Tribeca Resources Chile SpA (“Tribeca Resources”) is pleased to announce the signing of a definitive and binding agreement granting it a 5-year option to acquire a 100% interest in the Gaby-Totito copper-gold-iron-cobalt project. The addition of the Gaby-Totito project is immediately accretive to the company’s existing set of advanced drill targets in the project area. The purchase option is being entered into by Tribeca Resource’s 62.5% owned subsidiary Bluerock Resources SpA (“Bluerock”), whose existing key asset is a 100% interest in the Caballo Blanco project, located immediately adjacent to Gaby-Totito. The projects are located in the prolific Chilean Iron Oxide Copper-Gold (IOCG) Belt, approximately 40 km north of the city of La Serena in the Coquimbo province of Chile (Figure 1).
Previous geophysical surveying (IP and ground magnetic) and RC/diamond drilling (4,058m) indicates the presence of a significant IOCG mineralised system at Gaby. The historic drilling has been completed over approximately 500m north-south strike length of the mineralised system, with copper grades increasing to the north. The best drill intersections at Gaby to date come from two holes spaced 100m apart on the northernmost drill section, and comprise:
LH-RC-07 – 285m @ 0.40% copper, 0.08 g/t gold, 23.5% iron and 259 ppm cobaltfrom 100m depth, including 52m @ 0.60% copper, 0.12 g/t gold, 25.1% iron and 302ppm cobalt from 190m.
LH-RC-06 – 36m @ 0.66% copper, 0.14 g/t gold, 32.1% iron and 328 cobalt from 196m depth, and 36m @ 0.46% copper, 0.11 g/t gold, 31.2% iron and 304 ppm cobalt from 264m.
Previous metallurgical test-work indicates that the mineralisation intersected at Gaby is amenable to production of a copper concentrate and a high grade magnetite product through standard flotation and magnetic separation techniques, with further potential to produce a cobalt-rich pyrite concentrate.
The agreement provides Bluerock with a five-year period to explore the Gaby-Totito Project, with the option to, at any time during the option period, purchase 100% of the 822-hectare package of exploitation licences comprising the Gaby-Totito project.
Reaching this agreement with the private Chilean owners of the Gaby-Totito project, has been a top priority for Tribeca Resources since acquiring its majority interest in the adjacent Caballo Blanco project (refer to Tribeca Resources news release dated 20 March 2017). This transaction is a significant step in implementing Tribeca Resources’ strategy of consolidation of advanced copper projects in this under-appreciated portion of the Chilean Coastal IOCG Belt. Tribeca Resources is encouraged by the thickness of copper mineralisation and the presence of by-product credits (gold-iron-cobalt) in drilling at the Gaby target to date and looks forward to drill testing potential extensions to the known mineralisation.
Tribeca Resources is planning a two-phase exploration programme across the Caballo Blanco and Gaby-Totito properties, with Phase 1 to comprise surface geological mapping, geochemical sampling, and gravity surveying followed by reverse circulation and diamond drill testing to determine the extent of the currently known mineralised systems (Chirsposo – refer to Tribeca Resources news release dated 4 April 2018, and Gaby), both of which are open and untested under thin gravel cover. Pending positive results, the Phase 2 work will be targeting delineation of an Inferred mineral resource at one, or both, of the projects.
To fund its Phase 1 exploration programme across the combined Caballo Blanco and Gaby-Totito projects, Tribeca Resources is now evaluating alternatives for raising an initial US$1.5 million of new capital. In parallel, Tribeca Resources will continue to pursue value-adding consolidation opportunities in the district around Caballo Blanco and in the broader Coastal IOCG Belt. Tribeca Resources’ objectives are twofold: (1) to deliver a maiden Inferred resource at/around the Chirsposo and/or Gaby targets, whilst; (2) continuing to assemble a portfolio of copper dominant properties in the Chilean Coastal IOCG Belt that can be advanced towards code compliant resources. Ultimately, Tribeca Resources is working to deliver a portfolio of quality mineral resources and exploration projects to form the basis of a significant initial public offering for a Chilean copper-focussed exploration and development company.
The Gaby-Totito project is located approximately 2km northwest of the historic La Higuera copper mining centre (Figure 1), close to the Pan-American highway (Ruta 5). The geology of the project area is dominated by strongly altered andesite and diorite of interpreted Jurassic age, within several poorly defined splays of the Atacama Fault system under variable gravel cover.
At the Gaby target, in the northwest of the project area, several small workings are present at surface, and available outcrop indicates the presence of a strong IOCG alteration system, with significant pervasive albite alteration, and variable intensity veining of amphibole – magnetite ± epidote ± copper oxide (Figure 2). The Gaby target hosts IOCG mineralisation similar to the Caballo Blanco project three kilometres to the south.
In 2005 Peregrine Metals Ltd (“Peregrine”) completed Induced Polarisation (IP) and ground magnetic surveying over the Gaby target area. A large and high intensity coincident IP-chargeability and magnetic anomaly was delineated, with the high intensity core of the anomaly tested by drilling of 12 holes for 4,058m over approximately 500m strike length of the anomaly. All were RC holes, with three holes having diamond tails. The significant intersections from the drilling are summarised in Table 1.
Peregrine undertook a preliminary metallurgical and mineralogical assessment on material from the drilling, with the programme comprising sulphide flotation, magnetic separation test work, and production of a cobalt-rich pyrite concentrate. Whilst the test work did not outline a definitive process route, it did indicate the mineralisation is amenable to standard flotation and magnetic separation techniques.
Given the proximity of the Gaby-Totito and Caballo Blanco projects, and the obvious synergies for exploration activities and potentially mining, Tribeca Resources intends to explore the two projects in tandem. The work programme is expected to comprise surface mapping, soil sampling, gravity surveying and approximately 3,000m of RC/DD drilling.
The historical drilling was predominantly targeted on the basis of geophysical data and located on outcropping or very thinly (0-3m) gravel-covered andesite rocks, interpreted as Late Jurassic in age (Figure 3), with the coincident IP and magnetic geophysical anomaly continuing untested to the north under interpreted thickening gravel cover. The best copper intersections are from the northern-most drill holes LH-RC-06 and LH-RC-07.
Tribeca Resources has compiled all available historic data and built a 3D model, incorporating the drill data and the geophysical inversions, which indicates the geophysical IP anomaly continues north from hole LC-RC-07 under the thin gravel cover. Whilst the copper grade is increasing northwards, the intensity of the magnetic anomaly decreases, and is interpreted as a zonation in iron oxide species from magnetite to hematite. Globally, copper mineralised zones are commonly located on the flanks of, or offset from, the highest intensity magnetic anomalism. This zone is a priority drill target.
Prior to commencing drilling, Tribeca Resources intends to complete detailed geological mapping, a surface geochemical programme in outcropping areas, and gravity surveying in order to determine the strike extent of the known mineralised system at the principal Gaby target, as well
as reconnaissance geological mapping and sampling over other areas of the licence package. When drilling commences, it is envisaged that a primary focus will be the shallowly covered areas to the north of the current strong copper- gold- iron- cobalt intersections.
The geology and historic work programmes at the Caballo Blanco project are described on the Tribeca Resources website (www.tribecaresources.com) and news releases referenced therein.
The key target at the project comprises the Chirsposo zone, a northeast trending set of shear zones hosting a magnetite-dominated IOCG alteration system in diorite and andesite. The steeply southeast-dipping shear zones have a coincident copper-cobalt soil anomaly (-80# aqua regia) over approximately 400m x 1,000m at 200ppm Cu, with a maximum of 1200ppm Cu. The soil anomaly is open to the northeast where it is masked by gravel cover. Drill hole CAB0006, a 200m step-out onto the gravels, intersected 82m @ 0.35% Cu, 19.2% Fe and 576ppm Co from 64m depth to the end of hole. The gravel cover is approximately 25m thick at this location.
Additionally, the broader Caballo Blanco project area hosts a set of coincident IP-chargeability and ground magnetic anomalies under variable gravel cover within the strong multi-kilometre scale IOCG alteration system. Many of these targets remain untested.
Tribeca Resources intends to extend the gravity coverage of the Gaby-Totito project area to include the Caballo Blanco project area prior to finalising drill targets for an RC/DD drill programme. The programme will be designed to test the northeast covered strike extension of the Chirsposo zone as well as the strong geophysical targets on the broader project area.
Tribeca Resources is a private Chilean exploration and development company. The team behind the company came out of Glencore’s copper business and established Tribeca Resources with the objective of building a portfolio of copper dominant properties in the Chilean Coastal IOCG Belt that can be advanced towards code compliant resources.
The Caballo Blanco project and Gaby-Totito option are 100% owned by the private Chilean company Bluerock Resources SpA in which Tribeca Resources holds a 62.5% equity interest. Tribeca Resources is partnering with the founding Bluerock owners who retain a significant minority equity interest and have on-going technical, strategic and administrative involvement.
For further information:
Paul Gow – CEO Thomas Schmidt – President
+61 497 572 956 +44 77 7577 1217
The information in this release has been compiled by Dr. Paul Gow, CEO and Director of Tribeca Resources Chile SPA, based on the review of information from historical work programmes. Dr. Gow is a Member of the Australasian Institute of Mining and Metallurgy (AusIMM) and the Australian Institute of Geoscientists (AIG), and has sufficient experience which is relevant to the style of mineralisation and type of deposit under consideration and to the activity which he is undertaking to qualify as a Competent Person under the 2012 Edition of the Australasian Code for reporting of Exploration Results, Mineral Resources and Ore Reserves.