Socos (Lara) Porphyry Copper Molybdenum Property, Peru
The Lara Property is located at moderate elevation, 40 km from the Pan American Highway and 400 km south of Lima on the southern coast of Peru. It consists of three mineral concessions, covering an area of 1,800 hectares (18 km2).
In January 2010, Redzone acquired the right to earn up to 75% interest in the property through an option agreement with Lara Exploration Ltd. (LRA: TSXV) via earning into Minas Dixon BVI ("Minas"), a wholly owned subsidiary of Lara. Under the agreement Redzone agreed to spend US $2.5 million in exploration on the property and issue 850,000 Redzone common shares to Lara over a three-year term to earn an initial 55% interest in the property.
. Lara retains a 1% net smelter royalty on all production from the property.
Work Completed to Date
Redzone funded two separate diamond drilling campaigns on the Lara Property totalling 6,566.3 m in 21 holes, thru December 2010 - January 2011 (1,998 m) and October 2011 - January 2012 (4,568.5 m). Geological mapping and sampling, geophysical surveys, on-going compilation of all data, permitting and community relations agreements have successfully been executed by the Minas team and independent contractors to date. Permits will require updating.
The Phase I drilling objectives (2010) were designed to:
1) investigate the enrichment zones;
2) add step-out drill holes to increase the existing estimated tonnage;
3) test the area for hypogene Cu-Mo mineralization.
Positive results from the Phase I drilling campaign led to a mapping and geophysical survey program in areas of interest. Results of the 35 km IP and 70 km total magnetics ground surveys completed in August 2011, generated 20 additional “Priority One” diamond drill targets at 300 m spacing.
The Phase II follow-up diamond drill program was planned with the objective to:
• test the overall size potential of the Lara Socos system;
• outline a resource of 350 Mt - 400 Mt of 0.3% CuEq.
The exploration programs completed to date on the Lara Property have successfully determined that the area of the original resource (18.6 Mt at 0.53% Cu with 0.2% Cu cut-off) is now 2,000 m long east and west and 500 m - 800 m wide north to south.
Additional Work – Potential Expansion of the Resource Base
It is proposed that diamond drilling of 3,000 m at approximately 100 m spacing could outline a higher grade core zone, and the diamond drilling of an additional 10,000 m at 300 m spacing could further expand the are of the resource.
Property Setting, Location and Access
The Lara Cu-Mo Property is located in southern coastal Peru approximately 400 km southeast from Lima. Access to the property is via the Pan American highway to the town of Palpa and then 32 km of gravel road heads northeast to the property along the valley of Rio Viscus. An 8 km all-terrain road has been constructed between Rio Viscus and the property. The town of Nazca, 45 km southeast from Palpa, has sufficient infrastructure and supplies to be used as a base of operations, and Palpa has labour and minor amenities. However, power for any mining operation would be sourced from the main power grid at Palpa and a new power line would have to be constructed. The nearest port lies 78 km south of Palpa at San Juan de Marcona.
The Lara concession directly affects three communities, Ocaña, Laramate, and Llauta. The property is accessed through the Saramarca village which are part of the Ocaña district lands.
On December 5, 2011 agreements were signed with representatives of the Laramate community that permits access to the land. These agreements allow for the resource area to be drilled once the rainy season terminates at the end of April or early May.
The company has been on extreme cost cutting mode and has let the permits expire. As the Lara Property falls within the north east boundary of the Nazca Lines and Archaeological Reserve an archaeologist and assistant must be contracted prior to and during a drilling campaign in accordance with the Ministry of Culture laws.
Geology and Mineralization
The Property is situated within the central portion of the Cretaceous to early Tertiary Coastal Batholith that extends at least 800 km and consists primarily of granodiorite and tonalite. The batholith intrudes meta-sedimentary rocks of the Jurassic-Cretaceous Yura Group. The youngest lithology belongs to the late Tertiary Nazca Group and consists of sub-aerial volcanic flows, agglomerates, breccias and tuffs. The occurrence of the porphyries within this belt is due to tectono-magmatic factors that have controlled the emplacement of these deposits during the Upper Cretaceous and Medium-Upper Paleocene ages. The most widespread rock on the property is the quartz diorite porphyry, which is the principal host of the Cu-Mo mineralization.
History and Exploration
- Minas Dixon staked claims in the area in 1994 and instigated the first geological reconnaissance mapping sampling programs. The programs confirmed the existence of a porphyry copper target.
- In 1995, Minas performed continued mapping and sampling and followed up in 1997 with induced polarization and a five hole reverse circulation program. The last two holes of this program led to the discovery of a chalcocite-rich, supergene horizon and additional drilling was completed in two subsequent programs in October 1997 and August 1998. In the three programs a total of 2,742 m of reverse circulation and 134 m of core were drilled.
- Preliminary metallurgical test work was conducted in September 1998 by Plenge Laboratories.
- In 1999, Rescan completed a scoping study of the Lara deposit. The scoping study calculated a drill indicated mineral inventory for the central zone of 19.7 M tonnes grading 0.47% copper, using a 0.20% copper cut-off. The scoping study concluded that if greater than 64 M tonnes grading greater than 0.51% copper could be established, a 20,000 tonne per day operation would be economically feasible for a copper price in the range of US $0.90 – US $1.00 per pound range.
- In 2004 - 2005, an estimated inferred mineral resource of 18.6 M tonnes grading 0.53% copper using a 0.2% copper cut-off and a simple polygonal resource model for the Lara deposit was documented in the independent National Instrument 43-101 technical report on the property entitled, “Summary of Exploration, Metallurgy and Scoping Studies on the Lara Porphyry Copper Property and Proposed 2005 Exploration Program, Rio Viscus, Palpa, Peru”, authored by John Nebocat, P. Eng. dated February 9, 2004 and revised March 31, 2005.
- Nebocat (2005) also summarized the metallurgical test work conducted in September 1998 by Plenge Laboratories, Lima (Plenge, 1999). A column leach test and a bottle roll test were initiated at Plenge Laboratories Lima on drill core selected from the supergene zone encountered in drill holes LDD13 and LDD14.
- In 2007, Minas Dixon completed two vertical diamond drill holes totalling 413.8 m within the historic resource area
- In 2009, Simon Meldrum, Consulting Exploration Geologist, re-logged and photographed all diamond cores (LDD-13, LDD-14, LLD-17, LAO7-01 and LA07-02)
- In March of 2010, Meldrum authored a NI 43-101 Technical Report titled, “Technical Report on the Lara Porphyry Copper-Molybdenum Deposit, Peru”, to provide an independent Qualified Person’s review for Redzone Resources Ltd., as part of the joint venture agreement requirements.
- As a result of the Meldrum Report (2010) Redzone approved an exploration program that included mapping, geophysical surveys and diamond drilling programs that were conducted in different phases in 2010 and 2011, as described above.
Total Metres Drilled on Lara Property, Peru
Potentially the greatest scope for improving the outlook the zone lies in the core of project where the current drill pattern leaves a large area untested (see Mineralized Foot Print Map below). Drilling of the Phase I and Phase II campaigns discovered higher chalcopyrite contents than those previously tested and the mineralization can now be consider as “mixed or transitional” and new test work is necessary to confirm recoveries previously reported.
Phase 1 Diamond Drilling Intercepts
Phase II Diamond Drilling Intercepts
Copper equivalents represent (Cu-Eq%) the value for each metal multiplied by the conversion factor, summed and expressed in equivalent copper grades. These results are exploration results only and no allowance is made for metallurgical recoveries. The conversion factors used were: CuEq (%) was calculated using US $2.80 per pound of copper and US $16 per pound of molybdenum. CuEq= copper % + (Mo% X 5.71428571).
Location of Lara Socos Copper Molybdenum Property, Peru.
Concession Map and Location of Lara and Socos Prospects.
Mineralized foot print, location of drill holes and results of 2010 and 2012 drilling.