Centenera Signs Letter of Intent to Acquire the Huachi Copper-Gold Porphyry Deposit San Juan Province, Argentina
NR-17-01 23 January 2017
Centenera Signs Letter of Intent to Acquire
the Huachi Copper-Gold Porphyry Deposit
San Juan Province, Argentina
Vancouver, British Columbia – Centenera Mining Corporation (the “Company”) - (TSXV: CT, OTCQB: CTMIF) , announces
that it has entered into a binding Letter of Intent ( the “LOI”) with an arm's length vendor (the "Vendor") whereby it has
been granted the exclusive option (the “Option”) to acquire a 100% interest in the Huachi Copper -Gold Porphyry Deposit
(“Huachi” or the “Project”). The Project is located in the Province of San Juan in northwest Argentina and consists of 32
mining claims (“Minas”) totalling 462 hectares.
Project Highlights
The Project consists of a central copper-gold porphyry deposit with a peripheral epithermal gold system located to the east.
Centenera will initially focus on exploration of the copper- gold porphyry deposit and the extensive open ground to the
west, targeting a large -scale, bulk -tonnage copper -gold porphyry deposit. The copper -gold porphyry deposit has been
tested with a total of 7 historical diamond drill holes (totalling 2,011 meters) (Figure 1).
Highlights:
• All drillholes targeting porphyry style mineralization intersected copper-gold mineralization.
• Majority of drillholes terminated in mineralization and are open at depth.
• Several drillholes demonstrate increasing grade with depth.
• Mineralization is open in all directions, in particular to the west and north where porphyry style alteration is
mapped at surface and untested by drilling.
Drilling highlights include:
Drillhole From (m) To (m) Interval
(m)(1) Copper (%) Gold (g/t) Copper
Equivalent(2)
06-HU-01 1 200 199.0 0.25 0.12 0.35%
incl. 15 123 108.0 0.32 0.15 0.44%
06-HU-02 2 355.1 353.1 0.35 0.185 0.49%
incl. 112 355.1 243.1 0.40 0.21 0.57%
07-HU-05 6 254.5 248.5 0.26 0.17 0.40%
incl. 126 244 118.0 0.34 0.22 0.51%
incl. 192 244 52.0 0.39 0.32 0.64%
Notes:
1 True width is not known. 2.Copper equivalent = Copper grade % x (0.795 x gold grade g/t), where the conversion factor of
0.795 is calculated by comparing the value of 1 tonne of copper ore (at copper prices of $2.20/lb ($4,850.16/t)) to the value of
1 tonne of gold ore (at $1,200/oz ($38.58g/t)) and assuming 100% recovery.
Centenera Mining Corporation 2 23 January 2017
NR17-01 Continued
“The acquisition of the Huachi copp er-gold deposit has been a long- term objective for Centenera and we are delighted to
have reached mutually acceptable terms with the underlying owners. Historical drilling has already defined part of the
porphyry system and this work really helps to reduce exploration risk for Centenera shareholders,” stated Keith Henderson,
Centenera’s President and CEO. “ Porphyry deposits in Argentina have a history of creating value for shareholders and we
believe that our planned drilling could help create similar value.”
Figure 1: Geology at Huachi. Copper mineralization extends from the southern Oro Rico stock, north through the Canyon stock and
then extends northward. All of the property to the west is untested by drilling and is considered highly prospective for additional
copper-gold mineralization. The map presents all data considered relevant to Centenera’s planned copper -gold porphyry
exploration. The area covered by the map does not include all historical drilling.
Centenera Mining Corporation 3 23 January 2017
NR17-01 Continued
Plan Going Forward
Subject to satisfactory completion of due diligence by the Company and acceptance of filing of the grant of the Option by
the TSX Venture Exchange (the "TSXV"), Centenera and the Vendor will enter into and execute a definitive property op tion
agreement (the "Option Agreement"). The Company has retained Discovery Consultants to complete a National Instrument
43-101 Technical Report for the Project, which will be completed with in 45 days. No additional exploration is necessary
before drilling and the Company’s exploration manager is working to finalize drill targets, project logistics and drill permits.
Property Details
The Huachi copper-gold mineralization is associated with a porphyry -epithermal system with extensive multiphase quar tz-
stockwork development. Porphyry style alteration is within probable late Miocene intermediate to felsic stocks and dykes
of the Huachi intrusive complex . Alteration consists of a central potassium silicate alteration zone characterized by
pervasive groundmass replacement with local secondary biotite. This pervasive and intense alteration is clearly visible in
satellite imagery as a pale colour anomaly ( Figure 2). Additionally, there are n arrow structurally controlled silicification
zones within the ce ntral part of the system that are often associated with qua rtz-sericite-pyrite altered porphyry dykes.
Additionally, early formed, pervasive secondary biotite is extensively developed within the alteration halo.
Historical exploration work on the property identified porphyry style copper mineralization which is best developed around
two intrusive stocks: the Canyon stock, and the Oro Rico stock ( Figure 1). Both stocks have mineralization at surface
consisting of chalcopyrite, accompanied by disseminated magnetite, minor pyrite, and local sparse bornite and
molybdenum. Additionally, a large 1,400m by 850m elongate >3% pyrite halo overlies the prospect suggesting significant
porphyry mineralization may remain untested under cover.
Historical exploration includes detailed geological and alteration mapping, surface rock sampling, a geophysical induced
polarization survey to the west of known mineralization as well as 20 diamond drillholes (totalling 6,640 meters). Historical
drilling in 2006 -2007 consisted of 11 drillholes for 2,552 metres. Drilling was focussed on testing copper -gold porphyry
mineralization (7 drillholes, Plate 1 ) with an initial test for epithermal gold mineralization (2 drillholes) and two drillholes
were abandoned due to poor rock conditions. Later drilling from 2011to 2012 consisted of 9 drillholes for 4,088 metres and
was focussed exclusively on exploration within the peripheral epithermal gold system.
Figure 2: Huachi Property Location and all historical drillholes.
Centenera Mining Corporation 4 23 January 2017
NR17-01 Continued
Centenera Mining Corporation 5 23 January 2017
NR17-01 Continued
The Huachi property is located in San Juan Province in northwestern Argentina (Figure 2), 135km due north of the city of
San Juan. The Project consists of 32 Minas totalling 462 hectares. Associated with the Project are 10 demacias , which
under Argentinean mining legislation, are defined as areas that are too small to be issued as separate claims and that are
surrounded by existing claims . O nce applications for the demacias have been finalized they will be incorporated into the
Project, which together with 10 demasias, will total 516 hectares . Elevations at Huachi range from 2800 to 3250 meters
above sea level and the Project is accessible by road, although some additional road development will be necessary on the
property. Exploration can be conducted year-round.
Commercial Terms
Under the Option, Centenera has the right to earn a 100% interest in the Project through the payment of USD $2,306,000
and the issuance of common shares in the Company valued at USD $500,000 (at the time of issuance) to the Vendor, as
follows:
Date Cash (USD) Value of Shares (USD)
Effective Date $80,000 -
15 December 2017 $83,000 -
15 June 2018 $90,000 -
15 December 2018 $105,000 -
15 June 2019 $106,000 -
15 December 2019 $118,000 -
15 June 2020 $120,000 -
15 December 2020 $142,000 -
15 June 2021 $142,000 -
15 December 2021 $420,000 $250,000
15 December 2022 $900,000 $250,000
Total $2,306,000 $500,000
Upon completion of the Option payments and share issuances, Centenera will be deemed to have exercised the Option and
will have earned an undivided 100% legal and beneficial interest in an d to the Project, subject to a 2 % Net Smelter Royalty
(“NSR”) to be granted to the Vendor. Centenera will have a right to buy back 0.5% of the NSR for USD $1,000,000, at which
time the NSR payable to the V endor shall be 1.5%. A finder's fee in the amount of USD $200,000, payable in shares, is
payable by Centenera in connection with the acquisition of the Project.
During the Option period, Centenera will be responsible for maintaining the exploration concession and permits comprising
the Project in good standing, and paying all fees and assessments, and taking such other steps, required in order to do so.
There will be no other work commitments, and any work carried out on the Project will be at the sole discretion of
Centenera.
Quality Assurance / Quality Control
The Huachi copper -gold porphyry drill testing was un dertaken by Cardero Resource Corp. from 2006 to 2007. On site
personnel at the project rigorously collected and tracked samples, which were then sealed and shipped to ALS Chemex for
analysis. ALS Chemex's quality system complies with the requirements for the International Standards ISO 9001:2000 and
ISO 17025: 1999. Analytical accuracy and precision are monitored by the analysis of reagent blanks, reference material and
replicate samples. Quality control was further assured by the use of international and in -house standards. Blind certified
reference material was inserted at regular intervals into the sample sequence by Cardero personnel in order to
Centenera Mining Corporation 6 23 January 2017
NR17-01 Continued
independently assess analytical accuracy. Finally, representative blind duplicate samples were forwarded to ALS Chemex
and an ISO compliant third party laboratory for additional quality control.
Drill testing of the epithermal gold system was undertaken by Kestrel Gold Inc. from 2011 to 2012. D iamond drill core was
submitted to Alex Stewart Assayers Argentina S.A. in Mendoza, Argentina ; an ISO 9000 -2000 accredited laboratory. Gold
and silver results were determined using standard fire assay techniques on a 30 gram sample with a gravimetric finish for
gold and silver. In addition to this, ICP -AR (Aqua Regia digestion) analysis was performed on 38 elements. QA/QC
performed by Kestrel included the collection of core duplicate samples, coarse reject samples and the insertion of certified
reference samples (standards) and blanks. UAKO Geological Co nsultants supervised and assessed the QA/QC procedures
and data in compliance with National Instrument 43-101 requirements.
The r esults of the copper -gold porphyry drill -testing are included in this news release as they will form the basis of
Centenera’s planned exploration. Results from Kestrel’s drill program are partially included on Figure 1, but are not
discussed in detail in this release. Results from all historical drilling are tabulated and included as Appendix I . Historical
data was received from the underlying owners and includes assay certificates and QA/AC data.
Qualified Person
Tyler Caswell, P .Geo., the Company's Exploration Manager and a qualified person as defined by National Instrument 43 -
101, has reviewed the scientific and technical information that forms the basis for portions of this news release, and has
approved the disclosure herein. Mr. Caswell is not independent of the C ompany, as he is an employee and holds incentive
stock options.
Centenera Mining Corporation 7 23 January 2017
NR17-01 Continued
LC058578-1
APPENDIX I
Cardero Resource Corp. Historical Drilling 2006 to 2007
Centenera Mining Corporation 8 23 January 2017
NR17-01 Continued
LC058578-1
Kestrel Gold Inc. 2011 to 2012