Fitzroy Minerals Signs Exclusive Option to Acquire The Polimet Gold-Copper-Silver Project in Chile
Fitzroy Minerals Signs Exclusive Option to Acquire
The Polimet Gold-Copper-Silver Project in Chile
Vancouver, British Columbia February 6, 2024 – Fitzroy Minerals Inc. (TSXV: FTZ) (OTCQB:
FTZFF) (“Fitzroy Minerals ” or the “ Company”) is pleased to announce it has secured an
exclusive option (the “Polimet Option ”) to acquire 100% of the Polimet Gold -Copper-Silver
Project, located in the Valparaiso Region of Chile (“Polimet” or the “Polimet Project ”), from
Asesorias y Inversiones Sol SPA (“the Vendor”). The Polimet P roject comprises 1 ,860 Ha of
concessions, at an average altitude of 1,700 m. The Polimet Project is located 170 km by road to
Santiago, and 13 km south of El Bronce 1 m illion ounce epithermal gold-silver deposit, near the
town of Petorca.
Highlights:
● Historic DSO ore sales of 117 tonnes grading 33.5 g/t Au, 55 g/t Ag, and 6.9% Cu
● Fully-preserved low-sulfidation epithermal system with known mineralization
● ~5 km strike of vein system identified and ready for drill-testing
Campbell Smyth, Fitzroy Minerals' Chairman, commented:
“Polimet offers the opportunity to explore a high-grade gold-copper target that is uniquely
well suited for development . The Polimet Project is located in a mining area dotted with
many small processing plants. Minera El Bronce de Petorca is just 13 km to the north and
Polimet is the natural next high-grade Au-Ag-Cu deposit in this mining district. The incised
valleys mean that sub-vertical veins could be easily accessed by horizontal adits.
The high tenor of the target, coupled with unique infrastructure advantages means that
significant value can be created within a compact package. Polimet is also accessed from
the same logistical hub as the recently signed Caballos Copper project offering further
logistical synergies.
Fitzroy Minerals now has two ideally located projects in a premier mining jurisdiction .
There is a global shortage of copper and gold assets with good grade, clean metallurgy and
simple geometry. We plan to drill Polimet in the second half of 2024 and are currently
building up our local exploration team.”
Merlin Marr-Johnson, COO, Fitzroy Minerals, added:
“The geology at Polimet is a classic low -sulfidation epithermal vein system, complete with
bonanza-grade ore shoots. Uniquely for this district the Polimet system consistently shows
strong copper values of around 2% in the veins, even when the precious metal content varies.
This copper content could potentially cover development costs which means that the gold
and silver content would be essentially “free”.
Ore-grade mineralization in nearby deposits is well understood to start below 1,600 m in
altitude and we believe that the core of the epithermal system is intact at Polimet. Our
exploration work will focus on systematically identifying bonanza- grade shoots and the
tenor of regular vein mineralization at Polimet.
Exploration will include mapping, soil sampling and geophysics prior to a drill program.
The concessions host approximately 5 km of mapped veins to date and the aim will be to
identify as many potential pay shoots as possible within the target area. Fitzroy Minerals
anticipates drilling Polimet in the second half of 2024.”
Terms of the Transaction
In order to exercise the Polimet Option, the Company must:
● Make a cash payment of US$ 80,000 on signing of a definitive option agreement , with a
further US$80,000 on the first anniversary thereof;
● Incur exploration expenditures of a t least US$2.25 million over a three year period, with
no consecutive 12 month period seeing less than US$500,000 of exploration expenditures.
Subject to the requisite investment having been met, Fitzroy Minerals can exercise the Polimet
Option by making a US$1.2 million payment to the Vendor in Year Four. In addition, the Vendor
is granted a 2% NSR, of which 1% can be purchased by Fitzroy Minerals for US$3 million at any
point prior to commercial production. The acquisition of the Polimet Option is subject to execution
of a definitive option agreement, and to the approval of the TSX Venture Exchange (the
“Exchange”). The acquisition of the Polimet Option is an arm’s length transaction.
In connection with the acquisition of the Polimet Option, the Company has agreed to pay Marrad
Limited (a company controlled by Mr. Merlin Marr -Johnson) (“ Marrad”) a finder’s fee (the
“Polimet Finder’s Fee”) comprised of: (i) an upfront payment to be paid on entry into a definitive
agreement, to be comprised of (A) a cash payment of CAD$40,500; and (B) the issuance of
260,192 common shares of the Company at a deemed price of CAD$0.13 per share, being the last
closing price of the Company’s common shares prior to the dissemination of this press release (the
“Market Price”), for deemed consideration of CAD$33,825; and (ii) a second payment to be paid
upon full exercise of the Polimet Option, to be comprised of the issuance of 644,038 common
shares of the Company at the Market Price, for deemed consideration of CAD$83,725. The
payment of the Polimet Finder’s Fee is also subject to the approval of the Exchange.
Location
The project comprises 1,860 Ha of concessions, at an average altitude of 1,700 m. Polimet is 170
km from Santiago, via the R5N Highway. The Polimet P roject will be supported from the nearby
towns of Petorca or Cabildo towns via internal roads. The Polimet Project area is well served with
road access, power, and water.
Figure 1. Project Location
Project History
The concessions that comprise the Polimet P roject have seen sporadic historic work, including
development of two ore shoots called Santa Margaria and San Pedro respectively. In the mid-1990s
a Chinese entrepreneur developed most of the present tunnels in the Santa Margarita mine and
exploited the two main veins for several years. In the late 1990s the mine was bought by a local
Chilean, who soon after discovered the San Pedro ore -shoot. The San Pedro ore -shoot produced
very high-grade Au-Cu-Ag ore in the subsequent years. Some direct shipping ore ( “DSO”) was
sold to the state-owned (Enami) Ventanas smelter and a larger tonnage of sulphide ore was sold to
Enami for toll-processing in a concentration plant. The partial records of sales to the state-owned
Enami show weighted average grades of 33.5 g/t Au, 55 g/t Ag and 6.9 % Cu for the 117 tonnes
of DSO material, and 4.7 g/t Au, 10 g/t Ag and 1.0 % Cu for the 618 tonnes of sulphide ore. The
records show a total tonnage of 735 tonnes at an average grade of 9.3 g/t Au, 17 g/t Ag, and 2.0 %
Cu.
Table 1. Historic Polimet (Santa Margarita adit) DSO sales certificates from Enami
Date of Lot Sale Kg
Au
(g/t)
Ag
(g/t)
Cu
(%)
As
(%)
Sb
(%)
S
(%)
Pb
(%)
21/08/2003 4,510 60.3 325 29.4 1.33 0.230 32.00 0.36
25/06/2004 2170 3.3 280 28.5 0.04 0.001 3.60 0.01
14/03/2005 2310 42.8 390 29.9 1.01 0.120 37.70 0.18
18/04/2005 1700 19.8 739 34.1 1.07 0.420 30.20 0.07
30/10/2006 13260 42.5 25 6.2 0.08 0.001 6.15 0.01
28/11/2006 11510 23.8 17 4.3 0.07 0.002 3.66 0.01
26/12/2006 10980 40.0 23 4.3 0.06 0.002 3.71 0.01
16/02/2007 14220 40.8 22 4.6 0.08 0.004 4.10 0.02
19/03/2007 11010 48.0 19 5.0 0.08 0.003 4.54 0.01
03/04/2007 12860 31.8 16 4.2 0.06 0.003 3.65 0.01
17/07/2007 11300 26.0 28 4.8 0.09 0.005 4.50 0.01
02/08/2007 12220 14.8 13 3.0 0.05 0.001 2.80 0.01
Unreadable 9000 27.2 20 5.1 0.07 0.002 5.45 0.01
TOTAL 117,050 33.5 55 6.9 0.15 0.020 6.36 0.03
Table 2. Historic Polimet (Santa Margarita adit) sulphide ore sales certificates from Enami
Date of sale Weight (Kg) Au (g/t) Ag (g/t) Cu (%)
13/04/2010 41,656 4.1 7 0.8
05/07/2010 40,329 4.4 5 0.7
30/11/2010 14,651 4.9 6 1.3
10/01/2011 14,811 3.5 7 1.1
08/02/2011 16,330 4.3 7 1.2
28/02/2011 15,922 3.7 9 1.1
10/03/2011 28,892 4.7 10 0.9
23/03/2011 14,191 6.1 8 1.5
30/03/2011 17,150 5 9 1.6
14/04/2011 14,246 4 8 1.2
03/05/2011 14,199 5.1 13 1.2
18/05/2011 13,041 5.2 9 1.2
08/07/2011 12,598 4 8 1.2
30/01/2012 14,159 5.3 6 1
21/03/2012 17,757 6.4 10 0.2
29/03/2012 23,579 4.6 8 0.3
25/04/2012 17,603 7.3 8 1.1
30/10/2012 41,493 5 12 1.4
17/12/2012 16,572 5.3 6 0.3
17/01/2013 42,440 4 16 1.6
12/02/2013 21,598 4.6 23 2.1
28/03/2013 28,190 5.2 9 0.9
24/05/2013 38,585 4.4 22 1
22/08/2013 33,858 4.1 12 0.6
21/10/2013 41,613 3.6 6 0.7
28/03/2014 22,462 6 8 0.9
TOTAL 617,925 4.7 10 1.0
Table 3. Combined historic Polimet (Santa Margarita adit) ore sales certificates from Enami
Weight (Kg) Au (g/t) Ag (g/t) Cu (%)
Sulphide 617,925 4.7 10 1.0
DSO 117,050 33.5 55 6.9
TOTAL 734,975 9.3 17 2.0
At the turn of this c entury, Sinotec, a Chinese mining company, explor ed in the area. A large
number of dirt roads were built , and wide-spaced RC drill -holes were completed. No technical
information about this campaign is available.
The current owner of Polimet consolidated the concessions from 2015 to 2023. The Santa
Margarita and Pia-Vaca concessions are held under a sub-option agreement, signed in 2023.
Geology
The region around Petorca is characterised by epithermal low sulfidation vein systems hosted by
Cretaceous volcanic andesitic sequences (Camus et al., 1991) in the western foothills of the
Andean Cordillera of central Chile. The area hosts nearly 90 ore bodies, mostly polymetallic veins,
some copper veins, and one copper breccia pipe . The Polimet epithermal vein system is located
thirteen kilometers to the south of El Bronce de Petorca.
Figure 2. Regional Geology
At El Bronce de Petorca, a 1 km vertical zonation is described, with a barren upper part followed
by sub-economic gold plus base metals, then the main gold and base metals zone at an altitude of
1000 m to 1600 m above sea level. The majority of reported gold development in the region has
taken place between 1000 m and 1600 m above sea level. Below the 1000 m level, lies a sub-
economic-gold-plus-silver-without-base-metals zone.
Figure 3. Schematic cross-section of El Bronze de Petorca (from Camus et al. 1991)
The most significant occurrence is at El Bronce vein, emplaced in a seven kilometer long, roughly
north-south-striking fault. At Polimet, approximately five kilometers of vein strike length have
been identified to date. Much of the Polimet concession area is at an elevation of 1600 to 1950 m,
which is high in the epithermal system.
Figure 4. Regional profile of elevation (vertically exaggerated)
At El Bronce the steeply-dipping lenses range 100-600 m in length, 200-400 m in depth, and 1-20
m in width (Camus et al., 1991). The vein mineralogy in El Bronce is comprised of quartz, pyrite,
sphalerite, galena, tetrahedrite, barite and calcite. Ore shoots occur as massive sulfide fillings,
stockworks and disseminations. One significant difference at Polimet is the abundance of
chalcopyrite in the vein system, with an average of 3.4% copper content reported from the small
number of point samples shown below in Table 4. The 3.4% Cu figure is higher than the recorded
average sales figure showing 2.0% Cu from a much larger sample size, and the higher figure cannot
be considered representative of the system as a whole . It appears that the surface geology of
El Bronce, Pedro de Valdivia
Botón de Oro
Guanaco-Lazo
Santa Margarita
1950
1500
1000
450
N
S
Petorca
Polimet
Polimet represents the highest part of a low-sulfidation epithermal system. It has very similar
characteristics to El Bronce, but Polimet is better preserved from erosion.
Results to Date
Work carried out in recent years includes detailed mapping and geological reconnaissance, soil
and rock chip geochemical, and LIDAR surveys of old workings. Thirteen channel samples were
taken across structure in the old workings.
Table 4: Rock chip sample results, old workings at Polimet
Sample ID Area Weight (kg) Au (g/t) Cu (%) Ag (g/t)
SM-001 Sto Dom W 4.4 10.7 6.6 491
SM-002 Sto Dom W 4.9 0.2 2.7 4
SM-003 Sto Dom E 5.4 0.1 1.4 6
SM-004 Sto Dom Sup 6.4 0.2 2.9 185
SM-005 Pto Nuevo 6.8 4.4 0.6 4
SM-006 Tunel No Entrar 6.6 1.1 3.6 9
SM-007 La Garcia sup 6.8 27.2 3.4 15
SM-008 La Garcia inf 6.7 20.0 3.3 12
SM-009 S Pedro inf 6.0 0.6 0.4 0
SM-010 S Pedro Med inicio 4.8 0.6 1.5 5
SM-011 S Pedro Med Oreshoot 5.3 43.3 7.8 32
SM-012 S Pedro Sup 4.9 7.7 3.5 11
SM-013 S Antonio 5.2 0.3 0.4 0
Average 5.7 9.0 3.4 59
Mapping and sampling at surface has identified h ydrothermal alteration correlat ed with
multispectral anomalies . S everal hydrothermal alteration/brecciation zones (silica- siderite-
argilization) are coincident with spectral anomalies for Na, K and Mg minerals and Cu- sulfides.
The surface anomalies are found at altitudes of 1600 m or higher . Rock chip samples at surface
have returned values of up to 4.5 g/t Au and up to 3.6% Cu in otherwise untested hydrothermally
altered and brecciated zones.
Exploration Target and Next Steps
The aim at Polimet is to systematically identify bonanza-grade shoots and the tenor of regular vein
mineralization. Fitzroy Minerals will use the known mineralizing style that is found at El Bronce
as a starting guide until the nature of the Polimet system is better understood. The main targets are
lenticular, structurally controlled ore shoots along the fault. Fitzroy Minerals believes that the best
grade material will be found at depths starting 100 to 250m below surface, at the altitude of the
main ‘gold zone’ in the region.
During the course of 2024, Fitzroy Minerals intends to extend soil geochemistry grids and carry
out an Induced Polarisation survey ahead of any potential drill program.