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 multi-million ounce (reported estimates), 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. 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. Crucero hosts a 1.0 Moz indicated and 1.03 Moz inferred orogenic gold resource. In February of 2018, GoldMining Inc. acquired Crucero from Lupaka Gold Corp. for a cash/equity consideration of CDN$5.7M (see GoldMining press release dated November 21, 2017). Palamina has identified 9 anomalous gold areas where the Veta and Phusca zones are the highest priority targets. A heliborne geophysical surveys is planned to identify additional prospective structures. An NI 43-101 report is underway in addition to completing 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 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 is prioritizing 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 in the central Coasa zone.
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.
At Veta recent mapping and surface sampling resulted in the discovery of an open-ended 400 by 300 metre-wide anomalous gold zone. Visible native-gold was identified in quartz veinlets at surface within a prospective, deformed structure, which shows no historic mining activity. 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. Within the 240 metre wide central mineralized corridor of the new discovery, a total of 119 samples were assayed where 27.5% of the samples returned values greater than 1.0 g/t gold.
The highest gold values from select rock-chip sampling reported in June of 2018 were returned as follows:
With the objective of improving confidence from this early-stage of geochemical sampling, follow-up continuous channel sampling is being carried out in the current field campaign to better understand the significance and potential of the newly discovered gold mineralization.
In June of 2018, Palamina contracted Mining Plus Peru SAC to complete an NI 43-101 report on Coasa and has commenced environmental and drill permitting. At Coasa, Palamina is also completing a heliborne geophysical magnetic survey to cover ~ 1,234 line-kilometres at 125 metre line spacing over 144 square kilometers. Palamina believes the results will provide a better understanding of regional north-west and east-west trending structures and their association to known gold mineralization in the district. Gold within the POGB often occurs in association with the magnetic sulphide pyrrhotite therefore results from the survey should serve to identify the presence of pyrrhotite as an elevated magnetic response in structures. Follow up exploration will be carried out to further identify mineralized quartz veins in prospective shear zones similar to those of the Ollachea gold deposit with a view to advancing towards eventually commencing exploration drill programs.
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.