Toronto, June 8, 2020 – Adventus Mining Corporation (“Adventus”) (TSX-V: ADZN; OTCQX: ADVZF) and Salazar Resources Limited (“Salazar”) (TSX-V: SRL) (together the “Partners”) are pleased to announce the mobilization of field crews to the Pijilí project to commence a drilling program on a porphyry copper-gold-molybdenum system identified at its Mercy concession located in Azuay province in southwestern Ecuador. The Pijilí project consists of three concessions which total 3,246 hectares and is located approximately 150 km from the major port city of Guayaquil. The project is controlled by the Partners in a joint venture that is 80%-owned by Adventus and 20%-owned by Salazar. Explorers and project developers in the direct vicinity include groups such as Southern Copper Corporation and SolGold plc.
Highlights
- US$2.7M spent since 2018 to develop a new copper-gold-molybdenum porphyry district at Pijilí
- First porphyry drill program ready on the Mercy concession within a 1.5 by 1.5 km target area - the most advanced of three concessions that make up the Pijilí project
- Chip and channel sampling at Zambohuaycu showing on the Mercy concession from two mineralized trends showcase widespread porphyry mineralization:
- Channel sample – 42.0 metres grading 0.44% copper, 0.14 g/t gold, and 0.012% molybdenum, including 10.0 metres grading 0.77% copper, 0.32 g/t gold, and 0.020% molybdenum
- Chip sample – 26.7 metres grading 0.30% copper, 0.47 g/t gold, and 0.010% molybdenum
- Chip sample – 5.6 metres grading 0.69% copper, 0.22 g/t gold, and 0.001% molybdenum
- Minimum 5,000 metre diamond drill program to run to the end of 2020
- Continuing development of a regional pipeline of intrusion-related targets through integrating geology, geochemistry, and geophysical databases
Sampling results and figures referenced in this news release are available on the Salazar Resources website: https://salazarresources.com/projects/partnership-with-adventus-mining/pijili
The 2020 exploration program at Pijilí focuses on drilling the high-priority targets developed from integrating geology, geochemistry, and geophysical data. The Partners had delayed commencement of this permitted drilling program due to the COVID-19 public health measures set out by the Government of Ecuador. The Partners, having thoroughly consulted with regulators in Ecuador, industry partners, and contractors, have established a detailed novel coronavirus heath and safety protocol to safeguard employees, contractors and the local communities that can allow a return to work while adhering to strict hygiene and physical distancing measures. Mobilization is underway and the Partners expect drilling to commence within the next month for a minimum 5,000 metre drill program to the end of 2020. The program budget is approximately US$2.0 million.
Jason Dunning, Vice President of Exploration for Adventus, stated: "The detailed geoscience approach to data acquisition on our Pijilí project has resulted in a very favourable outcome for the Partners’ target generation initiative. The integration of geology, geochemistry and geophysics has delineated several intrusion-related targets creating an exciting exploration pipeline.” Mr. Dunning added: “Our biggest success so far has been defining eight priority drill site locations for our initial drill program on the Mercy concession. Our work has shown that the copper-gold-molybdenum mineralization occurs throughout 400 to 500 metres of elevation, from sulphide-bearing hydrothermal breccia units in an artisanal mine at 3,340 metre elevation, to deep in the potassic alteration in our Zambohuaycu showing at 2,880 metre elevation. With a target area surface expression of approximately 1.5 by 1.5 km, we are very excited to start drilling soon and recommence the hunt for a discovery at Pijilí."
Pijilí Work Summary – 2018 to 2020
Over the past two years, exploration activities have included detailed geological mapping (Figure A), hydrothermal alteration studies (Figure B), and structural mapping related to understanding the paragenetic sequencing of the veining to the porphyry system and differentiating between igneous and hydrothermal breccia units as it pertains to mineralization. Field crews also undertook successful completion of an airborne MobileMT geophysical survey (apparent conductivity, resistivity, magnetics), collection of 2,527 soil samples,
1,255 rock samples, 627 stream sediment samples, 98 lithogeochemistry samples and 25 rock-type samples for
petrography.
Field work on the two small artisanal mining concessions, which were acquired by the Partners along the southern margin of the Mercy concession, mapped out both mineralized hydrothermal breccia units and veining that the former owners were extracting and processing offsite for precious metals (Figures C and D). The mineralization is associated with hydrothermal breccia units and veining associated with quartz-sericite-pyrite and illite-kaolinite alteration; however, secondary copper minerals such as malachite and chrysocolla are commonplace with other oxide and hydroxide minerals in this near-surface environment.
Chip sampling of the artisanal mine workings has provided characterization of the porphyry mineralization. A total of 11 samples were collected from the hydrothermal breccia matrix, which yielded values of copper ranging from 0.10% to 0.52% and molybdenum from 0.008% to 0.23%, of which three samples yielded copper values greater than 0.20% and four samples yielded molybdenum values greater than 0.10%. Similarly, 11 samples were collected from hydrothermal breccia clasts that generally showed higher copper, but lower molybdenum values than results from the matrix. Copper values ranged from 0.03% to 3.74% and molybdenum values from
0.006% to 0.13%. Of the 11 clast samples, two samples yielded copper values greater than 1.00% and one
sample yielded molybdenum values greater than 0.1%. Gold and silver appear to be preferential to the clasts.
Detailed chip sampling along an underground adit highlighted 44 metres of continuous mineralization grading
0.25% copper, 0.08 g/t gold, and 0.042% molybdenum. Short intervals of notable gold-rich mineralization were also identified in a surface open cut where sampling focused on mineralized veinlets including 2.8 metres grading 3.54 g/t gold, 0.66% copper and 0.024% molybdenum, and 3.0 metres grading 1.24 g/t gold, 0.5% copper, and 0.005% molybdenum (Figure D).
Prospecting at the Zambohuaycu showing on the Mercy concession (Figure E), 0.9 km northwest of the artisanal mine and 460 metres lower in elevation, identified widespread mineralization and hydrothermal breccia units hosted within a potassic altered, hornblende-phyric phase of the diorite intrusive rock (“PH”). Porphyry mineralization has now been traced on surface along two trends at the Zambohuaycu showing, approximately
90 metres on the north side of the creek and 50 metres on the south side of the creek. These areas have been sampled using both chip and channel sampling methods where there is exposed bedrock. Along the north side of the creek, the first occurrence of porphyry mineralization at the northeast end of this 90-metre trend yielded a 26.7 metre chip sample (ZAMB-CP01) grading 0.30% copper, 0.47 g/t gold, and 0.010% molybdenum. Approximately 20 metres further to the southwest, the second occurrence yielded a 42.0 metre channel sample (ZAMB-CN03) grading 0.44% copper, 0.14 g/t gold, and 0.012% molybdenum including a higher-grade subset interval grading 0.77% copper, 0.32 g/t gold, and 0.020% molybdenum over 10 metres. Additional work will be required to infill between the two mineralized rock exposures to assess the continuity of mineralization.
On the south side of the creek at the Zambohuaycu showing, approximately 30 metres south of ZAMB-CP01, porphyry mineralization has been traced on surface for 50 metres in strike length northeast to southwest; however, overburden cover does not allow for continuous sampling (Figure E). A chip sample at the northeast end, called ZAMB-CP04, yielded 5.6 metres of porphyry mineralization grading 0.69% copper, 0.22 g/t gold, and
0.001% molybdenum. Three additional rock outcroppings to the southwest also display good porphyry mineralization along this trend. The first rock outcropping, approximately 10 metres southwest of ZAMB-CP04, yielded a 4.0 metre chip sampling result grading 0.61% copper, 0.14 g/t gold, and 0.001% molybdenum and the next rock outcrop, an additional 10 metres along strike, yielded a chip sampling result of 3.8 metres grading
0.77% copper, 0.09 g/t gold, and 0.001% molybdenum. The last rock outcrop in this trend, a further 14 metres southwest, yielded a 2.0 metre chip sampling result grading 0.78% copper, 0.21 g/t gold, and 0.006% molybdenum.
Field evidence from geological mapping and petrographic work indicate that there are potentially multiple mineralizing events on the Mercy concession. Strong hydrothermal alteration is also noted in association with later intrusive rock phases such as the feldspar-phyric (“PF”), feldspar-quartz-phyric (“PFq”), quartz-phyric (“QD”), and plagioclase-quartz-phyric (“PQD”) diorites. This suggests that the strongest veining, and potentially the porphyry mineralization, is most likely to occur in the older mineral-related intrusive rock phases and their immediate wall rocks such as PH where the Partners observe more abundant A- and AB-type veins and veinlets.
Various elemental ratios were applied to the large soil geochemistry database to develop vectors that could guide exploration and future drilling. The most useful vector was Pb/Cu, which is an “inverse ratio” with the distal, low-temperature element divided by the proximal, high-temperature element to increase the ratio contrast. The Pb/Cu ratio shows very consistent patterning that mimics the original biotitic alteration in a range from 0.1 to 1.0. When applying a modified porphyry targeting index developed by the Mineral Deposit Research Unit (“MDRU”) at the University of British Columbia, the index yielded a tighter constrained target location inside both the original biotitic alteration footprint and the Pb/Cu ratio limit (Figure F). The target size based upon these geochemical vectors is 1.5 by 1.5 km when added to the geology, hydrothermal alteration, and geophysical results. The MDRU Porphyry Index (“MPIx”) is a normalized ratio of ore-proximal (Cu, Mo, W, and Sn) to distal (Sb, Tl, Ag, As, Li) elements.
The target generation initiative on the Mercy concession developed eight high-priority drill sites on the western side of the concession inside the 1.5 by 1.5 km target area. The analytical results from geochemical sampling were integrated with the MobileMT geophysical mapping (apparent conductivity, resistivity, RTP, and CET Porphyry Analysis on TMI-RTP magnetics), which yielded key vectors that stand out to assist in drilling plans on the Mercy concession. One of the most important vectors is the spatial distribution of the potassic alteration in the western portion of the Mercy concession that is centred on PH. The potassic alteration at the core of a hydrothermal alteration zoning model for a porphyry system matched with other important criteria developed at the Mercy concession, has resulted in a list of crucial drivers for drill targeting:
- Area with a more resistive core (Figures G and H) and conductive outer ring focused on a magnetic low (Figures I and J) that spatially corresponds to favourable intrusive rocks, sulphide mineralization and hydrothermal alteration;
- Areas that are spatially associated with a CET Porphyry Analysis (on TMI-RTP) target (Figures I and J);
- Areas of porphyry-fertile PH, PFq, QD, and PQD phases, emphasizing the margins of these intrusive rocks;
- Areas within the original extent of biotitic alteration, which provides a boundary on the potential extent of mineralization from field mapping and petrography;
- Areas of higher level sericitic hydrothermal alteration from field mapping;
- Areas of more abundant A and AB veins and veinlets;
- Areas of higher Cu, Mo, Mo/As, and MPIx from soil geochemistry, and;
- Areas of lower Mn and Pb/Cu from soil geochemistry.
In addition to the advancement of the Mercy concession and definition of eight high-priority drill sites, the Partners have identified what appears to be a second, previously unknown porphyry copper system within the Pijilí project that is coincident with a MobileMT anomaly (Figure J). This new target is on Pijilí’s Rosa de Oro and Carmen de Pijilí concessions, 9.0 km to the west of the planned 2020 drilling program. Work on these concessions is currently on hold due to COVID-19 public health measures, but the Partners will seek to recommence activities in the second half of 2020 and into 2021 with a continuing focus on geological mapping, hydrothermal alteration characterization, lithogeochemistry and detailed surficial geochemical surveys. The goal is to continually advance the development of new targets within the Pijilí project to drill-ready status in
2021.
Qualified Persons, Technical Information, and Quality Control & Quality Assurance (“QAQC”)
The Pijilí project work program is being managed and reviewed by Vice President of Exploration for Adventus, Jason Dunning, M.Sc., P.Geo., a Qualified Person within the meaning of NI 43-101, who has also reviewed and approved the technical and scientific information of this news release as accurate. Salazar staff collect and process samples that are securely sealed and shipped to Bureau Veritas (“BV”) in Quito for sample preparation that includes crushing and milling to prepare pulps that are then split for shipment to their facility in Lima, Peru for analysis. All assay data have undergone internal validation of QAQC; noting there is an established sampling control program with blind insertion of assay blanks, certified industry standards and sample duplicates for the Pijilí project. A QAQC program is also in place at BV and includes insertion of blanks, standards, and duplicate reanalysis of selected samples. BV’s quality system complies with the requirements for the International Standards ISO 9001:2000 and ISO 17025: 1999. At BV, gold is analyzed by classical fire assay techniques with an ICP-AES finish, and both silver and base metals are analyzed by a 44-element aqua regia ICP-AES technique. Overlimit protocols are in place for gold, silver, copper, lead, and zinc.
About Adventus
Adventus Mining Corporation (ADZN.V) (ADVZF.OTCQX) is a well-financed exploration and project development company, focused primarily in Ecuador. Its strategic shareholders include Altius Minerals Corporation, Greenstone Resources LP, Resource Capital Funds, Wheaton Precious Metals Corp., and the Nobis Group of Ecuador. Adventus is leading the exploration and engineering advancement of the Curipamba copper-gold project in Ecuador as part of an earn-in agreement to obtain a 75% ownership interest. In addition, Adventus is engaged in a country-wide exploration alliance with its partners in Ecuador, which has incorporated the Pijilí and Santiago projects to date. Adventus also controls an investment portfolio of equities in several junior exploration companies as well as exploration projects in Ireland with South32 as funding partner. Adventus is based in Toronto, Canada, and is listed on the TSX-V under the symbol ADZN and trades on the OTCQX under the symbol ADVZF.
About Salazar
Salazar Resources (SRL.V) (CCG.F) is a mineral resource company engaged in the exploration and development of mineral deposits in Ecuador and Colombia. The company has a proven Ecuadorian discovery team led by ex-head of Newmont Ecuador, Fredy Salazar; a team of 40 people including fifteen geologists; three drill rigs and an unrivalled Ecuadorian 'grass roots' 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).
Salazar Resources aspires to be Ecuador's leading project generator with the right partners at the right time making the company self-funding. Salazar Resources has an agreement with Adventus on the Curipamba VMS discovery, whereby Adventus can earn 75% of the project by funding exploration and development expenditures of US$25 million before October 2022. A feasibility study is expected to be completed in the first half of 2022, after which Adventus is required to fund 100% of the development and construction expenditures to commercial production. In addition, Salazar Resources has a funded exploration alliance with Adventus on two other projects, Pijilí and Santiago, within a defined Area of Interest. Salazar Resources is advancing its 100% owned Rumiñahui, Macara, and Los Osos projects with the aim of making Ecuador's next significant copper-gold discovery.
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this news release.
This press release contains “forward -looking information” within the meaning of applicable Canadian securities laws. Any statements that express or involve discussions with respect to predictions, expectations, beliefs, plans, projections, objectives, assumptions or future events or performance (often, but not always, identified by words or phrases such as “believes”, “anticipates”, “expects”, “is expected”, “scheduled”, “estimates”, “pending”, “intends”, “plans”, “forecasts”, “targets”, or “hopes”, or variations of such words and phrases or statements that certain actions, events or results “may”, “could”, “would”, “will”, “should” “might”, “will be taken”, or “occur” and similar expressions) are not statements of historical fact and may be forward-looking statements.
Forward-looking information herein includes, but is not limited to, statements that address activities, events, or developments that Adventus and Salazar expect or anticipate will or may occur in the future. Although Adventus and Salazar have attempted to identify important factors that could cause actual actions, events or results to differ materially from those described in forward-looking information, there may be other factors that cause actions, events or results not to be as anticipated, estimated or intended. There can be no assurance that such information will prove to be accurate, and actual results and future events could differ materially from those anticipated in such information. Accordingly, readers should not place undue reliance on forward-looking information. Adventus and Salazar undertake to update any forward-looking information except in accordance with applicable securities laws.
For further information from Adventus, please contact Christian Kargl-Simard, President and Chief Executive
Officer, at 1-416-230-3440 or christian@adventusmining.com
For further information from Salazar, please contact ir@salazarresources.com
