Coasa Gold Project
15,500 hectares titled & under application
Department of Puno, south-eastern Peru
The Coasa Gold Project was initially staked to investigate 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 Ollachea deposits are focused along a structurally deformed east-west trending regional shear-zone. La Rinconada also occurs in an east-west trending regional shear zone. Palamina believes that the recently identified Phusca shear zone is a possible extension to the Crucero Gold deposit mineralized system. Crucero hosts a 1.0 Moz indicated and 1.03 Moz inferred gold resource. In February of 2018, GoldMining Inc. acquired Crucero for a cash/equity consideration of CDN$5.7M from Lupaka Gold Corp. (see GoldMining press release dated November 21, 2017). Geophysical surveys are planned to identify structures where follow up reconnaissance exploration will be carried out in order to generate drill targets.
The Coasa Gold Project surrounds the town of Usicayos which is a 4 hour drive and 150 km north east 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 town of Usicayos and Crucero. Due to the elevation, rock exposure on the mining concession applications is generally excellent as the property sits mostly above the tree line.
Palamina field crews have completed five geological reconnaissance mapping and geochemical sampling (212 rock samples) campaigns, or 70 days, in the area, which resulted in the discovery of historic as well as recent artisanal diggings. In addition, on the Coasa mining concession applications, four geochemically anomalous and highly prospective areas have been identified. These are believed to be intimately associated with the northern extension of the regional shear zone hosting the Crucero gold deposit.
Certain mineralizing controls common to selected orogenic gold deposits located within the POGB, have been identified on the Coasa mining applications. Here again, a coincidence between prospective lithology, structure, mineralization and intrusive bodies plays an important role in generating these highly prospective targets. Of note is the determination of the northwards extension of the N-trending Ucanuma shear zone (Crucero), and its intersection with the NW-trending Phusca shear-zone which includes a prospective E-W trending inflexion in the central Coasa zone. Palamina refers to this regional structure as the Pacacorral-Ucanuma-Phusca shear zone.
During upcoming field campaigns Palamina plans to advance its geological evaluation and geochemical surface sampling activities of prospective and anomalous structures in the eastern sector of the Coasa Gold Project. Field exploration programs will focus on coincident geochemically anomalous zones and shear zones to identify titled areas for follow-up exploration activity and, if justifiable, focused exploration diamond drilling. An airborne magnetic geophysical survey is also being considered as gold occurs in association with pyrrhotite within the POGB and could serve to identify magnetic structures where follow up exploration will be carried out to explore for mineralized quartz veins in shear zones, similar to those of the Ollachea gold deposit.
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.