Salazar Resources Acquires Mineral Title to El Potro Copper-Gold Project, Loja, Ecuador
September 20th, 2021
Salazar Resources Acquires Mineral Title to El Potro Copper-Gold
Project, Loja, Ecuador
VANCOUVER, BRITISH COLUMBIA, September 20th, 2021 -- SALAZAR RESOURCES LIMITED (TSXV: SRL,
OTC QX: SRLZF, Frankfurt: CCG.F) (“Salazar Resources” or the "Company") is pleased to announce that it
has acquired the mineral title to the 1,175 hectare (“ha”) Correa-Jiron Concession 601062 (“El Potro”) in
the mineral -rich Loja porphyry district, Ecuador for an initial payment of US$50 ,000. Following due
diligence, the Company believes that El Potro is a new porphyry discovery with significant exploration
potential.
Highlights
• Multiple indications that El Potro contains a well-preserved porphyry system with a gold-bearing
lithocap
• Gold, and copper and molybdenum-bearing minerals identified during due diligence
• Lithocap channel samples include 3 m @ 26.6 g/t gold (“Au”), and 3 m @ 9.0 g/t Au
• Porphyry stockwork samples include 4 m @ 0.23 % copper (“Cu”)
• Accelerated exploration programme currently underway
Fredy E. Salazar, President and CEO of Salazar Resources said, “I met the previous owners of the
concession when they brought high -grade material from El Potro to the processing plant I own. We
recognized that El Potro feed came from an area with real exploration potential. Our subsequent mapping
and sampling identifie d numerous indications that El Potro contains a well -preserved porphyry system
complete with a gold -bearing lithocap. It is a new and tremendously exciting early -stage exploration
target.
“The licence area is an established mining concession, with a hist ory of small-scale artisanal production,
which makes permitting for exploration activity much easier. El Potro is a completely unexplored, fresh
discovery.
“Once again, our ability to add new properties to the Salazar Resources portfolio underlines our credentials
as a partner of choice in Ecuador. The fact that the vendors chose to work with Salazar Resources
demonstrates that we are being trusted to make discoveries and to manage the project in a way which
has a positive impact on local communities.”
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“EL POTRO” CORREA JIRON 601062
El Potro lies in the southeast of Loja Province, southern Ecuador. Altitudes in the single contiguous
concession area range from 3,000 m to 3,700 m and access is via gravel roads and mule track from the
town of El Airo which is seven km to the west. The project area has been subject to small -scale artisanal
mining activity since the Mining Concession was granted in 2010. El Potro has been held by a consortium
of private holders since 2010 and the area has not been subject to any recorded systematic exploration.
Figure 1. Location of “El Potro” Correa Jiron 601062
Source: Salazar Resources Ltd
Geology
The area is crossed by a large system of transpressional faults, running north -northeast. A suite of
Miocene Portacheula rocks is intruded into older (Jurassic) Chigüinday Très Lagunas units.
Preliminary mapping has identified porphyrytic intrusions, argillic and Ca -K alteration signatures, locally
intense st ockworks, and a siliceous lithocap. The main stockwork is hosted in porphyry, and exhibits
intense quartz veining with visible magnetite and molybdenite. The lithocap is estimated to be 60 m thick
and several hundred meters wide. Artisanal mining has conce ntrated on sulphide -rich portions of the
lithocap. Guides to the area demonstrated the gold content by sampling, crushing, and panning.
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Work to Date
During due diligence, preliminary geological mapping on traverses was undertaken and 89 rock samples
were collected. Assay results showed that 25 of the rock samples were below detection limit for gold, 13
samples were between 6 ppb and 100 ppb, and 49 were greater than 100 ppb. Table 1 highlights samples
from nine areas with either gold above 0.1 ppm (g/t) or copper above 1000 ppm (0.1%).
Table 1. Highlights from Due Diligence sampling programme
Sample
ID
Width
(m)
Au
ppm
Mo
ppm
Cu
ppm
Ag
ppm Notes on alteration and mineralization
M54311 0.20 0.3 2 81 1.6 Argillic, manganese oxides and hematite
M54312 5.00 0.1 3 2010 51.9 Phyllic veinlets of quartz, oxidised pyrite
M54315 4.00 0.0 4 2283 5.7 Phyllic, epi, cpy veinlets, py, malachite, traces of bornite
M54318 8.00 0.8 <2 27 3.0 Intense argillic stockwork, drusy qtz, py, aspy, jarosite
M54319 10.00 0.1 2 22 1.7 Intense argillic stockwork, drusy qtz, py, aspy, jarosite
M54321 3.00 26.6 3 97 11.3 Intense oxidised stockwork, py, jarosite
M54322 3.00 9.0 <2 95 5.1 Intense oxidised stockwork, py, jarosite
M54323 1.00 0.8 <2 34 0.5 Argillic, intense oxidation, hematite
M54379 2.00 0.0 61 1109 1.0 Quartz-sericite
M54380 2.00 0.0 85 1966 0.9 Stockwork, qtz-mag-mo. Contact between porphyry / met
Samples 54321 and 54322 show excellent gold grades, returning 3 m @ 26.6 g/t Au and 3 m @ 9.0 g/t Au
in rock chips respectively. These samples were located at the site of artisanal activity, at the lower portion
of an area of the lithocap (see photograph below).
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Photograph 1. El Potro, samples M54321 and M54322
Samples 54312 and 54315 were located on a series of porphyry outcrops, both returning 0.2% copper
over several meters of rock chip. Of particular interest is the silver content (51.9 g/t Ag) in sample 54312,
and the fact that traces of bornite were visible in sample 54315. Samples 54379 and 54380 were taken
on a stockwork zone within porphyry and showed evidence of elevated molybdenum in the system (see
photograph below).
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Photograph 2. El Potro, Sample M54380
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Figure 2. El Potro, sample location map
Source: Salazar Resources Ltd
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Exploration Program at El Potro
Salazar Resources is establishing accommodation and logistics at site that will enable the team to support
sustainable exploration programs. Mapping and sampling will continue with the aim of generating drill
targets as quickly as possible.
Transaction Terms
The acquisition price to be paid to the vendors by Salazar Resources over a five -year period totals US$
1,150,000 of which US$ 50,000 has been paid.
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
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 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.
For further information from Salazar please contact Merlin Marr -Johnson, Executive Vice President and
Corporate Secretary at [email protected] or [email protected].
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 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”, “seeks”, “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
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is not limited to, statements that address activities, events, or developme nts that Salazar expects or
anticipates will or may occur in the future. Although Salazar has attempted to identify important factors
that could cause actual actions, events or results to differ materially from those described in forward -
looking informatio n, 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 information will prove to be
accurate, and actual results and future events could differ materially fro m those anticipated in such
information. Accordingly, readers should not place undue reliance on forward -looking information.
Salazar undertake to update any forward -looking information in accordance with applicable securities
laws.