Astra Exploration Signs Agreement For The Manchuria Epithermal Gold-Silver Project, Santa Cruz, Argentina
ASTRA EXPLORATION INC. (TSX-V: ASTR, OTCQB: ATEPF, FSE: S3I)
NEWS RELEASE
Astra Exploration Signs Agreement For The Manchuria Epithermal Gold-Silver
Project, Santa Cruz, Argentina
Vancouver, British Columbia – July 9, 2024 – Astra Exploration Inc. (TSX -V: ASTR, OTCQB:
ATEPF, FSE: S3I) (“Astra” or the “Company”) is pleased to announce that it has signed a binding
letter agreement dated July 8, 2024 (the “Agreement”) granting Astra the option to acquire up to
a 90% interest in the Manchuria epithermal gold-silver Project (the “Project”) from Patagonia Gold
Corp (“Patagonia”) located in the prolific Deseado Massif of Santa Cruz, Argentina (Figure 1).
The Deseado Massif has extraordinary geological fertility and hosts multiple low-sulphidation
epithermal (LSE) precious metals deposits, including AngloGold Ashanti’s Cerro Vanguardia
(approximately 10 million gold-equivalent ounces) and Newmont Corp’s Cerro Negro
(approximately 7.5 million gold-equivalent ounces) world-class deposits.
Highlights of the Manchuria Project:
• Near existing mining infrastructure (Figure 1)
• Large land package of approximately 5,600 hectares (Figure 2)
• Localized bonanza-grade drill intersections (Table 1)
• Historical drilling is mostly shallow, averaging 100 to 150 metres below surface
• Existing 43-101 resource (Table 2) of 53,900 indicated and 92,400 inferred gold equivalent
ounces for an optimized open-pit shell using USD $1,300/oz and 95% recovery for gold
and USD $18/oz and 60% recovery for silver in 20191
• Opportunity to discover high-grade feeder zones (Figure 3)
Astra’s CEO, Brian Miller commented:
After reviewing many projects over the past several months, Manchuria stands out as an
opportunity to make a significant high-grade discovery in a proven, yet underexplored land
package. The grades are exceptional, preliminary metallurgy is favorable, and previous drilling
was shallow and mostly focused on the current published resource. There is opportunity to
expand the existing resource laterally near surface and along strike, but perhaps more important
is the opportunity to discover high-grade feeder zones which remain unexplored. Manchuria has
multiple characteristics which support multi -million ounce potential. With Pampa Paciencia, and
now the addition of Manchuria, Astra continues to position itself as a premier explorer with a
growing portfolio of high quality precious metals projects in some of the most important mining
jurisdictions in Latin America.
The Manchuria Project is a shallow, high-grade gold-silver LSE system close to provincial roads
at 650 to 700 metres altitude (Figure 1).
Figure 1: Manchuria Project location, Deseado Massif region in Santa Cruz Province, Southern Argentina.
Previous exploration consists of surface and trench samples, geophysics (ground mag, IP and
CSAMT) and 22,200 metres of drilling (91% DDH) in 133 holes. Exploration activity concentrated
at an elevated and altered 600 by 700 metre area exposing a dense group of NW to NNW trending
parallel banded quartz-adularia veins with bonanza grades (Table 1) that can be divided into the
Main and the Eastern Zones (Figure 2). This area is interpreted by Astra geologists as a
hydrovolcanic centre with evidence of phreatic to phreatomagmatic breccias, and is currently the
only area drilled.
Drilling was concentrated at the Main Zone, where in 2019 Patagonia published a 43 -101
resource1 (Table 2) which remains open in all directions. The Eastern Zone (900 by 250 metres)
consists of a similar group of NW -trending parallel banded quartz -adularia veins with bonanza
grades that were not explored in detail (only 8 of the 133 holes drilled at Manchuria) and could
likely expand the near-surface resources. Additionally, to the east there are more NW-oriented
trends with shallow LSE style mineralization, and to the south more evidence of phreatic breccias
and strong silicification is present (Figure 2).
Figure 2: Manchuria Project summarized lithologies and surface Au geochemical anomalies. Project outline
in blue, and the modern cover has no color.
Table 1: Select (uncut) drill intersections from the Manchuria Project expressed in AuEq (gold-equivalent)
g/t *metres using a gold/silver ratio of 80.
Hole From (m) Length (m) Au g/t Ag g/t AuEq 80 g*m AuEq 80
LM-020-D 119.5 2.9 22.3 400.9 27.4 79.3
LM-022-DR 184.0 3.0 22.8 308.4 26.6 79.9
LM-023-DR 114.4 20.0 4.4 55.8 5.0 101.0
LM-030-DR 142.5 4.0 26.3 3156.0 65.7 262.8
LM-042-D 105.5 1.6 257.8 4237.1 310.8 497.2
LM-057-D 131.5 1.0 212.0 228.0 214.9 214.9
LM-060-D 96.0 2.0 52.6 3274.5 93.5 187.0
LM-074-D 145.0 17.6 6.3 89.9 7.4 130.8
LM-093A-D 122.2 20.5 10.4 810.2 20.6 421.6
LM-099-D 53.5 4.0 16.0 41.6 16.5 66.0
Table 2: Existing resource1 information from 43-101 report dated September 27, 2019.
After relogging drill holes along select sections, Company geologists interpret that the Main
Zone is an extensional basin filled with rhyolitic flow tuffs that develop into a dacitic to andesitic
sequence of tuffs and lava flows. The contact between the two units is represented by a layer
with important amounts of carbonized wood representing the base of the rhyolitic flow tuffs
(Figure 3).
Figure 3: Cross-section showing parallel veins (red) crosscut by drilling (black traces) with coincident high
grades at or near faults (blue) and carbon-rich layer (gray).
As seen in Figure 3, LSE mineralization was mainly tested in the rhyolitic tuffs unit with several
Au-Ag rich drill intersections that created the bulk disseminated resource published in the 43-101.
However, there is strong evidence that there are high -grade precious metal intersections when
faults and fluids cross-cut the carbon-rich level (grades listed in blue), and there is also evidence
of thicker and more continuous veins in the dacitic-andesitic basal unit.
Agreement Terms
Astra has the option to acquire an initial 80% interest in the Manchuria Project by fulfilling the
following project expenditures, subject to Astra’s right to extend the earn-in timeframe:
• USD $150K in non-discretionary expenditures in the first year;
• USD $350K expenditures in the second year;
• USD $1.5M expenditures in the third year;
• USD $1M expenditures in the fourth year;
Upon earning 80%, Astra may then elect to purchase an additional 10% (for 90% total ownership)
by making a cash payment of USD $5M to Patagonia by the end of the sixth year , subject to
Astra’s right to extend this period.
Patagonia’s interest (10% or 20% as the case may be) will be carried until the publication of a 43-
101 compliant resource totaling at least 1 million ounces of gold -equivalent in the indicated +
inferred categories. Upon publication of the resource, each party will contribute their pro -rata
amounts of expenditures from that point forward.
If either Party´s ownership is reduced to less than 10%, such ownership will automatically convert
to a 1% NSR.
Upon signing of the Agreement, Astra will have a period of 45 days to conduct due diligence,
during which time Astra has the exclusive option to proceed with the transaction. Further, the due
diligence period will only commence upon both of: (i) approval from the existing royalty holder;
and (ii) approval from the Santa Cruz Provincial authorities of the work plan which has been
agreed to by Astra and Patagonia.
About the Company
Astra Exploration Inc. is a precious metals exploration company based out of Vancouver, BC that
is actively building a portfolio of high quality projects in some of the most important mining
jurisdictions in Latin America. Its 100% ow ned Pampa Paciencia low sulphidation epithermal
(LSE) gold -silver project is located in the Paleocene mineral province of northern Chile in
proximity to such major operating mines as Spence and Sierra Gorda, and shares several
important geological similarities to other Paleocene LSE gold-silver deposits incuding Faride and
El Peñón. The Manchuria LSE gold-silver project over which Astra has an option to acquire 90%
interest, is located in the prolific Deseado Massif of Santa Cruz, Argentina which hosts multiple
world-class LSE precious metals deposits including Cerro Vanguardia and Cerro Negro.
Qualified Person
The technical data and information as disclosed in this news release has been reviewed and
approved by Darcy Marud, who is an Independent Director of Astra . Mr. Marud is a Practicing
Member of the Association of Professional Geoscientists of Ontario and is a qualified person as
defined under the terms of National Instrument 43 -101 – Standards of Disclosure for Mineral
Projects.
For further information please contact:
Brian Miller
Chief Executive Officer
Tel. 604.428.0939
Email: [email protected]
References:
1 Source: Stubens, T. and Gowans, R., September 27, 2019.
Updated Technical Report on the Mineral Resources of the La Manchuria Project Santa Cruz
Province, Argentina
https://www.sedarplus.ca/csa-
party/records/document.html?id=6bc2df299100dda4b4142a8fc3458ea9e378a7ef5b24922fa490
ce964833e1b0
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Mineralization hosted on adjacent and/or nearby and/or geologically similar properties is not
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