Copper | Gold
Status:
In December 2023, the Company entered into an option and joint venture agreement on its Cobreorco copper-gold project located in the Apurimac Department, Peru with Teck Perú S.A. (“Teck”), a subsidiary of Teck Resources Limited.
Under the terms of the agreement, Teck has a first option to earn a 55% interest in the Cobreorco project over three years by completing US$4 million in exploration expenditures and making cash payments totaling US$500,000. An initial cash payment of US$80,000 was received by the Company on signing the agreement. The start of the three-year term commences once the permits and approvals required to commence a drill program are in place. Additional requirements by the MEM resulted in withdrawal of the initial DIA application in January 2024, with the revised application expected to be submitted shortly by Teck.
On exercise of the first option, the parties will form a dedicated holding company which will own the Cobreorco concessions, and thereafter Teck has a second option to increase its interest in the Cobreorco project to 75% over the next three years by completion of a further US$6 million in exploration expenditures and additional cash payments of US$600,000
Location:
Cobreorco is located in south-central Peru, in the province of Andahuaylas in the department of Apurimac, at elevations of 3,700 to 4,100 m. Cobreorco is approximately 90 kilometers northeast of the city of Puquio and approximately 120 kilometers west of the Las Bambas mine.
Property:
The Cobreorco copper property is approximately 50 square kilometers in size and was acquired over several years through betting and sealed auction, beginning with the acquisition of 1.7 square kilometers in 2018. An exposed porphyry with intense stockwork and alteration, together with outcrops of skarngossan with massive magnetite-iron oxide and other calcsilicate minerals that have been exploited on a small scale by artisanal miners sparked our interest in this area. Numerous porphyry and skarn related copper and gold deposits are exposed in outcrops and small scale artisanal workings, within the main 2 square kilometer area of interest.
The project is 100% owned and is not subject to royalties.
Previous work:
An exposed copper skarn and massive outcrops of iron oxide and magnetite led to the discovery of this project. In addition, there is an outcrop of skarn-gossan that has been exploited on a small scale by artisanal miners. We have found evidence of 3 previous drill holes on the project, which we believe were drilled around 1996, but we have not been able to locate the results of this campaign.
Geology/Mineralization:
Condor geologists believe that Cobreorco is a typical porphyry/skarn system, with large massive magnetites, calcsilicate assemblages with evidence of an eroded skarn and an outcrop of potassium porphyry, approximately 80 m in diameter. Sampling to date suggests that porphyry mineralization is relatively consistent in gold and copper values.
Recent activity:
To date, Condor geologists have carried out several sampling programs and collected 226 samples, typically 2 m rock channel samples. A large portion of the samples contained anomalous values of copper and gold: 32% contained more than 1000 ppm copper and 44% contained more than 100 ppb gold.
A drone-supported magnetic survey was completed in July 2020. The study covered an area of approximately 5 square kilometers with a line spacing of 100 m for a total of 68 line kilometers. The data from this survey have been processed, and initial review of the magnetic survey data suggests the presence of two potential intrusive systems that correlate well with the exposed porphyry gold/copper surface and skarn outcrops. The results of the magnetic survey sampling and analysis will be used to design an inaugural diamond drilling program.
Planned activities:
Baseline sampling of water, air and soil has been completed, a requirement to submit our application to the Ministry of Energy and Mines (“MEM”) for an Environmental Impact Statement (“DIA”). In parallel with DIA’s request, the company is in dialogue with the two local communities that will need to grant surface access permits for our drilling programs. The Participatory Workshops were held at the end of 2022 and were attended by officials from the MEM office in Apurímac.
The DIA application was submitted to the MEM in June 2023. Teck Peru is now in charge of all technical, social and environmental programs at Cobreorco.
