COPPER-GOLD EXPLORATIONS & DEVELOPMENT IN SOUTH AMERICA
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Chacay
The Chacay property is located in Region III in Northern Chile, located 12km southeast of Teck Resources Relincho copper-molybdenum project and 50km east of the city of Vallenar at an elevation of approximately 2,600m asl.
Mineral Title
The Company controls the Chacay property through MCAL's 100% interest ownership of 12 exploitation concessions totaling 1,700 hectares and 7 exploration concessions totaling 1,700 hectares for a total land position of 3,400 hectares.
The Property is subject to a 2% net profits interest on any production, to a maximum of $2,000,000 payable to First Quantum Minerals Ltd.
Relincho and Chacay Comparison
Relincho is a porphyry copper- molybdenum deposit that was acquired by Teck Resources in April 2008 for CAD$415 million plus a 1.5%NSR. As at December 31st 2009, the published Indicated resource is 648 million tonnes at 0.47%Cu + 0.026%Mo. In February 2007, the previous owner, Global Copper Corp, published an Indicated resource of 107mt at 0.33%Cu for the oxides at Relincho.
Mineralization at Relincho is associated with several Eocene age hydrothermal breccia bodies and potassically altered porphyry intrusives, emplaced in the Cretaceous age Los Morteros batholith, which is the large light toned area shown on the ASTER image below. The deposits are aligned along a WNW trend and have associated weak clay alteration which can be seen on the image.
Chacay is a porphyry copper deposit of probable Eocene age for which resources have yet to be established. It is located on the margins of the same Los Morteros batholith, is also oriented WNW, but occurs at an approximately 1200m higher elevation than Relincho. As a result, the porphyry system at Chacay is much less eroded and is largely hosted by rocks which have been affected by moderate to strong phyllic alteration that produces a much more intense clay anomaly on the ASTER image.
Geology and Mineralization
The Chacay property hosts a porphyry copper prospect of probable Eocene age that has previously been drill tested by several companies. The drill hole collars have been located and summary geological information is available for some of the previous drilling but it has not been possible to obtain the corresponding assay information. A zoned porphyry alteration suite of external propylitic alteration surrounding a phyllically altered core is developed over a distance of 3500m, oriented west northwest.
Two zones of chalcocite mineralization have been outlined by the drilling to date. The larger of these, known as the Nacho zone, occupies an area of approximately 900 x 700m centered on Cerro Colorado. This hill has an elevation difference of 300m over the surrounding valleys and hosts a leached cap, which drilling has shown to vary from 50 to 200m in thickness. Underlying the leached cap, a weakly oxidized, flat lying, chalcocite enrichment blanket has been intersected in drilling, that is currently interpreted to be between 20m thick on its margins and greater than 100m thick towards its centre. The chalcocite blanket is thickest, and has the highest copper grades, when developed within an intrusive porphyry complex exhibiting sericite-chlorite-quartz alteration, and which contained original primary copper sulphides.
The less well defined Lucho zone, is located on Cerro Chacay, and has been drill tested by two holes for which assay information is unavailable, one of which had primary copper sulphides reported and both of which have visible chalcocite in the drill cuttings left on site. One MCAL hole was drilled to test a Titan IP anomaly on the flanks of Cerro Chacay and failed to intersect significant mineralization.
In addition, an untested area of leached capping with phyllic alteration and peripheral copper oxides, outcrops approximately 2000m to the SE of the Nacho zone. This area, known as the SE Target, is surrounded by gravels, so its ultimate size is unknown.
Ground Magnetics
ZongeIngenieria y Geofisica (Chile) S.A. completed a ground magnetics survey on the property in December 2007, subsequently extended to the south east in April 2011.
The results of the original ground magnetic survey present an overall northwest texture with a number of clearly defined lineaments probably related to faulting. A zone of magnetically smooth texture in the central-eastern part of the survey area, seems to represent magnetically destructive alteration and coincides well with the Nacho zone of mineralization.
Known secondary copper mineralization coincides with magnetic lows at both the Nacho and Lucho zones. The SE Target area also is coincident with a poorly defined magnetic low, perhaps masked by partially magnetic overburden.
Recent Work
MCAL has drilled 24 reverse circulation drill holes for a total of 5,758m, (all but 2 of which were drilled to test the Nacho zone), as well as 4 diamond drill holes for a total of 1,975m, all drilled at the Nacho zone.Summary results from the Nacho Zone drilling are shown in the table below.
Mineralization at Chacay contains locally significant gold and molybdenum values, especially in the primary sulphides.
All diamond drill holes were sampled on a 2m continuous basis, with core samples split on site and one half delivered to the Andes Analytical Assaying (AAA) prep lab in Copiapo by Coro personnel. Pulp samples were transported to the AAA assay laboratory in Santiago by AAA personnel. The remaining core was stored at a Coro facility for reference.
All RC holes were sampled on a 2 m continuous basis, with samples riffle split on site and one quarter sent to the Andes Analytical Assaying laboratory in Santiago. A second quarter was stored at a Coro facility for reference. Samples were transported to the laboratory by Andes Analytical Assaying under the supervision of Coro.
Samples were prepared using the following standard protocol: drying, crushing to better than 80% passing -10#, homogenizing, splitting and pulverizing a 400 g subsample to 95% passing -150#. All samples were analyzed for CuT, Au and Mo, and as appropriate, by sequential assaying for CuSol and CuCN. A full QA/QC program, involving insertion of appropriate blanks, standards and duplicates was employed with acceptable results.
The relationships between the various principal rock types and the alteration assemblage, is shown on the following schematic long section through the Nacho Zone.
Moving Forward
The Company is proceeding with initial metallurgical testwork on the Nacho zone chalcocite mineralization and plans to conduct resource definition drilling in the near future. A comprehensive petrographical evaluation is also underway to better define the lithological relationships at Chacay.
Mineral Title
The Company controls the Chacay property through MCAL's 100% interest ownership of 12 exploitation concessions totaling 1,700 hectares and 7 exploration concessions totaling 1,700 hectares for a total land position of 3,400 hectares.
The Property is subject to a 2% net profits interest on any production, to a maximum of $2,000,000 payable to First Quantum Minerals Ltd.
Relincho and Chacay Comparison
Relincho is a porphyry copper- molybdenum deposit that was acquired by Teck Resources in April 2008 for CAD$415 million plus a 1.5%NSR. As at December 31st 2009, the published Indicated resource is 648 million tonnes at 0.47%Cu + 0.026%Mo. In February 2007, the previous owner, Global Copper Corp, published an Indicated resource of 107mt at 0.33%Cu for the oxides at Relincho.
Mineralization at Relincho is associated with several Eocene age hydrothermal breccia bodies and potassically altered porphyry intrusives, emplaced in the Cretaceous age Los Morteros batholith, which is the large light toned area shown on the ASTER image below. The deposits are aligned along a WNW trend and have associated weak clay alteration which can be seen on the image.
Chacay is a porphyry copper deposit of probable Eocene age for which resources have yet to be established. It is located on the margins of the same Los Morteros batholith, is also oriented WNW, but occurs at an approximately 1200m higher elevation than Relincho. As a result, the porphyry system at Chacay is much less eroded and is largely hosted by rocks which have been affected by moderate to strong phyllic alteration that produces a much more intense clay anomaly on the ASTER image.
Geology and Mineralization
The Chacay property hosts a porphyry copper prospect of probable Eocene age that has previously been drill tested by several companies. The drill hole collars have been located and summary geological information is available for some of the previous drilling but it has not been possible to obtain the corresponding assay information. A zoned porphyry alteration suite of external propylitic alteration surrounding a phyllically altered core is developed over a distance of 3500m, oriented west northwest.
Two zones of chalcocite mineralization have been outlined by the drilling to date. The larger of these, known as the Nacho zone, occupies an area of approximately 900 x 700m centered on Cerro Colorado. This hill has an elevation difference of 300m over the surrounding valleys and hosts a leached cap, which drilling has shown to vary from 50 to 200m in thickness. Underlying the leached cap, a weakly oxidized, flat lying, chalcocite enrichment blanket has been intersected in drilling, that is currently interpreted to be between 20m thick on its margins and greater than 100m thick towards its centre. The chalcocite blanket is thickest, and has the highest copper grades, when developed within an intrusive porphyry complex exhibiting sericite-chlorite-quartz alteration, and which contained original primary copper sulphides.
The less well defined Lucho zone, is located on Cerro Chacay, and has been drill tested by two holes for which assay information is unavailable, one of which had primary copper sulphides reported and both of which have visible chalcocite in the drill cuttings left on site. One MCAL hole was drilled to test a Titan IP anomaly on the flanks of Cerro Chacay and failed to intersect significant mineralization.
In addition, an untested area of leached capping with phyllic alteration and peripheral copper oxides, outcrops approximately 2000m to the SE of the Nacho zone. This area, known as the SE Target, is surrounded by gravels, so its ultimate size is unknown.
Ground Magnetics
ZongeIngenieria y Geofisica (Chile) S.A. completed a ground magnetics survey on the property in December 2007, subsequently extended to the south east in April 2011.
The results of the original ground magnetic survey present an overall northwest texture with a number of clearly defined lineaments probably related to faulting. A zone of magnetically smooth texture in the central-eastern part of the survey area, seems to represent magnetically destructive alteration and coincides well with the Nacho zone of mineralization.
Known secondary copper mineralization coincides with magnetic lows at both the Nacho and Lucho zones. The SE Target area also is coincident with a poorly defined magnetic low, perhaps masked by partially magnetic overburden.
Recent Work
MCAL has drilled 24 reverse circulation drill holes for a total of 5,758m, (all but 2 of which were drilled to test the Nacho zone), as well as 4 diamond drill holes for a total of 1,975m, all drilled at the Nacho zone.Summary results from the Nacho Zone drilling are shown in the table below.
Mineralization at Chacay contains locally significant gold and molybdenum values, especially in the primary sulphides.
All diamond drill holes were sampled on a 2m continuous basis, with core samples split on site and one half delivered to the Andes Analytical Assaying (AAA) prep lab in Copiapo by Coro personnel. Pulp samples were transported to the AAA assay laboratory in Santiago by AAA personnel. The remaining core was stored at a Coro facility for reference.
All RC holes were sampled on a 2 m continuous basis, with samples riffle split on site and one quarter sent to the Andes Analytical Assaying laboratory in Santiago. A second quarter was stored at a Coro facility for reference. Samples were transported to the laboratory by Andes Analytical Assaying under the supervision of Coro.
Samples were prepared using the following standard protocol: drying, crushing to better than 80% passing -10#, homogenizing, splitting and pulverizing a 400 g subsample to 95% passing -150#. All samples were analyzed for CuT, Au and Mo, and as appropriate, by sequential assaying for CuSol and CuCN. A full QA/QC program, involving insertion of appropriate blanks, standards and duplicates was employed with acceptable results.
The relationships between the various principal rock types and the alteration assemblage, is shown on the following schematic long section through the Nacho Zone.
Moving Forward
The Company is proceeding with initial metallurgical testwork on the Nacho zone chalcocite mineralization and plans to conduct resource definition drilling in the near future. A comprehensive petrographical evaluation is also underway to better define the lithological relationships at Chacay.