Ilo Este, Peru

Overview:

The Ilo Este Project is a large Copper Porphyry System with coincident Gold, Silver and Molybdenum located within southern Peru’s costal copper belt.  Mineralization has been mapped at surface over more than three square km’s.

Property Location:

The 44 concessions (in black) totaling over 36,000 hectares that will be acquired by Westminster Resources Ltd.

Ilo Este Concessions

Deposit Types:

Porphyry Copper Deposits are the world’s largest source of copper mined today and are generally the lowest unit cost mines due to their size and additional bi-product credits for Mo, Au, Ag and other metals. Peru and Chile together produce around one third of the world’s copper and the Western flanks of the Andes Mountains in southern Peru are host to Peru’s largest and most prolific copper producers. Nearly 600,000 tonnes of copper is produced each year within 100 km of Latin’s concessions and is set to increase substantially in coming years with expansions and new mines coming on line. Latin’s concessions have good potential for Copper Porphyry deposits and such a discovery would be extremely valuable to the Company.

Ilo Este is a large Copper Porphyry System with coincident Gold, Silver and Molybdenum mineralisation which has been mapped at surface over more than 3km2, and believed to potentially continue over a similar area under cover to the east of the area where it outcrops both as an extension to two ESE striking intrusive belts under cover, and also potentially fault offset by a major, apparently low angle listric fault striking to the NE. Rio Tinto (RTX) drilled shallow RC holes at Ilo Este in 2000 in the northern of the two ESE striking intrusive belts.

The likely extension of the northern intrusive belt under cover to the East South East increases the size potential of the already very large system, as does the possible fault offset upper portion of the porphyry which may host the typically higher grade phyllic zone. The phyllic zone is only observed in restricted areas of the outcropping system as mapped, suggesting that it has either been eroded, or possibly cut by the low angle Chololo Fault adjacent to the South East.

View of southern coast of Peru around Ilo with Westminster’s concessions outlined.  Ilo Este is 6km from the Pan Pacific Highway, railway and electrical substation and a further 32km to the port city of Ilo.

Accessibility & Location:

The total population of the Department of Moquegua according to the 2015 census is 180,000, and the District of Ilo where the projects are located is 60,000. Much of the population is employed in mining due to a large number of operating mines in the Department.

Mining is responsible for much of the infrastructure in Moquegua including railway, solar power generation, high-quality roads and highways. In Ilo city, there is a smelter, refinery and a deep-water port used to export the copper products.

Ilo Este Location

Regional Geology:

The southern Peruvian coastal geology has been affected by tectonic events since the Precambrian. The oldest rocks in the region are accreted crystalline basement rocks of the Complejo Basal de la Costa (Basal Complex of The Coast) formation comprising mostly pegmatitic granitoids, diorites, and gneiss, which are part of the South American craton.  Sitting unconformably above the Basal Complex are small remnants of the Pocoma conglomerate.

Beginning in the early Mesozoic, Mariana-type subduction was developed, with repeated cycles of compression and extension through the Mesozoic. This Mesozoic tectonism is considered the beginning of the Andean Cycle. Jurassic and Triassic subduction-related volcanism and sedimentation were extensive during this period. The Cenozoic tectonic evolution of the Peruvian Andes marks a change to the currently active continental Andean-type margin. Complex cycles of compression and extension continued through the Cenozoic, producing terrestrial volcanism and sedimentation, which filled fore-arc basins along the present southern Peruvian coast. Ash from recent volcanism, along with alluvial-fluvial sediments and windblown sand, cover large areas of the region.

The llo project area is composed of mostly interlayered andesite volcanic rocks and volcaniclastic sedimentary rocks of the Lower Jurassic Chocolate Formation, the Upper Jurassic Guaneros Formation and the Lower to Middle Cretaceous Toquepala Group. The andesitic rocks are fine to medium-grained lavas and subvolcanic intrusives and the volcaniclastic rocks are typically fine to medium grained sandstones and coarser conglomerates. 

Intruded into the Chocolate and Guaneros Formations is the Cretaceous age Ilo Batholith which comprises gabbros, gabrodiorites and diorites. It is these intrusives that have driven the regional metamorphism and mineralisation.

Exploration History:

Peruvian Latin Resources Activity (2009 –2016)

Mapping

Peruvian Latin Resources carried out several phases of geological mapping at Ilo Este each building on the previous work. The last and most comprehensive mapping campaign was geological and alteration mapping by consultant porphyry geologist, Dr. Warren Pratt which defined two roughly parallel, ESE-trending intrusive belts, each over 1 km in length, 0.5 km in width, and both hosting typical Cu-Au porphyry alteration and mineralisation.

Soil and Rock Chip Geochemical Sampling

Over all of the soil and rock chip geochemical sampling programs which have generally been included as part of the mapping work, there has been a total of 81 rock chip samples taken with results ranging from 0.002 % to 0.37 % Cu with an average of 0.15 % Cu excluding three high-grade results of 0.82 %, 1.1 % and 8.4 % Cu. 67 soil samples ranging from 0.001 % to 0.31 % Cu with an average of 0.039 % Cu have been taken.

On average representative 2kg rock chip samples and 1kg soil samples were taken. These were assayed at the SGS laboratory in Lima and results then stored in an MS-Access database.

QAQC samples were also submitted and the results of these reported as satisfactory.

Ilo Este geological Map with Soil and Rock Chip Geochemical Results – Copper

Ground Magnetic Surveys

Between January and August 2014, the geophysical contracting group Real Eagle Exploration completed 119.5 linear km of magnetic survey lines. The survey as split into two phases with the first campaign of 61.1 km completed in January 2014 and the second campaign of 58.4 km in August 2014.

The survey identified three main anomalies. Two anomalies of interest M1 and M2 corresponding with an intrusive of the same type of rock than M1 or a structure with magnetite. It has also identified another M3 anomaly with very low magnetism (0.0001cgs) to the southeast of the Chololo fault which maybe represents the continuation the same type of rock located towards the north-eastern end of the survey but with some degree of alteration.

Drilling

2014 PLRS Diamond Drilling Program

From August 2014 until January 2015 PLRS drilled three diamonds holes at Ilo Este for a total of 2,073m. The holes were designed to test the porphyry identified through mapping and surface geochem and were oriented to target major structures identified by the 3D inversion of the magnetic survey.

2014 Peruvian Latin Resources Diamond Drilling Program Hole Number IE-JDD-001 Significant Intercepts

2014 Peruvian Latin Resources Diamond Drilling Program Hole Number IE-JDD-003 Significant Intercepts

Peruvian Latin Resources Diamond Drilling Program Hole Number IE-JDD-002 Significant Intercepts

2015-2016 Zahena Diamond Drill Program

In mid-2015 Peruvian Latin Resources signed an earn in agreement with Compania Minera Zahena SAC. This agreement was subsequently dissolved.

Between November 2015 and April 2016 Zahena completed 9 diamond drill holes for a total of 5,322 meters at Ilo Este on an irregular grid. Most of the drilling was completed in HQ diameter core.

The drilling intercepted hypogene mineralisation within porphyritic rocks with copper values of between 0.1 to 0.3%.

In mid-2015 Peruvian Latin Resources signed an earn in agreement with Compania Minera Zahena SAC. This agreement was subsequently dissolved.

Between November 2015 and April 2016 Zahena completed 9 diamond drill holes for a total of 5,322 meters at Ilo Este on an irregular grid. Most of the drilling was completed in HQ diameter core.

The drilling intercepted hypogene mineralisation within porphyritic rocks with copper values of between 0.1 to 0.3%.

Significant assay results from the Zahena drilling program are tabulated below to show intersections where at least two Copper assays each representing a 3m sample interval were greater than 0.1% Cu.  Extended lengths of sample <0.1% Cu are included in intersections where corresponding grades of Au included results >0.1 g/t Au.

Summary assay results from IE-DDH-005-15

Summary assay results from IE-DDH-007-16

Summary assay results from IE-DDH-011-16

Summary assay results from IE-DDH-006-16

Summary assay results from IE-DDH-0002-16

Holes IE-DDH-008-15, IE-DDH-009-15 and IE-DDH-012-16 were not sampled or assayed as no mineralisation was observed and the majority of the holes intersected extensive sedimentary cover.

Results from hole IE-DDH-011-16 included the highest-grade intersection of 21 m @ 0.28% Cu from 612 m which may indicate an approximation towards a higher-grade phase between the interpreted northern and southern intrusive belts.  This intersection is part of a sequence of aphanitic andesite cut by multiple dioritic and felsic dykes.

The relationship between the sample length and the true thicknesses and the orientation of the mineralization intercepted is unknown.

Interpretations:

Ilo Este is a copper-gold porphyry deposit that has been eroded down to the mid-level of the system. There remains the potential to discover an ore body within the remnants of the porphyry that has been the focus of the majority of the work thus far and for other centers to be discovered within the lease holding to the north across the river and on the southern side of the Chololo fault.


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