VANCOUVER, BRITISH COLUMBIA, September 20th, 2021 -- SALAZAR RESOURCES LIMITED (TSXV: SRL, OTC QX: SRLZF, Frankfurt: CCG.F) (“Salazar Resources” or the "Company") is pleased to announce that it has acquired the mineral title to the 1,175 hectare (“ha”) Correa-Jiron Concession 601062 (“El Potro”) in the mineral-rich Loja porphyry district, Ecuador for an initial payment of US$50,000. Following due diligence, the Company believes that El Potro is a new porphyry discovery with significant exploration potential.
Highlights
- Multiple indications that El Potro contains a well-preserved porphyry system with a gold-bearing lithocap
- Gold, and copper and molybdenum-bearing minerals identified during due diligence
- Lithocap channel samples include 3 m @ 26.6 g/t gold (“Au”), and 3 m @ 9.0 g/t Au
- Porphyry stockwork samples include 4 m @ 0.23 % copper (“Cu”)
- Accelerated exploration programme currently underway
Fredy E. Salazar, President and CEO of Salazar Resources said, “I met the previous owners of the concession when they brought high-grade material from El Potro to the processing plant I own. We recognized that El Potro feed came from an area with real exploration potential. Our subsequent mapping and sampling identified numerous indications that El Potro contains a well-preserved porphyry system complete with a gold-bearing lithocap. It is a new and tremendously exciting early-stage exploration target.
The licence area is an established mining concession, with a history of small-scale artisanal production, which makes permitting for exploration activity much easier. El Potro is a completely unexplored, fresh discovery.
Once again, our ability to add new properties to the Salazar Resources portfolio underlines our credentials as a partner of choice in Ecuador. The fact that the vendors chose to work with Salazar Resources demonstrates that we are being trusted to make discoveries and to manage the project in a way which has a positive impact on local communities.”
“EL POTRO” CORREA JIRON 601062
El Potro lies in the southeast of Loja Province, southern Ecuador. Altitudes in the single contiguous concession area range from 3,000 m to 3,700 m and access is via gravel roads and mule track from the town of El Airo which is seven km to the west. The project area has been subject to small-scale artisanal mining activity since the Mining Concession was granted in 2010. El Potro has been held by a consortium of private holders since 2010 and the area has not been subject to any recorded systematic exploration.
Figure 1. Location of “El Potro” Correa Jiron 601062
Geology
The area is crossed by a large system of transpressional faults, running north-northeast. A suite of Miocene Portacheula rocks is intruded into older (Jurassic) Chigüinday Très Lagunas units.
Preliminary mapping has identified porphyrytic intrusions, argillic and Ca-K alteration signatures, locally intense stockworks, and a siliceous lithocap. The main stockwork is hosted in porphyry, and exhibits intense quartz veining with visible magnetite and molybdenite. The lithocap is estimated to be 60 m thick and several hundred meters wide. Artisanal mining has concentrated on sulphide-rich portions of the lithocap. Guides to the area demonstrated the gold content by sampling, crushing, and panning.
Work to Date
During due diligence, preliminary geological mapping on traverses was undertaken and 89 rock samples were collected. Assay results showed that 25 of the rock samples were below detection limit for gold, 13 samples were between 6 ppb and 100 ppb, and 49 were greater than 100 ppb. Table 1 highlights samples from nine areas with either gold above 0.1 ppm (g/t) or copper above 1000 ppm (0.1%).
| Table 1. Highlights from Due Diligence sampling programme | ||||||
| Sample ID | Width (m) | Au ppm | Mo ppm | Cu ppm | Ag ppm | Notes on alteration and mineralization |
| M54311 | 0.20 | 0.3 | 2 | 81 | 1.6 | Argillic, manganese oxides and hematite |
| M54312 | 5.00 | 0.1 | 3 | 2010 | 51.9 | Phyllic veinlets of quartz, oxidised pyrite |
| M54315 | 4.00 | 0.0 | 4 | 2283 | 5.7 | Phyllic, epi, cpy veinlets, py, malachite, traces of bornite |
| M54318 | 8.00 | 0.8 | <2 | 27 | 3.0 | Intense argillic stockwork, drusy qtz, py, aspy, jarosite |
| M54319 | 10.00 | 0.1 | 2 | 22 | 1.7 | Intense argillic stockwork, drusy qtz, py, aspy, jarosite |
| M54321 | 3.00 | 26.6 | 3 | 97 | 11.3 | Intense oxidised stockwork, py, jarosite |
| M54322 | 3.00 | 9.0 | <2 | 95 | 5.1 | Intense oxidised stockwork, py, jarosite |
| M54323 | 1.00 | 0.8 | <2 | 34 | 0.5 | Argillic, intense oxidation, hematite |
| M54379 | 2.00 | 0.0 | 61 | 1109 | 1.0 | Quartz-sericite |
| M54380 | 2.00 | 0.0 | 85 | 1966 | 0.9 | Stockwork, qtz-mag-mo. Contact between porphyry / met |
Samples 54321 and 54322 show excellent gold grades, returning 3 m @ 26.6 g/t Au and 3 m @ 9.0 g/t Au in rock chips respectively. These samples were located at the site of artisanal activity, at the lower portion of an area of the lithocap (see photograph below).
Photograph 1. El Potro, samples M54321 and M54322
Samples 54312 and 54315 were located on a series of porphyry outcrops, both returning 0.2% copper over several meters of rock chip. Of particular interest is the silver content (51.9 g/t Ag) in sample 54312, and the fact that traces of bornite were visible in sample 54315. Samples 54379 and 54380 were taken on a stockwork zone within porphyry and showed evidence of elevated molybdenum in the system (see photograph below).
Photograph 2. El Potro, Sample M54380
Figure 2. El Potro, sample location map
Exploration Program at El Potro
Salazar Resources is establishing accommodation and logistics at site that will enable the team to support sustainable exploration programs. Mapping and sampling will continue with the aim of generating drill targets as quickly as possible.
Transaction Terms
The acquisition price to be paid to the vendors by Salazar Resources over a five-year period totals US$ 1,150,000 of which US$ 50,000 has been paid.
Qualified Person
Kieran Downes, Ph.D., P. Geo., a Qualified Person as defined by National Instrument 43-101, has reviewed and verified the technical information provided in this release.
About Salazar
Salazar Resources is focused on creating value and positive change through discovery, exploration and development in Ecuador. The team has an unrivalled understanding of the geology in-country and has played an integral role in the discovery of many of the major projects in Ecuador, including the two newest operating gold and copper mines.
Salazar Resources has a wholly owned pipeline of copper-gold exploration projects across Ecuador with a strategy to make another commercial discovery and farm-out non-core assets. The Company actively engages with Ecuadorian communities and together with the Salazar family it co-founded The Salazar Foundation, an independent non-profit organisation dedicated to sustainable progress through economic development.
The Company already has carried interests in three projects. At its maiden discovery, Curipamba, Salazar Resources has a 25% stake fully carried through to production. A feasibility study is underway and a 2019 PEA generated a base case NPV(8%) of US$288 million. At two copper-gold porphyry projects, Pijili and Santiago, the Company has a 20% stake fully carried through to a construction decision.
For further information from Salazar please contact Merlin Marr-Johnson, Executive Vice President and Corporate Secretary at merlin@salazarresources.com or ir@salazarresources.com.
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 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”, “seeks”, “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 Salazar expects or anticipates will or may occur in the future. Although Salazar has 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. Salazar undertake to update any forward-looking information in accordance with applicable securities laws.
