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Lida Resources Inc
Symbol LIDA
Shares Issued 34,157,429
Close 2020-06-30 C$ 0.24
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Lida Resources acquires Quiruvilca mine

2020-06-30 18:03 ET - News Release

Mr. Leonard De Melt reports

LIDA RESOURCES INC. ACQUIRES 100% OWNERSHIP OF THE QUIRUVILCA MINE, PERU

Lida Resources Inc. has entered into two agreements to acquire 400 hectares that encompass the Quiruvilca mine. While several million dollars have been spent on this property, the total acquisition cost to the company was $200,000 (U.S.) with no further obligations.

"Our goal is to completely change the mining methodology. The 2.5-kilometre gold/copper sulphide zone requires infill drilling to prove out tonnage. Our objective is to change from a vein-type silver mine profile to a high-tonnage gold/copper mine profile," stated Leonard De Melt, chief executive officer.

The Quiruvilca mine, Quiruvilca district, Santiago de Chuco province, La Libertad, Peru, is located six miles southeast of the company's San Vincente property.

The mine is located at an elevation of 3,800 metres in the Andes Mountains of northern Peru, approximately 80 miles inland from the coastal city of Trujillo, Peru, in the district of Agallpampa, province of Otuzco. The property is located in the occidental part of the tertiary volcanic belt of the Western Cordillera and is underlain by rocks of the Calipuy formation, a precious and base metals metallotects formation found in Peru. The Calipuy formation is the product of posttectonic volcanism in the Cordillera region.

Quiruvilca mine

Quiruvilca is one of Peru's oldest mines, with mineralization first reported in the area in 1789. Mining at a corporate level started in 1907, and continued more or less until 1930 or so. The Quiruvilca mine has been in continuous operation since about 1940 until 2018 and was initially focused on the silver-bearing veins on the property. In 1967, the mill started to treat complex ores producing silver, lead and zinc concentrate. In 1995, Pan American acquired an 80-per-cent interest in the Quiruvilca mine and had increased its interest to 99.7 per cent by 1996.

The workings are extensive, spread out over a wide area, in many veins. Currently, grades run at about 150 grams per tonne (g/t) silver, 4 per cent zinc, 1.5 per cent lead and 0.5 per cent copper. Stoping has taken place in, reportedly, 60 places. Considering the 1,725 tons per day that the mine can process, that is a lot of small stopes! The underground working places are accessed by several adits/ramps and one shaft. Ore is moved to surface, primarily, by one long conveyor belt system but also supplemented by rail movement from ore passes plus skip-hoisted ore.

The Quiruvilca deposits are in layered volcanic rocks of the Miocene Calipuy formation, which includes andesite and minor basalt flows. The Calipuy formations have an estimated thickness in excess of 2,000 metres. Intrusive rocks include andesite stocks and dikes. The ore zones have four distinct zones. Ores in the central part of the district are mesothermal and are dominated by enargite. The mesothermal deposits grade outward to the epithermal deposits. Lewis (1956) described the various zones in some detail. The inner zone is called the enargite zone and, in the past, encompassed the major part of the Quiruvilca mine. Little mining is done in that zone today. Minerals associated with the enargite in this zone are pyrite tennantite, wurtzite, sphalerite, chalcopyrite, orpiment, galena and rare hutcinsonite. The second zone outward is the transition zone, which is up to 1,400 metres wide. Its dominant ore mineral is sphalerite with pyrite and tennatite-tetrahedrite. Other sulphides include chalcopyrite, galena, marcasite, arsenopyrite, covellite and wurtzite. Gangue minerals are mostly massive quartz and occasional rhodochrosite and calcite. The third zone outward is the epithermal lead-zinc zone characterized by sphalerite and galena accompanied by pyrite, chalcopyrite, tetrahedrite-tennantite, marcasite, arsenopyrite and gratonite. Gangue minerals in the lead-zinc zone are quartz, dolomite, rhodochrosite and calcite. The outermost zone is the stibnite zone. In addition to stibnite, the other minerals there are arsenopyrite, pyrite, sphalerite, galena, chalcopyrite and arsenic.

Mr. De Melt stated:

"This transaction is an important consolidation of land in an important part of Peru. The San Vicente mine was in production of gold and silver concentrate until 2011. The Quiruvilca mine is only six miles away from the company's San Vincente property and we feel that mineralized zones connect the two properties. I feel that the large near-massive sulphide, copper-rich zone near the bottom of the Quiruvilca mine has excellent potential and I believe this structure had a 2.5-kilometre potential that had only a few drill holes into it. I believe this combined project would potentially make an excellent exploration/resource build project that could return to mining with some key investment and management. Our goal is the completely change the mining methodology. The 2.5-kilometre gold/copper sulphides zone requires infill drilling to prove out tonnage. Our objective is to change from a vein-type silver mine profile to a high-tonnage gold/copper mine profile."

About Lida Resources Inc.

Lida acquires properties by staking initial mineral claims, negotiating for permits from government authorities, acquiring mineral claims or permits from existing holders, entering into option agreements to acquire interests in mineral claims, or purchasing companies with mineral claims or permits. On these properties, the company explores for minerals on its own or in joint ventures with others.

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