The Algarrobo Property (the “Property”) is located approximately 850 km north of Santiago, in the III Region, Province of Chanaral, Chile. The city of Copiapo is located approximately 43 km to the southeast of the Property, with the small port city of Caldera 25 km to the east. The approximate centre of the Property is located at Latitude 27° 2’ 48” S, Longitude 70° 34’ 4” W.
The Property consists of 32 tenures, comprising a total of 6,161 ha, east of the port city of Caldera. Historical mining operations resulted in approximately 35 mines, ranging from limited near surface workings to more extensive underground operations extending several hundred metres below surface. Historical mining activity centered around three main mineralized trends, as follows:
Within these old mines, copper, as copper oxides, were mined to an approximate depth of 120 meters, transitioning to copper sulfide ores mined to greater depth (i.e. 450 meters in the Viuda Mine).
The mineralized trends are very well defined at surface through abundant workings, both historical and from more recent work. The workings range from shallow pits and near surface workings to more extensive mine development extending up to 450 m below surface. Taken together, these workings are interpreted to clearly delineate four major veins, referred to the “Major Veins”, each of which have a surface extent up to 1.3 km, with an interpreted potential strike length at surface extent of at least 4 km. In addition to the major veins, a number of subordinate, subsidiary and/or undeveloped veins are interpreted to be present between the major veins. These veins may represent secondary veins developed as a series of splays, comprising “horse-tails”, to the primary veins and/or a nested set of primary and en echelon secondary veins.
Veins on which the more significant workings have been developed are described as ranging between 1.2 and 3.5 metres at, or near, surface, and potentially thickening with increasing depth to at least 5 metres. Mineralized lenses, interpreted as possible “blows” and extending up to 40 m in the horizontal dimension and 60 metres in the vertical dimension, have been documented in the underground workings of the mines.