Ollachea Gold Project
Geology
The central area of interest is a 2 km long zone in which local artisanal miners have been producing limited quantities of gold for some time. In preparation for the exploratory diamond drilling program, efforts initially concentrated on the completion of detailed geological mapping and some 1,623 m of geochemical trench/channel sampling over difficult terrain.
Intensely foliated and weakly convoluted, compact, black shale sedimentary packages of the Ordovician–aged Sandía Formation play host to the quartz vein/ veinlet-hosted auriferous mineralization. Interstratified sub-parallel and tensional shearing is evident and clearly affects the continuity of gold-bearing veins and “mantos” (bedding-parallel suites of narrow quartz veins, veinlets and structures), imparting in places an intense foliation to the metamorphosed shale horizons. Low-angle east-west trending faults play an important control; on a local scale, intra-bed faulting sub-parallel to the principal low angle faults is observed to control emplacement of the quartz-sulphide mineralization in quartz veining and shear zones; tight crenulation-like features probably represent an additional foci of mineralization.
Surface and underground geological mapping, geochemistry and surface ground magnetic results confirmed that mineralised veins and veinlets (generally 2-10 cm wide, but occurring up to 1 m thick) are controlled by the above-mentioned system of northerly dipping, east-west orientated thrust faults. Mineralized “mantos” are associated with interbedded “shear” horizons, wherein surface trenching has identified up to 50 irregular and discontinuous narrow quartz veinlets over widths of 10 m; aligned sub-parallel to stratification and/or foliation trends.
The intensity of hydrothermal alteration is weak. Alteration is mostly observed as extremely narrow borders or haloes to quartz veins/veinlets; and sometimes as minor alteration mineral inclusions within quartz. Low intensity silicification of the host slates is suggested where intense quartz vein/veinlet formation has occurred, since in these areas the slates are generally observed to be harder than in other areas. Chlorite is frequently observed, but not always. It is presented as micro-veinlets within quartz veins/veinlets, narrow borders to mineralized structures and as replacement of pyrite, sporadically together with a possible very minor sericitic component. Weakly disseminated pyrite-chlorite is sometimes observed along footwall or hanging wall contacts of mineralized structures.
In an attempt to understand the demeanour of gold mineralization in the Ollachea system, composite geochemical samples have been collected from surface in systematic fashion across mineralized areas, as well as on a selective basis from narrow mineralized structures.
Gold mineralization is found to be characterised by a close association of coarse to very fine free gold in erratic and discontinuous narrow quartz veinlets, in close association with primary sulphides pyrite > arsenopyrite >= pyrrhotite > chalcopyrite and a weak galena presence. Sulphides associated with the quartz veinlets occur as disseminations (some as semi-aligned tiny blebs) and sometimes as very narrow, crenulated micro-veinlets. A refractory gold presence has not yet been investigated. In the areas located between narrow mineralised veins and veinlets, a low gold tenor is identified. Oyaechea 3 is characterized by the presence of near surface primary sulphide mineralization amid limited, shallow, oxide mineralization.
There is an apparent association between gold mineralization and the presence of the magnetic mineral pyrrhotite. Processing of a 24 line-km geophysical ground magnetic survey has established 2 important east-west trending magnetically anomalous areas; partially coincident with a moderate to weak, 600 m long x 165 m wide, surface gold anomaly identified by trench/channel sampling.
Ground Magnetic Anomalies
A combination of lithology, structure, low intensity hydrothermal alteration and a presence of interstratified quartz veins/veinlets within layered shear zones have been interpreted as the principal controls on gold mineralization at Ollachea.
Drill Results
Gold assay results were reported in late November 2008 from the nine holes in the initial widely spaced scout drilling program. Eight holes encountered significant gold grades over extended widths. The five holes in the central zone, spaced over a strike length of 400m (east to west), included 70m at 2.00g/t (DDH08-05), 122m at 2.95g/t (DDH08-01), 126m at 2.30g/t (DDH08-04), 102m at 1.83g/t (DDH08-02) and 94m at 3.02g/t (DDH08-22). Within these broad zones were better grade intersections including 31m at 6.04g/t in hole DDH08-22 and 44m at 4.28g/t in DDH08-04. A more detailed tabulation of results for all nine holes is included below. Geological plans and sections as well as full assay logs can be found on the Company website, www.minera-irl.com.
Although drilling continues, only very broadly spaced scout drilling has been reported thus far. The westernmost hole, DDH08-15, approximately 1km along strike from the central zone, intersected 92m grading 1.09g/t including 44m at 1.40g/t.
The drilling has intersected suites of sheeted quartz-sulphide veins and veinlets which intersect the core-axis at angles of approximately 60-65°. Thus the true widths intersected are approximately 90% of the above-reported mineralized widths. The reported drill intersections occur down-dip from outcropping structures where local artisanal miners are actively working the near surface mineralization.
Minera IRL Ollachea Project, Tabulation of initial nine diamond drill hole results
|
Hole Number, DDH08
|
1
|
2
|
4
|
5
|
14
|
15
|
18
|
21
|
22
|
|
Northing
|
8474585
|
8474550
|
8474550
|
8474606
|
8474335
|
8474302
|
8474310
|
8474680
|
8474569
|
|
Easting
|
339523
|
339279
|
339415
|
339582
|
338472
|
338380
|
339497
|
339844
|
339354
|
|
Inclination - degrees
|
-60
|
-70
|
-65
|
-60
|
-60
|
-55
|
-60
|
-70
|
-65
|
|
Azimuth - degrees
|
N 180º
|
N 180º
|
N 180º
|
N 180º
|
N 180º
|
N 180º
|
N 180º
|
N 180º
|
N 180º
|
|
Depth of hole - meters
|
304.9
|
324.85
|
195.2
|
373.5
|
168.8
|
253.8
|
172.45
|
193.4
|
301.8
|
|
Meters down hole, from
|
62
|
86
|
56
|
136
|
42
|
102
|
106
|
174
|
72
|
|
" " " , to
|
184
|
188
|
182
|
206
|
68
|
194
|
126
|
178
|
166
|
|
Intersection down hole - meters
|
122
|
102
|
126
|
70
|
26
|
92
|
20
|
4
|
94
|
|
Intersection, approximate true - meters
|
110
|
92
|
113
|
63
|
23
|
83
|
18
|
4
|
85
|
|
Grade, Au grams/tonne
|
2.95
|
1.83
|
2.3
|
2
|
0.68
|
1.09
|
0.75
|
1.16
|
3.02
|
|
Including
|
|
|
|
|
|
|
|
|
|
|
Meters down hole, from
|
62
|
112
|
88
|
136
|
42
|
128
|
118
|
|
101
|
|
" " " , to
|
76
|
154
|
162
|
178
|
48
|
172
|
126
|
|
132
|
|
Intersection down hole - meters
|
14
|
42
|
74
|
42
|
6
|
44
|
8
|
|
31
|
|
Intersection, approximate true - meters
|
13
|
38
|
67
|
38
|
5
|
40
|
7
|
|
28
|
|
Grade, Au grams/tonne
|
3.36
|
3.24
|
3.3
|
2.93
|
1.31
|
1.4
|
1.27
|
|
6.04
|
|
Including
|
|
|
|
|
|
|
|
|
|
|
Meters down hole, from
|
114
|
144
|
98
|
136
|
|
164
|
|
|
|
|
" " " , to
|
134
|
154
|
142
|
150
|
|
172
|
|
|
|
|
Intersection down hole - meters
|
20
|
10
|
44
|
14
|
|
8
|
|
|
|
|
Intersection, approximate true - meters
|
18
|
9
|
40
|
13
|
|
7
|
|
|
|
|
Grade, Au grams/tonne
|
10.88
|
9.56
|
4.28
|
5.2
|
|
5.08
|
|
|
|
|
Plus
|
|
Plus
|
|
|
|
|
|
|
|
|
Meters down hole, from
|
|
176
|
|
|
|
|
|
|
|
|
" " " , to
|
|
188
|
|
|
|
|
|
|
|
|
Intersection down hole - meters
|
|
12
|
|
|
|
|
|
|
|
|
Intersection, approximate true - meters
|
|
11
|
|
|
|
|
|
|
|
|
Grade, Au grams/tonne
|
|
2.55
|
|
|
|
|
|
|
|
The following illustrates 2 drill sections.
Regional Exploration (Surrounding properties)
During the build-up to the recent initiation of diamond drilling on the Ollachea Project, Minera IRL geological staff has been conducting exploration reconnaissance activities, including geological mapping, stream sediment sampling and selected geochemical rock chip sampling over surrounding concessions.
A total of 10,299 ha have been reviewed. Some 242 regional stream sediment samples have been collected and some 97 rock chip samples taken from potentially prospective outcrop. All samples were analysed for gold by fire assay plus 36 ICP elements. Processing of the results has identified three gold anomalous areas of intermediate priority. These anomalies are currently being followed up in the field.
The regional geology consists of gray slate sequences, sometimes carbonaceous, and some narrow sandstone beds interbedded within the slate beds. Geological mapping has confirmed the presence of generally east-west striking prospective sedimentary sequences (occasionally carbonaceous metamorphosed shales, slates, weakly developed inter-bedded sandstone horizons, etc), often associated with sequences of volcanic flow material and breccias. Several areas hosting prospective structures and occasionally quartz veins/ veinlets have been sampled. Intrusive bodies include syenite (batholithic proportions), granodiorite and microdiorite
Summary of Drill Results
Cross Sections
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Section 337,583mE |
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Section 337,767mE |
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Section 338,050mE |
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Section 338,280mE |
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Section 338,362mE |
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Section 338,456mE |
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Section 338,666mE |
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Section 338,764mE |
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Section 338,870mE |
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Section 339,039mE |
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Section 339,116mE |
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Section 339,200mE |
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Section 339,224mE |
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Section 339,263mE |
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Section 339,303mE |
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Section 339,336mE |
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Section 339,367mE |
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Section 339,390mE |
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Section 339,451mE |
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Section 339,472mE |
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Section 339,495mE |
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Section 339,528mE |
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Section 339,566mE |
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Section 339,645mE |
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Section 339,708mE |
|
Section 339,773mE |
|
Section 339,829mE |
Assay Information
Plan
Quality Assurance and Quality Control Procedures Disclosure
Minera IRL S.A. (MIRL) has implemented QA/QC procedures at Ollachea to ensure best industry practice in sampling and analysis of the drill core samples. The HQ/NQ drill core is logged, photographed and then split with one-half sent for analysis whilst the other half is stored inside freezer containers to inhibit oxidation of the mineralized core. Field duplicates, certified standards and blank samples are inserted into the sample stream. The samples are delivered directly to the CIMM Peru S.A. (CIMM) laboratory´s mechanical preparation facilities in Juliaca city, 4 hours drive from Ollachea project, for preparation and subsequent transport of the resulting 150g pulp samples to Lima city for analysis in the CIMM Analytical Laboratory.
Ollachea samples are analyzed by conventional 50 g Fire Assay for gold (gravimetric follow-up analyses are conducted for grades over 10g/t); and an ICP multi-element analysis (36 elements).
The primary analytical laboratory used by Minera IRL S.A. on the Ollachea Project is CIMM Peru S.A. (CIMM). CIMM is an ISO 9001:2008 certified analytical laboratory. Actlabs-Skyline Peru S.A.C. (Actlabs), the chosen secondary “referee” laboratory, has been certified with the ISO 9001:2000 certification since 2004, and is part of an analytical group that works in Australia, Canada, Chile, Greenland, Mexico, Mongolia, Peru and Venezuela.
CIMM employs an established QAQC program that includes the monitoring of accuracy by the use of internal standards and certified reference materials, contamination by the use of blanks, and takes a pulp duplicate over 5% of the samples. Actlabs employs similar internal QAQC check procedures. Processed results are reported by Minera IRL after the application of approved, rigorous QAQC procedures.
None of the laboratories contracted by MIRL for sample analyses has any relationship or interest in MIRL or any of their projects.
Independent Audit Programs
As a means of assuring compliancy with international standards relevant to the minerals industry resource evaluation procedure, MIRL regularly contracts the services of industry experts to conduct audits of established QAQC procedures.
During January 2009, Ph.D. Barry Smee conducted an audit on the Minera IRL Ollachea Project quality control procedures and data compilation.
During January 2010, Ph.D Barry Smee conducted another audit on the Ollachea Project QAQC Data. Barry sustains that “The Ollachea quality control data is current and is being processed correctly and in a timely manner”.
Dr. Barry Smee is a geologist and geochemist, member in good standing of the Association of Professional Engineers and Geoscientists of British Columbia and a full member of the Association of Exploration Geochemists. He has been practicing his profession for 40 years in Canada and abroad. He is a Qualified Person as defined under NI 43-101.