Aurum Copper Project

The Aurum Copper Project is a 7,960 ha property located 12km from Teck Resources El Relincho project which currently consists of 3.2 million tonnes of contained copper in indicated resource, and is situated within the same regionally extensive north

Aurum hosts a near surface copper oxide deposit and high-grade copper sulphide intersections at depth.

Location and Infrastructure

The project is ideally located 85km east-southeast of the city of Vallenar, Chile. Located at only 2,000m altitude above sea level, the project is in a favourable climate and has excellent year round road access. Industrial use water is available within the project limits and water rights are included in the mining title. Aurum is within 70 km trucking distance of Enami’s custom copper and gold processing facility and 180 km of three port options. The project site is situated in a desert environment with no local inhabitants.

Regional Geology

The San Felix Fault system cross-cuts a thick sequence of generally steeply west-dipping Late Triassic volcanic and sedimentary rocks. Contact metamorphism has generally converted the proximal Triassic rocks to calc-silicate hornfels and local pyroxene-garnet skarn. The sequence occurs within a large embayment along the SE contact zone of the Morteros diorite-monzonite batholith a part of the Late Cretaceous Merceditas pluton.

All rock types and the Tabaco thrust are cut by vertical to steep NW dipping and N to NE trending branches of the San Felix fault system. Cross faults of apparently post-mineralization age appear to be cutting and displacing the San Felix fault.

Outcrop Samples

High Cu grades (> O.4%) encountered in 38 out of 60 samples.

Historic Work

Historic Work
Historic work has identified the 1km Carmen mineralized oxide zone. Thirty (30) line km magnetometry and IP geophysical survey delineated an open-ended northeast elongate anomaly ~150-400m wide and 2.2 km long. There has been 8,340m of drilling in 92 holes completed to delineate the Carmen copper oxide deposit.

Drilling on IP anomalies intercepted significant drill holes including:

TAB 01A: 144 m @ 0.43% Cu including 40m @ 1.15% Cu
TAB 31: 84 m @ 0.70% Cu
TAB 23: 70m @ 0.70% Cu
TAB 83: 67 m @ 1.40% Cu
TAB 01: 28 m @ 1.70% Cu
CMM6: 71m @ 1.19%Cu

Historic Resource Estimates

Historic Resource Estimates
From the 1800’s through to the 1960’s, Aurum has been host to extensive small scale high-grade copper mining throughout the property.

In 1964,Metalmine estimated a copper resource of 18 Mt of ~1% soluble copper to a vertical depth of 30 m, covering some 750 m of the 2,200 m geophysical anomaly.

In 1993, Blue Ridge Resources estimated within the same area and to a depth of 25 m, a resource of approximately 20 Mt of similar copper grade.

In 2006, SRK Consulting estimated a copper resource based on 74 (6,637 m) of the 92 holes drilled and reported a indicated mineral resource of 1.827 Mt of oxides grading 0.59% Cu with a secondary enriched zone of 1.743 Mt grading 0.70% Cu; and a inferred mineral resources of 0.836 Mt of oxides grading 0.59% Cu with a secondary enriched zone of 1.193 Mt grading 0.49% Cu.

New Exploration Potential

New Exploration Potential
Previous IP geophysics successfully located the presence of sulphides beneath the <1 km long Carmen oxide deposit demonstrating its effectiveness as an exploration tool. Recent deep penetrating reconnaissance IP has now expanded the West Carmen exploration trend from 1 km to 7 km at depth (400 m chargeability). A new 10 km long exploration trend has emerged to the east showing remarkable chargeability continuity at depth. These trends are coincident with evidence of mineralization from:

Historic and current mining activity
High grade copper assays from recent grab samples
Lithology and stratigraphic data
“Relincho type” alteration zones depicted by remote sensing
The exploration program will focus on 6 specific targets within these multiple mineralized belts.

2013 Exploration Targets

2013 Exploration Targets
Carmen Main
– Further define copper oxide deposit and sulphide feeder systems
– 28 abandoned pits within a 100 ha area
East Anomaly (IP)
– Low Resistivity / High Chargeability anomaly
Aurum IV
– Old artisanal mining works over 400m strike length
Aurum II
– Aster alteration zone identified
Line 5000 W Anomaly
– IP anomaly and high Cu grade identified in rock sampling campaign