PPX Mining Announces Updated Resource FOR Callanquitas GOLD-Silver Deposit and Geological Potential of Igor Project
NEWS RELEASE; TSX.V PPX; BVL PPX
PPX MINING ANNOUNCES UPDATED RESOURCE FOR CALLANQUITAS
GOLD-SILVER DEPOSIT AND GEOLOGICAL POTENTIAL OF IGOR
PROJECT
Toronto – January 8, 2024 – PPX Mining Corp. (the “ Company ” or “ PPX ”) is pleased to announce an
updated Mineral Resource Estimate for the Callanquitas gold–silver deposit and a geological potential study
on the Company’s wholly-owned IGOR project, located in northwestern Perú, approximately 150
kilometers northeast of the city of Trujillo in the Huaranchal district of the La Libertad Region.
The NI 43-101 technical document shall be available within the regulatory filing timeframe and was carried
out by the following independent consultants: a) Mining Plus Peru S.A.C., engineering firm responsible for
the Callanquitas deposit resource estimate update a nd b) Geologica Groupe-Conseil Inc., responsible fo r
the geological review, analysis and data compilation to determine the potential of the Igor Project.
Highlights:
• Measured & Indicated (“M&I”) Resources as oxides: 81,090 Au ounces and 2.9 million Ag ounces.
• M&I Resources as oxides: 100,290 AuEq ounces at 4.70 g/t AuEq.
• Inferred Resources as sulfides: 34,450 AuEq ounces at 4.63 g/t AuEq.
• Potential for additional resources in Callanquitas East as it remains completely open at depth and
along strike to the north and south.
• The potential of Callanquitas West, which runs clos e to and parallel to the eastern zone and mirrors
Callanquitas East, must be explored. Minimum exploration has been conducted in this zone.
• The presence of sulfide ore along strike to the south of the present workings has largely been ignored
in favor of oxide ore and additional exploration ha s the potential to define sulfide structures, known
from limited production to carry elevated silver grades.
• There is a high potential to increase resources in the areas of Portachuelos, Domo, and Tesoros
• The extension of Portachuelos, Domo and Tesoros zon es is significant, each being 1.2 to 2 km in
length with mineralized structures showing widths from 2 to 5 meters.
John Thomas, CEO of PPX Mining commented: “I am ple ased to announce that resources from a section of
the Callanquitas veins/breccias remain, allowing PP X to continue operations and to expedite the plant
construction (for oxide and sulphide ore), while co ntinuing to expand resources with diamond drilling
campaigns from the subsurface and surface of the Ea st and West Callanquitas veins/breccias, targeting the
open areas along strike and at depth. Currently, th e company, in coordination with its mining partner PLP,
is conducting a drilling campaign from the subsurface, and we are excited that Canadian geology consultants
are demonstrating the potential of the other mineralized zones of the Igor project, such as Portachuelos, Domo
and Tesoros, with clear evidence of high gold and silver grades, offering an excellent opportunity to increase
the company's resources.”
I. MINERAL RESOURCE UPDATE
Table 1: Callanquitas Mineral Resource as of 30 September 2023
Material Category
Tonnes Au Ag AuEq Au Ag AuEq
m3 g/t g/t g/t Oz Oz Oz
Oxides
Measured 22,900 5.25 48 5.56 3,870 35,340 4,090
Indicated 640,800 3.75 141 4.67 77,260 2,904,910 96 ,210
M+I 663,700 3.80 137 4.70 81,090 2,923,370 100,290
Inferred 528,500 3.72 103 4.40 63,210 1,750,140 74, 760
Sulfides
Measured - - - - - - -
Indicated - - - - - - -
M+I - - - - - - -
Inferred 231,400 2.79 278 4.63 20,760 2,068,230 34, 450
Notes:
1. Mineral Resources are not Mineral Reserves and have not demonstrated economic viability.
2. The MRE has been categorized in accordance with the CIM Definition Standards (CIM, 2014).
3. All figures are rounded to reflect the relative acc uracy of the estimates. Minor discrepancies may occ ur due to
rounding to appropriate significant figures.
4. The Mineral Resource was estimated by Ms Muñoz QP(Geo) of Mining Plus, Independent Qualified Person
under NI 43-101.
5. The Mineral Resource is reported inside an undergro und shell with a cut-off grade of 2.00 g/t gold eq uivalent,
estimated using a gold price of 1,800 US$/oz and si lver price of US$ 20 US$/oz.
6. MRE is reported on a 100 percent basis within an un derground shell. The gold equivalent is based in th e
following formula AuEq = Au + Ag*0.0066.
7. This report is dated the 7 November 2023 and has an effective date of 30 September 2023.
8. The cut-off date for mining depletion is 30 Septemb er 2023.
Mineral Resource Estimate
The Mineral Resources Estimate for the Callanquitas Deposit was prepared by Ms. María Muñoz, full-time
employee of Mining Plus Peru S.A.C. The Mineral Resources within the Callanquitas gold-silver deposit are
deemed potentially suitable for underground mining. These estimates are derived from drill holes and channel
samples spanning the years 2006 to 2018, as documented in the 2018: “Technical Report and Pre-Feasibil ity
Study for The Callanquitas Gold-Silver Deposit, Igo r Project, La Libertad Region, Peru”. Additionally, the
data set includes 7 drill holes and 57 channels from 2019, along with 210 channels from 2023; the latest is in
the deepest part to evaluate the expansion of resources at depth.
Post-2018, mining activities in the deposit have en hanced the geological understanding, leading to a n ew
geological interpretation. Furthermore, the estimat ed resources have been adjusted to account for upda ted
economic parameters, ensuring compliance with the " reasonable prospects for eventual economic extracti on
requirement". These different aspects have generate d a material change in resources, mainly due to min ing
production which has generated a reduction in resources compared to those reported in 2018.
The Mineral Resource is reported inside underground optimized shapes with a reasonable cut-off grade o f
2.00 g/t gold equivalent, based on a gold price of US$1800/oz and silver price of US$20/oz, mining costs and
metallurgical recovery from the current mining activities.
The Mineral Resource Estimate (MRE), with an effect ive date of 30 September 2023, has been reported in
accordance with the Canadian National Instrument 43-101 (NI 43-101) Standards for Disclosure for Mineral
Projects. The estimation process followed the “Esti mation of Mineral Resources and Mineral Reserves Be st
Practice Guidelines” prepared by the Canadian Insti tute of Mining, Metallurgy and Petroleum (CIM, 2019).
Callanquitas comprises three structures, namely Callanquitas West and Callanquitas East, along with a minor
structure named Callanquitas Sigmoid, the latest on e is a smaller sigmoid of Callanquitas East. The
determination of estimated domains involves a combi nation of these structures with their associated gr ade
shell. The length sample exhibits variability, alth ough composite lengths of 0.5 m were specifically c hosen,
representing a multiple of prevalent or dominant ra w sampling intervals. Grade capping has been selectively
applied to composited grade intervals within each estimation domain. The estimation methodologies for gold
and silver grades predominantly employ Ordinary Kri ging (OK) across most domains. However, Inverse
Distance Square (ID2) was utilized for estimating C allanquitas Sigmoid due to the limited dataset avai lable.
To validate the results, bias checks were conducted using nearest neighbor (NN) estimation.
As of September 30, 2023, the MRE includes Measured, Indicated, and Inferred Resources; as Measured and
Indicated resources in Oxides, there are around 663,700 tonnes with a gold equivalent grade of 4.70 g/t, with
a metal content of 100,290 ounces of gold equivalen t, and as Inferred in oxides there are around 528,5 00
tonnes with a gold equivalent grade of 4.40 g/t, with a metal content of 74,760 ounces of gold equivalent.
Sulfides have been classified as inferred because their information is limited. Mining Plus highlights that the
initial Metallurgical tests carried out in-house ha ve demonstrated high recoveries; however, for these
resources, the recovery has been considered similar to that of oxides. There are 231,400 tonnes estimated with
a gold equivalent grade of 4.63 g/t, with a metal content of 34,450 ounces of gold equivalent.
Mineral Resource Estimate Sensitivity
Mining Plus also evaluated the Callanquitas deposit mineral resource estimate for Mineral oxides by cu t-off
grade range between 2.0 gt/ AuEq and 7.0 g/t AuEq as per the table below:
Table 2: Cut-Off Grade Sensitivity of Mineral Resources for Mineral Oxides
Measured+ Indicated Inferred
Cut Off
(AuEq
g/t)
Tonnes Au (g/t) Ag (g/t) AuEq
(g/t) Tonnes Au (g/t) Ag (g/t) AuEq
(g/t)
2.00 669,077 3.91 139 4.85 530,122 3.88 107 4.61
2.50 642,713 3.99 143 4.96 502,756 3.98 111 4.73
3.00 597,001 4.12 148 5.13 454,961 4.17 113 4.94
3.50 514,198 4.34 160 5.42 354,301 4.62 117 5.42
4.00 416,853 4.63 174 5.82 299,628 4.86 127 5.73
4.50 323,093 4.93 197 6.27 236,552 5.16 141 6.12
5.00 233,786 5.34 223 6.86 174,101 5.48 166 6.62
5.50 167,192 5.74 258 7.50 129,370 5.82 188 7.10
6.00 120,000 6.28 282 8.19 96,650 6.08 217 7.56
6.50 89,242 6.73 317 8.89 74,809 6.35 233 7.94
7.00 73,602 7.14 324 9.35 56,016 6.62 252 8.34
Geological Data
The updated Mineral Resource Estimate includes dril l and channel data as of August 2023. It includes a n
additional data set of 7 drill holes and 57 channels from 2019, along with 210 channels from 2023 made after
the previous Mineral Resource dated December 3, 2018. All data information and underground mapping were
used to generate a new geological interpretation an d domains, resulting in a better understanding and
confidence in the resource estimate. The updated mi neral resource estimate includes only the Callanqui tas
deposit.
Geology of Callanquitas
The gold/silver mineralization of Mina Callanquitas corresponds to an intermediate sulfidation system hosted
in the magmatic-hydrothermal breccia units that bre ak the Goyllarisquizga sediments. Mineralization in
sediments occurs as the filling of secondary fractu res due to the low permeability of the rocks. There is an
intrusive that also cuts through the sediments where mineralization is medium to low grade.
Callanquitas East structure has a strike of 5° to 10° NE and Callanquitas West has a strike of 340° NE, in both
cases the dip is around 87°E with variable thickness, ranging from 0.30 cm to 6.0 m. Sigmoid structure is part
of the Callanquitas East structures and is located at the top with sigmoidal behavior.
There is still mineralization potential in the Portachuelos, Tesoros and Domo sectors that have been identified
with early exploration, and that have not yet been investigated.
Figure 1: Longitudinal Section with composites and block model coloured by gold equivalent grade –
Callanquitas East
Figure 2: Longitudinal Section with composites and block model coloured by gold equivalent grade –
Callanquitas West
QA/QC and Sampling Protocols
PPX adheres to industry-standard exploration method ologies and techniques throughout its exploration
process. The collection of drill core and undergrou nd samples is conducted under the supervision of th e
company's geologists, following established industry practices; data not aligned with the minimum standards
set by PPX and industry practices has been excluded from the resource estimation process. Once transported
from the drill platform to the logging facility, the drill data is meticulously compared and verified against the
core in the trays. Subsequently, the core is logged , photographed, and split using a diamond saw befor e
undergoing sampling. The sampling process involves bagging the samples, with the inclusion of quality
control materials at regular intervals. These contr ol materials consist of coarse blanks, certified re ference
materials, and duplicate core samples, serving to evaluate sampling precision and reproducibility. To maintain
a secure chain of custody during sample transportat ion from the project site to the laboratory, groups of
samples are placed in large bags that are sealed with numbered tags.
The majority of sample analyzes were conducted by S GS Laboratories, with ALS Chemex Laboratories
contributing to a lesser extent, both laboratories located in Peru. The analytical method was consiste nt over
time, including a multi-element technique with aqua regia digestion followed by ICP/AES detection, including
silver values. Gold content was analyzed using a 30 g Fire Assay with an AAS finish. For silver result s
exceeding 100 g/t, a reanalysis was performed using aqua regia digestion with an ore grade AAS finish, while
values exceeding 1,500 g/t underwent analysis using fire assay with a gravimetric finish. Regarding go ld,
values above 10 g/t underwent re-assay through Fire Assay with gravimetric finishing.
II. GEOLOGICAL POTENTIAL OF IGOR PROJECT
Portachuelos, Domo and Tesoros Mineralized Zones
Geologica Groupe-Conseil Inc. (Geologica) has recently conducted evaluations of the geological potential in
the three main mineralized zones (Portachuelos, Dom o, and Tesoros). Geologica acknowledges that the
exploration efforts undertaken by PPX have been adequately executed, employing exploration techniques and
methodologies that align with standard practices in the mining industry. The location of these three z ones is
shown in figure 3. below.
Figure 3: Location of Mineralized zones
Past and recent work completed at the Portachuelos, Domo and Tesoros mineralized zones has indicated lateral
extension potential at significant width and grades to justify infill and definition drilling on them. Just like at
Callanquitas, interesting grades of gold and silver mineralization have been found in these three (3) main
zones. Geologica has independently validated these results through an independent check sampling,
encompassing 82 samples (33 channel samples on the surface and 49 drill hole samples), thereby confirming
the outcomes obtained in prior work conducted by PPX
The Portachuelos breccia is oriented ESE-WNW. The D omo structures and the Tesoros mineralized zone
strike NNE and observed onsite over 1.6 km. The Portachuelos structure and mineralized zone trends SE along
lithological contacts and structures trending over 1.5 km and dipping steeply to the SW. Gold and silv er
mineralization, with locally visible silver, are fo und in breccias, epithermal veins and mantos that o riginally
contained variable quantities of pyrite, 1% to 25% and massive, arsenopyrite, minor chalcopyrite (< 6%
locally), galena (< 4% locally) and sphalerite (< 3 % locally). These sulfides have been strongly oxidi zed to
goethite and limonite to depths of 200 to 300 meter s below surface. Ag/Au ratios are generally low (ab out
10:1) in the oxide portion but can increase to over 100:1 at the oxide-sulfide interface at the Callan quitas
deposit and similarly at the Portachuelos, Domo and Tesoros mineralized structures.
These mineralized structures show good width from 2 m to 5 m and lateral length extensions from 1.2 km to
2.0 km and are hosted within brecciated and fractur ed quartzites of the favourable Chimu-Santa Formati ons
and transition zones. The mineralization was injected within altered fractures, faults, fold flanks (mantos) and
fold noses. The hot fluids were carrying metal ions from deeper within the intrusion or intrusive magm a and
formed epithermal veins once cooled. Just like at C allanquitas mine, depth extensions of the three zon es
(Portachuelos, Domo & Tesoros) could reach 500 meters or more and be open along strike.
The various geophysical surveys (Mag and IP-Resistivity-Chargeability) permitted location of the mineralized
structures and their lateral and depth extensions i n the central part of the property covering Callanq uitas and
Portachuelos. Once drilled, these mineralized struc tures and extensions will eventually permit ore res ource
calculation, if warranted. The recent core and chan nel sampling completed by Geologica has permitted t o
validate and corroborate the assay results previously obtained by PPX and confirm the presence of significant
results as well as to observe the lateral continuit y of the mineralized zones. The results of the IP-R esistivity
survey and total magnetic survey carried out in 2008 are shown in fig 2 and 3 below.
Figure 4: IP-Resistivity Survey
Figure 5: Total Magnetic Survey
Drill core sampling of the 3 areas has confirmed th e mineralization present with grades above 1 g/t ra nging
from 1.06 g/t to 19.11 g/t Au and silver grades up to 560.94 g/t Ag over widths of 1.04 m to 9.05 m. T he
channel sampling at the surface has also confirmed the mineralization presence in the three areas with grades
above 1 g/t Au ranging from 1.14 g/t to 4.50 g/t Au and silver grades up to 209.00 g/t Ag over channel widths
of 0.5 m to 3.8 m. The drill holes have illustrated higher gold grades at depth and were observed in the sampled
drill holes and surface channel sampling. The most significant diamond drill hole intersections for the Tesoros
zone are shown in Table 3, those for Portachuelos in Table 4.
Table 3: Most significant diamond drill hole intersections for the Tesoros zone
Table 2: Most significant diamond drill hole intersections for the Portachuelos zone
Geologica is of the opinion that the Property is on e of merit with mineralized structures (Callanquita s,
Portachuelos, Tesoros and Domo) and this warrants f urther exploration with the following Phases. Phase 1
surface exploration work program will consist of su rface detailed geological mapping, soil geochemical
surveys, geophysical surveys with Gravity, Magnetom etric (Mag) and Induced Polarization (IP-Resistivit y),
at a higher resolution than the previous work, anom alous Geochem and Geophysical anomalies will be
followed by mechanical trenching, detailed geological mapping and sampling, particularly over the three zone
extensions (Portachuelos, Domo and Tesoros) and a f irst phase of drilling (1 DDH by zone). Phase 2 wil l
consist in diamond drilling with both infill and de finition drilling on all three (3) zones. A total b udget of
$4,223,000 is recommended.
Marcial Gutierrez, General Manager and Chief Geolog ist, commented, “We will continue to advance our
exploration plans to expand the Callanquitas resour ce, in both, Callanquitas East, which is widely ope n at
depth and along strike, and Callanquitas West, which is expected to mirror the high grade zones of the eastern
breccia. Other key mineralized zones have been partially explored in the past and appear to be extensive and
prospective. The Geologica Consultants recommendation for carrying out higher resolution geophysics an d
further drilling will certainly contribute to advan ce these key zones towards a resource definition, a lthough
widespread gold mineralization has already been found through the limited drilling in Portachuelos, making
this massive structure a priority drilling target.”
Qualified Persons and Technical Information
The Mineral Resources Estimate was estimated by Ms. Maria Muñoz, a member of the Australian Institute of
Geoscientists (MAIG), Ms. Muñoz is a full-time empl oyee of Mining Plus Peru S.A.C. and she is an
independent Qualified Person (QP) as defined by the National Instrument 43-101.
Mr. Alain-Jean Beauregard, Mr. Eddy Canova, and Mr. Daniel Gaudreault, all full-time employees of
Geologica Groupe-Conseil Inc. and recognized as ind ependent Qualified Persons (QP’s) under the Nationa l
Instrument 43-101, conducted an assessment of the g eological potential of the Portachuelos, Domo, and
Tesoros mineralized zones. During their visit to t he Igor Property from November 3 to 7, 2023, Mr.
Beauregard and Mr. Canova thoroughly examined and s ampled the core, underground workings, and adits,
with a specific focus on the three primary mineralized zones. Geologica is an independent mining exploration