Alturas Signs LOI for the Resguardo Copper-Gold Project in the Paleocene-Eocene Metallogenic Belt of Northern Chile
PRESS RELEASE TSXV, BVL: ALT
Alturas Signs LOI for the Resguardo Copper-Gold Project in the
Paleocene-Eocene Metallogenic Belt of Northern Chile
Toronto, June 29, 2012 – Alturas Minerals Corp. (Alturas or the “Company”) (TSX-V, BVL: ALT) is pleased
to announce that it has entered into a L etter of Intent (“LOI”) with Sociedad Contractual Minera
Resguardo (“Minera Resguardo” or the “Optionor”), a Chilean mining exploration company, to lease and
acquire 100% of its Resguardo Copper-Gold Project (the “Concessions” or “Resguardo”), located about
95 km northeast of Copiapo, in Region III of northern Chile, referred to as “Región de Atacama”.
Miguel Cardozo, President & CEO of Alturas commented , “The Resguardo project represents a k ey
strategic development for the C ompany in Chile, one of Latin America’s premier mining jurisdictions.
Alturas will resume its exploration activities in Chile’s mineral-rich Andes Mountain chain. The LOI also
includes a 5-year mining lease agreement that allows the Company to explore and commercially mine 18
contiguous mining concessions covering a total of 3,891 hectares . Alturas intends to establish a firm
presence in the Paleocene-Eocene Metallogenic Belt of northern Chile, imm ediately west of the
Miocene age Maricunga Metallogenic Belt”.
The Transaction
The Company will have a period of three (3) months, from the signing date of the LOI, to complete a due
diligence review on the Concessions, the Optionor , all applicable technical stud ies, and on any other
matter deemed appropriate by the Company (the “Due Diligence”). The Parties further agree that upon
the execution of this LOI, a Definitive Agreement (the “Agreement”) will be executed not later than
thirty (30) days from completion of the Due Diligence.
With the execution of the Agreement, the Optionor shall grant Alturas a mining option (the “Option”) to
acquire a one hundred percent (100%) undivided interest in the Concessions. The Option will be valid as
from the Effective Date and will expire four (4) years after the signing of the Agreement. The term of the
Option shall be mandatory for the Optionor and voluntary for Alturas.
The aggregate purchase price for the Concessions is structured as cash payment s totaling US$2.75
Million (all taxes inclusive), to be paid in five (5) installments, with US$50,000 within fifteen days of the
execution of the Agreement (the “Effective Date”) and four (4) installments payable as follows:
• On or prior to the first anniversary of the Effective Date, the amount of US$100,000;
• On or prior to the second anniversary of the Effective Date, the amount of US$150,000;
• On or prior to the third anniversary of the Effective Date, the amount of US$300,000; and,
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• On or prior to the fourth anniversary of the Effective Date, the amount of US$2,150,000.
If, as a result of the mining activities performed by Alturas on the Concessions, a porphyry is confirmed,
the purchase price for acquiring title over the Concessions payable by Alturas to the Optionor will be
increased by ten percent (10%) of the selling price o btained by Alturas for the tr ansfer of the
Concessions to a third party, or US$30 Million, whichever is greater.
Once the Company exercises the Option, a 1.5% Net Smelter Return (“NSR”) Royalty will be applicable
(the “NSR Royalty”) as an add itional consideration for the transfer of the Concession to be ef fective as
from commencement of Commercial Production on the Concessions . Until up two (2) years after the
commencement of Commercial Product ion, the Company may buy five tenths’ percent (0.5 %) of the
NSR Royalty (the “Purchased NSR”) at a price between US $2 Million and US$6 Million depending on the
size, grade, and type of mineralization as determined in accordance with National Instrument 43-101
(“NI 43-101”). The Optionor also grants a righ t of first refusal fo r the acquisition of the remaining NSR
Royalty.
Mining Lease:
During the term of the Option, the Optionor shall also lease the Concessions (the “Mining Lease”) to the
Company, as resu lt of which Alturas will be conferred all the righ ts and obligations o f the Optionor
related to the Concessions, including the right to exploit the Concessions.
The Mining Lease shall be for a period of five (5) years and begin s on the Effective Date or, whichever
arrives first, when Alturas notifies the Optionor of its decision to exercise the Option.
Once the Mining Lease is in force, Alturas shall have the right to operate the Concessions at its own sole
cost and risk , subject to compliance with appli cable law s, shall have the right to initiate comme rcial
production of the existing high-grade copper mineralization.
As compensation required for the Mining Lease, Alturas will pay the Optionor a NSR Royalty over all the
minerals extracted and marke ted f rom the Concessions (the “Lease NSR Royalty”). If th e min eral
extracted has an average ore grade that is lower than 2.5%, the Lease NSR Royalty will be equivalent to
7.0% of the price at which said mineral is marketed; and, if the mineral extracted has an average ore
grade that is equal to or higher than 2.5% , the Lease NSR Royalty will be equivalent to 9 .0% of such
price.
The transaction remains subject to regulatory and TSX-V approvals as well as the above -mentioned due
diligence
Resguardo Geology and Mineralization
Copper structures on the Resguardo consist of sub -vertical and tabular stockwork bodies (in parts
hydrothermal breccia) that host disseminated and vein copper mineralization exceeding 2.0% Cu, along
with sub -parallel copper- gold veins. The main mineralized copper body , which has been histor ically
mined, has an average width of 50 to 100 m and is about 1.5 km in length . H istorical open pit and
underground mine workings are scattered along the 1.5 km length with areas of mineralization that
often exceed 2.0% Cu-equivalent grade.
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Besides exploring the high -grade copper structures and the potential copper porphyry system, the
Company intends to undertake an initial small-scale mining operation of the high -grade material. The
maximum t onnage allo wed by Chilean regulations is 5,000 ton nes per m onth. This activity will be of
great help in defining the actual extension and quality of the high -grade copper mineralization with the
view of a future mid-size operation and will generate significant cash-flow to the Company to support its
activities in the Concessions and future exploration projects in Chile.
Given the already known copper mineralization at or near surface and the extensive and intense
hydrothermal alteration covering kilometres of area, there is a high probability that known copper oxide
and sulphide mineralization is genet ically connected to an as yet unconfirmed porphyry system (i.e.,
Late Eocene- Early Oligocene) located topographically lower and therefore deeper in the mineralized
system.
Evidence for the possibility of a porphyry sys tem is supported by recent induced polarization and
magnetic geophysical surveys which have delineated a deep -seated chargeability high overlapping the
edge of a magnetic low, the latter which was likely produced by magnetite destruction as a result of
hydrothermal fluid movement.
The following has been extracted from a N I 43 -101 technical Reports authored by Dr. Scott Jobin -
Bevans, Principal geoscientist with Caracle Creek International Consulting Inc.
The Resguardo Copper-(Gold) Project and the Paleocene-Eocene Metallogenic Belt (“PEMB”)
The Resguardo Project is located about 45 km southwest of La Coipa Au- Ag Mine (Kinross Gold Corp: Compañía
Minera Mantos de Oro) and about 85 km northeast of Candelaria Copper M ine (Lundin Mining)”. Access to the
Resguardo Copper Project is excel lent, starting from the southeast end of the City of Copiapó, travelling northeast
on highway 31 for about 85 km to the Quebrada Cortadera access road. Heading northwest on the Quebrada
Cortadera access road for about 5.5 km brings you to the central area of the Project and the historical workings at
the historical mine site. The Project is currently at the exploration stage and Optionor ship of surface rights are
usually not contemplated o r necessary until a decision to mine has been made. The Mining Code o f Chile
guarantees the Optionor of mining concessions the right-of-access to the surface area required for their exploration
and exploitation.
The Resguardo Copper Project lies within P aleocene-Eocene Metallogenic Belt of north ern Chile, immediately west
of the Miocene age Maricunga Metallogenic Belt (see Figure 1) . The Project is within the morphostructural zone
known as the Cordillera Domeyko (aka Andean Pre- Cordillera), a region underlai n by Paleocene, Eocene and Early
Oligocene Epoch magmatic arc rocks comprising a north-south linear belt. Rocks consist of basaltic to rhyolitic lavas
and tuffs, subvolcanic porphyritic intrusions, and granitoid stocks, which extend fro m southern Peru to central Chile.
The Paleocene- Eocene por phyry and epithermal Metallogenic Belt hosts a diverse range of mineral deposits and
occurrences, including large-scale porphyry Cu-Mo deposits like BHP Billiton’s Spence Mine (e.g., Sillitoe and M cKee,
1996) and Codelco’s El Salvador Mine (e.g., Gustafson and Hunt, 1975) and low sulphidation epithermal deposits
like Yamana Gold’s El Peñon (e.g., Warren et al., 2004, 2008).
On the Property, in the areas around the historical underground and open pi t mines, rocks have experienced
pervasive and intense hydro thermal alteration that includes sericitic, silicic -argillic and propylitic alteration. In the
copper mineralized zones, the host rock generally shows a hydrothermal alteration of the silicic -argillic type that
grades laterally to an aureole of weak and ir regular propylitic alteration (with epidote and chlorite). Hydrothermal
alteration (both silicic -argillic and propylitic) of the host rock in the extreme western parts of the Property is much
less intense and locally non-existent.
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A complex mineralized sy stem dominated by copper but with ancillary gold and silver mineralization exists on the
Resguardo Copper Project, with much of the known mineralization focused in the area of the historical workings
and un derground mine. Most copper mineralization occurs as disseminated and veinlet copper oxide species but
stockworks, hydrothermal breccias and larger vein systems are also known to occur (Frutos, 2014).
The main east- west mineralized trend, referred to as t he Cerro Fraga Mineralized System (“CFMS”), extends for
more than 2 km and with widths from 300 to 500 metres (Frutos, 2014). This copper zone is characterized by areas
of intense hydrothermal alteration with upper areas of oxidized and leached li thologies, hydrothermal breccias, and
veins and stockworks. T he main mineralization that has been historically targeted consists of copper oxides and
copper sulphides which in some areas carry important concentrations of silver and gold in structurally controlled
veins that have been historically worked by artisanal miners.
Within the CFMS, principal copper structures consist of sub- vertical and tabular stockworks bodies (in parts
hydrothermal breccia) that are interpreted to be structurally controlled (east -west and sub- vertical), with
disseminated and vein coppe r mineralization, and sub- parallel veins of copper -gold trending N70 -100E (Frutos,
2014). The main mineralized copper body which has been historically mined has an average width of 50 to 100 m
and is about 1.5 km in l ength, with good outcrops and several his torical open pit and underground mine workings
scattered along its length.
The principal deposit type being explored for on the Property is Porphyry Copper Deposit or “PCD”. Mineralized
systems associat ed with a PCD system commonly include polymetallic sk arn, carbonate replacement and
stratabound (i.e., Manto -style copper), sediment- hosted gold silver, and high, intermediate and low sulphidation
epithermal silver-gold-base metal deposit types (Sillitoe and Perello, 2005; Sillitoe, 2010).
Mineralization styles (replacement Manto -style copper with pervasive disseminated copper oxides and sulphides
and veining) and intense hydrothermal alteration (alunite, kaolinite, illite, lesser propylitic) observed in t he
historical workings on the Property, coupled wit h recent evidence from geophysical surveys support the PCD model
and provide targets for a future exploration program.
The Project area has sufficient size to accommodate a mining operation without any ne gative impac t on the
environment. The area corresponds to the high desert climate of the Atacama Region with only trace rainfall most
of the year and with most precipitation as minor snow in winter months (June- September). Given its excellent
accessibility and climate, all types of exploration activities can be performed year-round.
The Resguardo Copper Project does not have any current mineral resources or mineral reserves and despite having
some historical copper production, is best described as an early- stage exploration project. Historical exploration
work (geological mapping, trenching, geophysical surveys, drilling) and small -scale copper mining is known to have
been completed within the Project area, dating back decades and most recently in 2 020. Most of the inf ormation
and data available from historical exploration work on the Property begins with SCM’s Optionorship in 2012:
Table 1-1. Summary of known historical mineral exploration programs conducted in the Project area.
Period Company Description Comments
1970-1995 "Candelaria Mine" small-scale mining; mine
referred to as Candelaria Mine no information or data available
2004 Hochschild Mining
PLC
diamond drilling; 6 holes (80-
100 m long); area of open pit
no information or data available;
core location unknown (pers.
comm. Jose Frutos, 2021)
2005-2006 Araya Hermanos de
Copiapó S.A.
small-scale mining of Cu
oxides; ~5,000 tpm
mineralized material sold to
ENAMI
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Period Company Description Comments
2007-2011 Mantos Candelaria small-scale mining mining ended after 7 years due to
internal disagreements
2011
Sociedad de
Inversiones Gema
Limitada
acquired 3 main mining
concessions acquired Resguardo 1, 3 and 4
2012 Sociedad Contractual
Minera Resguardo
company formed to hold 3
main mining concessions
Resguardo 1, 3 and 4 and expand
the property to a total of 18
contiguous concessions
2012
Castillo Copper Chile
SpA/Kingsgate
Consolidated Ltd
optioned property; 2 diamond
drill holes (~200 m each) terminated option in 2014
2018 Orestone Mining
Corp.
optioned property; 2 RC drill
holes; geophysical survey terminated option in 2020
2014-2020 Sociedad Contractual
Minera Resguardo
geological mapping study;
geophysical survey along 2 N-S
profiles (P1 and P2)
financed by SCM
Figure 1. Resguardo Cu-Au Project location and Metallogenic belts of Northern Chile, Atacama & Antofagasta regions
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Photos taken from the NI 43-101 Technical R eport on the Resguardo Copper -Gold Property, that Alturas has in
preparation through its independent contractor Caracle Creek International Cons ulting Inc.
About Sociedad Contractual Minera Resguardo and Non Arm’s Length Party Disclosure
Sociedad Contractual Minera Resguardo (“Minera Resguardo ”) was incorporated in 2012 to acquire additional
concessions in the Resguardo project area. It is controlled by Sociedad de Inversiones Gema Limitada (52%), with
partners Inversiones Mineras El Refugio S.A. (30%) and C P Group Chile Limitada (18%), both owned by Peruvian
investors. CP Group Chile Limitada is a Chilean subsidiary of the family -owned CP Group S.A.C. Peruvian company,
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which shareho lders are Mr. Miguel Cardozo, CEO and Director of Alturas Minerals Corp. (the Issuer) and his wife
Mrs. Sara Pajares, owning 50% of this company each.
About Alturas Minerals
Alturas is a Canadian corporation, and is the indirect parent of the Peruvian co mpany, Alturas Miner als S .A.
(“Alturas Peru”) and of the Chilean company, Alt uras Chile Limitada (“Alturas Chile”). Alturas had been exploring
various mineral projects in Peru between January 2004 and 2020 and between 2012 and 2014 in Chile through its
subsidiaries. After interrupting its exploration activities in Chile and Peru due to financial constraints, Alturas is now
focusing in new business opportunities. Alturas has approximately $1.2 million in cash and cash eq uivalents and
approximately $0.5 million in other securities, as of December 31, 2020.
Qualified Person
Scott Jobin -Bevans (PhD, PMP, P.Geo.) , an independent qualified person ( “QP”) as defined in National Instrument
43-101, has reviewed, and approved t he technical contents of this news release on behalf of the Com pany. The QP
as part of his involvement as Principal Geoscientist with Caracle Creek International Consulting Inc. has visited the
Resguardo Copper Project and has completed sufficien t work to verify the historic information on the Conce ssions,
particularly regarding historical exploration, neighboring companies, and government geological work.
ALTURAS MINERALS CORP.
“Miguel Cardozo” Chief Executive Officer
Contact: Mario Miranda
Phone: (416) 363-4900
Alturas Minerals Corp. (TSX-V: ALT)
372 Bay Street, Suite 301 Toronto, Ontario M5H 2W9
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