05:41:38 EST Tue 10 Dec 2019
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Salazar Resources Ltd
Symbol SRL
Shares Issued 126,477,790
Close 2019-07-11 C$ 0.18
Recent Sedar Documents

Salazar samples up to 29.6 g/t Au in rock at Macara

2019-07-11 10:10 ET - News Release

Mr. Fredy Salazar reports

SALAZAR PROVIDES AN UPDATE ON ITS WHOLLY-OWNED PORTFOLIO

Salazar Resources Ltd. has provided the following update on its wholly owned portfolio.

Highlights:

  • 9.94 grams per tonne gold in soil, 29.60 grams per tonne gold in rock samples from Macara; application for drilling and associated environmental and water-use permits under way;
  • Drilling and environmental permits received for Ruminahui, awaiting water-use permit;
  • New copper-gold-rich concession, Los Osos, added to 100-per-cent-owned portfolio.

Fredy Salazar, chief executive officer of Salazar Resources, commented: "We have had an active first half of the year. The work program at Macara returned excellent results, with robust anomalies helping us to generate a number of drill targets. What makes the Macara prospect so intriguing is that it is only 90 kilometres away from the giant VMS [volcanogenic massive sulphide] deposits of Tambo Grande, Peru, and in similar geology. At Ruminahui, ongoing community dialogue has enabled Salazar to advance towards drilling, with only water-use permits required before we can drill there. Elsewhere, we are pleased to add to the wholly owned portfolio a new property (Los Osos) that was optioned for $250,000 (U.S.). All told, this progress showcases our core expertise, which is to identify local opportunities (Los Osos), to work with local communities (Ruminahui), and to identify and advance geological potential (Macara).

"The company is focused on its strategy of advancing its 100-per-cent-owned projects prior to seeking partnership with mid-tier or major mining companies. Meanwhile, in parallel, funded work at Curipamba, Pijili and Santiago with Adventus Mining continues to progress well."

Further detail

Macara, province of Loja, Ecuador

Phase 1 exploration at Macara, consisting of mapping and sampling (soils and rocks), has been completed. Two hundred forty soil samples, on a 100-metre-by-100-metre grid, have been taken, with results as high as 9.94 grams per tonne gold helping to define a 600-metre-by-300-metre anomaly. One hundred fifty-two rock samples (outcrop and float) have been taken, with the highest-grade chip sample returning 29.6 grams per tonne gold over 1.0 metre. Applications for appropriate drill, water-use and environmental permits have been submitted. Salazar Resources anticipates executing a first-pass drill program of up to 3,000 metres during 2020.

The geology at Macara consists largely of volcanic rocks of Cretaceous age. In Ecuador, the sequences are known locally as the Celica formation, whereas, in the same basin over the border in Peru, the same-aged rocks are called the Lancones formation, and the Lancones basin hosts the Tambo Grande copper-zinc-gold-silver volcanogenic massive sulphide (VMS) deposits of northern Peru. Three unusually large VMS deposits occur within the vicinity of the town of Tambo Grande, approximately 90 kilometres from Macara. The deposits are estimated to contain over 300 million tonnes of material, comprising: TG1 -- 109 million tonnes of sulphide ore grading 1.6 per cent copper, 1.0 per cent zinc, 0.5 gram per tonne gold and 22 grams per tonne silver plus 16.7 million tonnes grading 3.5 grams per tonne gold and 64 grams per tonne silver in oxide ore; TG3 -- 82 million tonnes grading 1.0 per cent copper, 1.4 per cent zinc, 0.8 gram per tonne gold and 25 grams per tonne silver; and B5 -- resource not fully defined.

Mapping at Macara has identified a suite of basalts, andesites and pillow lavas interpreted to be part of a tholeiitic volcanic arc. Gold and base metal mineralization is spatially related to a complex of hydrothermal breccias and stockworks in pillow lavas that are silicified to varying degrees and that occasionally host barite. Where the pillow lavas are brecciated, the pillows contains less than 1 per cent pyrite, chalcopyrite and bornite with occasional sphalerite in the matrix, and there is less intense mineralization in the pillows themselves. Where the stockworks contain barite veinlets and exhibit more intense silicification, often characterized by iron oxide staining, the gold and silver grades are elevated.

Salazar maintains a rigorous chain of custody and quality assurance/quality control program that includes the insertion of certified standard control samples and blanks and the reanalysis of samples with high levels (overlimit) of gold, copper and zinc. All samples were analyzed by Inspectorate Services Peru SAC (Bureau Veritas), a certified ISO 17025:1999 and ISO 9001:2000 laboratory. The laboratory also maintains a quality assurance/quality control program that includes insertion of blanks, standards and duplicate reanalysis of selected samples. Gold was analyzed by fire assay -- atomic absorption spectroscopy (FA-AAS). Silver, copper, zinc and other elements were analyzed by aqua regia extraction with an inductively coupled plasma mass spectroscopy (ICP-MS) finish.

Ruminahui, province of Pichincha, Ecuador

In the first half of 2019, Salazar Resources continued community liaison at Ruminahui, supporting the community association with projects such as road repairs and agri-initiatives. A scout drilling plan and associated environmental impact assessment have been approved. The application for a water-use permit is under way. Salazar anticipates a phase 1 drill program of approximately 3,000 metres to start in the second half of 2019 or early 2020.

See the company's website for a map showing the Ruminahui concession areas.

Los Osos, El Oro state, Ecuador

Salazar Resources has entered into an option agreement with the vendor, Francisco Soria Venegas, to earn the right to acquire 100 per cent of Los Osos through a series of staged payments over 48 months for a total sum of $250,000 (U.S.). The process of transfer of the mineral rights to Salazar Resources began after the first payment was made.

Los Osos is a 229-hectare, single-concession exploration licence well located in the Cerro Pelado-Cangrejos mineral district within the province of El Oro in southwest Ecuador. The licence area hosts a system of veins rich in gold and silver, combined with hydrothermal breccias and mineralized gold-copper porphyries. Several quartz-tourmaline breccias mineralized with chalcopyrite and pyrrhotite are present on the property.

Under previous tenure, the area has been mapped, sampled and subject to airborne geophysical surveys (magnetic and radiometric). Artisanal miners have historically worked some of the veins, and small-scale mining has been active on Los Osos and the adjacent properties for over 15 years. Salazar Resources is currently digitizing available historic exploration and other data on the property.

See the company's website for a map showing the Los Osos concession areas.

Outlook for the second half of 2019

In the second half of 2019, Salazar Resources will carry out phase 1 geological exploration fieldwork at the Los Osos project in Ecuador and potentially the Alisales project in Colombia. The company continues to review new opportunities regularly.

Depending on the issuance of drill permits from the government, Salazar Resources is anticipating several drill programs in the next 12 months. Applications have been made for a 3,000-metre program at Ruminahui and a scout drilling program at Macara that will give the right to drill from up to 20 drill pads at the discretion of the company. In addition, Adventus Mining previously announced plans for a 6,000-metre drilling program at the Curipamba project and to drill at Santiago and Pijili in 2019 and beyond. Joint venture discussions are in progress, and it is anticipated that the Salazar drill rigs, through Perforaciones Andesdrill SA, will be used.

Qualified person

Kieran Downes, PGeo, a qualified person as defined by National Instrument 43-101, has reviewed and verified the technical information provided in this release.

About Salazar Resources Ltd.

Salazar Resources is a mineral resource company engaged in the exploration and development of mineral deposits in Ecuador.

Salazar Resources has a joint venture with Adventus on the Curipamba VMS discovery, whereby Adventus can earn 75-per-cent of the project by financing exploration and development expenditures of $25-million (U.S.) before 2024.

Salazar Resources is advancing its 100-per-cent-owned Ruminahui, Macara, Los Osos and Alisales projects with the aim of making Ecuador's next significant copper-gold discovery.

We seek Safe Harbor.

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