The Margarita Iron-Oxide-Copper-Gold (IOCG) project is located in Chile, 65 kilometres (km) north of the city of Copiapo with excellent access to infrastructure. The property is located within the prolific Coastal Cordillera belt that hosts the world-class Candelaria (Lundin Mining Corp.) and Mantoverde (Mantos Copper Holding) IOCG mines, and porphyry-skarn deposits such as Santo Domingo (Capstone Mining Corp.) and Inca de Oro (PanAust/Codelco).
The Margarita project is comprised of approximately 1,045 hectares and is flanked by secondary copper oxide mineralization on the southwestern boundary of the property. This copper oxide mineralization is defined by 39 drill holes totaling 3,984 metres (m) and represents an exploration target of approximately 20 - 35 million tonnes at 0.2 - 0.5% copper¹ (non NI 43-101 compliant). The presence of the oxide mineralization is important as it demonstrates the potential for the primary copper sulphide source to occur within the Margarita property. The geological and geophysical characteristics of the project suggest the potential for a large-scale copper sulphide target within the property boundaries.
1 The exploration target is conceptual in nature and insufficient exploration has been undertaken in the areas that this exploration target relates to estimate a mineral resource. The exploration target therefore does not represent, and should not be construed to be, an estimate of a mineral resource or mineral reserve. It is uncertain if further exploration will result in the estimation of a mineral resource.
Discovery - New Copper and Gold Sulphide System
Torq’s maiden 4,075 metre (m) reverse – circulation (RC) drill program at the Margarita project resulted in the discovery of a new copper and gold sulphide system. Drill hole 22MAR-013R intersected 90 m of 0.94% copper and 0.84 g/t gold at a depth of 50 m – 140 m. This discovery successfully identified the copper and gold sulphide source mineralization to the abundant copper oxide mineralization observed on the southern margin of the project, validating the Company’s exploration thesis, and represents the potential for a significant new IOCG discovery in the Cretaceous Coastal Cordillera belt in northern Chile.
See May 2, 2022 news release for a summary of the results from the drill program.
A magnetic survey over the Margarita project shows a circular magnetic low surrounded by magnetic highs beneath the hydrothermal alteration system. The magnetic highs are associated with less altered, andesitic to rhyodacitic rock units that may correspond to dome structures, which are considered to be part of the mineralizing intrusive hydrothermal system that characterizes the property. The lower magnetic responses correspond to strongly altered units that include various porphyritic and breccia bodies as well as andesitic dykes and provide a clear large-scale 1.5 km by 1.5 km geophysical target within the property boundaries.
An IP survey at the Margarita project consisted of a total of 49-line km with lines spaced every 250 m. The results of the program have demonstrated two north-northwest trending chargeability anomalies that are approximately 3 km by 500 m in dimension at a threshold of 30 millivolts, which is consistent with the presence of sulphide minerals. Importantly, these chargeability anomalies spatially overlap with resistivity lows that are consistent with hydrothermal alteration and form the basis of geophysical targeting at the project.
Historical Copper Oxide Drilling
Out of the 39 drill holes with known assay results available that define the copper oxide mineralization, 13 are within the land package of the Margarita - Cototuda agreements, totaling approximately 1500 m. The historical drill holes are located in the southwestern corner of the property in a zone of strong hydrothermal alteration. Copper oxide mineralization with reported grades of 0.2 – 0.6% copper were encountered to 210 m vertical depth with drilled widths ranging between 30 – 120 m. Importantly, none of these drill holes encountered primary copper sulphide mineralization.
The Company acquired the rights that constitute the Margarita project through two option agreements: 1) The Margarita claims with Minera Viento Norte (MVN), a local Chilean company, and 2) The La Cototuda claims with a small-scale mining company (Figure 2). Under these option agreements the Company can acquire 100% interest in the project, subject to a net smelter royalty (NSR) through combined cash payments and work expenditures as detailed below in Tables 1 & 2.
Table 1. Margarita Claims: Minera Viento Norte
|Period from Signing Definitive Agreement and Initial Payment ||Cash Payments (USD) ||Work Expenditure Requirement Until $6,200,000 is paid |
|Within 60 days of signing the Definitive Agreement||$50,000 (Initial Payment)|
|within 6 months||50,000||400,000|
|within 18 months||100,000||1,150,000|
|within 30 months||300,000||1,500,000|
|within 42 months||1,200,000|
|within 54 months||2,000,000|
|within 66 months||2,500,000|
The Margarita NSR is 1% with 50% (being 0.5%) buyable for $2,000,000.
Table 2: La Cototuda Claims: Small-scale mining company
|Period from Signing Definitive Agreement and Initial Payment||Cash Payments (USD) ||No Expenditure Requirement |
|Upon signing the Agreement||$50,000 (Initial Payment)|
|within 12 months||250,000|
|within 24 months||250,000|
|within 36 months||350,000|
There is no NSR relating to the La Cototuda claims.
In relation to the option arrangement of the Margarita project, a finders fee of 466,666 shares of the Company will be issued, subject to customary TSX Venture Exchange acceptance.