Geology
Production was from at least 20 veins and splits of various orientations that cross-cut lower calipuy andesites and volcanic breccias. The majority of ore came from 3 principal veins, Candelaria, Tarazca and Santo Toribio, which trend N050E. Other veins included the Prescilda, Shirley and Yanacelli veins which have a dominant N70-85W trend. The highest grades of silver were reported to occur mainly on the intersections of these structures. Mine levels span approximately 300 vertical meters, and past production occurred via a system of galleries, cross-cuts and drives. Vein mineralogy is dominated by argentiferous galena, proustite and pyrargyrite within a gangue of quartz, pyrite, calcite and rhodochrosite.
Work by Focus
Although underground galleries are inaccessible, sampling was restricted to the old mine dumps. Four grab samples of dump material gave the following results and confirm the high silver content of the mineralization.
|
Ag |
Au |
Cu |
Pb |
Zn |
SAMPLE |
oz/t |
ppm |
ppm |
ppm |
ppm |
17322 |
14.98 |
0.329 |
2530 |
2.18 |
1.73 |
17323 |
13.73 |
0.16 |
492 |
4.06 |
1 |
17324 |
10.83 |
0.25 |
524 |
3.92 |
8180 |
17325 |
91.31 |
0.692 |
2040 |
14.75 |
2.47 |
Work Program
Subject to the granting of the usual permissions, Buenaventura's work program will comprise geological mapping, sampling, trenching and drilling, including rehabilitation and sampling of underground adits and tunneling.
Terms of the Agreement with Buenaventura
Under the terms of a Letter of Intent, Buenaventura can earn up to a 75% interest in the claims by spending US$3 million in exploration and development over a period of three and a half years from the issuance of the necessary permits. During the first phase, Buenaventura has committed to earning a 50% interest in the property by spending no less than US$1 million in exploration within 18 months, which will include a total of 3,000m of drilling. To earn an additional 25% interest (total 75%), Buenaventura has the option to complete US$3 million in exploration and development expenditures within 3.5 years.
Buenaventura will also have the option to acquire the remaining 25% participating interest of Focus. The purchase price will be defined based on resources outlined in a NI-43-101 compliant technical report made after Buenaventura invests the US$3 million. A formula for the calculation of sale price and for any resources defined during any future production will be negotiated and detailed in a definitive agreement.
