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Santa Cecilia

Overview

The Santa Cecilia project is located approximately 100 km east of the city of Copiapo, Chile, in the southern region of the world-class Maricunga belt and immediately north of the El Indio belt. The belt is characterized by gold epithermal and gold – copper porphyry deposits that are Oligocene - Miocene in age, including world-class multi-million-ounce deposits such as Salares Norte, La Coipa, Cerro Maricunga, Marte, Lobo, La Pepa, El Volcan, Caspiche and Cerro Casale.

The 3,250-hectare Santa Cecilia property is immediately adjacent to the Norte Abierto project, held by Newmont and Barrick, which is comprised of the Caspiche and Cerro Casale gold – copper porphyry deposits. Collectively, these deposits contain proven and probable reserves of 23.2 million (M) ounces of gold and 5.8 billion (B) pounds of copper and measured and indicated resources of 26.6 M ounces of gold and 6.7 B pounds of copper¹.

Limited Historical Exploration:

In 1988 – 1990 a major international mining company (“previous operator”) drilled 47 holes, totaling approximately 14,000 metres (m), and completed 1,200 m of exploration tunnel development that clearly defined epithermal gold and gold – silver mineralization as well as gold – copper porphyry mineralization at surface and shallow depths, respectively. A subsequent operator of Santa Cecilia then drilled two deeper holes in 2012 that successfully encountered gold – copper – molybdenum porphyry mineralization underlying the shallow mineralization defined by the previous operator’s drilling. Following this work, ground-based Quantec Orion 3D induced polarization and magneto – telluric surveys were conducted to further define porphyry and epithermal targets across the property, which remain untested.

¹Source:https://norteabierto.com/nosotros/?lang=en

Multiple Undrilled Epithermal and Deep Porphyry Opportunities

There are three primary target types associated with the 10 square km surficial hydrothermal alteration footprint: 1) Surface epithermal disseminated oxide gold mineralization defined by the previous operator’s shallow drilling, 2) High-grade gold-silver epithermal structures and veins, as observed in the previous operator’s exploration tunnel and associated drilling, and 3) Underlying copper – gold – molybdenum porphyry mineralization analogous to the Newmont/Barrick Caspiche and Cerro Casale deposits, as defined by the 2011-2012 drill holes. (See disclosure regarding information from previous operators, which has been reviewed by the Company)

Near Surface Mineralization – Cerro del Medio Target:

The surface mapping, soil sampling, rock sampling and 14,000 m drill program completed by the previous operator were primarily across the Cerro del Medio target area of the project and focused on identifying shallow epithermal mineralization. Select highlights from the previous operator’s drilling include 1.31 g/t gold equivalent (AuEq) over 34 m, 1.02 g/t AuEq over 22 m, 0.58 g/t AuEq over 162 m, 0.54 g/t AuEq over 132 m and 0.43 g/t AuEq over 256 m. The image to the right illustrates a representative three-dimensional view of the mineralization drilled by the previous operator. Additional results from that drill program are presented below in Table 1. Torq’s technical team considers these results to be significant as they demonstrate the need for further drilling to potentially define a mineralized body at shallow depths. The mineralization encountered in the drill holes is primarily oxide gold and gold – copper mineralization from surface to depths of approximately 250 m. This near surface mineralization is primarily characterized by extensive zones of silica stockwork veining associated with hematite and jarosite as well as minor silica – pyrite veins.

Table 1: Cerro del Medio Target – Drill Highlights from Previous Operator (1988 – 1990)

Hole ID

From (m)

To (m)

Length (m)

AuEq (g/t)

Au (g/t)

Cu (%)

CuEq (%)

SP-SC-23

4

260

256

0.43

0.37

0.04

0.27

Incl.

136

146

10

0.75

0.66

0.05

0.47

and

252

254

2

28.05

28.00

0.03

17.72

SP-SC-24

138

300

162

0.58

0.36

0.14

0.37

Incl.

162

216

54

0.73

0.48

0.16

0.46

and

246

270

24

1.38

0.69

0.44

0.87

DDH-SC-04

142

160

18

4.02

2.09

1.22

2.54

Incl.

148

158

10

7.15

3.70

2.18

4.52

SP-SC-09

2

134

132

0.54

0.44

0.06

0.34

Incl.

6

12

6

0.75

0.72

0.02

0.47

and

26

60

34

1.31

1.09

0.14

0.83

SP-SC-14

84

250

166

0.40

0.29

0.07

0.25

Incl.

190

228

38

0.81

0.54

0.17

0.51

SP-SC-21

20

42

22

1.02

1.01

0.00

0.64

Incl.

34

36

2

10.01

10.00

0.01

6.32

166

300

134

0.41

0.31

0.06

0.26

Incl.

256

258

2

15.08

15.00

0.05

9.53

SP-SC-22

170

174

4.0

5.20

4.44

0.48

3.29

SP-SC-16

184

300

116

0.42

0.11

0.20

0.27

Incl.

192

228

36

0.65

0.07

0.37

0.41

and

268

300

32

0.54

0.14

0.25

0.34

DDH-SC-02

350

426

76

0.48

0.40

0.05

0.30

Incl.

306

312

6

0.55

0.42

0.08

0.34

and

392

394

2

10.03

9.94

0.06

6.34

DDH-SC-03

2

66

64

0.33

0.09

0.16

0.21

Incl.

44

60

16

0.53

0.15

0.24

0.33

78

309.5

231.5

0.29

0.20

0.06

0.18

Incl.

98

112

14

0.69

0.38

0.20

0.43

SP-SC-08

2

74.0

72.0

0.45

0.26

0.12

0.28

Incl.

2

38

36

0.50

0.28

0.14

0.32

and

44

64

20

0.56

0.34

0.14

0.35

80

250.0

170.0

0.31

0.24

0.04

0.19

Incl.

102

124

22

0.69

0.55

0.09

0.44

Main Interval - No less than 5 m of >= 0.1 g/t AuEq, maximum consecutive dilution 4 m;
Sub-interval - No less than 5 m of >= 0.3 g/t AuEq, maximum consecutive dilution 4 m;

Metal price used for Eq calculations: Au $1,300/oz, Cu $3/lb

High-Grade Structures and Veins – Vetas Condor Target:

The Vetas Condor high-grade gold – silver epithermal mineralization is encountered on the western flanks of the Cerro del Medio target area where east-west trending quartz – alunite structures are exposed over a 1 km by 350 m area. The previous operator completed a total of 1,100 m of horizontal exploration tunnels that were oriented sub-parallel to parallel to the quartz-alunite ledges. Evidently, crosscuts oriented perpendicular to the structures were not completed and therefore true width of the high-grade mineralization was not determined.

The initial 200 m of the tunnel are oriented sub-parallel at a 20-degree angle to the mapped quartz – alunite structures. Highlighted intercepts from this section of the tunnel, while not true width, demonstrate the high-grade potential of the structures, and include 2.38 g/t gold and 101 g/t silver over 32 m and 0.66 g/t gold and 13.5 g/t silver over 134 m. In addition, approximately 436 m into the tunnel, a high-grade vein sampled 58 g/t gold and 27 g/t silver over 2 m. Table 2 below summarizes the significant intercepts in the exploration tunnel.

Table 2: Vetas Condor Target - Tunnel Assay Results from Previous Operator (1988 – 1990)

Hole ID

From (m)

To (m)

Length (m)

AuEq (g/t)

Au (g/t)

Ag (g/t)

Cu (%)

T1-4LW

0

32

32

3.84

2.38

101.0

0.04

T1RW

0

36

36

1.26

0.60

42.1

0.05

TOE-LW

0

38

38

0.99

0.33

45.2

0.02

Incl.

0

14

14

1.45

0.24

86.7

0.01

and

20

22

2

1.67

1.20

32.0

0.02

and

28

38

10

1.17

0.62

37.8

0.02

45.2

147.2

102

0.43

0.20

8.3

0.07

Incl.

47.2

63.2

16

1.16

0.60

19.4

0.19

TOE-RW

21.2

155.2

134

1.04

0.66

13.5

0.12

Incl.

21.2

103.2

82

1.56

1.01

19.4

0.18

173.2

203.2

30

0.85

0.77

4.5

0.01

Incl.

185.2

193.2

8

2.29

2.19

6.3

0.01

TOE14-LW

156

164

8

0.94

0.53

28.3

0.01

Incl.

158

164

6

1.22

0.69

37.3

0.01

196

202

6

19.57

19.41

11.2

0.01

Incl.

196

198

2

58.38

58

27.0

0.01

Main Interval - No less than 5 m of >= 0.1 g/t AuEq, maximum consecutive dilution 4 m;
Sub-interval - No less than 5 m of >= 0.5 g/t AuEq, maximum consecutive dilution 4 m;

Metal price used for Eq calculations: Au $1,300/oz, Ag $18/oz, Cu $3/lb;

Hole ID – LW: Left wall; RW: Right wall

Torq’s technical team believes that the high-grade mineralization encountered in the tunnel has not been adequately tested. There have only been three shallow drill holes testing the veins encountered in the first 200 m of the exploration tunnel, which included 6.82 g/t gold and 16.8 g/t silver over 20 m at a depth starting at 110 m (true width unknown). Table 3 below summarizes drill results from the three drill holes that tested below the tunnel. Torq plans to aggressively explore for high-grade gold – silver mineralization along the 1 km long corridor defined by quartz - alunite structures.

Table 3: Vetas Condor Target - Drill Results from Previous Operator (1988 – 1990)

Hole ID

From (m)

To (m)

Length (m)

AuEq (g/t)

Au (g/t)

Ag (g/t)

DDH-SC-12

110

130

20

7.05

6.82

16.8

Incl.

112

114

2

56.7

55

121

SH-SC-06

60

68

8

1.75

0.82

67.3

SH-SC-07

20

24

4

3.84

3.60

17

Interval - No less than 5m of >= 0.1 g/t AuEq, maximum consecutive dilution 4m;

Metal price used for Eq calculations: Au $1,300/oz, Ag $18/oz

Underlying Porphyry Mineralization – Cerro Del Medio Target:

A two-hole drill program to test for porphyry mineralization beneath the epithermal mineralization encountered in the previous operator’s drilling was conducted from January 2012 to May 2012. The two holes were drilled from the northern side of the topographic high, defining the Cerro del Medio target area, and both intersected hundreds of metres of gold – copper – molybdenum porphyry-style mineralization. Drill hole CDM 03 intersected 0.45% CuEq over 925.7 mconsisting of 0.21 g/t gold, 0.27% copper and 82 ppm molybdenum, beneath the drilled gold mineralization from surface of 1.38 g/t gold over 24 m (drill hole SP-SC-24) by the previous operator in 1989. This demonstrates the potential for mineralization over one vertical kilometre from surface that remains open at depth and laterally. Table 4 below lists the intercepts from both drill holes.

Table 4: Cerro Del Medio Target - Underlying Porphyry Drill Results (January 2012 - May 2012)

Hole ID

From (m)

To (m)

Length (m)

CuEq (%)

Au (g/t)

Cu (%)

Mo (ppm)

CDM-12-002

870

1,738.8

868.8

0.35

0.09

0.20

156

CDM-12-003

672

1,597.7

925.7

0.45

0.21

0.27

82

Interval - No less than 5 m of >= 0.1% CuEq, maximum consecutive dilution 4 m;
Metal price used for Eq calculations: Au $1,300/oz, Cu $3/lb, Mo $1/lb

Subsequent to the successful drill program testing for porphyry mineralization, ground-based Quantec Orion-3D induced polarization (IP) and magneto-telluric surveys were conducted in November - December of 2012 to characterize the geophysical signature of the underlying porphyry mineralization. The encountered porphyry mineralization was characterized by very low resistivity values, measuring between 3 – 6 ohm m, moderate chargeability values of less than 30 mrad and zones of very low magnetic susceptibility. Critically, the survey shows an area of 2 km x 2 km x 1 km of low resistivity values, which further demonstrates the potential to greatly expand the porphyry mineralization encountered. Torq plans to further explore the porphyry system by targeting structural corridors and potential feeder structures defined through the geophysical surveys.

High Priority Target Areas – Las Pircas – Pircas Norte:

To the east of the Cerro del Medio area, where the majority of the historical exploration work has been conducted, are the Las Pircas and Pircas Norte target areas. These targets are located approximately 2 – 3 km from the Caspiche deposit and are defined by areas of strong epithermal silicification alteration, which Torq’s technical team believes have significant potential for the discovery of underlying porphyry mineralization. This is supported by the low resistivity and moderate chargeability geophysical signatures, which start at depths as shallow as 250 m beneath the surface, as defined in the 2012 ground-based Quantec IP and magneto-telluric surveys. Both targets are characterized by resistivity lows of between 3 – 10 ohm m and moderate chargeability values of 30 – 40 mrad, which are consistent with the geophysical responses associated with porphyry mineralization under the Cerro del Medio target area. Together, these anomalies are approximately 1 km by 500 m, as defined by the resistivity data, but remain open at depth. Historical soils show a gold – silver – copper – molybdenum anomaly over the target areas coincident with the geophysical anomalies. The Las Pircas target area has only five shallow historical drill holes, totaling 476 m, that did not intersect the geophysical anomalies, leaving the target untested. The Pircas Norte target is under cover and has never been drill tested. Three rock grab samples taken from a small, isolated outcrop within the target reported a best result of 1.4 g/t gold and 0.5% copper associated with stockwork veining from a diorite porphyry exhibiting chlorite alteration after secondary biotite. Torq plans to aggressively explore the Las Pircas and Pircas Norte target areas with surficial programs to rapidly advance them to drill stage.

Ownership

Torq acquired the rights to explore the Santa Cecilia project via an option agreement that allows the Company to acquire a 100% interest in the project, subject to net smelter return (NSR) royalties, through cash payments (Table 5).

Table 5: Cash payments

Due Date

Cash Payment (US$)

On signing definitive agreement

$100,000

Within 12 months

$300,000

Within 24 months

-

Within 36 months

$600,000

Within 48 months

$1,000,000

Within 60 months

$3,000,000

Within 72 months

$5,000,000

Within 84 months

$15,000,000

$25,000,000

The Company has also committed to the following work expenditures, which are scheduled from the date it obtains the necessary permits to start its exploration campaigns, including the authorization from indigenous communities located in the area of interest (Table 6).

Table 6: Work expenditures

Due Date

Work expenditure (US$)

Within 12 months of obtaining permits

$3,000,000

Within 24 months

$4,500,000

Within 36 months

$8,000,000

$15,500,000

The option agreement each includes an NSR of 3%, half of which is buyable once the option is executed for a price that will be based on the fair value of the project, determined by mutual agreement between the parties.

Disclaimers

Notes on Historical Exploration Information

In the course of optioning the Santa Cecilia property, the Company’s geological staff was provided with a number of technical reports by past operators dating variously from 1985 to 2015. All drill results and material data sets have been included in this news release. These reports summarized and assessed certain geological, geochemical and geophysical work carried out by the past operators. Also included in the information package provided were reports on drilling in 1988, 1989, 1990, and 2012, including assays. None of the reports attempted to establish any resource on the property. The Company’s geological staff has now digitized much of the underlying data and is using the reformatted information to assess the conclusions of the earlier work and to plan future work. Drill core from the 2012 drill program is still available for re-assay. The prior work will be summarized and evaluated in an NI 43-101 compliant report. Until such summary and assessment are described in an NI 43-101 report, readers of this news release should appreciate that the posited geological modelling is based on information which, while compiled by reputable operators, has not yet been systematically verified and evaluated for accuracy and completeness.

2012 CDM Drilling

Historical drill samples were taken by sawing drill core into equal halves on site with one half being sent to Acme Analytical Laboratories in Copiapo, Chile for preparation and analysis. All samples were assayed using 30 g nominal weight fire assay with AAS finish (Acme method G6) for gold. Silver and base metals were analyzed as part of the multi-element aqua regia digest ICP-ES method (1D01). QA/QC programs for 2012 core samples using lab duplicates, standards and blanks indicate good accuracy and precision in a large majority of standards assayed.

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