Gaban Gold Project
100% INTEREST HELD BY HELIO RESOURCE CORP.
18,700 HECTARES TITLED & UNDER APPLICATION
DEPARTMENT OF PUNO, SOUTH-EASTERN PERU
On September 19, 2019, Palamina announced completion of the sale of the Gaban Gold & Tinka I.O.C.G. Projects in Peru to Helio Resource Corp. (HRC:TSX.V) for a total of 10 million common shares of Helio and a 2% Net Smelter Return Royalty on each project. Helio retains the right to buy back 1% of the NSR for $1,000,000 per project. To date, a total of 5,000,000 Helio Shares have been issued to Palamina, with the balance to be issued within two years of closing on completion of future equity financings by Helio or by way of Helio shareholder approval.
The Gaban Gold Project was acquired primarily through staking in order to locate the source of alluvial gold being mined in the Yanamayo river. Over 10 sets of alluvial miners are recovering coarse gold from the Yanamayo river which drains into the Madre de Dios basin. Palamina has secured the mining rights to 85 % of an area bound on all sides by four mountain ridges where geochemical stream sediment sampling has returned values up to 4.9 g/t gold at -60 mesh in the Yanamayo river. Palamina has also located outcropping slate shear zones hosting quartz veins-veinlets and observed 2-ages of mineralization in intrusives. Some of these features are recognized in the Ollachea gold deposit in the POGB where gold occurs in association with pyrrhotite and other sulphides within such shear structures. Geophysical surveys are planned to identify prospective structures where follow up exploration will be carried out in order to generate drill targets.
Excellent Infrastructure for building a gold mine
The town of San Gaban is at a 550 metre elevation and a 4 hours’ drive by highway to the Puerto Maldonado airport. The Gaban Gold Project covers the town of San Gaban which sits on the trans-oceanic highway linking deep seaports in Peru and Brazil. The San Gaban hydro-electric dam has a 206 MW capacity and provides power to the town of San Gaban. At San Gaban, two bridges are being built to span the San Gaban river in order to avoid an area of recurring land-slides that periodically was washing out the trans-oceanic highway. These bridges will provide year-round access to the most prospective area on the San Gaban project. Major gold companies are seeking to replace diminishing reserves. Projects located close to airports, with road access, links to major deep-sea ports and power and water are attractive due to logistical and financial benefits relating to their time line to reach production and lower capex requirements.
During 2017 a total of five field campaigns of up to 20 days each were spent on geological reconnaissance mapping, geochemical stream sediment sampling (80 samples), and rock outcrop sampling (183 samples). Exploration campaigns at times included as many as three field crews operating in the field.
Geological reconnaissance results within the Gaban Project boundaries have shown that, among others, principal mineralogical, lithological and structural controls as required in this belt for economic orogenic gold mineralization to occur, are present. The Gaban Project additionally hosts at least two intrusive events, one of which is mineralized. Up to three quartz vein/veinlet-sulphide mineralizing events have been recognized to date, with associated structural deformation evident in both sedimentary sequences as well as mineralized intrusive bodies.
Follow-up exploration programs during 2018 are focusing on the development of anomalous zones, enhanced geochemistry and identification of most prospective areas for exploration diamond drilling consideration. An airborne magnetic geophysical survey is also being considered as gold often occurs in association with pyrrhotite within the POGB and could serve to identify magnetic structures where follow up reconnaissance will be carried out to locate mineralized quartz veins in shear zones similar to those in other parts of the belt.
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.