Copper | Gold | Silver
Status:
Condor signed a comprehensive agreement with Chakana Resources SAC (“Chakana”) with respect to the Company’s Soledad project in April 2017.
Under the terms of the agreement, Chakana has the option to obtain a 100% interest in Soledad for a period of 4.5 years, subject to a 2% net smelter return royalty in favor of the Company. To obtain the 100% interest, Chakana must complete 12,500 m of drilling (or equivalent work), make cash payments totaling US$5.375 million and issue 500,000 Chakana shares to Condor. To date, Chakana has paid to Condor US$2,950,000 in cash and has issued 3,258,620 Chakana shares, and the option term was extended to June 24, 2025 . The work commitment of 12,500 M of drilling has been completed.
In 2019 Chakana bought a 1% NSR with 2 km AOI from Condor that survives the agreement for US$565,000 ($275,000 cash + 900,000 shares), reducing Condor’s NSR interest from 2% to 1%. Half of the 1% NSR can be purchased by Chakana for US$1,000,000 per the original terms of the agreement.
Chakana has two remaining payments to make in order to complete its option: $1,000,000 cash and $200,000 in shares (but at not less than $0.14/share) on June 24, 2024, and $1,425,000 cash and $400,000 in shares (but at not less than $0.14/share) on June 24, 2025. In the latter case, the share payment waived if paid 3 months early. As it stands, the June 24, 2024 payment is outstanding and the companies are in discussions on the matter.
Location:
The Soledad Property is located in the Cordillera Negra metallogenic province in the central Andes of Peru at 260Kmt. North West of Lima and about 34 km south of the Pierina gold and silver mine operated by Barrick Gold Corporation.
Property:
The original concession of 7.13 square kilometers was acquired through exploration and project generation and sealed auction in late 2011. In late 2016, an additional concession of 3.16 square kilometers was acquired, adjacent and to the west of the original grant. Both are 100% owned.
Previous work:
Compañía Minera Casapalca SA (Alpayama) optioned the project from Condor in 2015 and completed a four-hole, 2,807 m drilling program in June 2016 (holes SDH-013 to SD-016). Casapalca rescinded his option in 2017. In mid-June 2014, Mariana Resources Inc., which had optioned the project from Condor, completed a 2,084 m diamond drilling program at Soledad. (Holes SDH 001 to SDH 012).
The first documented work on the Soledad property dates back to the 1960s, when it was explored for copper. In 1996, a junior exploration company conducted a surface sampling, IP geophysical survey and drilling program to test one of several quartz-tourmaline breccia hydrothermal tubes (Breccia #1) on what was then a property much larger. Five wells were drilled on the current Soledad property. The other eight breccia pipes on the Soledad property were not drill tested until 2014.
Condor signed a comprehensive agreement with Chakana Resources SAC (“Chakana”) with respect to the Company’s Soledad project in April 2017.
Chakana began its initial drilling program in August 2017. As of February 28, 2019, Chakana had completed 25,211 meters of drilling in 94 holes (SDH 017 to SDH-106) in breccia tubes #1, #3, # 5 and #6. These holes were designed to provide detailed information on the geometry and mineralized grades of these tourmaline breccia tubes. Results from the 94 wells drilled were published in various Chakana press releases between October 6, 2017 and April 2, 2019.
Chakana began its 20,000 m Phase 3 drilling program in June 2019, with the first Phase 3 drill hole at Breccia #7 and continuing at Breccia #5E, Corral Breccia #1 and Breccia #1 SE . The results of this phase were published in several press releases from July 9, 2019 to November 10, 2019. In September 2019, Chakana suspended drilling due to permitting delays.
Chakana restarted the Phase 3 drilling program in August 2020 with the goal of completing 15,000 meters focused on testing several targets, including the Paloma East and Paloma West breccia tubes, and the Huancarama breccia complex. The Huancarama and Paloma breccia tubes are located south of the Cóndor concessions, but within our area of influence according to our agreement with Chakana. Phase 3 Chakana drill results from September 17, 2020 to press release May 25, 2021 were from the Paloma and Huancarama gaps.
Chakana published more results from the Soledad project on July 27, September 7, October 12, October 14, November 1, and November 18, and included results from Gaps #1, #5, and #7, which are located at Condor’s concessions. Chakana has reported that it has drilled more than 60,000 m in 259 holes across the project, the majority of which have been on the Condor Resources concessions.
In 2022, Chakana Copper published a maiden NI 43-101 Mineral Resource Estimate stating that the Soledad Project contains 4.8 million tonnes grading 0.72 g/t gold, 61 g/t silver and 0.97% copper amenable to extraction by underground mining methods plus an additional 1.9 million tonnes grading 1.29 g/t gold, 37.1 g/t silver and 0.65% copper amenable to extraction by open pit mining methods. The accompanying technical report can be found on Chakana Copper’s website (chakanacopper.com) and is available on SedarPlus.ca under Chakana Copper’s profile. Of the total amount estimated, 71% of the resources are found on Condor Resources’ concessions.
Geology/Mineralization:
The property comprises a series of tourmaline quartz breccia bodies with Cu,Au,Ag mineralization, as well as tourmaline quartz structures, also associated with alterations with assemblages of quartz, sericite, iron oxides, and sulfides, the foot print of the system It is 2km in radius.
Early project visits and sampling by Condor geologists confirmed potential high-grade base and precious metal values within Breccia #1, which had been partially tested by drilling in 1996, but also led to the discovery of eight (8) additional similar breccia bodies, measuring up to 200 m in diameter and also anomalous in gold and silver values.
