Ground-based Gravity and Magnetic Geophysical Survey Starts at the Macara Gold and VMS Project, Loja, Ecuador
November 12, 2020
Ground-based Gravity and Magnetic Geophysical Survey Starts at
the Macara Gold and VMS Project, Loja, Ecuador
VANCOUVER, BRITISH COLUMBIA, November 12, 2020 -- SALAZAR RESOURCES LIMITED (TSXV: SRL)
(Frankfurt: CCG.F) (“Salazar” or the "Company") is pleased to announce it has started a ground -based
gravity and magnetic geophysical survey at the 100% owned Macara gold and volcanogenic-massive-
sulphide (“VMS”) project in Loja, Ecuador.
The geophysical survey marks a major step in advancing exploration on this property, which is prospective
for both oxide gold near surface, and copper-gold-zinc-silver assemblages in buried VMS bodies.
Merlin Marr-Johnson, EVP of Salazar Resources said, “Ground gravity geophysics is a proven tool in VMS
exploration, so it is exciting to be starting this program at Macara. Several blind massive sulphide deposits
have been discovered using joint interpretation of geological and geophysical models, including Neves-
Corvo and Lagoa Salgada in Portugal, Valverde and Las Cruces in Spain , and the Tambo Grande deposits
in Peru, just 90 km to the southwest of Macara.”
“The presence of good gold grades in silica-barite stockworks at the higher elevations and disseminated
pyrite, chalcopyrite, and bornite in the pillow lavas at lower elevations in the creek indicate that the
geology of Macara is mineral -rich. Clearly the optimum result would b e for the geophysical survey to
generate some bullseye targets representative of extremely dense material to be drill -tested. We look
forward to having the survey finished shortly with an interpretation to follow, so that we can incorporate
drilling at Macara into Salazar’s exploration plan for 2021. With drilling underway at our Los Osos
exploration project too, we are making solid progress in line with our strategy to make commercial
discoveries in Ecuador.”
MACARA
Macara is a 100% Salazar Resources project in Loja, Ecuador consisting of two concession areas , the 288
hectare (“ha”) Macara Mina licence and the 1,519 ha Bonanza licence. The Macara Mina licence hosts the
greater potential, with exploration targets for gold and VMS-related mineralization well advanced.
Exploration Rationale
The geology at Macara consists largely of volcanic rocks of Cretaceous age, known locally as the Celica
formation. Over the border in Peru, the same aged rocks, known locally as the Lancones Formation, host
the Tambo Grande (“TG”) Cu-Zn-Au-Ag VMS deposits. Three unusually large VMS deposits occur within
the vicinity of the town of Tambo Grande, Peru, approximately 90 km from Macara. The depos its are
estimated to contain over 300 Mt of material 1. An oxide resource at the TG1 orebody contains an
1 www.sec.gov/Archives/edgar/data/1004701/000120445903000146/manhattanannualreport.htm
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estimated 16.7 Mt grading 3.5 g/t gold and 64 g/t silver in the barite cap. The underlying sulphide ore at
TG1 is estimated to contain 108.7 Mt grading 1.6% copper, 1.0% zinc, 0.5 g/t gold and 22 g/t silver.
Salazar Resources has identified exploration potential for both oxide gold and underlying VMS at Macara.
The Company outlined oxide gold potential associated with silica -barite stockworks through ground
geochemistry and geological mapping, centered on robust geochemical anomalies in the licence area (see
Figure 2 and news release dated July 11, 2019). Salazar has also identified geolog ical features typically
found in VMS environments and the purpose of the geophysical survey currently underway is to assist
with locating underlying sulphide ore potential.
Figure 1. Location of Macara Mina and Bonanza concessions, Macara project, Loja, Ecuador
Source: Salazar Resources
Geophysics
The Macara Mina licence has been digitally mapped to provide a topographic model accurate to 5 cm. The
geophysical survey will comprise seventeen lines, spaced 100 m apart, for 31 line -kilometres in total.
Magnetic and gravity measurements will be taken approximately every 100 m. Deep Sounding, High
Resolution Geophysics, Peru, has been contracted to carry out the work.
Geology
As previously reported (News Release dated July 11, 2019), mapping at Macara Mina has identified a suite
of basalts, andesites, and pillow lavas interpreted to be part of a tholeiitic volcanic arc. Gold and base
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metal mineralisation is spatially related to a complex of hydrothermal breccias and stockworks in pillow
lavas that are silicified to varying degrees and that occasionally host barite. Where the pillow lavas are
brecciated, the pillows contain <1% pyrite, chalcopyrite and bo rnite with occasional sphalerite in the
matrix, and there is less intense mineralization in the pillows themselves. Where the stockworks contain
barite veinlets and exhibit more intense silicification, often characterized by iron oxide staining, the gold
and silver grades are elevated. The Company previously reported grades of up to 9.94 g/t Au in soil, and
29.60 g/t Au in rock samples from Macara.
Figure 2. Macara Mina soil geochemistry, gold
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QAQC
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 analysed by Inspectorate Services Perú S.A.C.
(Bureau Veritas), a certified ISO 17025:1999 and ISO 9001:2000 laboratory. The laboratory also maintains
a QAQC program that includes insertion of blanks, standards and duplicate reanalysis of selected samples.
Gold was analysed 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 — Mass
Spectroscopy (ICP-MS) finish.
Qualified Person
Kieran Downes, 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
Salazar Resources (SRL.V) (CCG.F) is focused on creating value and posit ive 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 is underway and a 2019
PEA generated a base case NPV( 8%) of US$288 million. At two copper -gold porphyry projects, Pijili and
Santiago, the Company has a 20% stake fully carried through to a construction decision.