(via TheNewswire)
Highlights:
Historic DSO ore sales of 117 tonnes grading 33.5 g/t Au, 55 g/t Ag, and 6.9% Cu
Fully-preserved low-sulfidation epithermal system with known mineralization
~5 km strike of vein system identified and ready for drill-testing
“Polimet offers the opportunity to explore a high-grade gold-copper target that is uniquely well suited for development.
The high tenor of the target, coupled with unique infrastructure advantages means that significant value can be created within a compact package. Polimet is also accessed from the same logistical hub as the recently signed Caballos Copper project offering further logistical synergies.
Fitzroy Minerals now has two ideally located projects in a premier mining jurisdiction. There is a global shortage of copper and gold assets with good grade, clean metallurgy and simple geometry. We plan to drill Polimet in the second half of 2024 and are currently building up our local exploration team.”
“The geology at Polimet is a classic low-sulfidation epithermal vein system, complete with bonanza-grade ore shoots. Uniquely for this district the Polimet system consistently shows strong copper values of around 2% in the veins, even when the precious metal content varies. This copper content could potentially cover development costs which means that the gold and silver content would be essentially “free”.
Ore-grade mineralization in nearby deposits is well understood to start below 1,600 m in altitude and we believe that the core of the epithermal system is intact at Polimet. Our exploration work will focus on systematically identifying bonanza-grade shoots and the tenor of regular vein mineralization at Polimet.
Exploration will include mapping, soil sampling and geophysics prior to a drill program. The concessions host approximately 5 km of mapped veins to date and the aim will be to identify as many potential pay shoots as possible within the target area. Fitzroy Minerals anticipates drilling Polimet in the second half of 2024.”
Terms of the Transaction
In order to exercise the Polimet Option, the Company must:
Make a cash payment of
US$ 80,000 on signing of a definitive option agreement, with a furtherUS$80,000 on the first anniversary thereof;Incur exploration expenditures of at least
US$2.25 million over a three year period, with no consecutive 12 month period seeing less thanUS$500,000 of exploration expenditures.
Subject to the requisite investment having been met, Fitzroy Minerals can exercise the Polimet Option by making a
In connection with the acquisition of the Polimet Option, the Company has agreed to pay
Location
The project comprises 1,860 Ha of concessions, at an average altitude of 1,700 m. Polimet is 170 km from
Figure 1. Project Location
Click Image To View Full Size
Project History
The concessions that comprise the
Table 1. Historic Polimet (
Date of Lot Sale | Kg | Au (g/t) | Ag (g/t) | Cu (%) | As (%) | Sb (%) | S (%) | Pb (%) |
4,510 | 60.3 | 325 | 29.4 | 1.33 | 0.230 | 32.00 | 0.36 | |
2170 | 3.3 | 280 | 28.5 | 0.04 | 0.001 | 3.60 | 0.01 | |
2310 | 42.8 | 390 | 29.9 | 1.01 | 0.120 | 37.70 | 0.18 | |
1700 | 19.8 | 739 | 34.1 | 1.07 | 0.420 | 30.20 | 0.07 | |
13260 | 42.5 | 25 | 6.2 | 0.08 | 0.001 | 6.15 | 0.01 | |
11510 | 23.8 | 17 | 4.3 | 0.07 | 0.002 | 3.66 | 0.01 | |
10980 | 40.0 | 23 | 4.3 | 0.06 | 0.002 | 3.71 | 0.01 | |
14220 | 40.8 | 22 | 4.6 | 0.08 | 0.004 | 4.10 | 0.02 | |
11010 | 48.0 | 19 | 5.0 | 0.08 | 0.003 | 4.54 | 0.01 | |
12860 | 31.8 | 16 | 4.2 | 0.06 | 0.003 | 3.65 | 0.01 | |
11300 | 26.0 | 28 | 4.8 | 0.09 | 0.005 | 4.50 | 0.01 | |
12220 | 14.8 | 13 | 3.0 | 0.05 | 0.001 | 2.80 | 0.01 | |
Unreadable | 9000 | 27.2 | 20 | 5.1 | 0.07 | 0.002 | 5.45 | 0.01 |
TOTAL | 117,050 | 33.5 | 55 | 6.9 | 0.15 | 0.020 | 6.36 | 0.03 |
Table 2. Historic Polimet (
Date of sale | Weight (Kg) | Au (g/t) | Ag (g/t) | Cu (%) |
41,656 | 4.1 | 7 | 0.8 | |
40,329 | 4.4 | 5 | 0.7 | |
14,651 | 4.9 | 6 | 1.3 | |
14,811 | 3.5 | 7 | 1.1 | |
16,330 | 4.3 | 7 | 1.2 | |
15,922 | 3.7 | 9 | 1.1 | |
28,892 | 4.7 | 10 | 0.9 | |
14,191 | 6.1 | 8 | 1.5 | |
17,150 | 5 | 9 | 1.6 | |
14,246 | 4 | 8 | 1.2 | |
14,199 | 5.1 | 13 | 1.2 | |
13,041 | 5.2 | 9 | 1.2 | |
12,598 | 4 | 8 | 1.2 | |
14,159 | 5.3 | 6 | 1 | |
17,757 | 6.4 | 10 | 0.2 | |
23,579 | 4.6 | 8 | 0.3 | |
17,603 | 7.3 | 8 | 1.1 | |
41,493 | 5 | 12 | 1.4 | |
16,572 | 5.3 | 6 | 0.3 | |
42,440 | 4 | 16 | 1.6 | |
21,598 | 4.6 | 23 | 2.1 | |
28,190 | 5.2 | 9 | 0.9 | |
38,585 | 4.4 | 22 | 1 | |
33,858 | 4.1 | 12 | 0.6 | |
41,613 | 3.6 | 6 | 0.7 | |
22,462 | 6 | 8 | 0.9 | |
TOTAL | 617,925 | 4.7 | 10 | 1.0 |
Table 3. Combined historic Polimet (
Weight (Kg) | Au (g/t) | Ag (g/t) | Cu (%) | |
Sulphide | 617,925 | 4.7 | 10 | 1.0 |
DSO | 117,050 | 33.5 | 55 | 6.9 |
TOTAL | 734,975 | 9.3 | 17 | 2.0 |
At the turn of this century, Sinotec, a Chinese mining company, explored in the area. A large number of dirt roads were built, and wide-spaced RC drill-holes were completed. No technical information about this campaign is available.
The current owner of Polimet consolidated the concessions from 2015 to 2023. The Santa Margarita and Pia-Vaca concessions are held under a sub-option agreement, signed in 2023.
Geology
The region around Petorca is characterised by epithermal low sulfidation vein systems hosted by Cretaceous volcanic andesitic sequences (Camus et al., 1991) in the western foothills of the Andean Cordillera of central
Figure 2. Regional Geology
Click Image To View Full Size
At
Figure 3. Schematic cross-section of
The most significant occurrence is at El Bronce vein, emplaced in a seven kilometer long, roughly north-south-striking fault. At Polimet, approximately five kilometers of vein strike length have been identified to date. Much of the Polimet concession area is at an elevation of 1600 to 1950 m, which is high in the epithermal system.
Figure 4. Regional profile of elevation (vertically exaggerated)
At
Results to Date
Work carried out in recent years includes detailed mapping and geological reconnaissance, soil and rock chip geochemical, and LIDAR surveys of old workings. Thirteen channel samples were taken across structure in the old workings.
Table 4: Rock chip sample results, old workings at Polimet
Sample ID | Area | Weight (kg) | Au (g/t) | Cu (%) | Ag (g/t) |
SM-001 | 4.4 | 10.7 | 6.6 | 491 | |
SM-002 | 4.9 | 0.2 | 2.7 | 4 | |
SM-003 | 5.4 | 0.1 | 1.4 | 6 | |
SM-004 | Sto Dom Sup | 6.4 | 0.2 | 2.9 | 185 |
SM-005 | Pto Nuevo | 6.8 | 4.4 | 0.6 | 4 |
SM-006 | Tunel No Entrar | 6.6 | 1.1 | 3.6 | 9 |
SM-007 | La Garcia sup | 6.8 | 27.2 | 3.4 | 15 |
SM-008 | La Garcia inf | 6.7 | 20.0 | 3.3 | 12 |
SM-009 | S Pedro inf | 6.0 | 0.6 | 0.4 | 0 |
SM-010 | S Pedro Med inicio | 4.8 | 0.6 | 1.5 | 5 |
SM-011 | S Pedro Med Oreshoot | 5.3 | 43.3 | 7.8 | 32 |
SM-012 | S Pedro Sup | 4.9 | 7.7 | 3.5 | 11 |
SM-013 | S Antonio | 5.2 | 0.3 | 0.4 | 0 |
Average | 5.7 | 9.0 | 3.4 | 59 |
Mapping and sampling at surface has identified hydrothermal alteration correlated with multispectral anomalies. Several hydrothermal alteration/brecciation zones (silica-siderite- argilization) are coincident with spectral anomalies for Na, K and Mg minerals and Cu-sulfides. The surface anomalies are found at altitudes of 1600 m or higher. Rock chip samples at surface have returned values of up to 4.5 g/t Au and up to 3.6% Cu in otherwise untested hydrothermally altered and brecciated zones.
Exploration Target and Next Steps
The aim at Polimet is to systematically identifybonanza-grade shoots and the tenor of regular vein mineralization. Fitzroy Minerals will use the known mineralizing style that is found at El Bronce as a starting guide until the nature of the Polimet system is better understood. The main targets are lenticular, structurally controlled ore shoots along the fault. Fitzroy Minerals believes that the best grade material will be found at depths starting 100 to 250m below surface, at the altitude of the main ‘gold zone’ in the region.
During the course of 2024, Fitzroy Minerals intends to extend soil geochemistry grids and carry out an Induced Polarisation survey ahead of any potential drill program.
Update Regarding Caballos Property Option
Further to the Company’s news release dated
The acquisition of the Caballos Option is subject to execution of a definitive option agreement, and to the approval of the Exchange. The payment of the Caballos Finder’s Fee is also subject to the approval of the Exchange.
The acquisitions of the Polimet Option and Caballos Option and the associated finder’s fees to be paid to Marrad were negotiated and agreed to by the Company prior to Mr. Marr-Johnson’s appointment to the Company’s board of directors and as the Company’s Chief Operating Officer. As such, at the time of the settlement of the option and finder’s fee terms, Mr. Marr-Johnson was not a Non-Arm’s
Qualified Person
The technical information in this news release was reviewed and approved by
About Fitzroy Minerals
Fitzroy Minerals is focused on acquiring, exploring and developing mineral assets with substantial upside potential in the
On behalf of
Chief Operating Officer (“COO”)
For further information, please contact:
mmj@fitzroyminerals.com
+1 604-505-4554
For more information on Fitzroy Minerals, please visit the Company's website.
www.fitzroyminerals.com
This press release does not constitute an offer to sell or a solicitation of an offer to buy any of the securities in
Neither Exchange nor its Regulation Services Provider (as that term is defined in the policies of the Exchange) accepts responsibility for the adequacy or accuracy of this release.
CAUTIONARY STATEMENT REGARDING FORWARD-LOOKING INFORMATION: This news release includes certain "forward-looking statements" which are not comprised of historical facts. Forward looking statements include estimates and statements that describe the Company’s future plans, objectives or goals, including words to the effect that the Company or management expects a stated condition or result to occur. Forward-looking statements may be identified by such terms as “believes”, “anticipates”, “expects”, “estimates”, “may”, “could”, “would”, “will”, or “plan”. Since forward-looking statements are based on assumptions and address future events and conditions, by their very nature they involve inherent risks and uncertainties. Although these statements are based on information currently available to the Company, the Company provides no assurance that actual results will meet management’s expectations. Risks, uncertainties and other factors involved with forward-looking information could cause actual events, results, performance, prospects and opportunities to differ materially from those expressed or implied by such forward-looking information. Forward looking information in this news release includes, but is not limited to, the Company’s objectives, goals or future plans, statements, exploration results, potential mineralization, the estimation of mineral resources, exploration and mine development plans, timing of the commencement ofoperations, estimates of market conditions, and payment of finder’s fees. Factors that could cause actual results to differ materially from such forward-looking information include, but are not limited to failure to identify mineral resources, failure to convert estimated mineral resources to reserves, delays in obtaining or failures to obtain required governmental, environmental or other project approvals, delays in obtaining or failures to obtain regulatory approvals, including the approval of the Exchange for the acquisition of each of the Polimet Option and the Caballos Option, and the finder’s fee associated therewith, political risks, uncertainties relating to the availability and costs of financing needed in the future, changes in equity markets, inflation, changes in exchange rates, fluctuations in commodity prices, delays in the development of projects, capital and operating costs varying significantly from estimates, and the other risks involved in the mineral exploration and development industry. Although the Company believes that the assumptions and factors used in preparing the forward-looking information in this news release are reasonable, undue reliance should not be placed on such information, which only applies as of the date of this news release, and no assurance can be given that such events will occur in the disclosed time frames or at all. The Company disclaims any intention or obligation to update or revise any forward-looking information, whether as a result of new information, future events or otherwise, other than as required by law.
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