FLAMENCO PROJECT
REGION III, CHILE
UTM 7.056.778 AND 342.497
TECHNICAL REPORT
For
LOS APIRES MINING CORPORATION
Prepared by:
José Pablo Astudillo Rodríguez
Flamenco 2020
2
Summary
The Flamenco project corresponds to an exploration project that has 2,377 hectares of mining property located 42 kilometers
southeast of the city of Chañaral. The area of interest does not have field work and this is the first geological report that
considers terrain geological information and grades geochemistry.
The district geological area where the Flamenco project is located is made up of the Chañaral Metamorphic Complex and the
Flamenco Intrusive. The first presents meta-sedimentary rocks made up of metaturbidites, slates and phyllites on the coastal
edge and metawackas in the eastern sector, the Flamenco Intrusive corresponds to a group of intrusives aligned in a north-
south direction belonging to the Batolith of the Cordillera de la Costa in the north From Chile.
The local geological framework shows that within the project the Chañaral Metamorphic Complex emerges, which covers 80%
of the outcrops and the Flamenco Intrusive covers 20% of the outcrops. District structures follow a NS, NE and NW trend which
limits a Hydrothermal Alteration Zone 600 meters long by 200 meters wide (on average) with strong silicification in the box
rock plus wide quartz veins with North South orientations and NE-SW, stockwork of multidirectional quartz veinlets and
andesitic-diorite dykes. The quartz veins are presented with thicknesses ranging from 10 cm to 20 meters, internally they
present another hydrothermal event with two phases of quartz crystallization, in which milky white sinuous quartz veins and
straight quartz veins are recognized crystalline. For the author of this report, the Hydrothermal Alteration Zone is the main
exploration target of the Flamenco Project.
A study of remote sensors was carried out in the Flamenco project, iron mineralization (ferric-hematite and ferrous-magnetite
ion), carbonate, silica, advanced and intermediate argilic and propylitic alterations were determined and confirmed in the field.
The areas of mineralization with a ferrous index that agree with intrusive bodies rich in magnetite and iron oxides (limonite,
magnetite and hematite) were also checked.
A surface geochemistry where 27 samples were obtained from the Hydrothermal Alteration Zone shows that there are
anomalies of Gold, Copper, Lead, Zinc, Titanium, Arsenic, Mercury and Antimony. The last three together with the Gold confirm
the auriferous potential of the Flamenco Project.
An IOCG type model is proposed for the Flamenco Project for the following reasons: Existence of red hematite confirmed by
the ferrous index (study of remote sensors), iron oxides and surface magnetite. Existence of veins, veinlets and stockwork of
quartz and carbonate on the surface. Existence of leached sulfides in veins, veinlets and hydrothermal alterat ion zones with
hematite-sericite-carbonate-quartz in the box rocks (Chañaral Metamorphic Complex). These are all characteristics that
coincide with the IOCG model proposed by Hirtzman 1992 and that is applied to several Chilean deposits.
In the surroundings of the Flamenco Project there are Mining Districts with quartz veins with hematite, goethite, jarosite, gold
and gold-copper contents. These veins are located in rocks of the Chañaral Metamorphic Complex and intrusive rocks of the
Flamenco Intrusive. The most important district is the La Coqueta District which has different sectors with quartz-hematite
veins with exploitation of ancient gold (Coqueta Este, Coqueta Norte, Coqueta Sur). The main exploitation occurred in two
gold veins of quartz with hematite and limonite, with 0.5 meters of power and an estimated length of 100 meters that present
a course between N20 ° W and N40 ° W and with vertical arrangement. Currently, within the La Coqueta District, the company
Tesoro Resources is executing an exploration drilling campaign in the El Zorro Project, where 16 drillings have been carried
out with attractive gold intercepts associated with quartz veins and veins with grades of up to 46.2 gr / ton Au. The geology
described in the El Zorro Project is similar to that observed in the Flamenco Project, that is, a Hydrothermal Alteration Zone
with quartz-hematite veins and veins located in the contact area between the Chañaral Metamorphic Complex and Jurassic
intrusives (Flamenco Intrusive and Relincho Intrusive) therefore the gold potential of the Flamenco Project is very attractive
and should be evaluated in the following exploration campaigns.
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Table of Contents
1. Introduction ..................................................................................................... 4
1.1. Project history and information context ............................................................... 4
1.2. Location and access roads ...................................................................................... 4
1.3. Work Methodology .................................................................................................... 5
2. District Geological Framework ...................................................................... 9
3. Local Geological Framework ....................................................................... 12
3.1. Chañaral Metamorphic Complex (Devonian) ...................................................... 12
3.2. Flamenco Intrusive (Lower Jurassic)................................................................... 15
3.3. Structural Geology .................................................................................................. 17
3.3.1. Main structures ................................................................................................. 18
3.3.2. Veins, veinlets and stockwork of Quartz ..................................................... 20
3.3.3. Carbonate Veins ............................................................................................... 21
3.3.4. Foliation of the Chañaral Metamorphic Complex ...................................... 22
4. Hydrothermal alteration zone .................................................................................... 23
5. Study of Remote Sensors ............................................................................ 26
6. Chemical Analysis of samples .................................................................... 28
7. Geological environment and type of deposit ............................................. 35
8. Nearby mining districts ................................................................................ 36
8.1. La Isla District ........................................................................................................... 37
8.1.1. La Isla Deposit .................................................................................................. 37
8.1.2. Las Flores Deposit ........................................................................................... 38
8.1.3. Pamela Deposit ................................................................................................. 38
8.2. La Coqueta District .................................................................................................. 40
8.3 El Zorro Project ........................................................................................................ 40
9. Conclusions .................................................................................................. 43
10. Recommendations ........................................................................................ 46
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1. Introduction
1.1. Project history and information context
The Flamenco project is located in an attractive and privileged area with a vestige of
old deposits and gold mining operations located south east of the Puerto Flamenco
Town. The Geologist José Pablo Astudillo in 2019 made the first geological report
(First Geological Report) for Apires Mining Corporation, this report had the
purpose of reviewing geological information of the environment and determining a
prospective area that was named “Red Alteration Area” and that it corresponds to
a zone of alteration with veins and veins of polydirectional quartz and possibly
subordinate carbonate.
1.2. Location and access roads
The project is located in the Atacama Region between UTM coordinates 338,794 to
345,122 east orientations and 7,059,622 to 7,052,620 north orientations, it presents
an easy and expedited access through the Pan-American 5 North route from Caldera
and Chañaral. The project is located 42 kilometers southeast of the city of Chañaral
and 72 kilometers from the city of Caldera.
From the Panamericana route 5 North, you must follow the C-261 route, which is
paved and well maintained. This route should be followed until kilometer 11, a place
close to the north end of the Flamenco project mining property, from this point the
interior of the mining property is accessed to the south through a moderately
maintained dirt road through which the recommends the use of a four-wheel drive
vehicle (photograph 1).
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Photograph 1: Location of the Flamenco project, Chile.
1.3. Work Methodology
For this geological report, two terrain campaigns of two days each were carried out,
53 geological mapping points were raised and different types of rock, mineralization,
alteration and present structures were recognized (photograph 2). With this, it was
possible to define an area with greater advanced exploration potential that has
approximately 28 hectares, which contains most of the structures, veins, quartz veins
and alteration of silica in the box rock.
Subsequently, in the Geomaq laboratory (Santiago), a mechanical preparation and
X-ray Fluorescence analysis were performed on the 27 samples obtained in the field
with the aim of determining the concentrations of elements present in the area and
projecting the mineralized zones in depth.
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Photograph 2: Geological mapping points taken on site.
1.4. Relationship between an IOCG deposit and the presence of Cobalt
In Chile, Cobalt exploration is just beginning and there are four sources of research.
The first corresponds to a study carried out by Professor of the University of Chile
Brian Townley who made a compilation of all the cobalt deposits (table 1) that exist
in Chile from the historical records of laws and exploitations. This study concludes
that Cobalt in Chile is located in the Coastal Strip between the Third and Fourth
Region associated with IOCG-type iron deposits (Iron, Copper, Gold, Cobalt). The
second source corresponds to the advanced exploration works carried out by the
American company Genlith in the La Cobaltera Project, where they drilled several
veins with iron, copper, gold and cobalt distributed in a 10 square kilometer area
(they are currently evaluating the construction of a plant to recover these minerals).
The third source corresponds to a private listed carried out by the author of this
report, where I have recognized several IOCG-type projects with Cobalt, some with
drilling and others only with surface information (Table 2). Therefore, in Chile we do
have Cobalt presence in the IOCG Deposits and their grades increase in surface
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along with copper and iron. The fourth source corresponds to the incorporation of
cobalt in the business model of Capstone Mining's Santo Domingo Project, where it
achieved a better valuation and increased profits as a result of the cobalt content
mixed with iron and copper (Table 3 and Map 1).
Table 1: Laws of Iron, Copper, Gold and Cobalt in deposits registered by Brian Townley.
Table 2: Laws of Iron, Copper, Gold and Cobalt in prospectuses registered by José Pablo Astudillo
(III and IV Region).
Proyecto Tipo de muestra Au (g/t) CuT (%) FeT (%) Co (ppm)
Canaleta 1,20 1,3 18.6 1100Rock chip 0,70 3,8 10,2 1229
Rock chip 0,20 1,6 38,3 2040
Rock chip 0,10 2,6 52,3 678Rock chip 0,40 2,4 31,4 2760
Canaleta (trinchera 3) 0,02 1,3 9,43 761Canaleta (trinchera 3) 0,01 1,1 10,52 714
Canaleta (trinchera 3) 0,53 7,2 15,85 1175Canaleta (trinchera 3) 0,05 0,6 13,92 1967
Canaleta 0,11 3,5 18,82 1008
Sondaje (92 a 94 m) 1,6 > 15 867Sondaje (94 a 96 m) 0,3 > 15 1497
Sondaje (374 a 376) 1,1 > 12,5 192Sondaje (376 a 378) 0,3 > 12,5 248
Copiapó
Copiapó
Punitaqui
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Table 3: Estimate of resources for the Santo Domingo Project with content of Iron, Copper, Gold
and Cobalt.
Map 1: Concentration of Cobalt in Region III and location of Advanced and Early Projects in
exploration.
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2. District Geological Framework
The district geological site where the Flamenco project is located has been described
by Godoy and Lara in 1998. This is made up of the Chañaral Metamorphic Complex
(Godoy and Lara, 1998) and the Flamenco Intrusive (figure 1). The first one presents
meta-sedimentary rocks made up of metaturbidites, shales and phyllites on the
coastal edge and metawackas in the eastern sector. This complex would have been
formed as part of a Paleozoic accretion prism, which suggests the presence of
malange facies and the tight folding with west-southwest vergence (Bell, 1982,
1984).
The Flamenco Intrusive corresponds to a set of Intrusive aligned in a North-South
direction belonging to the so-called Batolith of the Cordillera de la Costa in northern
Chile. This is located from the town of Puerto Flamenco to the south of the city of
Chañaral between 26 ° 29’S and 26 ° 38’S. In its northern part, it is mainly made up
of granodiorite to tonalitic rocks, to a lesser extent diorites and quart diorites. It has
been assigned a Lower Jurassic age between 20 and 186 Ma. (Berg and Breitkreuz,
1983; Brook et al., 1986; Dallmeyer et al., 1996).
This body is located and cut to meta-sedimentary rocks belonging to the Chañaral
Metamorphic Complex, in its northern and central zone it is composed mainly of
clinopyroxene, amphibole and biotite granodiorites, as the mafic bodies are partially
chloritized (photographs 4 and 5) . Tonalites, monzodiorites and quart diorites are
present on the edges of Intrusive, presenting a light gray color and a medium to
coarse grain.
In previous works by Grocott and Taylor (2002), they propose two stages of intrusion
for the Flamenco Intrusive, in which the granulitic texture of the rock in its northern
area confirms the presence of several pulses or site stages. The first intrusive bodies
are subjected to a thermal input from the new pulses, generating a self-granulation
of some of the magmatic facies that make up the Flamenco Intrusive.
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At the edges of intrusive body, metamorphism haloes are observed and associated
with the box rock, they can host veined gold deposits, as is the case in the different
districts near the Flamenco project.
Figure N ° 1: District geological map in which the Flamenco Project is located.
The contact between the Chañaral Metamorphic Complex with the intrusive bodies
of the Lower Jurassic, generated an intermediate grade metamorphic aureole, in
which the metapelites have reduced migratory sectors which contain Andalusite and
Cordierite. Around the Flamenco Intrusive, the horn rocks present Andalusia
oriented in the foliation plane and the biotite in this area is fully chloritized.
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Photograph 4: Phyllites of the Chañaral Metamorphic Complex with foliation and veins of quartz-
limonites.
Photograph N ° 5: Flamenco Intrusive cut by black andesitic dikes.
The Chañaral Metamorphic Complex is of vital importance both for the location of
quartz-limonite veins and for its excellent behavior as a receptor rock for alteration
and possible deep mineralization due to its high porosity, enough foliation that allows
the circulation and trapping of mineralization of economic interest, it is expected that
at depth it can host copper, cobalt and gold mineralization.
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3. Local Geological Framework
In the Flamenco Project 2 lithological types are recognized, these correspond to the
Chañaral Metamorphic Complex and intrusive bodies belonging to the Flamenco
Intrusive.
3.1. Chañaral Metamorphic Complex (Devonian)
It corresponds to a set of meta-sedimentary rocks composed of metaresnisca,
quartzite, slate, philites and subordinately by schists, metabasites and marbles
(photograph 6). These rocks generally have a low grade metamorphism and are
moderately folded. Within the study area, many folds were not recognized for these
rocks, which are poorly recrystallized and in some cases it was possible to recognize
the stratification. This unit covers 80% of the Flamenco Project, on the ground it was
recognized as cut by numerous intrusive bodies associated with the Flamenco
Intrusive and areas with contact metamorphism expressed by biotite and
subordinate actinolite are recognized. Furthermore, within this unit, a moderate to
intense Hydrothermal Alteration Zone was recognized, characterized by silicification
of the phyllite matrix and by a series of polydirectional veins and veins of quartz and
subordinate carbonate. All these veins and veins have variable thicknesses of
millimeters up to 10 meters. These veinlets contain iron oxides such as limonite and
scarcely copper oxides. Finally, the presence of red hematite and subordinate
magnetite can be highlighted, which is very scarce (photograph 7).
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Photograph 6: Outcrops of the Chañaral Metamorphic Complex within the Flamenco Project.
14
Photograph 7: Detail of phyllites and slates with recrystallization and alteration of silica-quartz-
limonite veinlets in the Chañaral Metamorphic Complex.
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3.2. Flamenco Intrusive (Lower Jurassic)
The Flamenco Intrusive covers 20% of the Project. It presents as diorites and dioritic
porphyries with a high presence of iron oxides (photograph 8). To a lesser extent,
small dykes of andesitic composition and diorites appear, the mafic of which are
chloritized. In the area with the greatest exploration potential, a dioritic porphyry body
with a North - South orientation, dark green with intense chlorite, biotite, actinolite
(scarce) and magnetite in contact with the Chañaral Metamorphic Complex (photo
9) was recognized. According to what was observed in the field and given the
presence of magnetite in this intrusive, it can be concluded that it is responsible for
the heat that the Hydrothermal Alteration Zone may have generated within the
Chañaral Metamorphic Complex.
Photograph 8: Flamenco Intrusive represented by Dioritic Porphyries cutting the Chañaral Metamorphic Complex.
The numerous minor intrusive bodies and andesitic-microdioritic dike that belong to
the Chañaral intrusive and are presented with NE-SW and NW-SE orientations.
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Photograph 9: Flamenco Intrusive with biotite and magnetite in the ground mass.
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3.3. Structural Geology
The structural characteristics of the Flamenco Project are the result of different
overlapping deformation events. The oldest structures are observed in the Chañaral
Metamorphic Complex where parallel slate foliations were observed (photograph
10). All of these structures were formed under a semi-ductile regime compatible with
accretion prisms. These deformations would have been contemporaneous or
subsequent to the sedimentation of the area in the Devonian - Carboniferous (Bell,
1984). These foliations are a very good trap for harboring deep copper-gold-cobalt
mineralization. For the Flamenco Intrusive, subvertical magmatic foliation (60 ° - 80
° E) was observed in the field, parallel to the contact with the rocks of the Chañaral
Metamorphic Complex. The parallelism between magmatic foliation and ductile
foliation of the rocks of the Chañaral Metamorphic Complex implies a syntectonic
location of the Flamenco Intrusive in the Lower Jurassic (photograph 11).
Photograph 10: Ductile foliation observed in the Chañaral Metamorphic Complex.
Photograph 11: Subvertical magmatic foliation observed on the Flamenco Intrusive.
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3.3.1. Main structures
The structures present in the Flamenco project follow NW, NE and EW trends (photo
12) which limit the Hydrothermal Alteration Zone (photos 13 and 14), model the
morphology of the area and possible channeling of the mineralization of gold, copper
and cobalt in depth.
Minor structures follow a preferential trend N-S and E-W, this trend is also followed
by intrusive bodies.
Photograph 12: Map of recognized structures in the Flamenco Project (blue lines).
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Photograph 13: Map of structures observed in the area of interest.
Photograph 14: Fault that limits the hydrothermal alteration zone.
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3.3.2. Veins, veinlets and stockwork of Quartz
The quartz veins and veins are concentrated in the Hydrothermal Alteration Zone
detected in the terrain mapping. These present a preferential North-South orientation
and variable thicknesses from a few centimeters to metric (photograph 15 with
veinlets stocwork). These veins show quartz, scattered limonite carbonates, pyrite
box and in some cases brecciation is observed with fragments of the box rock
immersed in the vein.
Photograph 15: Stockwork of quartz-limonite veins and carbonate veins.
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At the southern end of the alteration zone, an intense stockwork of quartz vetilla was
recognized, cutting a strongly silicified rock in which 2 cutting stages are recognized.
In a first stage the system is found with a higher degree of temperature giving way
to sinuous veins and with a whitish quartz, secondly straight quartz veins (milky) are
observed that cut the box rock and the previous ones, it is postulated that for these
veinlets the system was at a low temperature (photograph 16).
Photograph 16: Quartz veinlets and quartz warp with limonite and carbonate with brecciation of the
box rock.
3.3.3. Carbonate Veins
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In different sectors of the Flamenco Project, carbonate veins and veins are
presented, which are parallel to the quartz veins and veins, these have a thickness
of 10 centimeters to 2 meters, generally follow a North South trend and cut at
Chañaral Metamorphic Complex (photograph 17). Finally, it is important to note that
the author of this report has identified carbonate veins with grades of up to 4,000
ppm of cobalt and attractive copper and gold credits in other projects with similar
characteristics than the Flamenco Project.
Photograph 17: Veins and veins of carbonate-quartz with brecciation of the box rock.
3.3.4. Foliation of the Chañaral Metamorphic Complex
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The rocks belonging to the Chañaral Metamorphic Complex are presented with
foliation within the Flamenco Project, this foliation has a preferential North South
orientation, various dykes and / or intrusive bodies, veins and veins of quartz take
advantage of these areas of weakness to cross the layers and generate zones of
geological interest (photograph 18). Larger structures such as local faults in turn
follow this North-South trend and N20 ° - 30 ° E.
Photograph 18: Foliation in phyllites with dykes and overlapping veinlets.
4. Hydrothermal alteration zone
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Based on the information collected such as the study of remote sensors, satellite
images, geological mapping, the author of this report has managed to define a
Hydrothermal Alteration Zone whose characteristics are presented below:
It is 600 meters long by 200 meters wide (on average), it is located in the central
west area of the project. It corresponds to an alteration zone with strong silicification
in the box rock plus a strong quartz vetilleo with North-South and NE-SW
orientations, stockwork of multidirectional quartz veinlets, andesitic and dioritic dikes
and intense silicification in the box rock. The quartz veins are presented with
thicknesses ranging from 10 cm to 20 meters, internally they present another
hydrothermal event with two phases of quartz crystallization, in which milky white
sinuous quartz veins and straight quartz veins are recognized crystalline.
The Alteration Zone is adjacent to the Flamenco Intrusive which has a dioritic
composition, is reddish in tone and has a preferential North South orientation to NE-
SW (photograph 19). In the contact between this intrusive unit and the box rock,
there are a series of faults which present a preferential orientation NE-SW, NS and
subordinate EW, a clear district trend that partly controls the deformation style of the
box rock and zones of weakness allowing these bodies and structures to locate
themselves.
The veins and veins are presented in this same orientation and are located in a
corridor approximately 600 meters long within the Hydrothermal Alteration Zone
(map figure 2).
For the author of this report, the Hydrothermal Alteration Zone is the main
exploration target of the Flamenco Project.
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Photograph 19: Hydrothermal Alteration Zone and Flamenco Intrusive, North view.
Figure 2: Map of Hydrothermal Alteration Zone containing corridor with Quartz Veins.
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5. Study of Remote Sensors
A study of remote sensors (photograph 20) was carried out in the Flamenco project,
mineralization and types of alterations existing in the study area were determined
such as: calcium carbonate, silica, ferric index (hematite), ferrous index (magnetite),
alterations advanced and intermediate argillic and propylitic.
This study of remote sensors allows the processing and interpretation of satellite
images through the capture of the physical characteristics of the Earth's surface,
based on measurements of reflected and emitted radiation of each component of the
studied surface. In turn, the images and multispectral data are processed, which
provides very useful information to establish the differences in the soil and rock
based on their composition.
Photograph 20: Map of remote sensors with alteration and mineralization identified by the study of
remote sensors, Flamenco Project.
In the terrain the mineralization zones with ferrous index were identified (photograph
21), this mineralization zone agrees with intrusive bodies (Flamenco Intrusive) rich
in magnetite and iron oxides (limonite, magnetite and hematite) which is highly
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oxidized. Adjacent to these intrusive bodies a Hydrothermal Alteration Zone was
recognized with a high concentration of structures, veins and veins of both quartz
and carbonate, which follow a clear North-South trend, these veins, veins and
stockwork have an association with limonite, These structures follow the trend of
intrusive bodies (North-South) and are an important antecedent for future exploration
campaigns.
Photograph 21: Map of remote sensors with: ferrous index, Flamenco Project.
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6. Chemical Analysis of samples
The 27 samples were collected within the Hydrothermal Alteration Zone that has
better prospects for advanced exploration, and were subsequently sent to the
Geomaq Laboratory located in the city of Santiago. There they were crushed and
pulverized to a size of 150 meshes, then they were deposited in capsules so that
they could be analyzed by a Bruker brand X-ray Fluorescence team, model Titan
S1, where an analysis of 35 elements was obtained. Finally they were sent to F.G.
F. Mining Analysis located in the city of Coquimbo where its Gold contents were
analyzed.
The laboratory results show the following conclusions:
a) There are 2 samples with very anomalous calcium grades which coincide with
areas of Calcium Carbonate (Calcite) veins on the surface. This is very
important since the author of this report has detected important Cobalt
contents in old mines located in the San Juan District (Freirina) and whose
most important alteration mineral is Calcium Carbonate.
b) 98% of all the samples have very anomalous laws in Titanium (over 700 ppm
Ti reaching 2,180 ppm) which clearly shows that there is a significant
concentration of Titanium throughout the Alteration Zone that was sampled in
surface. The author of this report has studied IOCG Projects with deep
drillings with similar contents of Titanium on the surface and that in depth
increase to concentrations of up to 6,000 ppm associated with Cobalt -
Vanadium in areas with magnetite, therefore, Titanium will enhance the
Flamenco Project and must be incorporated as an important credit.
c) 90% of the samples have more than 1% of Fierro, which coincides with the
presence of limonites and hematites in fractures observed in the field.
d) All the samples did not show anomalous Cobalt contents, this element will be
found in association with concentrations of magnetite in depth according to
the IOCG Model proposed by the author of this report. It is noted that none of
29
the samples obtained in the field showed visible magnetite, but rather enough
quartz in veinlets and replacing the box rock.
e) 98% of the samples obtained anomalous grades in copper (greater than 25
ppm, reaching grades over 100 ppm) which shelters the possibility of
recognizing areas with more attractive grades in depth. On the surface, only
traces of copper oxides were detected in a couple of outcrops, therefore the
geochemistry performed confirms these observations.
f) There is a moderate presence of Zinc in the alteration zone since several
samples obtained grades greater than 20 ppm, even reaching 60. Their
presence confirms the existence of concentrations of polymetallic ores in the
Hydrothermal Alteration Zone.
g) 50% of the samples presented anomalies of Arsenic, this is very important
since in the Deposit the Island there are great anomalies of Arsenic
associated with high gold grades.
h) More than 1/3 of the samples show Antimony anomalies, this chemical
element is associated with attractive Gold grades in the La Coqueta deposit
that is being drilled by the company Tesoro Resources with excellent results
for Gold.
i) Three samples show anomalous Mercury laws (average 4 ppm), this is very
important since the author of this report worked three years in the Carmen De
Andacollo Mine where he was able to demonstrate that the Gold veins were
associated with Mercury areas . Therefore, Mercury is a good guide element
for prospecting for Gold in Flamenco.
j) Eight samples were abnormal in Gold and are distributed throughout the
entire hydrothermal alteration zone, which is very good news since it confirms
the gold potential of the Flamenco Project. The most anomalous laws are
located in the north central portion of the alteration zone, this also coincides
with the anomalies of Arsenic, Gold, Lead, Antimony, Titanium and Zinc.
Next, maps are included that represent the metallic elements that have an affinity
for gold and that are distributed in the different structures sampled in the field
(Map 2).
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Map 2: Distribution of Gold grades, Flamenco Project.
Map 3: Distribution of Arsenic grades, Flamenco Project.
31
Map 4: Distribution of Copper grades, Flamenco Project.
Map 5: Distribution of Mercury grades, Flamenco Project.
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Map 6: Distribution of Lead grades, Flamenco Project.
Map 7: Distribution of Antimony grades, Flamenco Project.
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Map 8: Distribution of Titanium grades, Flamenco Project.
Map 9: Distribution of Zinc grades, Flamenco Project.
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Next, a table with the grade results of the samples obtained in the Flamenco Project
is presented (table 4).
Table 4: Detail laws of samples taken in the Flamenco Project
Name Ti (ppm) Fe (%) Cu (ppm) Zn (ppm) As (ppm) Sb (ppm) Hg (ppm) Pb (ppm) Au (gr/ton)
N-1 1.118 1,5 103 60 22 9 0,07
N-2 2.198 3,9 74 28 18 30 12 0,02
N-3 999 0,9 34 28 5 23 0,03
N-4 1.224 1,4 36 15 24 11 0,03
N-5 721 1,3 37 5 21 0,04
N-6 1.535 3,3 49 38 5 0,01
N-7 1.263 1,3 28 17 24 0,05
N-8 0,4 50 52 13 35 15 0,02
N-9 926 1,6 31 22 7 0,02
N-10 1.146 1,2 152 11 0,02
N-11 1.313 1,3 41 25 0,10
N-12 1.222 0,9 18 0,09
N-13 1.322 1,4 36 12 4 0,05
N-14 964 0,9 36 5 6 0,02
N-15 1.576 1,8 39 10 36 0,04
N-16 1.223 1,1 31 25 28 0,05
N-17 962 1,2 27 12 4 3 0,01
N-18 1.792 1,5 26 10 27 28 0,01
N-19 1.871 1,9 91 9 15 0,01
N-20 1.227 0,9 35 6 0,01
N-21 1.042 1,2 16 7 9 0,01
N-22 1.100 1,1 51 13 0,01
N-23 889 1,4 33 38 7 25 10 0,01
N-24 730 1,2 42 57 16 0,03
N-25 1.617 1,2 36 19 4 28 0,01
F-11 1.768 1,5 19 14 9 0,01
F-12 1.329 1,1 25 16 0,02
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7. Geological environment and type of deposit
The Flamenco project presents a series of evidences and conditions to estimate that
it corresponds to an exploration project of the IOCG type (photograph 22).
• Existence of red hematite confirmed by the ferrous index (study of remote
sensors), iron oxides and surface magnetite.
• Existence of veins and stockwork of quartz and calcium carbonate on the
surface, which coincides with the model proposed by Hirtzman 1992.
• Existence of leached sulfides in veins, veinlets and Hydrothermal Alteration
Zone with hematite-sericite-carbonate-quartz in the box rocks (Chañaral
Metamorphic Complex) that coincides with the model proposed by Hirtzman
1992.
Photograph 22: IOCG model defined by Hirtzman 1992 postulated for the Flamenco Project.
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8. Nearby mining districts
In the surroundings of the Flamenco Project there are Mining Districts with quartz
veins, with hematite, goethite, jarosite and contents of gold, gold-copper, and only
one of them with copper. These veins are located in rocks of the Chañaral
Metamorphic Complex and intrusive rocks of the Flamenco Intrusive (figure 3).
Figure 3: Location of the Flamenco Project with respect to other Mining Districts.
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8.1. La Isla District
This is a Gold Mining District that is located approximately 13 km southeast of the
town of Puerto Flamenco. It is accessed through a track that runs through the Aspera
gorge in the direction of the town of La Isla. This mining district is made up of three
small-sized gold deposits: La Isla, Las Flores and Pamela which correspond to veins
of quartz and hematite with variable gold contents, they show a general NW-SE
heading and are located on metamorphic rocks belonging to the Chañaral
Metamorphic Complex and on intrusive rocks of the Lower Jurassic (Stock La Isla),
(Photograph 23).
8.1.1. La Isla Deposit
This deposit is made up of three subparallel solid quartz veins and runs between 30
to 50 meters and up to 0.5 meters thick, a depth of no more than 5 meters is
recognized and they have a bearing of N60 ° W and a vertical cape. These veins are
located in shades belonging to the Stock La Isla, these veins are made of quartz with
variable amounts of hematite and limonite, in turn there is a series of minor north-
south veins that cut the main veins and define a Stockwork of veinlets with a
dimension of 100 meters by 50 meters.
The presence of gold (2.1 ppm) and high arsenic contents (1,905 ppm) are
recognized in previous works (W. Vivallo and R. Carrasco, 2017), suggesting the
presence of arsenopyrite in the ore of the Deposit.
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8.1.2. Las Flores Deposit
This deposit is in the form of a solid quartz vein, heading N50 ° W and mantle with
75 ° NE, it is located along a fault of the same orientation and has a length of
approximately 100 meters, its power varies between 0.3 and 1 meter and an
estimated depth of 15 meters.
The quartz vein has little dissemination of hematite and magnetite, which is partially
altered to hematite. The box rock corresponds to slates and phyllites corresponding
to the Chañaral Metamorphic Complex. Adjacent to the vein, intense quartz is
observed with both disseminated quartz and veins along with hematite.
8.1.3. Pamela Deposit
Solid quartz vein with N45 ° W orientation and a variable cape between vertical and
55 ° NE, it has a length of approximately 100 meters and a maximum power of 1
meter. The quartz vein contains little dissemination of pyrite which is normally
replaced by limonite and magnetite altered to hematite. The box rock corresponds
to metareniscas, slates and philites that correspond to the Chañaral Metamorphic
Complex, on the edges of the vein we can see quartz in veinlets, disseminated
quartz and a slight silicification of the box rock. The author of this report was able to
access some samples taken by the owners of this deposit and it can be indicated
that they have attractive gold grades, which confirms the important potential of the
district (table 5):
39
Table 5: Gold laws in samples taken from the Pamela deposit (La Isla District).
Photograph 23: Location of the La Isla district (gold district) near the Flamenco Project.
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8.2. La Coqueta District
This district is located 15 km in a straight line to the East of Port Obispo, its access
is made through a dirt road that starts at the mouth of the El Morado gorge and
enters to the east through the Cuevitas gorge to the town Diamond tip (photograph
24). The district is made up of numerous quartz gold veins, hosted on metamorphic
rocks of the Chañaral Metamorphic Complex. Due to the quantity and lateral
continuity of the veins and reconnaissance works with trenches and drillings, this
district is considered to be the main Gold District between Chañaral and Caldera.
This district has different sectors with quartz-hematite veins with old exploitation
(Coqueta Este, Coqueta Norte, Coqueta Sur) is currently paralyzed, the main
exploitation occurred in two gold-bearing quartz veins with hematite and limonite,
with 0.5 meter power and an estimated length of approximately 100 meters
presenting a bearing between N20 ° W and N40 ° W and with vertical arrangement.
These are located on slates and phyllites of the Chañaral Metamorphic Complex and
close to contact with the Relincho Intrusive.
The cage rock adjacent to the vein shows quartz-sericite alteration with an alteration
halo up to 3 meters wide. Previous geological studies (W. Vivallo and R. Carrasco,
2017) indicate chemical analyzes with contents of 62,000 ppm of arsenic, 50 ppm of
antimony and 42 gr / ton of gold, the high content of arsenic denotes the presence
of arsenopyrite as a companion mineral . Currently in the La Coqueta District, the
company Tesoro Resources is executing an exploration drilling campaign (El Zorro
Project).
8.3 . El Zorro Project
The El Zorro project is located in the La Coqueta mining district, the American
company Tesoro Resource is currently carrying out a series of drilling with excellent
results (photograph 25), for example, in the ZDDH00017 drilling, multiple zones of
gold mineralization have been cut high grade (table 6).
41
Table 6: Drill results received to date on drill ZDDH00017.
This drilling makes it possible to clarify that the gold increases in depth, in the core
samples the alteration and quartz vetilleo associated with gold mineralization are
observed, the box rock corresponds to the Tonalita El Zorro.
Photograph 24: ZDDH00017 sounding with Tonalita box rock cut by quartz-gold veinlets.
Tesoro Resource has drilled 16 diamond drill holes, delimiting a gold system that is
still open. Photograph 25 shows the arrangement of the quartz drillings and veins
with hematite with gold grades in each drilling.
42
Photograph 25: El Zorro Project with drill holes location and better gold intercepts, red drill holes are
currently being drilled.
The local geological framework described in the El Zorro Project is similar to that
observed in the Flamenco Project, that is, a Hydrothermal Alteration Zone with
quartz-hematite veins and veins located in the contact area between the Chañaral
Metamorphic Complex and intrusives Jurassic (Flamenco Intrusive and Relincho
Intrusive).
The results of the drilling of the El Zorro Project clearly increase the value of the
Flamenco Project since when the discovery of the El Zorro Project is announced, the
projects that surround it immediately acquire strategic importance.
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9. Conclusions
The Flamenco project corresponds to a high-potential exploration project that has
2,377 hectares of mining property located 42 kilometers southeast of the city of
Chañaral.
The district geological area where the Flamenco project is located is made up of the
Chañaral Metamorphic Complex and the Flamenco Intrusive. The first one presents
meta-sedimentary rocks made up of metaturbidites, slates and phyllites, the
Flamenco Intrusive corresponds to a set of intrusives aligned in a North-South
direction belonging to the Batolith of the Cordillera de la Costa in northern Chile.
The local geological framework shows that within the project the Chañaral
Metamorphic Complex emerges, which covers 80% of the outcrops and the
Flamenco Intrusive covers 20% of the outcrops. The district structures follow a NS,
NE and NW trend which limits a Hydrothermal Alteration Zone 600 meters long by
200 meters wide (on average) with strong silicification in the box rock, as well as
wide quartz veins with North orientations. South and NE-SW, stockwork of
multidirectional quartz veinlets and andesitic-diorite dykes. The quartz veins are
presented with thicknesses ranging from 10 cm to 20 meters, internally they present
another hydrothermal event with two phases of quartz crystallization, in which milky
white sinuous quartz veins and straight quartz veins are recognized crystalline. For
the author of this report, the Hydrothermal Alteration Zone is the main exploration
target of the Flamenco Project.
A study of remote sensors was carried out in the Flamenco project, iron
mineralization (ferric-hematite and ferrous-magnetite ion), carbonate, silica,
advanced and intermediate argilic and propylitic alterations were determined and
confirmed in the field. The areas of mineralization with a ferrous index that agree
with intrusive bodies rich in magnetite and iron oxides (limonite, magnetite and
hematite) were also checked.
An IOCG type model is proposed for the Flamenco Project for the following reasons:
Existence of red hematite confirmed by the ferrous index (study of remote sensors),
44
iron oxides and surface magnetite. Existence of veins, veinlets and stockwork of
quartz and carbonate on the surface. Existence of leached sulfides in veins, veinlets
and hydrothermal alteration zones with hematite-sericite-carbonate-quartz in the box
rocks (Chañaral Metamorphic Complex). These are all characteristics that coincide
with the IOCG model proposed by Hirtzman 1992 and that is applied to several
Chilean deposits.
A surface geochemistry where 27 samples were obtained from the Hydrothermal
Alteration Zone shows that there are anomalies of Copper, Zinc and Titanium, in
addition the existence of Arsenic, Antimony and Mercury was verified, which have a
strong affinity with Gold.
In the surroundings of the Flamenco Project there are Mining Districts with quartz
veins with hematite, goethite, jarosite, gold and gold-copper contents. These veins
are located in rocks of the Chañaral Metamorphic Complex and intrusive rocks of
the Flamenco Intrusive. The most important district is the La Coqueta District which
has different sectors with quartz-hematite veins with exploitation of ancient gold
(Coqueta Este, Coqueta Norte, Coqueta Sur). The main exploitation occurred in two
gold veins of quartz with hematite and limonite, with 0.5 meters of power and an
estimated length of 100 meters that present a bearing between N20 ° W and N40 °
W and with vertical arrangement. Currently, within the La Coqueta District, the
company Tesoro Resources is executing an exploration drilling campaign in the El
Zorro Project, where 16 drillings have been carried out with attractive gold intercepts
associated with quartz veins and veins with grades of up to 46.2 gr / ton Au. The
geology described in the El Zorro Project is similar to that observed in the Flamenco
Project, that is, a Hydrothermal Alteration Zone with quartz-hematite veins and veins
located in the contact area between the Chañaral Metamorphic Complex and
Jurassic intrusives (Flamenco Intrusive and Relincho Intrusive) therefore the gold
potential of the Flamenco Project is very attractive and should be evaluated in the
following exploration campaigns.
45
For the author of this report, the results of the exploration campaign were very
positive since a 30-hectare Hydrothermal Alteration Zone was recognized and
described, which can become a Gold deposit similar to the El Zorro Project of
the American Company Tesoro Resources .
In addition, many sectors remained unexplored, which fuels the expectation of
finding other alteration zones that may be even larger than the Alteration Zone that
was described in this report.
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10. Recommendations
The results of the exploration works in the Flamenco Project are attractive for the
demonstration of a copper-gold-cobalt deposit similar to the El Zorro Project,
therefore, the author of this report recommends continuing with the following
advanced exploration works. :
1) 1: 5,000 mapping of all areas that have not been mapped so far. The objective
is to leave 100% of the project with a geological mapping standard since it is
highly probable to recognize other alteration zones with quartz veins that may
have copper and gold mineralization in depth (photograph 26).
Photograph 26: In blue the area mapped in this report, in red the area that remains to be
mapped at a 1: 5,000 scale.
2) 1: 500 mapping of the Hydrothermal Alteration Zone and construction of
trenches for rock sampling and chemical analysis (photograph 27). The
47
objective of this sampling is to make a detailed geochemical map for copper,
gold, cobalt and silver in each of the quartz-Limonite veins that have been
mapped within this area (the main exploration target that the Flamenco
Project has).
Photograph 27: 1: 500 scale mapping area in the Hydrothermal Alteration Zone and the location of
the trenches to perform detailed geochemistry in each of the quartz-Limonite veins.