Gold | Silver
Condor signed a comprehensive agreement with Chakana Resources S.A.C. (“Chakana”) with respect to the Company’s Soledad project in April 2017.
Under the terms of the agreement, Chakana has the option to earn a 100% interest in Soledad over a period of 4.5 years, subject to a 2% net smelter return royalty in favour of the Company. To earn the 100% interest, Chakana is required to complete 12,500m of drilling (or work equivalent), make cash payments totaling US$5.375 million, and issue 500,000 Chakana shares to Condor.
In March of 2019, the Company and Chakana amended the NSR terms of the April 2017 agreement. In exchange for 900,000 Chakana shares and US$275,000 cash, on exercise of the purchase option, Condor will retain a 1% NSR on the concessions. Chakana will have the right to buy down Condor’s NSR to a 0.5% NSR by further payment of US $1million. In the event Chakana does not exercise their option to acquire the Soledad concessions, Chakana will retain a 1% NSR royalty on the concessions, which royalty Condor will have the option to reduce to a 0.5% NSR by payment of US$1 million.
In November 2020, the Company and Chakana further amended the terms of the April 2017 agreement. Under the original agreement, the final payment of US$4.625m by Chakana to Condor was due December 23, 2021. As amended, US$200,000 will be due by December 23, 2021, with the balance of US$4.425m due on or before April 23, 2022. The December 2021 and April 2022 are the only payments remaining under the option agreement.
Chakana commenced their initial drill program in August 2017. By February 28, 2019, Chakana had completed 25,211 metres of drilling in 94 holes (SDH 017 to SDH-106) in breccia pipes #1, #3, #5 and #6. These holes were designed to provide detailed information on the geometry and mineralized grades of these tourmaline breccia pipes. Results from all 94 drill holes were published in several Chakana press releases between October 6, 2017 and April 2, 2019.
Chakana commenced their 20,000m Phase 3 drill program in June 2019, with the first drill hole of Phase 3 on Breccia #7, and continuing on Breccia #5E, Corral Breccia #1, and Breccia #1 SE. Results from this phase were published in several news release from July 9, 2019 to November 10, 2019. In September 2019, Chakana suspended drilling due to permitting delays.
Chakana restarted the Phase 3 drill program in August 2020 with a goal of completing 15,000 metres focussed on testing several targets including the Paloma East and Paloma West breccia pipes, and the Huancarama breccia complex. The Huancarama and Paloma breccia pipes are south of Condor’s concessions, but within our area of influence as per our agreement with Chakana. Chakana’s drill results from Phase 3, from September 17, 2020 until the press release of May 25, 2021 were from the Paloma and Huancarama breccias.
Further results from the Soledad project were released by Chakana on July 27th, September 7th, October 12th, October 14th, November 1st, and November 18th, and included results from Breccias #1, #5, and #7, which are located on Condor’s concessions. Chakana has reported drilling over 60,000m in 259 drillholes on the overall project, and approximately 63% of their drilling has been on Condor’s concessions. Chakana concluded their 2021 drilling program in early September, and are currently preparing a maiden resource estimate which is forecast to be completed in late 2021.
The Soledad Property is located in the Cordillera Negra metallogenic province in the central Peruvian Andes and about 34 km to the south of the Pierina gold-silver mine operated by Barrick Gold Corporation.
The original 7.13 sq km concession was acquired by sealed bid auction in late 2011. In late 2016, an additional concession of 3.16 sq km was acquired, adjacent, and to the west of the original concession. Both are 100% owned.
Compañia Minera Casapalca S.A. (“Casapalca”) optioned the project from Condor in 2015 and completed a four hole, 2,807m drill program in June 2016. (holes SDH-013 to SD-016). Casapalca terminated their option in 2017.
In mid June 2014, a twelve hole, 2084m diamond drill program was completed at Soledad by Mariana Resources Inc., who had optioned the project from Condor. (Holes SDH 001 to SDH 012)
The earliest documented work on the Soledad property dates back to the 1960’s when it was explored for copper. In 1996, a junior exploration company carried out surface sampling, an IP geophysical survey, and a drill program to test one of several hydrothermal quartz-tourmaline breccia pipes (Breccia #1) on what was then a much larger property. Five holes were drilled on the current Soledad property. The eight other breccia pipes on the Soledad property were not drill tested until 2014.
The property comprises a number of mineralized hydrothermal breccia bodies in an extensively altered system associated with abundant gossans and quartz veins, multiple quartz-tourmaline structures up to 500m long and 10m wide, as well as polymetallic veins with Ag-Cu-Pb-Zn mineralization. The alteration system measures approximately two kilometers in diameter. Site visits and sampling by Condor geologists confirmed the potential high grade precious and base metal values within Breccia #1, which had been partially drill tested in 1996, but also led to the discovery of an additional eight (8) similar breccia bodies, measuring up to 200m in diameter and also anomalous in gold and silver values