Project Checo de Cobre

(Cu-Au)

Junio/2020

Location/ Regional Geology

Project Checo de Cobre

Sernageomin (2003)

Project summary

LocationIII Region , located 25km away southeastward from Copiapó and is also located 15km away southeastward from

Candelaria Mine.

Mining property100% Minera Nittetsu Chile Ltda.. 19 exploitation concessions cover 3,862 ha, named as Hitachi 1 to Hitachi 7,

Siciliano 1 to Siciliano 5, Checo 3 to Checo 6A, Jun 3, Jun 6, Jun 7

Access by land Takes 1 hours by 4×4 vehicle from Copiapó.

Type of mineralization IOCG Stratabound / IOCG vein type (Cu-Au)

ASTER analysis A promising large strong acid alteration was extracted

Geology

The Upper Cretaceous andesites (Cerrillos Formation) is widely distributed in the western part, and the Upper

Cretaceous basalts (Hornitos Formation) is distributed in the eastern side inconsistent with the Cerrillos

Formation. The Cabeza de Vaca granitic intrusion (63-59Ma) intrudes into the Hornitos Formation.

There are more than 100 small-scale mining sites in the area.

Geochemical survey

Stream sediment geochemistry (160 samples), Rock-chip geochemistry (576 samples), Trench geochemistry,

Dating, Petrography, XRD

(ex. Rock chip sample maximum: 10％Cu, 18g/tAu etc)

Geophysical survey AMT (8 km), Ground Mag (131 km), Airborne Mag (630 km)

Drilling

43hole, totaling 17,740m

CCDA-1：12m(556-568m)@1.67%Cu, 0.26 g/tAu, 7.50 g/tAg

CCDA-3：17m(160-176m)@2.90%Cu, 158 g/tAg

CCR-003：8m(90-98m)@0.58%Cu, 3.84 g/tAu

Target size Unknown

Geological map of Checo de CobreColor composite image (RGB=468) of Checo de Cobre

ASTER analysis/ Local geology

Geochemical surveyThe geological and geochemical survey were

done in 2017.

771 samples were analyzed multiple elements

using 4 acid dilution method at ALS.

From the results of geological and

geochemical exploration revealed that

numerous copper mineralization zones

exceeding 2%Cu were identified on the surface,

maximum grade of Cu: 10.3%, Au: 18g/t, and

specified three prospects.

[ Western prospect ]

• Satratabound Mgt-Cu(ox) mineralization in

carbonate (marl) layer

• Mgt-Qz-Cal veins with Cu(ox) minerals

[ Eastern prospect ]

• Qz-Cal-Lim-Hm veins with Cu(ox)-Au

minerals

[ Central prospect ]

• Strong silicified and argelized (Kao-Ser)

alternated zone like advanced argillic

alteration

Eastern prospect

Central prospect

Western prospect

Geophysical survey

• The high magnetic anomalies trending NW-SE direction presents in the western and central prospects.

• In the eastern prospects, relatively medium to low magnetism was distributed.

Western prospectCentral prospect

Eastern prospect

The RTP imaged obtained by Airborne magnetic survey The RTP imaged in the western prospect by ground magnetic survey

Drilling (1. Western prospectManto type mineralization)

A

A’

CCDA-1：12m(556-568m)@1.67%Cu

CCD-011：13m(605-618m)@0.66%Cu

1㎝

CCD-011 612.20-612.29m：Mgt – Py – Cp

• The drilling intercepted 2 mineralized layers composed Mgt-Py-Cp up to 15m thickness. ( ex. CCDA-1：12m(556-568m)@1.67%Cu, 0.26 g/tAu, 7.50 g/tAg )

• This Mgt layers are continuously conceived in the marl layer, which seems corresponding to

the high magnetic anomalies.

• Despite indicating a high magnetic anomaly, there are still some areas that have not been

drilled.

HoleID Zone Analized zone Cu(%) Au(ppm) Ag(ppm)

CCDA-3 AH 3-22m(19m) 1.17 0.02 45.0

AG 102-116(14m) 0.99 0.01 39.0

AF 160-177(17m) 2.90 0.01 158.0

CCDA-6 AG 80-85m(5m) 1.09 <0.01 58.0

CCDA-7 AF 89-92m(3m) 0.22 <0.01 11.7

CCDA-8 AH 4-18m(14m) 0.64 <0.01 17.0

AG 90-107m(17m) 0.67 <0.01 32.0

AF 159-164m(5m) 2.15 <0.01 106.0

CCD-013 AH 284-286m(2m) 0.76 0.08 39.3

AG 365-367m(2m) 0.22 <0.01 15.9

AF 446-449m(3m) 2.76 0.05 207.4

CCD-013 447.10-447.20m：Bo-Cc dissemination

1㎝• The prospect with many small scale Cu(ox) mines on the surface is presented.

• Multiple drillings confirmed copper mineralization containing Bo-Cc, which have characterized

by rich Cu-Ag grades.( ex. CCDA-3：17m (160-176m) @2.90%Cu, 158 g/tAg )

• The mineralization has been confirmed that continues from the surface to a depth of 300 m,

and toward the deeper part is open.

A

B

Mineralized zone

Drilling (2. Western prospectBreccia type mineralization)

Qz-Lim vein

Cp

CCR-003 92-94m ：Qtz – Lim - Cp

CCD-019CCD-018

CCR-003

CCD-028

CCD-030

CCD-029

Drillhole Analized zone Cu ppm Au ppm Ag ppm

8m (90-98m) 0.58 3.84 8.39

6m (110-116m) 0.90 1.19 13.1

CCD-019 6m (178-184m) 0.28 2.18 0.94

CCD-028 1m (123-124m) 0.03 2.66 8.65

CCD-029 4m (231-235m) 1.03 0.71 3.82

CCR-003

8m(90 - 98m)@0.58%Cu, 3.84ppmAu6m(110-116m)@0.90%Cu, 1.19ppmAu

• Various Qz-Cal-Hm-Lim veins over 1 km are distributed on the surface, contain high grade Cu and Au.

• Multiple drillings intercepted veins rich in Cu and Au.( ex. CCR-003：8m (90-98m)@0.58%Cu, 3.84 g/tAu, 6m (110-116m) @0.90%Cu, 1.19 g/tAu )

• The mineralization with Cu and Au is continuous down to the depth of at least 100 m from the surface, and the continuity of mineralization to the

deeper part is still open.

A

B

Drilling (3. Eastern prospectCu-Au vein type mineralization)

Drilling (4. Central prospectHydrothermal alteration)

QzPyr

KaoMc

ChlAb

MgtPy

Alteration zone

Porphyry?

Andesite

B

A

• The drillhole CCD-025 was confirmed that the hydrothermal

alteration is distributed continuously to the deeper part, and a

large amount of pyrite as well as gold and copper geochemical

anomalies were found in the shallow silicified zone.

• In the deep part of the silicified zone, magnetite is the main

constituent, accompanied by Na-Ca alteration.

• Alteration and mineral assemblage show similar characteristics

to the IOCG system, it implies that large mineralized zones may

exist in the deep and/or peripheral areas.

Mineralization[ Western zone ]

• The stratabound Cu mineralization in Mgt rich

layers intercepted by various drill holes.

• Three vein type mineralization which are rich in

Cu and Ag hosted in andesite and distributed

continuously from surface to deep.

[ Eastern zone ]

• Cu and Au veins extending from surface to deep

underground like vein type IOCG mineralization.

[ Central zone ]

• Strong silicified and argelized (Kao-Ser)

alternated zone like advanced argillic alteration

• Drilling shows that sodium and calcium

alterations and a large amount of Mgt and Py

disseminations extend to deep from the surface

and resemble like IOCG mineralization.

In the Checo de Cobre project, there are many

mined sites on the surface and interception of many

Cu mineralizations by drilling. The extent of these

mineralizations has not been specified until now,

and there has a potential for mineralization to

expand in underground.

Eastern prospect

Central prospect

Western prospect