Latin Resources drilling at Ilo Norte ups ante for significant orebody
Latin Resources (ASX:LRS)
may be honing in on a significant orebody after drilling and logging at
the Ilo Norte Project in Peru intersected IOCG style alteration and
mineralisation in the four holes drilled.
Investors will not have
long to wait as assay results from the first two holes are expected by
the end of April to confirm the significance of these intersections.
There are two rigs spinning at Ilo Norte, operated by a joint venture partner.
All at zero cash cost to Latin.
In
fact, on 29th November, Latin announced the signing of a binding term
sheet with Peruvian company Compania Minera Zahena (CMZ) for a staged
consideration of US$9 million to earn a 70% stake in the Ilo Norte
project.
In a fast track program, six holes have already been
completed, each to 800 metres depth, with the seventh and eighth holes
in progress.
To boot, Latin Resources has banked a US$100,000 payment received following completion of first
four holes. Latin retains 30% of the Project and 100% of the remaining
Ilo tenement package consisting of some 105,600 hectares.
Earn in
operator CMZ has rapidly advanced drilling and all of the first 4 holes
host stratagraphically controlled skarn - replacement style
mineralisation of Pyrite and Magnetite with visually identified copper
and zinc mineralisation.
Interestingly, copper minerals appear to increase to the NE within the IP Chargeability corridor.
This
could provide a grid to a potentially higher grade skarn - replacement
style mineralisation, and as importantly a possible intrusive source.
Why the promise?
Veins
of coarse Chalcopyrite with Specularite and Calcite imply additional
structural targets where favourable horizons meet faults with potential
to form a significant ore body - as occurs in the IOCG ore bodies of
the Punta de Cobre district in northern Chile.
Or as Chris Gale managing director of Latin Resources said:
"We
are excited that Latin’s geological model has been confirmed, and IOCG
style alteration and mineralisation have been intersected by drilling.”
Further,
“Such intense IOCG style alteration over more than 1 km2 with apparent
vectors towards potentially higher grade mineralisation suggests a good
probability of a significant find to come at Ilo Norte."
History
Latin Resources drilled Ilo Norte in 2011. Drilling was downslope of the (then
undiscovered) alteration package, but nonetheless returned some very
good intersections including 36 metres at 0.29% copper and 0.09g/t gold
(including 14 metres at 0.55% Cu and 0.13g/t gold); and 21 metres at
0.25% copper and 0.09g/t gold.
So the results prove that the
system hosts copper and gold and not be unreasonable to expect better
results within the heart of the alteration system.
A geophysical survey completed in early 2013 defined a large (2000m by 800m) Induced Polarization (IP) anomaly.
The
anomaly is indicative of chargeable material within the alteration
system which may indicate the presence of sulphides, which in turn may
be associated with copper and gold.
Adding similar such deposit
styles to the already prolific porphyry deposits in Southern Peru would
further highlight the world class status of this important copper
district, and bridge the gap between the coastal IOCG’ of Chile with
those further north in Peru.
Analysis
The
first drilling and logging results with JV partner appear very
encouraging and promising for Latin. With significant drilling ahead,
it should assist to thread the needle at Ilo Norte.
The holes now
completed and underway are the first 8 of 12 holes totalling 10,000
metres that are required to be completed within 18 months as part of the
earn-in conditions with a free carry for Latin.
Latin’s geological model has been confirmed, and IOCG style alteration and mineralisation have been intersected by drilling.
All suggestive of a potentially significant find to come at Ilo Norte?
There
are 125 billion pounds of contained copper in published reserves and
resources including the Cuajone, oquepala and Cerro Verde copper mines,
all within 100 km of Ilo Norte. To find elephants you need to be in
elephant country.
Ilo Norte hosts a very large alteration
system, which is at least 10 kilometres long and several hundred metres
thick. Previously Latin had very promising results from exploration.
The new program could take it a step further.
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