Porphyry Copper | Gold | Silver
Compañia Minera Virgen de la Merced S.A.C. (“Merced”) commenced a drill program at Ocros in July 2017, and completed 3 diamond drillholes (2,106m) by February 2018. After the third hole, Merced completed a magnetometry survey over an area of 3.1 sq km, and resumed drilling in late April 2018. Merced completed 6 more diamond drillholes by May 2019, for a total of 6,549m in 9 drillholes. The results from Virgen’s exploration efforts have confirmed the presence of copper but not at what the Company considers as economic grades. The best two intervals from Virgen’s nine holes were 147m of 0.11% copper from surface in DDH-002, and 201m of 0.11% copper in DDH-007, starting at 97m downhole.
The 19.7 sq km Ocros property is located 180 km NW of Lima at elevations ranging between 2250m and 3550m and on the continental-scale West Fissure fault system, host to the majority of South America’s most significant copper resources.
The Company acquired an 85% interest in the project, with the property vendor retaining a 1% NSR, and a 15% interest carried to commercial production. The property vendor’s 15% interest is fully-carried and non-contributing until the completion of a feasibility study, at which time the property vendor will receive an additional 1 million shares. Condor has the right to purchase the NSR at any time for US$2 million. Condor concluded a transaction with Sandstorm Gold Ltd. (“Sandstorm”) in January 2017, and part of that transaction included the assignment to Sandstorm of the buyback right on the Ocros 1% NSR. If Sandstorm exercise the buyback right, the 1% NSR in favour of the vendor would be replaced with a 1% NSR in favour of Sandstorm.
A comprehensive agreement was completed with Compañia Minera Virgen de la Merced S.A.C. (“Merced”) on May 17, 2017, granting Merced the option to earn a 51% interest in the project by making payments of US$250,000 to Condor, and completing 6,000m of diamond drilling on the project prior to May 2020.
After Merced earned its 51% interest, Minera Eldorado Ocros S.A.C. (“Eldorado”) was created to hold the Ocros project. Eldorado is owned by Merced as to 51%, Condor as to 34%, and the property vendor as to 15%.
In October 2021 Condor concluded an option agreement with Merced, whereby Merced may acquire Condor’s remaining 34% net interest in the Ocros project by payment of US$1million, paid in installments of U$100,000 every three months. Upon receipt of the ten payments of US$100,000, Condor will transfer its minority share holdings in Eldorado to Merced.
The property covers an intensely altered, copper-mineralized target measuring 6 sq km in area, with mineralization presently exposed over a vertical extent of more than 700m. High grade “exotic” copper mineralization, comprising secondary copper-rich chrysocolla cementing gravels at the bedrock-gravel interface is also present, representing a second separate high-grade copper exploration target.
Summary of Work to Date:
Merced completed 9 diamond drill holes (6,549m) between July 2017 and May 2019. Best results were DDH-002, which tested 147m of 0.11% copper from surface; and DDH-007, which produced 201m of 0.11% copper starting at 96m downhole.
Casapalca completed one near vertical drill hole of 500m on the project in December 2016; the best interval was 34m of 0.10% copper starting at 95m downhole.
Condor completed 7 diamond drillholes (2,803m) in 2008. Best result was from OCR-001, which produced 251m grading 0.15% copper starting at 149m downhole. Other results of note include 82m of 0.11% copper in OCR-002 starting at 170m downhole; and 102m of 0.11% copper in OCR-003 starting at 80m downhole.
An abandoned adit from mining activities that occurred in the 1950’s - referred to locally as the Eldorado Mine - located about I km east, and about 300 m lower than drill hole OCR-001 was re-opened in 2014.
Detailed sampling was conducted by the Company along the entire length of the historic Eldorado Mine adit referred to as the ‘200 Level Adit’, and consisted of 62 horizontal adit wall chip samples averaging 2.2kg collected over 326m of the exposed portions of the 200 Level Adit. The sampling results yielding 326m of 0.68% copper over the entire length of the 200 Level Adit.
Subsequently the 150 Level Adit was reopened, and 59 samples over 325m on this adit tested 0.56% copper, 0.1 g/t gold, and 3.7 g/t silver. The 150 Level Adit is parallel to the 200 Level Adit, but about 50m lower in elevation, and about 50m further east.
In 2015, Condor was advised by a third party that had visited and sampled the project in 2013, that results from an Argon-Argon radiometric dating test had estimated the age of the Ocros feldspar porphyry at 34.95 million years. This is of note, as this is similar to the age of the copper porphyry projects in the Eocen – Oligocen belt at Abancay deflexion and continuing to northern Peru.