Coasa Gold Project
17,200 hectares titled & under application
Department of Puno, south-eastern Peru
The Coasa Gold Project was initially staked to explore a geologic environment interpreted to be similar to that of the Ollachea orogenic gold deposit, located some 65 km to the northwest at roughly the same elevation. Members of Palamina’s geological team formed part of the exploration discovery team at Ollachea.
The defined Ollachea gold deposits are focused along a structurally deformed east-west trending jog-zone, part of a larger regional shear-zone. Similarly, the estimated multi-million ounce orogenic gold mineralized occurrence situated just below the ‘La Bella Durmiente’ or ‘Sleeping Beauty’ glacier at La Rinconada, located towards the southern limits of the POGB some 75 km southeast from the Coasa Gold Project, also has a significant east-west deformed inflexion zone within an Andean-trending regional structural corridor. Located along this prospective trend, the Coasa Gold Project lies almost midway between the Ollachea and La Rinconada deposits. Palamina believes that the recently identified Phusca shear zone on the Coasa Gold Project is a possible extension to the Ucanuma shear zone which hosts the Crucero Gold deposit. GoldMining Inc. recently acquired Crucero from Lupaka Gold Corp. for a cash/equity consideration of CDN$5.7M (see GoldMining press release dated November 21, 2017). Crucero hosts a 0.93 Moz indicated and 1.14 Moz inferred orogenic gold resource. At Coasa, Palamina has identified 9 anomalous gold areas where the Veta and Phusca zones are the highest priority targets. A heliborne geophysical survey to identify additional prospective structures was completed in September 2018. An NI 43-101 technical report is underway as well as environmental and drill permitting.
The Coasa Gold Project covers the town of Usicayos which is a 4 hour drive and 150 km north of the town of Juliaca which hosts a domestic airport. Elevations at Coasa range from 2,800 to 4,700 metres. Access to the project is along dirt roads from the towns of Usicayos and Coasa. Due to the elevation, rock exposure on the mining concession titles and applications is generally excellent as the property sits mostly above the tree line.
Palamina has identified 5 elevated priority geochemical anomalies at Coasa. These are believed to be intimately associated with the northern extension of the regional shear structure controlling gold mineralization at the Crucero gold project located 4.5 km south of the Coasa Gold Project’s south-eastern perimeter. An additional 4 reduced priority anomalous areas have been identified and the Company continues to prioritize follow-up field work.
Certain mineralizing controls common to selected orogenic gold deposits located within the POGB have been identified at Coasa. Coincident lithology, structure, sulphide mineralization and intrusive bodies similar to those identified at Ollachea play an important role in generating highly prospective targets for potential drilling. Of note is the determination of the northwards extension of the N-trending Ucanuma shear zone (hosting Crucero Gold Deposit), and its intersection with the NW-trending Phusca shear-zone which includes a geologically prospective E-W trending “open-space” inflexion or jog-zone in the central Coasa corridor.
Anomalous gold values and strong pathfinder geochemistry results have been obtained from prospecting activities on the open-ended Phusca anomaly (currently extending over some 2 kilometres of strike and displaying several prospective geological features characteristic of orogenic gold deposits located in the gold belt). In addition a new orogenic gold zone has been discovered at the Veta anomaly located ~ 6 km northwest of the Pushca anomaly.
VETA GOLD DISCOVERY ZONE:
At Veta geological mapping, surface and channel sampling has resulted in the discovery of an 800 by 500 metre anomalous gold zone. Four sites hosting visible native-gold have now been discovered where no historic mining has taken place. Early individual grab samples reached a high of 39.2 g/t gold with a discontinuous 7 metre long rock-chip sample returning a grade of 4.2 g/t gold. Follow up selective rock-chip sampling returned 620 g/t (19.9 oz/t) gold from an outcropping quartz vein. Continuous channel sampling returned up to 1.8 metres of 19.6 g/t gold and 0.9 metre of 103 g/t gold.
Select channel and rock chip* sampling above 1.0 g/t gold from the most recent August field campaign are as follows:
The 5 best channel and rock chip sample results from all exploration campaigns and select results >1 g/t gold in the Veta Zone are represented below:
At Coasa, A heliborne geophysical magnetic survey was completed in September 2018. In the POGB, gold mineralization frequently has an association with magnetic pyrrhotite within swarms of orogenic quartz veins and veinlets restricted to discrete, continuous packages in shear zone structures hosted by fine-grained sedimentary units. Palamina believes results from the heliborne survey will outline regional structures and help focus follow up ground exploration on identifying the most prospective sectors for possible drill testing.
Mining Plus Peru SAC has completed an NI 43-101 report on Coasa and Palamina SAC has commenced environmental and drill permitting.
Focus on the POGB
The Puno Orogenic Gold Belt (POGB) covers approximately 175 km x 75 km on the eastern side of the Andes in south-eastern Peru. Known mineralized structures in the POGB extend up to 6 km in length with widths ranging from 0.2 m up to 2.0 m, within mantos up to 40 m in width. Palamina has secured the mining rights to 5 district scale land positions within the POGB where informal miners are actively mining visible gold. Palamina is actively exploring the Gaban and Coasa gold projects in order to identify suitable drill target areas to ultimately define economic gold resources while carrying out limited exploration programs on its Cori, Orco and Bendi gold projects.