Fidelity Minerals Strengthens Project Portfolio FIDELITY MINERALS
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Fidelity Minerals Strengthens Project Portfolio
FIDELITY MINERALS
• Has now completed the acquisition of a 100% interest in the following highly
prospective projects:
o Las Brujas Gold Project (Cajamarca, Peru)
o Cerro El Bronce Gold Project (Ancash, Peru)
o Porphyritic Copper Project (La Libertad, Peru)
• Is advancing the Greater Las Huaquillas Project (Cajamarca, Peru)
• Is evaluating various strategic opportunities to advance the Cerro Dorado Project
(Arequipa, Peru) including JV-operatorship, option arrangements or potential sale.
Vancouver, BC, September 23rd, 2019 – Fidelity Minerals Corp. (TSX-V: FMN | FSE: S5GM |
SSE: MNYC) (“Fidelity Minerals” or “the Company”) is pleased to announce the acquisition of
a portfolio of projects including Las Brujas, Cerro el Bronce, and Porphyritic Copper (NR April 29,
May 21 & June 11, 2019) have now been completed with the concessions (refer Table 1) transferred
into the Company’s wholly owned Peruvian subsidiary, Minera Chao SAC.
Table 1: Concession Information – Newly acquired projects
Name Concessions Area (Ha) Province
Las Brujas Gold Project 4 1,900 Cajamarca
Cerro El Bronce Gold Project 2 600 Ancash
Porphyritic Copper Project 3 1,200 La Libertad
PROJECT UPDATES
Las Brujas Gold Project (100% FMN)
The Company owns 100% of the Las Brujas Gold Project, which is located in the world -class
Yanacocha mineral district between and adjacent to the La Zanja high sulphidation gold deposit
(500,000 ounces of Au @ 0.9gpt, 3.8M ounces of Ag) and the Tantahuatay (24 MT @ 0.84gpt Au
& 8.9gpt Ag (in oxide zone) and 250MT @ 0.31gpt Au (in sulphide zone)) and Cerro Corona (+110
MT @ 0.7gpt Au & 0.4% Cu) porphyries.
The Las Brujas project is readily road accessible from Cajamarca, and features gold mineralization
in rocks and elevated gold in soils over a 1.0 km by 1.3 km core area, with local rock chip sampling
returning grades of up to 10.0 m @ 1.57 gpt Au and 9.8 gpt Ag. Gold mineralization occurs in
silicified volcanic rocks and hydrothermal breccias, with the highest -grade gold mineralization
found in a hydrothermal breccia body which contains some vuggy silica fragments ; the zone is
located within an extensive argillic, advanced argillic, and quartz-sericite alteration zone covering
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3 x 6 km. The geochemical signature recognised by previous workers is reflective of an epithermal
precious metal system. The Las Brujas property covers 1,900 Ha and is hosted in the volcanic rocks
belonging to the Calipuy Formation, which also hosts the Yanacocha and Pierina gold deposits:
Yanacocha is one of the largest and lowest cost gold mines in the world.
Las Brujas Exploration Targets: With the project acquisition now complete, t he Company will
immediately commence planning a well-focused geological mapping and geochemical sampling
program. The Company is optimistic these results would justify more detailed magnetic and induced
polarization (IP) geophysical surveys designed to assist with target definition before high-impact
drill-testing. Although the project is 100% owned by the Company, in the event the Company makes
a decision to mine at the Las Brujas project, the Company will establish a 75:25 unincorporated JV
with the vendors, where the majority interest in the JV will be owned by Fidelity Minerals.
Cerro El Bronce Gold Project (100% FMN)
The Cerro El Bronce Gold Project is 100% owned by Fidelity Minerals, and is surrounded on three
sides by active gold exploration projects operated by Newmont -Goldcorp. The project is centred
upon an area of intersecting gold -mineralised vein systems that are hosted in granodiorites and
tonalites of the Miocene Cordillera Blanca Batholith, which have been mined by artisanal miners in
locations on and adjacent to the property. In addition to the mineralised veins, later intrusive
porphyritic monzonites and diorites have been reported from the Mina Bronce and adjacent (to the
east) Mina Verde occurrences. Mineralization has also been described as probably mesothermal
chalcopyrite and pyrite dominated, with underground veins within 12m of an adit grading up to
6.8% Cu and 20.3gpt Au at Mina Cabana located to the WSW of Bronce 1. The property hosts
evidence of hydrothermal brecciation in outcrop in the valley below the worked veins.
Cerro El Bronce Exploration Targets: With the acquisition now complete, the Company will
immediately commence planning a focused geological mapping and geochemical sampling
program.
Residual Rights
As part of the acquisition agreements for both the Cerro El Bronce and Las Brujas projects, i n the
event the Company sells the Concessions to an unrelated third party in the future, the vendors will
be entitled to 10% of any cash profits generated from the sale , under certain circumstances . The
determination of cash profits essentially consists of the sale proceeds minus total expenditures made
by the Company on the project up to the time of the sale, including transaction costs and taxes and
duties related to the sale transaction.
Porphyritic Copper Project (100% FMN)
The Company owns 100% of the Porphyritic Copper Project , which is located proximal to both
producing and development stage mines in the region including Lagunas Norte (90km NE),
Magistral (95km ENE) and Peñoles’ Racaycocha Sur (95km ESE). The Porphyritic Copper Project
which comprises of two apparent porphyry hosted centres of mineralization and alteration that is
reportedly related to a regional structure that obliquely crosscuts the prevailing Andean (mountain-
building) structures. The recognised porphyry centres, as reported by the project vendors (refer
1 The laboratory location, chain of custody record, use of blanks and standards by the Vendor is not recorded or independently verified by a
Qualified Person. The Certificate of Assay / Analysis has not been independently verified for Fidelity Minerals Corp.
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Table 2), returned historical sampling results2 of 0.36% - 0.66% Cu at the Upper Zone and higher
grades at the Lower Zone including >1% Cu.
Table 2: Selected sampling results2 are outlined below.
Area Sample # Ag
(ppm)
Au
(ppm) Cu (ppm) Mo
(ppm)
Upper Zone
221 1.49 <0.2 3,640 1,600.0
222 8.81 1.3 6,620 17.7
223 1.42 0.2 4,070 306.0
Lower Zone 224 >100 3.7 >10,000 270.8
At both Upper & Lower the mineralization is generalized as chalcopyrite -pyrite with accessory
molybdenite, occasional galena (and copper oxide and carbonate minerals in weathered zones) seem
to have attracted sampling attention, and locally minor artisanal interest, with advanced potassic
alteration apparent with tourmaline, hematite, jarosite, and limonite; magnetite, in minute stringers
and disseminated specks, are also an indicator of a mineralized porphyry -type system. Localized
breccia type mineraliza tion is also reported suggesting the possible local presence of intrusive
breccias.
Figure 1: Porphyritic Copper Project – Historical Sampling Photos
(a) Malachite, azurite, weathering on a monzodiorite
sample containing chalcopyrite and bornite.
(b) Onsite sample from opening to a small artisanal
working in the project area.
(c) Mineralization associated with porphyritic
monzodiorite.
(d) Typical freshly broken faces in the monzodiorite
containing disseminated chalcopyrite and pyrite.
2 ALS Method Code ME-MS41. The laboratory location, chain of custody record, use of blanks and standards by the Vendor is not recorded or
independently verified by a Qualified Person. The Certificate of Assay / Analysis has not been independently verified for Fidelity Minerals Corp.
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Porphyritic Copper Exploration Targets: Fidelity Minerals expects that an initial program of
mapping and check sampling, with localized surficial geochemistry sampling, will underpin future
magnetics and IP surveys to support possible drill targeting.
Fidelity Minerals Project Location Map
During the last 6 - 12 months, Fidelity Minerals has taken advantage of the downturn in precious
metals prices, to systematically assemble a portfolio of 5 additional projects (refer Figure 2). As
the gold price has firmed more recently, Fidelity Minerals has received unsolicited interest from a
range of mining companies interested in forming partnerships to appraise the mineral prospectivity
of these recently acquired projects.
Figure 2 Fidelity Minerals - Project Location Map
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Greater Las Huaquillas (44.5 – 100%, FMN)
The Company has continued with important data acquisition in order to develop a more
comprehensive understanding of the project and to update the existing geological model, beyond
the historical resource estimate released previously.
The project consists of two portfolio packages, a 100% interest in the Greater Las Huaquillas (GLH,
3,800 ha) area surrounding the Core Las Huaquillas (CLH, 3,600 ha) area, where the Company has
agreed to acquire and has completed payment of all consideration for a 44.5% interest. In order to
advance the acquisition of this interest, the Company is supporting the Vendor with the ongoing
legal perfection of the Company’s interest in the Core Las Huaquillas (“CLH”) concessions,
including improvements to the management and operating records of the Peruvian company that
holds 100% of CLH.
Cerro Dorado (100% FMN)
The Company continues to investigate near-term commissioning opportunities for the Cerro Dorado
gold mill via potential participation of a number of third parties that are looking to capitalise on the
improvement in the gold price. The Cerro Dorado mill offers the benefit of a beneficiation plant and
tailings impoundment that has been fully permitted, a timesaving of at least 24 months in
comparison wi th the establishment of a new site to process the abundance of gold ore being
produced in the vicinity of Cerro Dorado . The Company is at the advanced stages of negotiations
with a number of parties interested in pursuing the opportunity to re-commission Cerro Dorado in a
range of structures, including the potential option, and/or outright sale of the project.
MANAGEMENT COMMENTARY
Director & CEO of Fidelity Minerals, Mr. Ian Graham commented: “The completion of three
100% owned gold and copper projects in northern Peru prepares the Company for near term
exploration which is geared to the identification of high -interest drilling targets. In the context of
Recent Regional Trans action Activity, the properties position Fidelity with multiple opportunities
to advance strong prospects that are well endowed with promising significant discovery potential.
The prospects are the product of our Strategic Project Generator model, whereby the Company
identifies highly prospective gold opportunities in regions dominated by major mining compan y
assets.”
Executive Chairman of Fidelity Minerals, Mr. Bahay Ozcakmak added: “The concurrent
finalisation of the acquisition of these three highly prospective projects provides Fidelity Minerals
with a range of strategic opportunities. As we seek to transition from a single project focus, to a
portfolio of large-scale resource projects, we are excited about the resurgence of interest in
precious metals. In addition to the Greater Las Huaquillas project where there is a significant
historical resource endowment, these new gold projects, Las Brujas and Cerro El Bronce, position
Fidelity Minerals strongly to take advantage of this increased appetite, as evidenced by recent M&A
activity in the gold sector.”
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About Fidelity Minerals Corp.
Fidelity Minerals Corp. is assembling a portfolio of high -quality mining assets in Peru through the
implementation of our Strategic Project Generator (SPG) model. The project generator model
involves the identification and acquisition of appraisal stage opportunities with near-term valuation
catalysts, including potential for high -impact M&A. The company is backed by an experienced
management team with diverse technical, market, and commercial expertise and is supported by
committed and sophisticated investors focused on building long term value.
On behalf of the Board of Fidelity Minerals;
Ian Graham
CEO and Director
Tel: +1.604.671.1353
Email: [email protected]
Investor Contact:
Bahay Ozcakmak
Executive Chairman
Tel: +61.3.9236.2800
Email: [email protected]
NEITHER THE TSX VENTURE EXCHANGE NOR ITS REGULATION SERVICES
PROVIDER (AS THAT TERM IS DEFINED IN THE POLICIES OF THE TSX VENTURE
EXCHANGE) ACCEPTS RESPONSIBILITY FOR THE ADEQUACY OR ACCURACY OF
THIS NEWS RELEASE.
Disclaimer & Forward -Looking Statements: This news release contains forward -looking statements.
Forward-looking statements are statements that relate to future events or future financial performance. In some
cases, you can identify forward-looking statements by the use of terminology such as “may”, “should”, “intend”,
“expect”, “plan”, “anticipate”, “believe”, “estimate”, “project”, “predict”, “potential”, or “continue” or the
negative of these terms or other comparable terminology. These statements speak only as of the date of this news
release. This news release may also contain inferences to future oriented financial information (“FOFI”) within
the meaning of applicable securities laws. The information in this news release has been prepared by our
management to provide a context for the project acquisition and to provide the reader with an outlook for our
future activities and anticipated key projects and may not be appropriate for other purposes. Forward-looking
statements in this announcement include, (but are not limited to) advancing certain key project activities that
could represent important milestones which the Company expects may represent material valuation catalysts,
such as the expectation that through the Strategic Project Generator model Fidelity Minerals is positioning itself
to be a beneficiary in this environment of increased appetite for prospective projects in this region. Further,
forward-looking statements in this release include that the Company believes that recent project-level transactions
in both Peru and neighbouring Ecuador provide s evidence that high quality projects in the Northern Andean
Copper Belt could deliver excellent potential transaction-based outcomes for the Company, and that through the
Strategic Project Generator model the Company is positio ning itself to be a beneficiary in this environment of
increased appetite for prospective projects in this region. In addition, the observations that Fidelity Minerals has
received unsolicited interest from a range of mining companies interested in forming partnerships to appraise the
mineral prospectivity of the recently acquired projects described in this release (Las Brujas, Cerro El Bronce and
Porphyritic Copper); and that the Company is at the advanced stages of negotiations with a number of parties
interested in pursuing the opportunity to re -commission Cerro Dorado in a range of structures, including the
potential option, and/or outright sale of the project; and that the Company is actively pursuing the perfection of
its title over the Central Las Hua quillas Project or the implication that these initiatives will individually or
collectively be successful comprise forward looking statements.