevated Ag grades may occur with lower temperature mineral assemblages.
• Continued exploration must take into account that mineralisation occurs within
ore shoots developed at the intersection of the host EW and feeder NE fracture
systems. Some differently oriented drill holes are required to better test the
mineralisation mostly developed at a low angle to the drill core axis.
• The MnO structure south of Yaxtche East contains scree of Ag sulphosalts within
prospecting pits and is typical of low sulphidation polymetallic epithermal Ag
mineralisation.
• Continued exploration at Quevar North should focus upon the individual ore
shoots at structural intersections.
• The Andrea structure requires drill testing to evaluate a steep dipping banded low
sulphidation quartz vein at depth.
• The Puntana prospect requires evaluation of a coincident chargeability, resistivity
and geochemical anomaly apparent at the surface as gossanous Fe oxides.
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INTRODUCTION

At the request of Nestor Alvarez, 5 days were spent at the Quevar exploration project via
Salta in northern Argentina, in a review of exploration since the authors last visit in 2007
(Corbett, 2007). The assistance during this work is gratefully acknowledged of Nestor
Alvarez, Chris Torrey and Juan Carlos James and the remainder of the Silex team on site.
The brief for this work was to review drill core bored since the author’s last visit in order
to provide a geological model which might account for the controls to Ag-Au
mineralisation and guide continued exploration. Presentations were provided to the
geological staff on site on general controls to low sulphidation epithermal mineralisation
and the findings of this review.

Quevar occurs as a high sulphidation epithermal Au-Ag-Cu system which is interpreted to

have evolved to lower sulphidation with associated improvement in precious metal (Ag)
grade as well as metallurgical characteristics.

Figure 1. Remote sensing image of the Quevar Stratovolcano showing the Quevar south
and north prospects as the lower and central blocks, respectively.

GEOLOGICAL SETTING

The Quevar project occupies a collapsed central region of the partly dissected NS
elongate Quevar stratovalcano, in northern Argentina. The Quevar south and Quevar
north prospects lie in the main collapse area of 7 x 10 km while the Viejo Campo
alteration system occurs at the NE margin (figure 1). Mineralisation is associated with
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dacite domes and breccias estimated as 6-12 m.y. old. The main structural elements
apparent on the remote sensing imagery include NE and NW conjugate fractures formed
during Andean compressional deformation as well as NS and EW linears. A continent-
scale major NW trending crustal lineament is interpreted (N. Alvarez, pers. commun) to
lie about 30 km NE of Quevar and localise many ore systems including Chuquicamata in
Chile, and may display a sinistral sense of movement during Andean compression. The
important EW and NE fracture systems are described in detail below.

CONTROLS TO Ag-Au MINERALISATION

Analyses of many Pacific rim magmatic arc low sulphidation epithermal Au occurrences
has facilitated the delineation of common controls to mineralisation, which may coincide
to form ore shoots (clavos), as:
• Lithology as competent host rocks are required to develop fractures which might
host throughgoing veins while permeable rocks may become silicified and better
vein hosts or, if reactive, may undergo clay altered to form poor vein hosts.
• Structures which act as fluid channelways in extensional settings contain flat ore
shoots in steep dipping portions of normal or listric faults, while strike-slip
deformation localises steep ore shoots in dilational features such as flexures or
fault jogs (figure 2). Structural intersections may represent sites of Ag-Au
deposition by fluid mixing.
• Styles of low sulphidation mineralisation (figure 3), recognised in magmatic arcs
and associated back arcs or intra arc rifts, provide variable Au or Ag contents
Ag:Au ratios and metallurgy which should be taken into consideration as the
project moves from exploration to feasibility.
• Mechanisms of Au deposition account for variations in Ag and Au grades (figure
4; Leach and Corbett, 2008).
• Dilution of veins by dykes or barren quartz must also be considered.
• Near surficial supergene Au enrichment, particularly in the quartz-sulphide style
of low sulphidation epithermal veins, may account for the failure of drilling to
substantiate surface Au anomalies.

Host rocks

While most rocks encountered at Quevar comprise dacite dome material or brecciated
derivates, subsequent hydrothermal alteration provides a more significant control to
mineralisation. Dacite domes and beccias (informally termed Quevar breccia) recognised
in this review are divided as:
• Numerous dacite intrusions are distinguished on the basis of texture, composition
and geochemistry. Some volatile rich examples are pyrite-rich (photo 1) while
many others contain anomalous Pb and lesser Zn. Competent unaltered dacite
intrusions locally host mineralised veins.
• Dacite clast breccia commonly comprises essentially monomictic pale sub-angular
clasts of dacite with little transport or milling within a darker matrix dominated by
black silica-sulphide altered matrix (photo 2). These breccias are locally likened to
crumple breccias formed at dome margins with associated introduction of silica-
sulphide alteration by volatiles channelled about the dome margin. Black silica-
sulphide fluidised breccias commonly transect dacite domes (photo 3).
• Milled matrix breccia is characterised by clasts of rounded dacite wall rock and
source intrusion material which have been rounded by extensive milling during
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transport, set in a rock flour matrix of comminuted dacite (photo 4). These
breccias initially display characteristic low sulphidation illite-pyrite alteration and
as such are expected to be too incompetent to host quality fracture controlled
mineralisation, unless overprinted by later silicification (below). Milled matrix
breccias are interpreted to have developed as polyphasal phreatomagmatic
breccias by explosive eruption from a volatile-rich dacite source at depth (Corbett
and Leach, 1998).
• Sulphide clast breccias occur as contain milled and rounded clasts of sulphide
mineralisation in a milled matrix breccia and locally host the highest grade
mineralisation within teh Quevar Mineralised Structure (photos 5 & 6).
Mineralised clasts are interpreted to have undergone considerable transport.
• Crowded clast breccias generally occur as polymictic breccias with variably
rounded clasts interpreted as clast supported members of the Quevar
phreatomagmatic style (photo 7).
• Bedded breccias examined in DDH QVD162 comprise layers of very finely
laminated tuffaceous material with common sedimentary structures such as load
casts (photo 8) and flame structures generally overlain by coarser grained tuffs
and present as repeated cycles (photo 9). They are interlayered with other Quevar
breccias and interpreted to have formed as bedded portions of phreatomagmatic
breccia, in a surficial maar volcano setting. The presence of these breccias at depth
and lack of continuity suggests formation in an early eruption which has been
overprinted by later breccia bodies or collapse of near surficial breccias to deeper
levels within the breccia pipe.
• Sub surface sedimentary structures develop as clastic material falls into open
structures which commonly also contain mineralisation (photo 10).
• Silica-sulphide breccias within the Quevar Mineralised Structure (QMS) occur as
hydrothermal breccias with significant hydrothermal silica-sulphide alteration and
mineralisation which have been developed by the reworking of existing Quevar
breccias with the introduction of additional dacite intrusion material. A breccia in
the vicinity of the high sulphidation alteration is dominated by elongate dark
dacite clasts suggesting a link between intrusion and alteration (photo 11).

Hydrothermal alteration provides the greatest influence upon the competency of host rock
as a control to mineralised vein formation. The initial alteration is characterised as
advanced argillic alteration typical of the upper most portion of a high sulphidation
epithermal Au-Ag system. This alteration has been introduced by elements of the EW
Yaxtche structure and parallel features, apparent in drill core as the QMS which also
preferentially exploits permeable styles of Quevar breccia. Extremely acid and hot
magmatic derived hydrothermal fluids leach the wall rocks and by progressive cooling
and neutralisation form zoned hydrothermal alteration characterised by central cores of
vughy (also termed residual) silica grading outwards to silica-alunite then dickite-
kaolinite alteration. The high crustal level of formation at the cooler margin of the
hydrothermal system (associated with high sulphidation epithermal mineralisation) is
evidenced by the narrow alteration zones, rapid changes in alteration style, and lack of
generally higher temperature mineral assemblages such as pyrophyllite or diaspore. Of
interest here is that the vughy silica and silica-alunite are competent and so fracture well
to facilitate later development of low sulphidation vein Ag mineralisation, whereas the
kaolin acts as an aquitard to restrict fracture formation and hydrothermal fluid flow. Note
also the early advanced argillic alteration displays a dominant control of the EW Yaxtche
and parallel structures described below. This alteration is clearly polyphasal with clasts of
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earlier alteration occur in later breccias and contacts between different breccia events are
also recognised (photos 12 & 13).

Although not visited, a zone of steam heated alteration is interpreted to occur as a sub
horizontal blanket apparent at high levels in the Quevar stratovolcano and pass
downwards to extensive argillic alteration, mostly apparent as white kaolin, but locally as
jarosite formed by oxidation of the original pyrite in the kaolin-pyrite alteration. While
categorised as mainly argillic alteration formed at the margin of the high sulphidation
epithermal system, some of the kaolin (argillic alteration) may also display a lower
sulphidation origin (figure 4).

In conclusion, the dominant lithological control to Ag mineralised vein formation is the

competent silicification (vughy silica and silica-alunite) of the early high sulphidation
event and flow for these fluids is controlled by the EW Yaxtche structure and permeable
elements of the Quevar breccia group.

Figure 2. Model for settings of ore shoots in varying structural settings. Note the hanging
wall splays in the vicinity of structures C and B.

Structure

Extension in the collapse portion of the Quevar volcano, possibly during Andean
compression, has resulted in the development of EW structures which are herein
interpreted to occur as listric faults. The Yaxtche structure which is the main control to
alteration and mineralisation at Quevar South dips to the north. At Quevar North the
Sharon structure, the northern most of the two structures, dips to the south as a hanging
wall splay to the north-dipping Claudia structure. At both Quevar South and North
extensive landslip material is consistent with the collapse environment. South facing
scallop faults are apparent on the north face of Quevar North (photo 14; figure 1).
 7

Figure 3. Yaxtche structure (from Silex data).

Inspection of the long section data demonstrates a sub-horizontal ore shoot is apparent in
the uppermost and steeper dipping portion of the north dipping listric fault, although
intersections with NE-NS cross structures provide a vertical component within the
generally flat trend. This ore shoot form is consistent with development of mineralisation
within a steeper dipping portion of a listric fault (figures 2 & 4), apparent on some cross
section data. Although the Yaxtche West vein is eroded and obscured by younger
landslide material, it appears to display a shallow west plunge in the long section data to
hand (figure 7).

While the early advanced argillic alteration and associated minor high sulphidation
epithermal Au-Cu mineralisation are localised in the EW-NW Yaxtche structure, low
sulphidation polymetallic epithermal Ag vein mineralisation is interpreted to have been
introduced along the NE fractures which refract towards the NS within the competent
silica of the Yaxtche trend (figure 5). Consequently, most vein intersections examined in
core from drill holes bored in the NE-SW grid, occur sub-parallel to the core axis. The
combined control of the siliceous host rocks and NE fractures has resulted in the
development of ore-hosting clavos along the EW structural trend. Major NE structures
which divide the Yaxtche into west, central and eastern portions have been active over a
protracted period of time (pre-, syn- and post-mineral) and so localise significant clavos
as well as offset the mineralised trend. Some opne NE-NS structures host subsurface
sedimentary layering developed as sub-surface open space fill photo *).
 8

Figure 4. Cross section model for Quevar mineralisation developed within the steeper
dipping portion of a listric fault and varying from initial high to later low sulphidation
epithermal style discussed herein. Metal and mineral zonation are shown and include the
targeted but not yet recognised lowest temperature assemblages which is speculated could
host best Ag grades from observations of other similar systems.

Figure 5. Illustration of the relationships between the host EW-NW Yaxtche structure and
NE-NS cross structures discussed below.
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The EW-NW trending Yaxtche structure is divided into Central, Eastern and Western
segments separated by NE cross structures, the latter segment partly covered by landslip
material (figure 3). Elements of the Yaxtche structure examined in drill core commonly
comprise faulted contacts between different rock types such as the underlying dacite
dome and overlying Quevar breccia and also host later stage polyphasal breccias which
rework the Quevar breccias or may contain additional dacite clasts reflecting new
intrusion events. Importantly, a protracted history of polyphasal activity is apparent with
EW faults. At Yaxtche West most mineralisation occurs within three portions of the
Yaxtche fault described as upper, central and lower, and are constrained between hanging
wall and footwall faults to form the Quevar Mineralised Structure.

Figure 6. General model for the varying styles of magmatic arc Au-Ag-Cu mineralisation
from Corbett (2009) and references therein.

Style of mineralisation

Quevar occurs as high sulphidation epithermal Au-Ag-Cu mineralisation (with associated

advanced argillic alteration localised in the EW fractures) which has evolved to
overprinting low sulphidation polmetallic Ag epithermal mineralisation, best developed in
the upper and marginal portions of the hydrothermal system and localised on the NE cross
structures (photos 15 & 16). All these mineralisation styles are well documented in the
geological literature (figure 6: Corbett, 2009 and references therein).

Although advanced argillic alteration vughy silica is common, high sulphidation Au-Cu
mineralisation is only well developed in deeper drill holes as (black-red) enargite with
pyrite and gangue of minor barite and alunite, overprinting earlier vughy silica. At higher
crustal levels the second stage alunite gangue passes to kaolin. The enargite contains only
 10

low grade Au-Cu and local Ag mineralisation, and is expected to display poor
metallurgical characteristics, so is not a favoured ore. Petrology should check for the
presence of luzonite, the low temperature polymorph of enargite, and goldfieldite, a Sb-
Te ore typical in the uppermost levels of high sulphidation deposits (Corbett and Leach,
1998). The hydrothermal alteration zonation suggests the high sulphidation epithermal
system at Quevar occurs close to the extreme outer limit of the expected high sulphidation
fluid flow, where some high sulphidation epithermal systems pass to lower sulphidation
(Wafi, Papua New Guinea; El Indio-Viento, Chile). Lower sulphidation ores which
overprint or occur marginal to high sulphidation systems commonly display higher
precious metal grades and improved metallurgy than the high sulphidation mineralisation.

Polymetallic style low sulphidation Ag mineralisation at Quevar is interpreted to have

been deposited from an evolving hydrothermal system. While the advanced argillic
alteration and much of the high sulphidation mineralisation occurs within the EW-NW
Yaxtche structure, most low sulphidation veins lie at very low angles to the core axis and
so trend NE to NS (above, figure 5), locally overprinting high sulphidation (enargite-
pyrite) mineralisation. The development of high sulphidation in EW and low suplhidation
in the NE-NS fractures suggests a change in kinematics during the overall fluid evolution.
Overprinting events of vughy silica breccias indicate the high sulphidation event had a
polymetallic character, possibly evolving to lower sulphidation several times.

Figure 7. Conceptual long section geological model for the Yaxtche structure at Quevar
illustrating fluid evolution from central high sulphidation to marginal low sulphidation
epithermal and including speculated yellow and white sphalerite at the cooler margins
with which high Ag mineralisation may occur.

Low sulphidation mineralisation takes several forms:

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• Coarse bladed barite and tetrahedrite commonly overprint vughy silica of the
advanced argillic alteration associated with the high sulphidation epithermal
system. In addition to Sb, Cu and As, and minor Ag in tetrahedrite, this material
locally contains elevated Bi, indicative of the presence of bismuthinite, a typical
lower sulphidation mineral (photo 17). However, these interpreted tetrahedrite
ores often display only modest precious metal grades.
• In some instances much higher Ag grades are associated with apparent tetrahedrite
ores, where the striated grey-black mineral is tentatively interpreted as freibergite,
the Ag rich tetrahedrite end member (photo 18). These ores appear to occur within
later stage more marginal veins consistent with an evolution of the hydrothermal
system.
• Red sphalerite and galena recognised with pyrite and Ag sulphosalts and locally
crustiform banded chalcedony-opal at Yaxtche West and East are indicative of the
evolution to a low sulphidation fluid at the margins of the system moving away
from the central high sulphidation alteration and mineralisation (photo 19, figure
7). Anomalous Pb and Zn also occur within many cross faults.
In each case low sulphidation minerals are overprinted by kaolin.

The change from low grade Au-Cu (with enargite) in the high sulphidation epithermal
mineralisation to later higher grade Ag (with Ag sulphosalts) is interpreted represent an
evolution from a high to low sulphidation epithermal character ore fluid. Red sphalerite
within Yaxtche structure mineralisation is indicative of an intermediate temperature of
formation (Corbett and Leach, 1998). However, as many other polymetallic Ag systems
inspected by this author display highest Ag grades in association with lower temperatures
of formation indicated by yellow then white sphalerite, prospecting further towards the
margins of the hydrothermal system may prove worthwhile. Many lower temperature low
sulphidation polymetallic Ag deposits host bonanza Ag within argentite in the presence of
white sphalerite.

In conclusion a conceptual exploration model, based upon preliminary data, favours

continued exploration towards the lower temperature margins and uppermost portions of
the Quevar hydrothermal system, where elevated Ag may occur (figures 4 & 7).

Mechanism of precious metal deposition

Many different mechanisms of precious metal deposition account for variations in Au-Ag
grade in low sulphidation epithermal deposits (Corbett and Leach, 1998; Leach and
Corbett, 2008). Mixing of rising pregnant hydrothermal fluids with low pH waters which
are responsible for the development of near surficial acid sulphate caps in low
sulphidation systems or steam heated alteration in the upper portions of high sulphidation
systems provides one of the most efficient mechanisms to oxidise and destabilise
complexes carrying precious metals and so promote the formation of higher grade Au-Ag
mineralisation (figure 8). This mechanism of mineral deposition is characterised by kaolin
overprinting the ore minerals, and kaolin is ubiquitous as a late stage mineral in the
mineralised veins at Quevar (photos 15-19). The pervasive kaolin alteration recognised in
the upper portions of Quevar is expected to have provided incompetent host rocks and so
inhibited vein formation, possibly focusing higher grade mineralisation at depth.
However, caution is urged in systems where collapsing acid waters account for elevated
precious metal grades as any base to the extent of acid water collapse may provide a floor
 12

to the development of elevated Au-Ag grades. Exploration towards the margin of the
hydrothermal system will require continued presence of kaolin to remain prospective.

Kaolin bearing fractures recognised at low angles to the core axis represent individual
environments of mineral deposition by fluid mixing and these mixing zones provide local
steep plunging portions to the overall sub horizontal ore shoot recognised in the long
section data (photo 20).

Mixing of rising ore fluids with (oxidising weakly acidic) bicarbonate waters developed
by the condensation of CO2 exsolved from cooling dacite intrusions, also provides an
improved mechanism of precious metal deposition, as evidenced by the low sulphidation
epithermal carbonate-base metal Au-Ag, including polymetallic Ag, deposits (figures 6 &
8; Corbett and Leach, 1998; Leach and Corbett, 2008). This mechanism of Ag-Au
deposition is evidenced by the presence of mixed carbonates within the ore assemblage,
generally deposited late in the paragenetic sequence. Rhodochrosite is a common
component of polymetallic Ag veins which are therefore prospected by the identification
of MnO at the surface. A MnO bearing vein was inspected in this review immediately
south of the Yaxtche East sector at Quevar South, with associated chalcedony-opal. Old
prospecting pits with tetrahedrite-quartz scree which occur in the vicinity confirm these
veins represent ideal exploration targets.

Figure 8. Model for mineral deposition by mixing of rising ore fluids with evolved near
surficial waters (from Leach and Corbett, 2008).
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CONCEPTUAL GEOLOGICAL MODEL

A conceptual geological model based upon the data to hand suggests throughout Quevar
and especially within the Yaxtche structure a strongly polyphasal hydrothermal system
evolves from a high to low sulphidation epithermal character. Clasts of low sulphidation
Ag mineralisation within later high sulphidation breccias result from repeated fluid
evolution trends, although there is some evidence of preferential replacement of breccia
clasts. The early high sulphidation event is characterised by low grade Au-Cu which
preferentially exploits the EW-NW Yaxtche structure and is best developed in steep
dipping portions of listric faults, which provide a flat plunge to ore shoots. Most Ag is
associated with later polymetallic Ag style low sulphidation epithermal mineralisation
developed at the intersection of earlier silicification (associated with the high sulphidation
event) and later NE-NS fractures which occur at a low angle to the drill core axis. Fault
intersections provide a steep dips higher grade portions of the ore shoots. The low
sulphidation mineralisation is itself zoned from early high to later lower temperature
assemblages. Tetrahdetite evolves to the later stage Ag end member freibergite which
hosts best Ag grades recognised to date. Locally strongly anomalous Bi is associated with
bismuthinite within the low sulphidation mineralisation along with red sphalerite and
galena. The red sphalerite is indicative of moderate temperatures of formation.

Other low sulphidation polymetallic ore systems host best Ag grades at lower temperature
end members evidenced by the evolution from red to yellow or white sphalerite, locally as
a pyrite-argentite-white sphalerite mineral assemblage. Therefore continued exploration
should focus upon the identification of the lower temperature portions of the
hydrothermal system, probably at the outer margins of the fluid flow. Local MnO bearing
veins are expected to be of the polymetallic Ag style.

COMMENTS ON SPECIFIC PROSPECTS

Andrea

The Andrea vein is capped by breccia comprising chaotic angular quartz clasts within
FeO matrix as well as gossanous FeO, each interpreted to be of a surficial origin (photo
21). Steep dipping banded quartz which crops out in creek exposures below the surfical
breccias is interpreted to occur as part of low sulphidation mineralisation within a steep
dipping fault. This structure is not expected to have been intersected by the two drill holes
bored to date and so the banded quartz vein represents a priority exploration target,
particularly as the structure appears to be steep dipping. The Andrea exposures require
immediate drill testing starting with a -45o drill hole planned to intersect the structure at a
shallow level and verify the dip, prior to progressively deeper drill testing.

Puntana

Recent rock chip sampling has identified Ag to 84 ppm with strongly anomalous Pb in an
area where strongly FeO stained exposures crop out in (photo 22) the vicinity of
coincident chargeability and resistivity anomalies which continue to an area obscured by
a creek outwash. Some FeO displays a gossanous appearance. Puntana therefore
represents a high priority target for scout drill testing, at progressively deeper levels to
initially determine the dip on any host structure and then to test for sulphide
mineralisation at depth.
 14

Sharon structure, Quevar North

Exposures examined suggest erosion has exposed only the upper portion of the
structurally controlled hydrothermal system, similar to that described above for Quevar
South. At the highest topographic level anomalous Ag(60 ppm) and Au (1.7 ppm)
reported (N. Alvarez, pers commun) to occur with vughy silica-kaolin are interpreted as
high sulphidation mineralisation developed at the extremity of the zoned alteration,
characterised by the rapid transition from vughy silica to kaolin (photo 23). At about 30 m
vertically below this exposure, breccias with alunite clasts and fill of Ag sulphosalts
(photo 24) host elevated Ag to 800 ppm, while at the same level 100 m along strike
coarse bladed barite occurs within brecciated vughy silica at the intersection of the host
EW Sharon structure and NE trending cross structure. However, Ag grades identified here
rise to only 250 ppm Ag.

The portion of the Sharon structure investigated is therefore in agreement with the model
proposed above for Quevar South. Evolving structurally controlled intrusion-related
epithermal mineralisation hosts most Ag where low sulphidation fluids localised within
NE cross structures transect the earlier high sulphidation vughy silica localised within
EW structures. The Sharon structure warrants drill testing in such a manner as to allow
for the development of ore shoots (clavos) at structural intersections.

Caudia structure, Quevar North

The Tetera breccia alunite altered dacite dome is cut by FeO stained NE trending
laminated silica-FeO structures interpreted to host the low sulphidation epithermal Ag
mineralisation. Anomalous Ag (to 62 ppm) occurs with Bi and Sb, as indicative of
minerals typical of the lower sulphidation regime (bismuthinite and tetrahedrite). Drill
hole DDH QVD34 which transects this area is characterised by a series of faults
separating several discrete geological units comprising dacite, dacite breccias or milled
matrix breccias, in which alteration varies from illite-pyrite (low sulphidation argillic) to
high sulphidation advanced argillic zoned vughy silica-alunite-clay alteration. In oxidised
material Ag mineralisation (with associated anomalous Pd, Bi and Sb) occurs on FeO
bearing fractures at a low angle to the core axis with quartz and barite crystals, typical of
lower sulphidation alteration and mineralisation. Minor Ag (33 g/t Ag) also occurs with
black sulphides cutting vughy silica, as typical of high sulphidation epithermal
mineralisation.

CONCLUSIONS

Quevar is interpreted as an epithermal system which has evolved from polyphasal high
sulphidation with low grade Au and Cu, to low sulphidation in which Ag grade increases
with continued fluid evolution towards the marginal and cooler portions of the
hydrothermal system.

A conceptual geological model derived from the comparison of Quevar with many other
polymetallic Ag systems suggests highest Ag grades occur in lower temperature
conditions than those recognised to date at Quevar. Prospecting should continue towards
the margins and uppermost preserved portions of the hydrothermal system where the red
sphalerite recognised to data at Quevar passes to yellow or white sphalerite.
 15

Controls to low sulphidation Ag mineralisation are recognised as:

• Competent host rocks provided by silicification and silica-alunite alteration
associated with the early high sulphidation event, commonly in breccias.
• The EW-NW trending Yaxtche structure provides a primary control to a generally
flat plunging ore shoot, as an interpreted north dipping listric fault which hosts the
best alteration associated with the high sulphidation event in steeper dipping
portions. However, low sulphidation mineralisation occurs in the NE trending
structures and so steep dipping portions to the ore shoots (clavos) are developed at
the intersection of the two features. The NE structures refract towards NS trends
within the competent silicification and so occur at a low angle to the drill core
axis.
• The style of precious metal mineralisation influences ore grade and metallurgy. In
the deeper portions of the Yaxtche structure, limited high sulphidation
mineralisation displays low Au-Cu grades and is expected to display poor
metallurgy. Ag grade increases with the evolution from high to lower sulphidation
epithermal evident as initial tetrahedrite with bismuthinite and red sphalerite-
galena which evolves to display elevated Ag with freibergite, the Ag-rich
tetrahedrite end member. Red sphalerite is indicative of moderate temperatures of
formation within low sulphidation polymetallic mineralisation, which in other
polymetallic Ag vein systems displays elevated Ag grades in association with
lower temperature (yellow and white) sphalerite, commonly with a change from
tetrahedrite to argentite and even electrum as the main Ag minerals. These
targeted ores should display benign metallurgy.
• Mixing of rising ore fluids with low pH waters evidenced by presence of kaolin in
the ore assemblages represents a superior mechanism of precious metal deposition
and accounts for elevated Ag grades at Quevar. Mixing of ore fluids with
bicarbonate waters as evidenced by the presence of MnO (derived from the
weathering of Mn carbonates) at the surface provides, also provides a mechanism
for the deposition of elevated Ag grades, locally recognised at Quevar south.

The Quevar breccia is interpreted as a polyphasal dacite-phreatomagmatic breccia

complex in which several styles of breccia are defined. It is essentially pre-mineral
although the Quevar breccia within the Yaxtche fault no doubt displays syn-mineral
activation. Phreatomagmatic breccias are common associates of carbonate-base metal Au-
Ag systems to which polymetallic Ag veins are related. Different Quevar breccias vary
from dacite clast breccias interpreted to have formed at dome margins, to milled matrix
breccias with substantial clast transport and milling, and bedded breccias interpreted to
have formed within a surficial maar volcano, and some breccias also contain sub-surface
sedimentary structures.

RECOMMENDATIONS

As new data comes to hand Silex should continue to update and develop the geological
model proposed herein on a brief review of the project. Planned additional petrology
should be combined with earlier work to provide a 3 dimensional picture of the ore
mineralogy to improve upon the mineral zonation model. Similarly, the existing alteration
studies may add to this model, although the polyphasal nature of the advanced argillic
alteration associated with the high sulphidation epithermal event could make
identification of zonation patterns difficult.
 16

Continued drilling at the Yaxtche structure should focus upon evaluation of the shallower
portions of the mineralised structure where elevated Ag is expected to occur and extend
towards the margins of the system. Comparisons with other systems suggest highest Ag
grades should occur with white to yellow sphalerite, especially at the western end where
the structure is obscured by the increased thickness of cover. If sufficient encouragement
is obtained at the western margin, an exploration adit and underground drilling might test
for the lowest temperature portions of the hydrothermal system which are herein
interpreted as most prospective.

The recognition of the importance of clavos formed at the intersection of the EW-NW and
NE-NS structures suggests there should be a change in drilling. Rather than SW oriented
grid drilling consideration should be given to test individual clavos with roughly EW
orientation (294o suggested by J. C. James) oriented drilling. Long sections and level
plans combined with modern computer technology should allow for the off-grid drill
testing.

Consideration should be given to the increased use of oriented drill core in oreder to more
clearly delineate some of the structural trends discussed herein.

TARGETS

Shallow portions of the Yaxtche structure where, in the model proposed herein, lower
temperature low sulphidation polymetallic Ag epithermal mineralisation might host
elevated Ag grades (figure 7).

The west and east margins of the Yaxtche warrant thorougher prospecting as comparisons
with other low sulphidation epithermal systems suggest best metal grades occur in the
lower temperature portions of the hydrothermal system. Sphalerite should be traced from
red to yellow and white as an indicator of low temperature regimes, possibly at the
margins of the hydrothermal system (figure 7). The extreme western and eastern ends of
the Yaxtche are therefore prospective, continuing under post-mineral cover (photo 25).

The herein named ‘MnO structure’ which crops out south of the Yaxtche East structure
(figure 3) remains highly prospective for low sulphidation polymetallic Ag mineralisation
evidenced by the MnO at surface and so warrants drill testing at depth. Drilling should
initially target shallow levels and progressively extend to depth while any dip on the
structure is established.

At the Andrea structure a possible banded low sulphidation epithermal quartz vein
warrants drill testing initially at shallow then at progressively deeper levels while the dip
is established.

Continued exploration at Quevar North, such as the Sharon structure, must be mindful
that best lower sulphidation epithermal mineralisation is likely to occur in ore shoots
localised at the intersection to EW and NE structures.

The Puntana anomaly warrants drill testing for sulphides which are likely to represent the
source of the coincident intense surface FeO development along with resistivity and
chargeability anomaly.
 17

REFERENCES CITED

Corbett G. J. 2007, Comments on the geology and exploration of the Chinchilla, San
Francisco adn Quevar projects, Salta Province Argentina: Report to Silex Argentina.

Corbett, G.J., 2009, Anatomy of porphyry-related Au-Cu-Ag-Mo mineralised systems:

Some exploration implications: Norhtern Queensland Exploration and Mining 2009
Extended Abstracts, p. 33-46.

Corbett, G.J., and Leach, T.M., 1998, Southwest Pacific gold-copper systems: Structure,
alteration and mineralization: Special Publication 6, Society of Economic Geologists, 238
p.

PHOTOS

Photo 1. Volatile-rich rhyodacite dyke with abundant pyrite - DDH40, 95.4m.

Photo 2. Dacite clast breccia composed of angular monomictic clasts - DDH 38, 22.5m.
 18

Photo 3. Black silica-sulphide fluidised breccia in dacite clast breccia. DDH80, 166.3m

Photo 4. Milled matrix breccia comprised of comminuted dacite rock material - DDH36,
149.6m.

Photo 5. Sulphide clast breccia comprising clasts in which red sphalerite is discernible in
a finely milled matrix - DDH36, 91.2m, 22 g/t Ag. 0.54% Pb, 0.9% Zn.
 19

Photo 6. Sulphide clast breccia with a clast of barite and interptreted freibergite - DDH36,
95.5m, 767g/t Ag, 1375ppm As, 2000ppm Bi, 5154ppm Cu, 2000ppm Sb.

Photo 7. Crowded clast breccia - DDH141, 301.9m.

Photo 8. Bedded breccia with load clasts formed by heaver up hole tuff to the right
settling on the lower finer grained material to the left - DDH162, 309.9m.
 20

Photo 9. Bedded breccia with up hole to the right - DDH162, 309.5m.

Photo 10. Mineralised fault with clasts of enargite and pyrite and sub surface sediment fill
formed parallel to the core axis - DDH139, 200.4m.

Photo 11. Breccia with dark dacite clasts within the Quevar Mineralised Structrue -
DDH40, 196.5m.
 21

Photo 12. Breccia within the Quevar Mineralised Structure with mineralised and dark
dacite clasts - DDH40, 272.2m

Photo 13. Mineralised clasts in breccia - DDH40, 277.7m, 91.1ppm Ag.

Photo 14. View of Quevar North showing scalloped landslips to the left and Sharon
structure across the face to the right.
 22

Photo 15. Enargite in the lower portion of the drill core cut by a core parallel vein of
Agsulphosalts and kaolin - DDH39, 74m.

Photo 16. Vein subparallel to the core axis with early enargite (left) and later pyrite-Ag
sulphosalts (right) set in an alunite matrix - DDH139, 200.2m, 333.8g/t Ag, 10,000ppm
As and 10,000ppm Cu.

Photo 17. Low sulphidation epithermal Ag mineralisation characterised by deposition of

initial bladed barite, then pyrite, Ag sulphosalt and later kaolin - DDH79, 128.9m,
404.7g/t Ag, 1828ppm As, 6735ppmCu, 478ppm Bi, 2000ppm Sb 0.6% Pb & 0.7% Zn.
 23

Photo 18. Ag-rich tetrahedrite (? freibergite) from the 800g/t Ag Sharon structure
exposure.

Photo 19. Low sulphidation mineralisation comprising banded chalcedony-opal, red

sphalerite, galena, Ag sulphosalts and late kaolin - DDH141, 260.7m, 341g/t Ag,
1491ppm Sb, 0.07% Pb, 0.12% Zn.

Photo 20. Kaolin vein at a low angle to the core axis - DDH36, 122.1m, 71Ag.
 24

Photo 21. Andrea superficial breccia characterised by chaotic quartz clasts in FeO matrix.

Photo 22. Puntana sawn slab showing dacite brecciaing intense jarosite alteration derived
from the oxidation of original pyrite.

Photo 23. Sharon structure described in text taken at the cross structure looking towards
exposure of vughy silica-kaolin with the 800g/t Ag outcrop belo.
 25

Photo 24. Breccia from Sharon structure Quevar north of alunite clasts in Agsulphosalt
matrix.

Photo 25. View looking west along Yaxtche west over landslip material to post mineral
cover.