Drilling Update New Gold Zone intersected at Los Santos
Drilling Update
New Gold Zone intersected at Los Santos
VANCOUVER, BRITISH COLUMBIA, June 22, 2022 -- SALAZAR RESOURCES LIMITED (TSXV: SRL; OTC QX:
SRLZF; Frankfurt: CCG.F) (“Salazar” or the "Company") is pleased to announce the final results from the
2,575m Los Santos exploration drilling program, where drilling has intersected a significant new gold zone.
A total of 13 holes were drilled, with the drilling results from four holes reported on May 31, 2022. The
assays from the remaining nine holes are reported here.
Two holes were drilled into the Fortuna target area (“Fortuna”) in the northwest of the concession and
have intersected a new gold zone which starts at outcrop and extends to significant depth. Fortuna is 700
m away from the Cangrejos concession boundary and less than 2 km from the center of the Cangrejos
main mineral resource, held by Lumina Gold (Figures 1 and 2). Lumina Gold quotes resources of 10.4 Moz
gold in the Indicated category at a grade of 0.57 g/t Au.
The drilling results from seven holes at Brecha Sur returned narrow widths of mineralized material.
Highlights:
• Drillhole SAN-010 (Fortuna) returned 103.0 m @ 0.52 g/t Au, 0.16% Cu, 217 ppm Mo from surface,
including 67.6 m @ 0.73 g/t Au, 0.21% Cu and 271 ppm Mo from surface
• Drillhole SAN-009 (Fortuna) returned 22.3 m @ 0.67 g/t Au, 0.21% Cu, and 89 ppm Mo from 5.1m
Fredy E. Salazar, CEO, commented: “We are encouraged with the drilling results at Fortuna which have
identified a strongly mineralized system. Both holes (SAN-009 and SAN-010) returned thick intersections
of gold, copper, and associated alteration from surface. These results are a play -opener in the Fortuna
target area. Fortuna is located close to known mineral resources at Cangrejos where Lumina Gold is
finding extensions to existing resources in expansion drilling. Brecha Sur drill results show that the
geology at depth did not correlate with the spectacular trench results at surface.
We will now plan Phase 2 exploration program at Los Santos, based on a new geological interpretation
incorporating the recent drillhole data.
Salazar Resources’ goal is to make the country’s next commercial copper -gold discovery. The Company
also aims to find partners for some projects and to retain at least one project on a 100% ownership basis
to drive wholly-owned growth and value creation.”
Los Santos
Background information to Los Santos is available at the Salazar Resources website:
https://salazarresources.com/projects/100-salazar-owned/los-santos/
Exploration at Los Santos has comprised mapping, sampling, and drilling. The targets shown in Figure 1,
below, have been drill-tested. Drilling is completed, and consisted of 2,575 m in thirteen separate holes.
2
Final Drill Results at Los Santos
Results have been returned from the remaining nine holes completed in the Phase 1 drilling program at
Los Santos. Two holes were drilled on the Fortuna target and seven holes were drilled on the Brecha Sur
target. A map showing the location of the drill holes is shown in Figure 1, below. The collar locations of
all thirteen holes are shown in Table 1, below.
Table 1. Los Santos Phase 1 drill program collar locations
Target Hole ID East North Dip Azimuth Total
Depth(m)
Esperanza SAN-001A 637947 9610689 -60 280 298.8
SAN-002 637938 9610647 -60 270 227.0
Leon SAN-003A 637619 9611896 -70 80 327.6
Rayo SAN-004 637548 9611980 -50 290 439.0
Brecha Sur SAN-005 636693 9607234 -60 125 245.0
SAN-006 636655 9607128 -50 130 174.6
SAN-007 636654 9607083 -50 130 94.2
SAN-007A 636654 9607083 -42 320 35.0
SAN-008 636754 9607165 -46 320 44.0
SAN-008A 636754 9607165 -42 320 34.4
SAN-008B 636754 9607165 -60 320 130.9
Fortuna SAN-009 635744 9613500 -60 110 224.1
SAN-010 635744 9613500 -85 290 275.0
The results from holes SAN-005 to SAN-010 are shown in Table 2, below.
Table 2. Drilling results from Los Santos
Hole From (m) To (m) Width (m)* Au (g/t) Cu (%) Mo (ppm) Ag (g/t)
SAN-005 No significant results
SAN-006 137 140.65 3.65 0.03 0.004 - 12.7
SAN-007 Unsampled
SAN-007A 10.45 14.35 3.9 0.3 0.004 1 1.3
SAN-008 10.8 12.65 1.85 0.3 0.02 1 6.2
SAN-008A 7.1 10.4 3.3 1 0.01 1 2
SAN-008A 13.4 15.3 1.9 0.1 0.02 1 3.9
SAN-008B 5.2 11 5.8 1.08 0.03 1 5.8
SAN-009 5.1 27.35 22.25 0.67 0.21 89 1.4
and 39.6 45.65 6.1 0.2 0.08 12 0.9
and 84.55 105.2 20.7 0.21 0.14 10 0.8
and 124.75 135.48 10.7 0.2 0.14 54 0.8
SAN-010 0 103 103 0.52 0.16 217 0.9
incl. 0 67.6 67.6 0.73 0.21 271 1.1
* Downhole widths
3
Figure 1. Los Santos exploration targets and drill plan
4
Figure 2. Fortuna geochemistry and drill plan
Fortuna
Previous mapping and sampling at Fortuna identified a breccia pipe estimated to be approximately 100 m
x 100 m in size. Fortuna is located approximately 1 Km from the Casique Tourmaline Breccia and
approximately 2 km from the Cangrejos porphyry system, both of which are Lumina Gold properties.
Two holes were drilled at Fortuna from the same platform, SAN-009 to the east-southeast, and SAN-010
to the west -northwest. Both holes intersected gold and copper from surface and at depth . The
mineralization reported above was predominantly, but not exclusively, within the breccia pipe . Drillhole
SAN-010 returned 103.0 m @ 0.52 g/t Au, 0.16% Cu, 217 ppm Mo from surface, including 67.6 m @ 0.73
g/t Au, 0.21% Cu and 271 ppm Mo from surface. Mineralization within the breccia was weaker after 136
m, and the hole exited the breccia body at 178.0 m downhole.
Drillhole SAN-009 returned an initial intersection of 22.3 m @ 0.67 g/t Au, 0.21% Cu, and 89 ppm Mo from
5.1 m. Three additional zones of mineralization of 6.1 m, 20.7 m, and 10.7 m were intersected (see Table
2, above) further down the hole . The hole exited the breccia body at 135.5 m downhole , and
mineralization extended beyond the breccia body into the country rock.
The higher-grade intervals are associated with zones of more intense brecciation and alteration. In these
zones the matrix is dominated by f ine grained magnetite , associated with clots of epidote and fine
disseminated molybdenite. The presence of albite, actinolite, epidote and chlorite in the wider mineral
5
suite indicates calc-sodic alteration. The multiple zones of mineralization internally within the breccia, at
the boundary, and in the country rock suggest the presence of a robust hydrothermal system. The breccia
pipe and the alteration features are interpreted to be apical features of a deeper porphyry body.
Figure 3. Fortuna drill section, holes SAN-009 and SAN-010
Brecha Sur
At Brecha Sur, previously reported mapping had identified a number of small lenses (20m x 10m)
exhibiting classic high sulphidation mineralization in a brittle compressional structural regime. The main
minerals are pyrite, arsenopyrite, enargite, tennantite, and Ag sulfosalts (pyrargyrite). Associated with the
sulphide lenses is an advanced argillic assemblage consisting of kaolinite -alunite, illite-smectite, and
sericite. Locally, they form hydrothermal breccias with quartz-sulphide aggregates.
Drilling in the area proved challenging as the geology found at surface was not encountered in the same
style at depth. Whereas trenching had shown strong mineralization at surface, such as 14.5 m @ 19.5 g/t
Au and 274 g/t Ag, drilling below the sulphide lenses did not intersect promising geology. The best drill
result was 5.8 m @ 1.08 g/t Au, and that was from a depth of just 5.2 m downhole. As can be seen in Table
2, the key intersections in the four holes SAN -007A to San -008B were all made at starting de pths of
shallower than 14 m. Hole SAN -006 targeted a well -triangulated structure at depth below known
mineralization, and it only returned 3.65 m @ 0.03 g/t Au.
6
Figure 4. Brecha Sur Cross-Section
Next Steps
The intersection of mineralization at Fortuna is a play-opener a t a very early stage of definition . The
surface mineralization at Brecha Sur is also very strong, and a detailed review from Brecha Sur to the
northeast will be undertaken by Salazar Resources in future work. A Phase 2 exploration plan at Los
Santos, incorporating the new information and drillhole data will be developed.
QA/QC
Salazar maintains a rigorous chain-of-custody and quality assurance/quality control program that includes
the insertion of certified standard control samples and blanks, and re-analysis of samples with high levels
(over limit) of gold, copper and zinc. All samples were analyzed by Inspectorate Services Perú S.A.C.
(Bureau Veritas), a certified ISO 17025:1999 and ISO 9001:2000 laboratory. The laboratory also maintains
a QA /QC program that includes insertion of blanks, standards and duplicate reanalysis of se lected
samples. Gold was analyzed by fire assay – atomic absorption spectroscopy (FA-AAS). Silver, copper, zinc
and other elements were analyzed by aqua regia extraction with an Inductively Coupled Plasma (ICP-ES)
finish.
7
Qualified Person
Kieran Downes, Ph.D., P. Geo., a Qualified Person as defined by National Instrument 43-101, has reviewed
and verified the technical information provided in this release.
About Salazar Resources
Salazar Resources is focused on creating value and positive change through discovery, exploration and
development in Ecuador. The team has an unrivalled understanding of the geology in -country, and has
played an integral role in the discovery of many of the major projects in Ecuador, including the two newest
operating gold and copper mines.
Salazar Resources has a wholly-owned pipeline of copper-gold exploration projects across Ecuador with a
strategy to make another commercial discovery and farm -out non -core assets. The Company actively
engages with Ecuadorian communities and together with the Salazar family it co -founded The Salazar
Foundation, an independent non-profit organisation dedicated to sustainable progress through economic
development.
The Company already has carried interests in three projects. At its maiden discovery, Curipamba, Salazar
Resources has a 25% stake fully carried through to production. A feasibility study for initial open -pit
development announced in October 2021 (the “Feasibility Study”) generated a base case NPV(8%) of
US$259 million (for further information, please refer to the Company’s news release dated October 26,
2021). At two copper-gold porphyry projects, Pijili and Santiago, the Company has a 20% stake fully carried
through to a construction decision.
For further information about Salazar Resources, please contact Merlin Marr -Johnson, Executive Vice
President and Corporate Secretary, at [email protected] or [email protected] or at +1
604 685 9316.
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.
This press release contains “forward -looking information” within the meaning of applicable Canadian
securities laws. Any statements that express or involve discussions with respect to predictions,
expectations, beliefs, plans, projections, objectives, assumptions or future events or performance (often,
but not always, identified by words or phrases such as “believes”, “anticipates”, “expects”, “is expected”,
“scheduled”, “estimates”, “pending”, “intends”, “plans”, “forecasts”, “targets”, or “hopes”, or variations
of such words and phrases or statements that certain actions, events or results “may”, “could”, “would”,
“will”, “should” “might”, “will be taken”, or “occur” and similar expressions) are not statements of
historical fact and may be forward-looking statements. Forward-looking information herein includes, but
is not limited to, statements that address activities, events, or developments that Salazar expects or
anticipates will or may occur in the future. Although Salazar has attempted to identify important factors
that could cause actual act ions, events or results to differ materially from those described in forward -
looking information, there may be other factors that cause actions, events or results not to be as
anticipated, estimated or intended. There can be no assurance that such informat ion will prove to be
accurate, and actual results and future events could differ materially from those anticipated in such
information. Accordingly, readers should not place undue reliance on forward -looking information.
8
Salazar undertake to update any for ward-looking information in accordance with applicable securities
laws.