Mr. Fredy Salazar reports
SALAZAR PROVIDES UPDATES ON EXPLORATION AT LOS OSOS AND AN EXECUTIVE APPOINTMENT
Salazar Resources Ltd. has provided an update on the Osos project, El Oro province, Ecuador, and has appointed Merlin Marr-Johnson as executive vice-president.
Highlights
- Extensive sulphide mineralization within porphyries, metamorphic rocks and hydrothermal breccias mapped and tested, peaking at 14.5 grams per tonne gold over 0.6 metre in a veined quartzite;
- Apparent correlation of gold and copper grades with sulphide intensity;
- Numerous old workings for gold-silver in high-grade veins and in some hydrothermal breccia zones;
- Targets identified for imminent drill program.
Fredy Salazar, chief executive officer of Salazar Resources, commented: "Work at Los Osos has returned excellent results with extensive mineralization identified in porphyritic intrusions, metamorphics and in hydrothermal breccia bodies to date. Sampling and mapping of the extensive network of adits and galleries is ongoing, and we have already drawn up drill targets on previously untested bodies. What makes the Osos project so compelling is that it is only 10 kilometres south of the 17-million-ounce Cangrejos gold project and Pacho Soria, our chief geologist, led the discovery team at Cangrejos. He knows the geology at Cangrejos intimately, and recognizes a very similar mineralizing system at Los Osos. Extensive artisanal work at Los Osos historically focused on high-grade, narrow veins. The potentially higher tonnage bodies with disseminated mineralization will be drill tested for the first time by Salazar Resources this year.
"We also congratulate Merlin on his promotion to executive vice-president. Merlin is already an integral member of the management team and will continue to contribute leadership as Salazar Resources focuses on delivering value through discovery in Ecuador."
Los Osos
Location
The Osos project is located in the southwest of Ecuador, in El Oro province, 35 km to the southeast of the town of Machala (population about 240,000) and 10 km to the southwest of the Cangrejos project. Cangrejos is the flagship project for Lumina Gold which contains 16.7 million ounces of gold in the measured and indicated categories, as per the National Instrument 43-101 report published in November, 2019.
Exploration history
Past exploration including mapping, sampling and an airborne magnetic survey has been carried out by a number of companies, notably Newmont Overseas Exploration (1992 to 2001) and Kinross Ecuador (2005 to 2012). Salazar Resources has inherited a partial database of geological, geochemical and geophysical data, including 813 soil samples and 500 rock samples taken from surface and underground in the Kinross era. Separately the company also has maps and magnetic survey data from work done by Newmont. In the past six months Salazar Resources has collected 334 rock samples, remapped the area and digitized historic data.
Regional geology
The southwestern part of Ecuador hosts a Miocene porphyry intrusive belt typified by multiple nested late Oligocene to Early Miocene intrusions that are in turn punctured and intruded by a number of porphyry dikes and breccia pipes. The approximately 20-million-annum age of the intrusions in the intrusive belt is the same as that of the giant Chilean copper-gold porphyries which range in age from 10 million to 40 million years.
Local geology and mineralization
The geology of the property comprises metamorphic rocks, intruded by Tertiary andesites and diorites. Mineralization is present in multiphase hydrothermal breccias, stockwork zones and porphyry intrusions. When present, the mineralization in the rocks is pervasive and widespread, consisting of pyrite and chalcopyrite in varying quantities. There appears to be a correlation between the intensity of sulphide mineralization and gold and copper grades.
In the northeast of licence area there are several northeast-southwest-trending quartz-breccia veins that are up to one metre in thickness and can be traced over several hundred metres. These arsenopyrite-pyrite-chalcopyrite veins contain significant gold and silver values, and have been extensively worked by artisanal miners. Intense propyllitic-argillic alteration and silicification can be observed across the property.
Results
Salazar has taken 334 rock samples from both the mineralization in hydrothermal breccias and the veins worked by artisanal miners. The main exploration target for Salazar Resources are the potentially large-tonnage porphyry-related hydrothermal breccias, and to date multiple breccia bodies have been identified within the concession area, some up to 300 metres by 200 m in size. As noted above, there is abundant sulphide mineralization in the area and mapping and sampling are continuing. Results shown in the tables are from two separate areas (areas A and B) that the company believes are illustrative of the type of mineralization present in Los Osos.
Area A exhibits porphyritic intrusions into metasediments visible in the walls of a stream gully in the central portion of the licence area. The mineralization can be traced over approximately 50 m, despite limited exposure. Four samples were taken from the gully ranging from 0.4 g/t gold over fault zone, to 14.5 g/t gold from a channel sample in veined quartzite.
RESULTS FROM AREA A, SAMPLED OVER 50 M
Sample No. Sample type Width m Au ppm Ag ppm Cu ppm Zn ppm As ppm Lithology
52455 Panel 0.1 0.4 0.3 271 42 242 Fault zone
52456 Panel 0.6 14.5 8.8 3,430 19 +10,000 Quartzite/vein
52457 Panel 0.5 8.1 43.5 7,117 23 +10,000 Quartzite
52458 Channel 0.8 0.6 4.3 215 14 256 Quartzite
Area B is traceable as a broadly continuous breccia body in underground workings over approximately 100 m, and mappable at surface approximately 600 m northeast of area A. Thirty-three samples were taken from the underground workings, and range in grade from six separate samples that returned 0.1 g/t gold in channel samples, to a panel sample in breccia that returned 4.5 g/t gold.
RESULTS FROM AREA B, SAMPLED OVER 100M
Sample No. Sample type Width m Au ppm Ag ppm Cu ppm Zn ppm As ppm Lithology
52254 Panel 1.0 0.2 3.7 314 3 922 Breccia
52255 Panel 0.5 0.3 3.1 350 13 446 Breccia
52256 Panel 0.8 0.2 3.7 1,357 260 113 Intrusive
52258 Channel 0.8 0.7 0.5 105 3 219 Vein
52261 Panel 1.0 0.3 0.3 901 41 332 Intrusive
52263 Panel 0.6 0.4 0.2 106 10 106 Breccia
52264 Panel 0.5 0.3 4.1 8,291 98 22 Intrusive
52267 Panel 0.7 0.7 4.6 244 7 1436 Breccia
52268 Panel 0.8 1.1 5.2 632 3 1168 Breccia
52269 Panel 1.2 0.2 4.9 151 11 517 Breccia
52271 Panel 0.9 0.6 2.3 1,307 49 6118 Breccia
52275 Panel 1.2 0.2 5.6 160 3 263 Quartzite
52276 Channel 3.0 2.5 3.5 201 3 863 Breccia
52277 Panel 1.0 0.1 0.3 57 3 350 Breccia
52278 Panel 0.8 4.5 15.5 281 3 +10,000 Breccia
52279 Channel 0.0 0.7 1.4 1,246 64 +10,000 Fault
52281 Channel 0.1 0.2 0.8 776 122 9177 Fault
52284 Panel 0.7 0.2 0.4 125 17 83 Quartzite
52285 Panel 1.0 0.1 0.1 55 61 50 Quartzite
52287 Channel 0.0 0.2 0.4 98 125 248 Vein
52291 Panel 0.8 0.1 0.4 179 20 507 Quartzite
52294 Panel 1.0 0.3 0.7 233 30 17 Quartzite
52295 Panel 1.0 0.4 0.4 275 24 23 Intrusive
52296 Panel 0.8 1.2 0.6 65 8 8889 Breccia
52298 Panel 1.0 0.1 0.3 130 37 17 Quartzite
52301 Chips 5.0 0.1 0.1 37 3 10 Breccia
52366 Panel 1.0 0.2 4.6 1,377 44 742 Quartzite
52367 Panel 1.0 0.1 1.6 346 29 196 Quartzite
52371 Panel 1.0 0.1 1.3 167 9 152 Quartzite
52375 Panel 1.0 0.1 2.8 549 31 166 Intrusive
52376 Panel 1.0 0.5 1.6 291 31 123 Intrusive
52384 Channel 0.6 0.3 0.1 134 12 86 Fault
52386 Channel 0.6 0.2 5.4 222 20 545 Fault/breccia
Results from the underground vein sampling in the far northeast of the concession returned extremely high grades. Of 63 underground vein samples in this area, 32 were in the range of 3.0 to 79.8 g/t gold, and 52 of the samples were 1.0 g/t gold or above. The results from these samples are included in the attached table.
RESULTS FROM NE-SW VEINS IN THE NORTHEAST OF THE LICENCE AREA
Sample No. Width m Au ppm Ag ppm Cu ppm Zn ppm As ppm Lithology
50831 1.0 12.9 27.7 1,548 19 +10,000 Vein
50832 0.5 0.1 1.4 97 45 987 Vein
51996 0.8 22.6 27.7 1,708 527 +10,000 Vein/breccia
51998 0.8 2.3 13.0 454 190 +10,000 Vein/breccia
51999 0.5 2.8 28.3 572 897 3,255 Vein/breccia
52156 0.1 18.5 28.2 3,144 54 +10,000 Vein
52157 0.2 2.5 4.3 213 16 +10,000 Vein
52158 0.2 7.5 13.2 832 415 +10,000 Vein
52159 0.4 1.9 12.8 1,251 809 8,088 Vein
52160 0.2 32.7 81.9 8,828 1,699 +10,000 Vein
52161 1.0 1.2 10.8 367 152 2,418 Vein
52162 0.1 1.1 12.0 499 68 2,598 Vein
52167 0.2 0.1 1.5 67 19 116 Veinlets
52168 0.4 1.3 8.3 1,664 111 2,495 Vein
52169 0.1 4.2 14.6 557 206 +10,000 Vein
52171 0.1 46.1 46.6 224 160 2,008 Vein
52173 0.1 1.9 1.5 19 21 432 Vein
52175 0.4 6.0 2.9 107 35 612 Vein
52178 0.1 1.0 7.6 66 27 2,348 Vein
52182 0.1 0.3 5.0 112 135 343 Vein
52185 0.5 8.5 16.5 1,118 190 +10,000 Veinlets
52186 0.8 0.3 2.0 303 25 978 Veinlets
52188 0.5 0.1 1.3 51 124 282 Veinlets
52192 0.1 1.0 29.7 361 98 2,878 Vein
52196 0.6 0.4 33.6 51 46 740 Veinlets
52197 0.7 0.5 21.3 143 115 4,388 Veinlets
52201 0.6 0.2 5.3 74 190 414 Veinlets
52204 0.3 3.5 25.0 1,384 7,670 +10,000 Vein
52209 0.4 10.9 43.8 922 95 +10,000 Vein
52211 0.2 6.8 7.6 970 2,531 +10,000 Vein
52212 0.4 14.7 36.3 657 183 +10,000 Vein
52214 0.3 5.3 12.7 447 740 +10,000 Vein
52215 0.2 31.1 94.1 2,778 40,370 +10,000 Vein
52225 0.3 14.0 65.0 1,414 8,253 +10,000 Vein
52233 0.1 18.3 4.0 10 103 +10,000 Vein
52237 0.1 79.8 124.8 1,809 39,830 +10,000 Vein
52243 0.4 11.8 63.1 1,055 3,540 +10,000 Vein
52245 0.4 3.3 17.9 846 144 +10,000 Vein
52302 0.4 1.2 6.6 464 177 5,259 Vein/breccia
52304 1.0 1.8 13.1 684 126 6,061 Vein/breccia
52306 0.8 0.9 6.3 597 27 6,773 Vein/breccia
52308 1.0 29.4 74.0 5,514 106 +10,000 Vein/breccia
52311 1.0 31.1 116.8 1,151 71 +10,000 Vein/breccia
52313 1.2 3.2 19.7 221 54 +10,000 Vein/breccia
52318 3.0 1.1 5.4 387 185 2,118 Vein/breccia
52319 1.5 8.8 9.5 664 113 +10,000 Vein/breccia
52320 1.3 1.3 3.1 41 7 3,955 Vein/breccia
52321 1.3 0.4 2.5 30 13 341 Vein/breccia
52323 0.7 2.1 2.5 145 44 +10,000 Vein/breccia
52330 0.7 6.4 64.2 8,511 325 +10,000 Vein/breccia
52331 0.2 36.4 40.7 1,091 1,428 +10,000 Vein
52332 0.2 2.0 10.4 941 545 +10,000 Vein
52334 0.4 15.7 13.5 751 189 +10,000 Vein
52335 0.5 1.2 15.5 79 19 726 Vein
52338 0.3 34.6 11.2 486 303 +10,000 Vein
52339 0.4 2.8 19.0 109 24 5,208 Vein
52342 0.3 3.2 23.5 2,081 163 +10,000 Vein
52343 1.1 1.7 5.5 319 25 +10,000 Vein
52352 0.2 4.7 22.6 1,141 666 +10,000 Vein
52355 0.9 2.5 59.5 75 34 3,578 Vein
52356 0.6 28.1 41.8 158 131 6,978 Vein
52358 0.7 0.6 8.1 552 66 378 Vein
52359 0.3 22.0 60.4 468 563 +10,000 Vein
Interpretation and plans
Salazar notes the similarities in the geological setting of Los Osos to the Cangrejos deposits. Francisco (Pacho) Soria, chief geologist for Salazar Resources, spent five years exploring the Cangrejos deposits, taking the project through targeting, soil and rock chip sampling, mapping, and the first 29 drill holes, all of which intersected mineralization. Collating Mr. Soria's experience, the historic database and recent assay results, the company believes that the distribution of gold mineralization visible to date at Los Osos is highly encouraging. A drill plan targeting areas of intense sulphide mineralization is being developed and the company aims to start drilling at Los Osos in Q2 2020.
The high-grade veins in the northeast of the concession area illustrate that the mineralizing systems at Los Osos are metal rich. The veins do not, however, represent a priority exploration target for Salazar Resources.
Quality assurance/quality control
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 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 QA/QC 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.
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.
Corporate
Salazar Resources is pleased to announce the appointment of Merlin Marr-Johnson as an executive vice-president of the company. Mr. Marr-Johnson joined the company in January, 2019, as vice-president of corporate development.
About Salazar Resources Ltd.
Salazar Resources is a mineral resource company engaged in the exploration and development of mineral deposits in Ecuador and Colombia. The company has a proven Ecuadorean discovery team led by ex-head of Newmont Ecuador, Fredy Salazar; a team of 40 people including 15 geologists; three drill rigs and an unrivalled Ecuadorian grassroots network. The Salazar team has been involved with many discoveries in Ecuador, including Curipamba (Adventus Mining and Salazar Resources), Fruta Del Norte (Lundin Gold), the Mozo deposit, Cangrejos (Lumina Gold), Rio Blanco (Junefield Mineral Resources and Hunnan Gold) and Gaby (ENAMI).
We seek Safe Harbor.
© 2024 Canjex Publishing Ltd. All rights reserved.