Turmalina Metals Corp. to Acquire the Colquemayo Copper-Gold- Silver Epithermal-Porphyry Project in Peru with Reported Drill Assays Including 237.3 m of 2.4% Copper
July 3, 2024
Turmalina Metals Corp. to Acquire the Colquemayo Copper-Gold-
Silver Epithermal-Porphyry Project in Peru with Reported Drill
Assays Including 237.3 m of 2.4% Copper
Vancouver, BC - Turmalina Metals Corp. (“Turmalina”, or the “ Company”; TBX-TSXV, TBXXF-OTCQX,
3RI-FSE) is pleased to announce that it has entered into a Mineral Property Option Agreement (the
“Option Agreement”) with Compania De Minas Buenaventura S.A.A. (the “ Optionor”) and Aurora
Copper Peru, a wholly-owned subsidiary of the Company (“Turmalina SubCo”), whereby the Optionor
has granted Turmalina SubCo the option (the “ Option”) to acquire 100% of the Optionor’s title and
interest in nine (9) mining concessions located in Peru (the “Colquemayo Project”). The Optionor is at
arm’s length from the Company and Turmalina SubCo.
Highlights
● Option to acquire 100% of the advanced brownfields Colquemayo Project.
● Colquemayo is an epithermal and porphyry Cu-Ag-Au exploration project located in the
Moquegua Province, Southern Peru.
● Historic drill results include an intersection that returned 237.3 m at 2.4% Cu, 0.08 g/t Au &
10 g/t Ag, including 161.2 m at 3.4% Cu, 0.09 g/t Au & 14 g/t Ag and 31.3 m at 14.8% Cu, 0.2
g/t Au & 47 g/t Ag.
● Exploration to date has identified multiple epithermal and porphyry targets with significant
drill intercepts as well as several undrilled targets throughout the 6,600 hectare property.
● Highlights of previous drilling include:
Amata Epithermal Breccia:
o 70 m @ 1.3% Cu, 0.24 g/t Au & 252 g/t Ag (COQ-10-36, from 192 m), including:
▪ 7.8 m @ 0.79% Cu, 0.14 g/t Au & 1,866 g/t Ag (from 192 m).
o 237.3m @ 2.4% Cu, 0.08 g/t Au & 10 g/t Ag (COQ-10-36, from 306.2 m) including:
▪ 161.2 m @ 3.4% Cu, 0.09 g/t Au & 14 g/t Ag (from 306.2 m), including:
● 31.3 m @ 14.8% Cu, 0.2 g/t Au & 47 g/t Ag (from 392.5 m.).
o 67.8 m @ 0.9% Cu, 0.07 g/t Au & 9 g/t Ag (COQ-11-37, from 295.2 m), including:
▪ 31.5 m @ 1.2% Cu, 0.10 Au and 12 g/t Ag (from 310.4 m).
o 55.5 m @ 1.25% Cu (COQ-11-44, from 264.5 m).
o 68.9 m @ 0.30% Cu, 0.38 g/t Au & 7 g/t Ag (COQ-11-40, from 367.1 m).
o 104.2 m @ 72 g/t Ag (COQ-10-31, from 0 m), including:
▪ 28.3 m @ 193 g/t Ag (from 66.5 m) and
▪ 3 m @ 161 g/t Ag (from 131.6 m).
o 111.0 m @ 47 g/t Ag & 0.06 g/t Au (COQ-10-32, from 1.6 m) and 183 m @ 0.21%
Cu, 0.12 g/t Au & 10 g/t Ag (from 217.1 m), including:
▪ 22.5 m @ 1.21% Cu, 0.48 g/t Au & 29 g/t Ag (from 330.9 m).
o 58.1 m @ 1.64% Cu, 0.23 g/t Au & 30 g/t Ag (AM-02, from 208 m).
Cairani Epithermal Breccia:
o 99 m @ 0.17% Cu & 0.16 g/t Au (AME-14-03, from 65.5 m), including:
▪ 24.5 m @ 0.46% Cu & 0.18 g/t Au (from 133.4 m) and 24.3 m @ 1.22% Cu ,
0.05 g/t Au & 15 g/t Ag (from 216.3 m).
Coripuquio Epithermal Breccia:
o 98.9 m @ 0.35 g/t Au (COQ-10-27, from 75.3 m).
o 54.7 m @ 0.35 g/t Au & 0.14% Cu (COQ-10-12, from 117 m).
o 133.3 m @ 0.47 g/t Au (COQ-10-06, from 21.3 m).
o 47.5 m @ 0.56% Cu & 0.12 g/t Au (COQ-10-16, from 226.2 m).
o 103 m @ 0.3 g/t Au (COA-10-21, from 153 m) and 37 m @ 1.34% Cu & 0.17 g/t Au
(from 290.1 m), including:
12.6 m @ 3.7% Cu, 0.31 g/t Au & 8 g/t Ag (from 314.5 m).
Chief Executive Officer, James Rogers comments:
“Since its inception Turmalina has been focussed on identifying high- quality assets in South
America. The Colquemayo project is the culmination of our team's most recent efforts in
identifying and acquiring such prospective projects.
Colquemayo represents an exceptional opportunity for our team to create substantial value for
Turmalina shareholders. The mineralized system at colquemayo has many similarities to large
porphyry systems in the Andes such as Filo del Sol. We intend to advance the understanding of
the project through systematic exploration of the exciting epithermal and porphyry copper
targets and through an efficient advance from brownfields exploration towards resource
definition and initial economic evaluation of the project.
We look forward to commencing permitting and early works as we take over the Colquemayo
project. Meanwhile, Turmalina will also continue to advance our San Francisco Project in San
Juan, Argentina, where we identified a new epithermal vein camp in 2023."
Vice President, Business Development, Chico Azevedo adds:
“Colquemayo has the characteristics that our team in South America has been looking for in
the past few years: a project with economically-relevant drill intercepts with further potential
for exploration. The properties cover 6,600 hectares with Cu-Ag-Au mineralization in high
sulphidation epithermal systems hosted by phreatomagmatic and hydrothermal breccias
emplaced into andesitic volcanic rocks of Paleocene to Pliocene age. Intense hydrothermal
alteration has been mapped over an area of 10 km by 3 km.
Previous work by Rio Tinto and Buenaventura identified and drill tested at least three centres
with strong hydrothermal alteration and epithermal-style Cu-Ag-Au mineralization, where
drilling has proven the presence of intercepts with high grade copper. These intercepts will be
followed up after detailed modelling of the mineralized breccia bodies. Drilling and surface
mapping and sampling also have identified porphyry-style copper mineralization at the Cairani
target, which requires further investigation. A large data set – geology, alteration mapping,
geochemistry, spectral data and geophysics - is available and will be systematically evaluated
and validated in order to plan the next exploration phases at Colquemayo”.
Location, Access and Infrastructure
The Colquemayo project is located in General Sanchez Cerro province in Moquegua department, near
the border with the Arequipa department, in southern Peru. The project area is in the Coalaque district
and within the Amata and Palcamayo rural community areas, at elevations between 4,300 and 4,800
meters amsl. The main access to Colquemayo is through the 34 -D highway from Arequipa, then MO-
516 road and 115 highway, and finally a turnoff to the south for 20 km. The energy supply is secured
by a transmission line and a transformation substation located 15 km to the southwest in Puquina
town, while a second highway is under construction between the Puquina and Omate. This highway
will connect Omate town with Moquegua city and the Ilo sea port (see Figure 1).
Regional Geology
The Cu -Ag-(Au) Colquemayo project is situated in the late Miocene to Pliocene epithermal belt in
southern Peru, hosted by volcanic units of the early Miocene to Pliocene age Maure and Barroso
Groups. At a regional scale, the project is spatially related to upper Cretaceous to Pliocene intrusions
and a major regional fault that put in contact the Coastal Basal Complex (neo -Proterozoic) with the
Mesozoic sedimentary units (Figure 2).
Colquemayo is located to the east of the productive Cu-Mo Paleocene to Eocene porphyry belt hosting
the copper mines of Cerro Verde, Cuajone, Quellaveco and Toquepala, and to the west of the Au -Ag
Late Miocene to Pliocene epithermal belt with important projects and mines such as San Gabriel,
currently under construction, and the Aruntani mining district (>2 Moz Au produced)
Previous Work, Geology and Mineralization
Previous work by Rio Tinto and Buenaventura between 2003 and 2014 includes detailed geological
mapping and intensive surface geochemistry with ~9,800 rock chip and ~1,500 channel samples.
Detailed topography (1 m resolution) and geophysical surveys (magnetometry, chargeability and
resistivity) have been completed at two of the hydrothermal centres identified to date.
Initial surface mapping and sampling identified several breccias that returned significative gold, silver
and copper assays. These breccias, when drill tested at depth, proved to be phreato -magmatic and
hydrothermal breccias cutting a thick sequence (~600 meters) of andesitic volcanic and volcaniclastic
rocks. Alteration mapping shows the zonation typical of a high -sulphidation epithermal system,
including argillic alteration with kaolinite and dickite, advanced argillic alteration with quartz and
alunite, and some deeper pyrophyllite zones, along with zones of massive and vuggy silica (see figures
3 and 4).
In 2003 Rio Tinto drilled 16 diamond drill holes in several targets, including Amata, Cairani and
Coripuquio, with the best intercepts returned from Amata and Coripuquio. Between 2010 and 2014
Buenaventura drilled 67 diamond drill holes, focusing on the Amata, Coripuquio and Yanarico targets.
The best results were obtained at Amata and Coripuquio. At Amata, enargite-pyrite rich breccias were
the main hosts for mineralization (see figures 5 , 6, 14, 15 and 16 ). At Coripuquio some intercepts of
oxidised breccias returned gold values of 0.5 to 1 g/t Au, indicating potential for low-grade oxide gold
for an open pit/heap leach operation and requires further drilling for proper evaluation (see figure 7
and 15). Sixteen holes have tested and confirmed the presence of mineralization between 400 and
600 meters depth. In total 83 diamond drill holes for ~27,000 meters were completed. All surface and
core samples (~13,700 samples) have complete geochemical analyses – fire assay for gold and ICP for
multi-elements, along with systematic spectral analyses for mineral identification.
The dimensions of the hydrothermal centres are at least 5 km by 2 km for the Amata -Cairani-
Coripuquio centre, and 3 km by 2 km for the Yanarico system. Drilling was concentrated in the areas
where the advanced argillic alteration and massive and vuggy silica were better exposed. The available
mapping shows that this alteration system is continuous for at least 10 km along the southern portion
of the pro perty. Preliminary field reconnaissance conducted by the Turmalina geological team
confirmed the presence of similar alteration patterns with related potential mineralization between
Coripuquio and Yanarico (see figures 3 and 4).
The mineralized breccia bodies include monomitic and polymitic breccias with a pyrite -enargite
+barite cement. Locally there is abundant silica flooding. Enargite is the main copper mineral in most
of the drilling completed to date (figures 13 and 14), but at some holes (e.g. hole AM-14-03) at Cairani,
chalcocite and covellite are the main copper minerals. This mineralogy, associated with the presence
of wormy textures, typical porphyry-style veining, dacite porphyry intrusives, elevated molybdenum
and lower arsenic, suggests a transition towards porphyry -style mineralization at Cairani, that still
requires drill testing (figures 9, 11, 12 and 13.).
The systematic spectral geology carried out in the drill core identified a pyrophyllite zone (figure 8)
that is coincident with a portion of the best hole drilled at the project (COQ10-36), and also indicates
a potential zonation towards porphyry-style mineral assemblages at depth.
Colquemayo Exploration Plan
It is anticipated that the permitting process to resume drilling in Colquemayo will take 14 to 18
months. During this timing, a detailed core review is planned to build geological models for the breccia
bodies with significant drill intercepts, including:
• Validation of the logged geology using the geochemical database.
• Determining the geometry of the breccia bodies based on surface mapping and drill core
information.
• Review, modelling and interpretation of the geophysical data.
• Mapping of alteration zones to define potential source areas – including porphyry intrusions
with Cu-Mo mineralization.
Exploration will also focus on areas in the property outside the three centres of hydrothermal
alteration identified and drill tested to date. In some of these areas argillic and advanced argillic
alteration have been recognized locally, with limited exposure because of overlying lower
temperature alteration assemblage (chlorite, epidote and carbonate). These areas may represent less
eroded parts of epithermal systems, with potential for definition of new hydrothermal centres for
initial drilling. Addition al geophysics to cover the remaining part of the property will also be
considered.
Commercial Terms
Pursuant to the terms and conditions of the Option Agreement, in order to exercise the Option,
Turmalina SubCo must:
(i) pay the Optionor an aggregate of US$1,560,000 in cash (collectively, the “ Cash
Payments”), as follows:
a. $60,000 on or prior to the one (1) year anniversary of the date that is three (3)
business days following the TSX Venture Exchange’s (the “ TSXV”) approval of the
Option Agreement and all transactions contemplated therein (such date being
referred to as the “Effective Date”);
b. $200,000 on or prior to the one (1) year anniversary of the date that is the later of (i)
the one (1) year anniversary of the Effective Date, and (ii) the date which an
exploration permit is granted with respect to the Colquemayo Project (such date
being referred to as the “Trigger Date”);
c. $250,000 on or prior to the two (2) year anniversary of the Trigger Date;
d. $250,000 on or prior to the three (3) year anniversary of the Trigger Date;
e. $800,000 on or prior to the four (4) year anniversary of the Trigger Date; and
(ii) incur an aggregate of $6,200,000 in exploration expenditures on the Colquemayo Project,
as follows:
a. $200,000 of exploration expenditures by the one (1) year anniversary of the date on
which the Option Agreement is executed;
b. cumulative exploration expenditures of $1,200,000 by the one (1) year anniversary of
the Trigger Date;
c. cumulative exploration expenditures of $2,200,000 by the two (2) year anniversary of
the Trigger Date;
d. cumulative exploration expenditures of $4,200,000 by the three (3) year anniversary
of the Trigger Date; and
e. cumulative exploration expenditures of $6,200,000 by the four (4) year anniversary of
the Trigger Date.
However, the Company may satisfy up to 50% of the Cash Payments by issuing the Optionor common
shares in the capital of the Company (the “Consideration Shares”). The Consideration Shares, if issued,
will be subject to a statutory hold period of four months plus a day from the date of issuance in
accordance with applicable securities legislation.
Following the exercise of the Option, Turmalina SubCo must pay the Optionor a 2.0% net smelter
returns royalty on the Colquemayo Project (the “Royalty”). Turmalina SubCo may repurchase 1.0% of
the Royalty, on or any time prior to the one (1) year anniversary of the commencement of commercial
production on the Colquemayo Project, for a one-time cash payment of $2,500,000, thus reducing the
Royalty to 1.0%.
On Behalf of the Company,
James Rogers, Chief Executive Officer and Director.
Website: turmalinametals.com
Address: #1507 - 1030 West Georgia St, Vancouver, BC V6E 3M5.
For Investor Relations enquiries, please contact +1 833 923 3334 (toll free) or via
Statements
About Turmalina Metals and our projects: Turmalina Metals is a TSXV -listed exploration company
focused on developing our portfolio of high -grade gold -copper-silver projects in South America.
Turmalina Metals is led by a team responsible for multiple gold-copper-silver discoveries. Our projects
are characterised by open high -grade mineralization on established mining licenses that present
compelling drill targets. The principal project held by Turmalina is the San Francisco project in San
Juan, Argentina. F or further information on the San Francisco Project, refer to the technical report
entitled “NI43-101 Technical Report San Francisco Copper Gold Project, San Juan Province, Argentina”
dated November 17, 2019 under the Corporation’s profile at www.sedarplus.ca.
Forward Looking Statement: This news release includes certain statements that may be deemed
“forward-looking statements”. All statements in this news release, other than statements of historical
facts, that address events or developments that the Company expects to occur, are forwa rd-looking
statements. Forward-looking statements are statements that are not historical facts and are generally,
but not always, identified by the words “expects”, “plans”, “anticipates”, “believes”, “intends”,
“estimates”, “projects”, “potential” and sim ilar expressions, or that events or conditions “will”,
“would”, “may”, “could” or “should” occur. Although the Company believes the expectations
expressed in such forward-looking statements are based on reasonable assumptions, such statements
are not guarantees of future performance and actual results may differ materially from those in the
forward-looking statements. Forward looking statements in this news release include statements
related to TSXV approval of the Company’s acquisition of the Option and th e Option Agreement.
Factors that could cause the actual results to differ materially from those in forward -looking
statements include market prices, continued availability of capital and financing, and general
economic, market or business conditions, as well as legal, social, and economic conditions in Argentina
and Peru, where the Company’s mineral exploration properties are located. Investors are cautioned
that any such statements are not guarantees of future performance and actual results or
developments may differ materially from those projected in the forward -looking statements.
Forward-looking statements are based on the beliefs, estimates and opinions of the Company’s
management on the date the statements are made. Except as required by applicable se curities laws,
the Company undertakes no obligation to update these forward-looking statements in the event that
management's beliefs, estimates or opinions, or other factors, should change.
Due Diligence: As part of the Company’s due diligence Turmalina staff has visited the Project several
times to review and validate mapping and logging, with assays from rock chip samples taken by
Turmalina matching the level of mineralization reported in historic assay data. Several key drill holes
were relogged by the Company, with observed geology and mineralisation matching historic drill data.
Drilling data from Buenaventura has also been validated against the original laboratory assay
certificates and has passed a QA/QC review by both the Company and by the Qualified Person .
Turmalina did not have access to the original laboratory certificates for the assays in the one drill hole
included in this news release that was completed by Rio Tinto (AM-02). The Company also engaged
with local communities and stakeholders to understand their perceptions of the project, and has
reviewed required permitting with local authorities. Table 1 shows the location, depth and azimuth of
the holes discussed, and Table 2 lists the main intercepts.
Qualified Person: All scientific and tech nical information in this news release has been approved by
Dr. Rohan Wolfe, Technical Advisor, MAIG, who serves as the Qualified Person (QP) under the
definition of National Instrument 43 -101. Dr Wolfe has conducted a review of historic data at the
project, reviewed the Company’s due diligence study of the P roject and has conducted a n
independent QA/QC review of historic drilling assays, and consents to the inclusion of this information
in the form and context in which it appears.
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 release
or has in any way approved or disapproved of the contents of this news release.
Figure 1: Colquemayo project location and main copper and gold-silver mines in Southern Peru.