Cordoba Minerals Reports High-Grade Mineral Resources for the Alacran Copper and Gold Deposit
Cordoba Minerals Reports High-Grade Mineral
Resources for the Alacran Copper and Gold
Deposit
TORONTO, ONTARIO, January 5, 2017: Cordoba Minerals Corp. (TSX-V: CDB;
OTCQX: CDBMF) (“Cordoba” or the “Company”) and its joint-venture partner, High
Power Exploration Inc. ("HPX"), a private mineral exploration company indirectly
controlled by mining entrepreneur Robert Friedland’s Ivanhoe Industries, LLC, are
pleased to announce an initial Mineral Resource estimate for the Alacran Copper-Gold
Deposit in Colombia.
Highlights (the figures referenced are at end of news release)
• The initial, pit-constrained, Inferred Mineral Resource for the Alacran
Deposit is 53.52 million tonnes at 0.70% copper and 0.37 g/t gold, or 0.95%
copper equivalent (CuEq), including 7.37 million tonnes at 2.14% copper
and 0.41 g/t gold above 1% copper (Cu) cut off.
• The Inferred Mineral Resource is contained within a shallow, north-south
trending mineralized corridor that is approximately 1.3 kilometres long and
up to 355 metres wide.
• Mineral resources are reported within a conceptual open -pit shell which
extends for the full length of the 1.3-kilometre corridor and to a depth of
220 metres below surface (see figure 2 and 4). The broad horizontal widths
of mineral resource zones from surface are considered favorable for
potential open-pit development at relatively low potential strip ratios ,
subject to the demonstration of economic viability (see figures 2, 4, 5 & 6).
• Copper-gold mineralization has been intercepted in drill holes below the
conceptual pit shell and also at depths greater than 220 metres below
surface; however, this mineralization was not included in the initial
Inferred Mineral Resource due to insufficient drilling at the Mineral
Resource cut-off date (see figures 4, 5 & 6). This mineralization provides
the joint venture with immediate drilling targets which could materially
expand the Inferred Mineral Resource.
• The Alacran mineralized system remains open to depth. Surface copper-
gold geochemical a nomalies also indicate significant potential for
additional mineralized zones to the east and west of the Mineral Resource.
• The potential for the discovery of the mineralizing source for the high-
grade copper and gold at Alacran is considered strong. Drill targets have
been identified and will be aggressively tested by the joint venture this
year.
Table 1: El Alacran Mineral Resource as at October 27, 2016
Inferred Material Grade Metal Copper Equivalent
(Mt)
Copper
(%)
Gold
(g/t)
Copper
(Mlb)
Gold
(Koz)
CuEq
(%)
CuEq
(Mlb)
>0.3 CuEq 53.52 0.70 0.37 827 644 0.95 1,121
>1.0% Cu 7.37 2.14 0.41 348 98 2.42 393
* Pit constrained mineral resources are reported in relation to a conceptual Whittle pit shell. Mineral resources are not mineral
reserves and do not have demonstrated economic viability. All figures are rounded to reflect the relative accuracy of the estimate. Mt:
millions of tonnes; Mlb: millions of pounds; Koz: thousands of ounces.
**Copper equivalent grades are based on estimated copper and gold values, metal prices $2.50/lb Cu and $1300/oz gold (Au). Metal
prices are not constant and are subject to change.
*** Pit constrained mineral resources are reported at a copper equivalent cut-off of 0.3% and applying assumed metal recoveries of
90% for Cu and 80% for Au. Note no metallurgical test work has been undertaken by Cordoba and the recoveries are estimates only.
**** Capped copper and gold assay composites were interpolated by ordinary kriging constrained within geologically constrained
copper-gold grade shell boundaries (Figure 3).
The Mineral Resource estimate was independently prepared by Mining
Associates Limited (“MA”), a leading global geological, resource and mining
consultancy, and is reported in accordance with National Instrument 43-101 (“NI
43-101”) and the 2014 CIM Definition Standards. The Inferred Mineral Resource
estimate is based on 20,200 metres of diamond drilling completed as at October
27, 2016.
Mario Stifano, President and CEO of Cordoba, commented, “We are pleased with
the initial mineral resource which demonstrates the potential for the Alacran
Project to host a significant tonnage of high-grade, potentially open-pittable
copper-gold mineralization. This is just the beginning as our ongoing, aggressive
drilling program is aimed at growing the mineral resources in size and
confidence levels, extending high-grade copper- and gold-rich mineralized zones
and drilling additional exploration targets with potential to add a new and
significant exploration front to Alacran.”
Alacran Location and Geography
The Alacran copper-gold deposit is located within the Company’s San Matias Copper-Gold
Project in the Department of Cordoba, Colombia, an area where access and infrastructure are
considered favorable. The Alacran system is located on a topographic high in gently rolling
topography, optimal for potential open-pit mining. Copper-gold mineralization at Alacran is
largely hosted in a marine volcano-sedimentary package on the west-dipping limb of a faulted
antiformal fold structure and partly in dioritic and felsic intrusions with sill-like geometries
(Figure 1). The deposit comprises moderately- to steeply-dipping copper-gold mineralized
zones, broadly concordant with host litho-stratigraphy and intrusion contacts. The copper-gold
mineralization consists of chalcopyrite-pyrrhotite-pyrite veins, replacements (including massive
sulfides) and disseminations that locally overprint hydrothermal magnetite-rich zones that are
most strongly developed near intrusion contacts. Mineralization occurs over a strike length of
more than 1,300 metres with horizontal widths up to 355 metres and has been drill-intersected
to depths of 300 metres from surface.
Mineral Resource Parameters
The drilling database utilized in resource estimation was closed on October 27, 2016 and
comprises 76 diamond drill-holes totaling 20,197 metres including 11,230 metres drilled by
Ashmont Resources in 2011 and 2012 (see Table 3 for holes drilled by Cordoba). A total of
19,958 assay samples were used to constrain the resource estimation, of which 4,705 samples
are copper-gold mineralized, providing 2,202 two-metre assay composites used to form the
resource estimate.
Composite lengths and high-grade cuts based on spatial distribution and probability plots were
applied as follows:
• Copper and gold assay data was composited to two metres down hole within geological
domains; a copper grade cap was applied at the 97.5th percentile in high-copper
domains and 98th percentile in the lower grade domains.
• Gold assays were composited to two metres down hole within copper domains and
were capped near the 98th percentile.
Block model block-size selection (XYZ 20 x 20 x 10m) is based on approximately ½ the drill
hole spacing in Mina Norte. Sub-blocking is permitted 5x5 x 2.5m for volumes. The block
model is screened for LIDAR–based topography by sub-blocks.
The geological resource is constrained by sub-block within seven wireframes (“grade shells”)
in domains based on lithology, structure and a minimum sample grade of 0.3% CuEq and may
include minor internal dilution (e.g. Figures 3, 4, 5 & 6). Gold, iron and sulfur are constrained by
the low-grade CuEq shells, iron and sulfur are also estimated unconstrained to inform the
waste blocks. Separate grade-shells were created for high-grade copper and gold based on
grade >1% Cu and > 1g/t Au respectively.
The constraining grade shells are modelled within a corridor, elongate approximately 1.3
kilometres north-south, of up to 355 metres horizontal width and interpol ated/extrapolated to
depths locally reaching 300 metres from surface (Figures 2 and 3).
Copper and gold grades were interpolated into the constrained block model by domain using
ordinary krige techniques. Kriging parameters are derived from a study of var iography by
domain. The block model was validated by statistical and visual comparison of data and
estimated grades and by alternate estimation methods.
Routine bulk density measurements (747) show some variation with an average bulk density of
3.01 t/m3. Bulk density was calculated based on an iron regression, BD=0.0292 x Fe% +
2.5599, utilising block iron contents estimated as outlined above.
Mineral Resources have been classified as Inferred. Resource classification is based on
confidence in grade continuity and geological models of the primary commodities (Cu, Au). The
inferred resource lies above -30 mRL and within a conceptual Whittle pit shell (Figures 2, 5, &
6). Drill spacing in Mina Norte approximates a 40 x 40 m grid, drilling at Mina Seca has one to
two holes per section.
Mineral Resources are reported at various copper grade ranges, within the 0.3% CuEq shell,
clearly identifying the proportion of mineralization below 0.3% copper that is enriched in gold in
the resource (Table 2) in both resource domains (Mina Norte & Mina Seca, Figure 3).
Tonnages are rounded to the nearest million tonnes, copper grades are rounded to two decimal
places and accessory minerals are rounded to one decimal place. Rounding as required by
reporting guidelines reflect the accuracy of the estimates and may result in apparent
summation differences between tonnes grade and contained metal.
Table 2: Inferred Mineral Resource at El Alacran resource at various Copper Cut-offs (total inferred resource above 0.3%
CuEq and within conceptual pit)*
Inferred Copper Material Grade Metal Copper
Equivalent
Deposit Cut Off (Mt) Copper
(%)
Gold
(g/t)
Copper
(Mlb)
Gold
(Koz)
CuEq
(%)
CuEq
(Mlb)
Mina
Norte
0.0 to 0.3 0.69 0.27 0.31 4 7 0.47 7
0.3 to 1.0 28.82 0.52 0.27 328 255 0.70 445
> 1.0 4.65 1.98 0.34 203 51 2.21 226
Sub Total 34.16 0.71 0.28 535 313 0.90 678
Mina
Seca
0.0 to 0.3 4.35 0.24 0.65 23 91 0.68 65
0.3 to 1.0 12.29 0.46 0.49 125 193 0.79 214
> 1.0 2.72 2.41 0.54 145 47 2.78 167
Sub Total 19.36 0.69 0.53 293 331 1.04 444
Total > 0.3%
CuEq
53.52 0.70 0.37 827 644 0.95 1,122
*Mineral Resources are not Mineral Reserves do not have demonstrated economic viability. Mineral resources are reported above
a conceptual pit shell, and using a copper equivalent cut-off of 0.3% and apply assumed metal recoveries of 90% for Cu and 80%
for Au. No metallurgical test work has yet been undertaken by Cordoba.
Outside of the Inferred Mineral Resource, there is unclassified copper-gold mineralization
identified in the grade shell models that either lacks confidence in grade and geological
continuity (e.g. Mina Este, Figure 4, legend item 4) or is at depth below the -25m RL This
mineralization provides immediate drilling targets for potential mineral resource additions.
Further drilling may be expected to increase the confidence levels in, and also potentially add,
mineral resources. The Company expects to update the Mineral Resources during the second
quarter of 2017 after the expected completion of its current drilling program. The Alacran
system remains open to depth along much of its strike length and surface copper -gold
geochemical anomalies indicate the potential for largely untested mineralized zones to the east
and west of current mineral resources.
Alacran Option Agreement
The Joint Venture has an option (the "Option") to earn a 100% interest in the Alacran Project by
completing the remaining commitments (see Cordoba news release dated October 21, 2015):
• A US$250,000 payment to Sociedad Ordinaria de Minas Omni ("OMNI") on the 24 -
month anniversary of signing the Letter of Intent (“LOI”).
• A US$1,000,000 payment to OMNI on the 24 -month anniversary of completion of the
Definitive Agreement.
• Cordoba will file with the Colombian government for the relevant approvals to conduct
activities of construction and commercial production at Alacran before June 30, 2018.
• A US$14,000,000 payment to OMNI when the environmental license and all other
approvals, permits or licenses required to commence the construction and operation of
a commercial mine at Alacran have been granted on a final basis by the Colombian
government.
OMNI will retain a 2% net smelter royalty with advance royalty payments of US$500,000
commencing three years after receipt of approvals to commence construction at Alacran or six
years after filing for approval to commence construction at Alacran. HPX has previously
purchased a 50.1% interest in OMNI (see Cordoba news release dated April 6, 2016).
Technical Information
The current mineral resource estimate was completed by MA, under the direction of Ian Taylor
MAusIMM (CP), an independent Qualified Person as defined by NI 43-101. The QP visited the
El Alacran property and supervised the geological modelling input to the current study. CIMM
definitions and guidelines were followed for Mineral Resource estimation based on the
parameters outlined above. Readers are reminded that Inferred Mineral Resources do not have
demonstrated economic viability. Mr. Taylor has reviewed this news release and consented to
the inclusion of extracts from, or a summary of, the technical information prepared under his
direction and supervision. A technical report providing details of the Inferred Mineral Resource
estimate will be filed on SEDAR (www.sedar.com) within 45 days.
The technical content of this news release has been compiled, reviewed and verified by Vic
Wall, PhD, a Qualified Person for the purpose of NI 43-101. Dr. Wall is a geologist with over 45
years in the minerals mining, consulting, exploration and research industries and is a Fellow of
the Australian Institute of Geoscientists (AIG).
About San Matias Project
The San Matias Copper-Gold Project comprises a 20,000-hectare land package on the inferred
northern extension of the richly endowed Mid-Cauca Belt in Colombia. The project contains
several known areas of porphyry copper-gold mineralization, copper-gold skarn mineralization
and vein-hosted, gold-copper mineralization. Porphyry mineralization at the San Matias Project
incorporates high-grade zones of copper-gold mineralization hosted by diorite porphyries
containing secondary biotite alteration and various orientations of sheeted and stock-work
quartz-magnetite veins with chalcopyrite and bornite. The hydrothermal copper-gold
mineralization at Alacran is associated with stratabound replacements and veining of a marine
volcano-sedimentary sequence in the vicinity of dioritic intrusions. The nature of mineralization
encountered at San Matias is similar to other large high-grade copper-gold deposits.
Joint Venture Agreement
The San Matias Project is a joint venture between Cordoba and HPX, a private mineral
exploration company founded by mining entrepreneur Robert Friedland. HPX has earned a
51% interest in the San Matias Project and has entered Phase Three of the Joint Venture
Agreement, whereby HPX can earn up to 65% by carrying the project to feasibility.
About High Power Exploration
HPX is a privately owned, metals-focused exploration company deploying proprietary in-house
geophysical technologies to rapidly evaluate buried geophysical targets. The HPX technology
cluster comprises geological and geophysical systems for targeting, modelling, survey
optimization, acquisition, processing and interpretation. HPX has a highly experienced board
and management team led by Chairman and Chief Executive Officer Robert Friedland, Co-
Chairman Ian Cockerill, a former Chief Executive Officer of Gold Fields, and President Eric
Finlayson, a former head of exploration at Rio Tinto. For further information, please visit
www.hpxploration.com.
About Cordoba Minerals
Cordoba Minerals Corp. is a Toronto-based mineral exploration company focused on the
exploration and acquisition of copper and gold projects in Colombia. Cordoba has a joint
venture with High Power Exploration on the highly prospective, district-scale San Matias
Copper-Gold Project located close to sea level with excellent infrastructure and near operating
open-pit mines in the Department of Cordoba. For further information, please visit
www.cordobaminerals.com.
ON BEHALF OF THE COMPANY
Mario Stifano, President and CEO
Cordoba Minerals Corp.
Email: [email protected]
Website: www.cordobaminerals.com
Neither the TSX Venture Exchange nor the Investment Industry Regulatory Organization of Canada
accepts responsibility for the adequacy or accuracy of this release.
Forward-Looking Statements
This news release includes certain “forward-looking information” within the meaning of Canadian
securities legislation. Forward-looking statements include predictions, projections and forecasts and are
often, but not always, identified by the use of words such as “seek”, “anticipate”, “believe”, “plan”,
“estimate”, "forecast", “expect”, "potential", "project", "target", "schedule", budget" and “intend” and
statements that an event or result “may”, “will”, “should”, “could” or “might” occur or be achieved and
other similar expressions and includes the negatives thereof. All statements other than statements of
historical fact included in this release, including, without limitation, statements regarding the potential of
the Company’s properties are forward-looking statements that involve various risks and uncertainties.
There can be no assurance that such statements will prove to be accurate and actual results and future
events could differ materially from those anticipated in such statements. Forward-looking statements are
based on a number of material factors and assumptions. Important factors that could cause actual results
to differ materially from Company’s expectations include actual exploration results, changes in project
parameters as plans continue to be refined, future metal prices, availability of capital and financing on
acceptable terms, general economic, market or business conditions, uninsured risks, regulatory changes,
delays or inability to receive required approvals, and other exploration or other risks detailed herein and
from time to time in the filings made by the Company with securities regulators. Although the Company
has attempted to identify important factors that could cause actual actions, events or results to differ from
those described in forward-looking statements, there may be other factors that cause such actions,
events or results to differ materially from those anticipated. There can be no assurance that forward-
looking statements will prove to be accurate and accordingly readers are cautioned not to place undue
reliance on forward-looking statements which speak only as of the date of this news release. The
Company disclaims any intention or obligation, except to the extent required by law, to update or revise
any forward-looking statements, whether as a result of new information, future events or otherwise.
Figure 1: Plan view of Alacran geological model showing generally west-dipping lithostratigraphy, with mafic to
intermediate volcanics & volcaniclastics in the east and footwall to the main copper-gold mineralised zones hosted mainly
by avolcaniclastic -epiclastic sequence that is intruded by intermediate sills and also larger dioritic bodies in the west and
north. Mineralization also locally overprints the intrusions.
Figure 2: Plan view of copper-gold mineralization “grade” shells, drill-hole traces and conceptual Whittle pit shell
Figure 3: 3D view (towards north-east) of west-dipping “grade” shells under Lidar topography, draped by surface imagery.
Figure 4: Copper-gold mineral resources in the Inferred category and unclassified mineralized material in relation to a
conceptual Whittle pit shell and drill-hole traces, 3D view towards northeast.
Figure 1. Section 855740mN displaying consistent large widths of copper and gold mineralization between drill-holes on
section that extend to surface and remain open down dip.