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Chúcara

Location

The Chúcara (Chuvilca) gold-silver project is located in north-central Peru, within the La Libertad gold district approximately 45 km southeast of Barrick's high sulphidation Lagunas Norte Mine (Alto Chicama deposit). Focus's first acquisition, Nueva California, is located 120 km to the south of Chúcara . Chúcara , Lagunas Norte and Nueva California all have similar geology and are hosted by the Cretaceous Chimu Formation. Lagunas Norte is Barrick's lowest cost operation, producing 1.2 million ounces of gold in 2008 from estimated reserves of 8.9 million ounces of gold.


History

The Chúcara property encompasses the southern part of the historical Chuvilca Mine and its south-east extensions of mineralization. The mine is estimated to have produced roughly 176,000 short tons grading 4 oz/t Ag and 6% combined lead and zinc between 1974 and 1981. When the mine closed in 1981, a non NI 43-101 compliant resource of 465,000 tons grading 8.93 oz/t Ag, 3.86% Pb and 2.67% Zn was left, including a Proven and Probable resource comprising 289,235 tons grading 3.77 oz/t Ag, 2.44% Pb and 2.64% Zn over an average width of 0.94m, and Inferred resource of 176,000 tons grading 17.41 oz/t Ag, 6.18% Pb and 2.72% Zn was estimated over an average width of 1.2m (calculated from ore block and grade plans deduced from underground sampling. The reader is cautioned that this resource calculation was prepared before NI43-101 and as such it cannot be relied upon and it is being reported here for historical purposes only. Focus has not yet completed sufficient work to confirm these resources).

Approximately 80% of these historic resources occur on the Chúcara property and are based entirely on sampling of underground tunnels by the mine, the majority of which were from the San Juan, Consuzo, Maria and Wenses veins which are the most northerly. Gold analysis was never carried out during the mine's production. Down dip and NNW extensions of the veins remain open.

Limited surface exploration was carried out by 2 exploration companies from 2006 -- 2009 and comprised rock and soil geochemical sampling, soil sampling and some trenching. No drilling was undertaken on the property. Work by Focus included additional surface sampling and compilation of all available data including old analogue mine plans and sections into a 3D GIS digital database. From this work Focus's geologists concluded that the mineralization could represent the upper gold and silver-rich portion of a epithermal vein system that stretches for at least 2 kilometers and remains untested by drilling.

Geology & Mineralization

The Chúcara property is situated in Peru's premier gold mining camp, La Libertad, close to Barrick's Alto Chicama deposit. Both deposits are situated on the same NW --SW regional structure. Chúcara is in the same NNW -SSE corridor as the Magistral and Antamina porphyry -- skarn deposits, and the Minas Conga and El Galeno porphyry deposits.

Chúcara is an intermediate sulphidation (IS) gold and silver rich polymetallic As, Pb and Zn vein system, similar in type and setting to the Quiruvilca (Pan American Silver Corp) and Uchucchacua (Buenaventura) deposits.

Gold and silver mineralization occurs within both shallow and steeply dipping vein swarms and parallel vein sets. The configuration and orientation of at least the steeply dipping veins suggest that they could be extensional ladder veins situated between NNE-SSW wrench faults identified on the maps as the Chuvilca and David faults. The veins at Chúcara are hosted by gently folded interlayered argillite and siltstone of the Cretaceous Chimu Formation which have been intruded by Miocene stocks, dykes and sills of dacite and monzonite. The mineralization, like most Andean epithermal systems, is believed to be related to intrusive rocks.

The western extension of the mineralization is allegedly cut off by the Chuvilca fault in the case of veins Wenses and Maria, but the San Juan vein was successfully traced across that fault. Consequently the Chuvilca fault might not be the limiting facture on the mineralization in that direction.

Rock Sample Geochemistry

In the northern part of the property at the Chuvilca Mine the mineralization has been traced by underground tunnelling over a maximum vertical interval of approximately 250m. More recent surface mapping and sampling has identified additional gold and silver mineralized veins and structures further to the south of the areas exploited, defining a corridor some 2 kilometres in length, yet to be tested by either drilling or underground exploration. Interesting is that samples from these new veins are significantly higher for silver than that reported from the underground exploitation.

Compilation of 1,275 mainly surface and some underground samples of both vein and host rock from across the property (channel, panel and grab samples) returned an average assay grade of 2.2 g/t Au, with values ranging from trace to 38.8 g/t Au. The average of a subset of 359 samples taken from only veins and mineralized structures was 6.1 g/t Au and 301 g/t Ag, with an average sample width of 1m. Note: the majority of these analyses are historical in nature undertaken by third parties and have not been verified by Focus.

Historical Rock Sampling Statistics
All Samples -- Veins & Wallrocks
  Au_ppb Ag_ppm* Pb_ppm Zn_ppm As_ppm Sb_ppm
Average 2,170 95 5,071 1,599 5,963 1,716
Max Value 38,800 1,930 167,000 169,500 100,000 44,200
Min Value 2.5 0 0 0 0 0
Total # Samples 1,275 1,167 1,198 1,251 1,166 1,230
    *86 samples assayed >100 g/t Ag with no overlimits assay
 
Samples from only Veins            
  Au_ppb Ag_ppm* Pb_ppm Zn_ppm As_ppm Sb_ppm
Average 6,095 301 15,381 4,734 17,655 4,972
Max Value 34,800 1930 167,000 169,500 100,000 44,200
Min Value 2 1 1 1 1 1
75% Percentile 7,130 550        
90% Percentile 13,150 848        
Total # Samples 359 299 302 339 266 266
*60 samples assayed >100 g/t Ag with no overlimits assay



Exploration Targets

Drilling will be designed to test for the depth and strike continuation of the high-grade gold and silver mineralization within veins and mantos observed at surface and in underground, and importantly new mineralized structures identified within the 2km long mineralized corridor to the south-east and its extensions. Specific drill targets will comprise multiple, high grade Au-Ag structures within zones of broader stockwork mineralization within the sedimentary wallrocks that could be bulk-mined.

The epithermal mineralization at Chúcara occurs within a geological belt containing both epithermal and intrusive-hosted Cu-Mo-W mineralization. Additional targets at Chucara include deeper, porphyry-related massive sulphide bodies and disseminated mineralization. Drilling is planned for the latter half of 2010, subject to the granting of the usual permissions.

The Agreement

The property owner, a private Peruvian company, granted to the Company the right to acquire up to a 90% interest in the Chúcara Project. To earn an initial 70%, the Company must make cash payments of US$4 million and pay US$500,000 in shares in the Company over a period of four years. The Company can earn an additional 10% (for a total of 80%) of the Project by paying a further US$3.5 million by the fifth anniversary. No later than the sixth anniversary, Focus can increase its ownership to 85% by paying US$5 million, and to 90% by paying the owners US$2.5 per ounce of gold defined as Reserves (proven and probable) as defined by NI43-101 and JORC.
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This page was created on Sat Sep 4, 2010 at 6:11:23 PM Pacific Time.