Salazar Resources’ First Drill Hole at Los Osos Project Indicates New Gold-Copper Porphyry System
December 1, 2020
Salazar Resources’ First Drill Hole at Los Osos Project Indicates
New Gold-Copper Porphyry System
VANCOUVER, BRITISH COLUMBIA, December 1, 2020 -- SALAZAR RESOURCES LIMITED (TSXV: SRL)
(Frankfurt: CCG.F) (“Salazar” or the "Company") is pleased to provide an update on its wholly owned Los
Osos project, held by Minera del Valle S.A, a 100% owned subsidiary of Salazar Resources.
Los Osos porphyry gold-copper exploration property is situated 8 km southeast of the 16.7 million ounce
(“Moz”) gold Cangrejos Project. A 5,000 m initial drilling program to test for a new porphyry system started
in October and is ongoing . Assays for the first completed hole , OSO-01, are anticipated in early 2021.
Salazar is currently drilling the second hole, OSO-02.
OSO-01 was completed at a depth of 647 m with 0.5-5.0% mixed sulphide mineralization visible from 63
m to the end of hole across all of the main three lithologies, namely metamorphic host rock, hydrothermal
breccias and porphyr y diorite intrusions. OSO-01 bottomed in sulphide mineralization. The sulphide
mineral assemblages and alteration patterns indicate that the hole has intersected the upper portions of
a newly identified alkalic Au -Cu porphyry system. OSO-02 is targeting the lower portions of the system
and intersected a porphyry diorite with stockwork veining at a depth of 75 m. The hole is currently at a
depth of 400 m and still in mineralized porphyry diorite.
Highlights
• Continuous mineralization; complex breccias and porphyry diorites with stockwork veining; k -
feldspar alteration, widespread silicification, minor retrograde phyllic alteration;
• Strong sulphide content 0.5 – 5.0% visible over 584 m, presenting as widely disseminated sulphides
across all rock-types, frequently as veinlets and clast replacement, and occasionally as sulphide veins
up to 2 cm in thickness. The mineral assemblage comprises pyrite, chalcopyrite, pyrrhotite, and
arsenopyrite with lesser sphalerite and molybdenite. There are multiple phases of m ineralization.
Only the top, weathered 63 m contained no visible sulphides, although iron -staining of the oxidised
material suggests mineralization from surface;
• Quartz-tourmaline hydrothermal breccias are the dominant lithology with sulphide mineralization in
clasts and in the matrix, and individual intersections of up to 96 m in length. Some mineralized crackle
breccias are present. Numerous thin pebble dikes cross -cut breccias and porphyry intrusions . The
pebble dikes intersected in this hole are all mineralized, often with a sulphide-rich matrix and carrying
clasts rich in chalcopyrite from greater depths in the system;
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• Diorite porphyries with disseminated and locally intense stockwork veining and sulphide
mineralization are present, reaching a maximum intersection length of 20 m, indicative of a deeper
porphyry intrusion; and
• These geological features are strongly associated with gold mineralization in the Cangrejos -Zaruma
trend. Further, the 16.7 Moz Cangrejos deposit is hosted in quartz-tourmaline hydrothermal breccias
and silicified porphyries.
Francisco Soria, Manager of Exploration and Geology said : "The first drill hole has intersected a large
amount of sulphide in the core over extended intervals, with dynamic breccias, multiple phases of
mineralisation and intense alteration. OSO-01 confirms that Los Osos contains a significant system, and
it validates the mapping and sampling techniques used by the team to plan drill holes. In particular we
are excited about the indications of mineralisation continuing at depth such as the sulphide-rich pebble
dikes and the chalcopyrite-rich stockwork veining in the porphyritic diorite. “
“We interpret the presence of chalcopyrite, arsenopyrite and pyrrhotite alongside pyrite as a good
fertility indicator of the system . We look forward to getting results back from OSO -01 and we are
encouraged by the geology already being intersected on OSO-02. The second hole is targeting a
mineralized porphyry diorite intrusion at an elevation approximately 300 m below the collar location of
OSO-01.”
Fredy E. Salazar, CEO, commented : “Osos is the first 100% project that Salazar Resources has drilled
since 2017, and it is hugely exciting to see mineralisation from surface in the first two holes, and to define
a new gold -copper porphyry system . Success at OSO-01 and OSO -02 underlines our credentials as a
proven exploration company, and our ability to make fresh discoveries.”
“With geophysics ongoing at our Macara Mina VMS project too, we are making solid progress in line with
our strategy to discover deposits and create value through exploration in Ecuador.”
Los Osos
Background
The 5,000 m Phase 1 drilling program at the Osos project, El Oro , Ecuador, is designed to define
mineralized breccias and test for the presence of the upper portions of a mineralized porphyry.
The property is located in the Miocene Porphyry belt of Ecuador which is becoming an increasingly
important zone of discoveries. It sits at the western end of the Cangrejos-Zaruma intrusive belt in southern
Ecuador. This geologic belt is typified by multiple nested late Oligocene to Early Miocene intrusions,
punctured and intruded by a number of porphyry dikes and breccia pipes The approx imately 20 Ma age
of the intrusions in the Zaruma intrusive belt is the same as that of the giant Chilean porphyries which
range in age from 10-40 Ma yearsi.
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Figure 1. Regional Geology of the Cangrejos-Zaruma intrusive belt, El Oro, Ecuador
Source: Salazar Resources
On a more local scale Los Osos lies on the south western edge of an interpreted collapsed caldera which
is a broadly circular feature. The district is associated with copper and gold mineralization found in quartz-
tourmaline breccias and stockwork porphyritic diorite intrusions, of which the best known is the Cangrejos
deposit held by Lumina Gold Corporation (“Lumina Gold”) which is situated on the northern edge of the
caldera.
Sampling work to date at Los Osos shows a relationship between sulphide content and gold content, with
better grades where sulphide mineralization is more intense. The geology, mineralization and alteration
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in terms of style, size and geometry are consistent with the surface exposure of a vertically extensive,
well-preserved hydrothermal-breccia and porphyry gold-(copper) system at Los Osos (Salazar website).
Figure 2. Location of Osos-1 concession, Los Osos project, El Oro, Ecuador
Source: Salazar Resources
OSO-01 is the first diamond drillhole on the Los Osos project. The hole is collared in metamorphic host
rock and oriented 140o to the southeast below artisanal workings (also in the breccias), and coincident
copper and gold geochemical anomalies. The hole was planned to be 500 m inclined at -60o to reach a
depth of 433 m below surface, and to traverse 250 m horizontally. Given that OSO -01 has intersected
consistently mineralized lithologies, the ho le continued to the limit of the capabilities of the drill rig at
647 m. https://www.salazarresources.com/projects/100-salazar-owned/los-osos/
Although the region, and surface work, show a correlation between the amount of sulphide in the rock
and gold, when it comes to gold, assays are always required before grade can be ascribed to geology. The
mineralization seen in OSO-01 is highly encouraging, yet the observations are of a preliminary nature. The
visual mineralization observed has not yet been assayed, and the intensity of visual mineralization cannot
be used to estimate grade at this stage.
Geology, Alteration, and Mineralization
The principal lithologies intersected in drilling, and identified from mapping, are breccias, porphyritic
diorite intrusions and metamorphic host rocks.
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Figure 3. OSO-01 schematic cross-section
Source: Salazar Resources
Detailed logging and sampling of the whole hole is not yet complete, and a schematic cross -section is
shown in Figure 3, above. In the upper portion of the section, two adits developed by artisanal miners are
visible. Mapping of these underground workings revealed a similar suite of lithologies as those intersected
in the drill hole. The miners target narrow high grade oxidised veins plus a margin of approximately 5 cm
either side of the vein. Sampling of the workings indicated gold grades of 0.1 to 1.1 g/t gold in the breccias,
diorite and metamorphic host rocks, rising to 2.4 to 14.3 g/t gold in narrow vein structures (see Fig. 4).
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Figure 4. Map of artisanal adits near the location of OSO-01
Source: Salazar Resources
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The main breccia type is a quartz -tourmaline hydrothermal breccia with mosaic texture and largely
monomictic angular clasts (see photo 3). The matrix is comprised of fine -grained tourmaline with
pyrrhotite, chalcopyrite, pyrite and minor sericite. On the m argins of these large quartz -tourmaline
bodies, the breccia can exhibit a crackle -style texture. Volumetrically small but genetically important
pebble dikes (photo 2) make up the third and final breccia type. These pebble dikes cross -cut all
lithologies, range in width from 2 cm to 1.0 m, and exhibit subangular to rounded polymictic clasts and a
fine matrix of tourmaline, pyrrhotite, pyrite and chalcopyrite. The pebble dikes are comprised of material
brought up from depth and many of the clasts are rich in chalcopyrite, providing evidence of a mineralized
porphyry at lower elevations. The breccias are silicified which contributes to the resistance to erosion and
associated formation of hills as local topographic highs.
Photo 1. Metamorphic quartzite, depth 168 m Photo 2. Pebble dike breccia, depth 178 m
Description: Fine -Medium grained quartzite, dark
green to gray -white color. Chlorite -illite alteration
in the foliation and fine veinlets of pyrite and
arsenopyrite and disseminated chalcopyrite
(<0.5%) in banding
Description: Subangular -rounded polymictic
clasts. Supported matrix of fine tourmaline,
pyrrhotite, pyrite, and chalcopyrite
Photo 3. Mosaic Breccia, depth 338 m Photo 4. Porphyritic Diorite, depth 505 m
Description: Hydrothermal Breccia mosaic tex ture,
monomictic quartzite angular clasts. Fine
tourmaline matrix with pyrrhotite, chalcopyrite,
pyrite and +/- sericite
Description: Porphyritic texture, altered
amphibole phenocrysts and corroded edges. Fine
crystal matrix. Quartz -sericite-illite overpri nt
with traces of remnant biotite-chlorite alteration.
Disseminated sulphides pyrrhotite, pyrite and
lesser chalcopyrite
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The largest continuous breccia body was intersected from 315 to 411 m, for an intersection length of 96
m. The hole ended at a depth of 647 m with the rig at its maximum capacity. Note that true widths of sub-
vertical bodies are estimated to be approximately half of the reported down-hole intersection.
The diorite dikes (photo 4) have a porphyritic texture with amphibole phenocrysts, biotite formation and
corroded edges amid a matrix of fine crystals suggesting an early potassic alteration phase. The dikes
intersected in OSO-01 vary in thickness from 50 cm to 20 metres, often exhibit stockwork veining. All of
the dikes are silicified and host disseminated pyrrhotite, pyrite and occasionally chalcopyrite. Chalcopyrite
is more pervasive in the stockwork zones. A late stage phyllic over-print is visible, presenting as a quartz-
sericite-illite assemblage, with trace biotite and chlorite.
The metamorphic host rocks (photo 1) intersected in OSO-01 are predominantly comprised of psammites
with minor pelites, grouped together as metamorphic quartzites for simplicity. The quartzites are silicified
and have disseminated fine-grained sulphides throughout.
Exploration Rationale
Salazar Resources is exploring for gold-copper, silica -saturated, alkalic porphyry -style deposits in the
Cangrejos-Zaruma intrusive belt, which is well known for these types of deposits. Au -Cu alkalic porphyry
deposits include Cangrejos just 8 km to the northeast of Osos, as well as international examples in Cadia,
Australia; Bingham Canyon, USA; Andacollo, Chile; and Red Chris, Canada. All of these deposits have
similar chemical affinities and host-rock provenance such as porphyry intrusive rocks that intrude volcanic
and sedimentary packages as stocks, plugs, dikes, and dike swarms. Mineralization results from late-stage
hydrothermal activity driven by remnant heat from the porphyry intrusion. Thermal gradients within these
systems give rise to broadly concentric, although often complexly intermingled, zones of alteration and
mineralization.
Deposit boundaries are typically determined by economic factors that outline the zones of mineralized
material. The distribution of alteration and mineral facies are largely influenced by breccias, dikes, veins,
and fracture systems which concentrate and control fluid flow.
Alkalic porphyry systems are typically high -grade porphyry-style deposits associated with small volume
pipe-like intrusions that have surface expressions of only a few hundred square meters. These systems
are increasingly being recognized as being of important economic significance. They include some of the
world’s highest grade and largest porphyry-related gold resources.
Ongoing Work
OSO-01 is being logged in detail, and the entire hole is being prepared for assay. Results a re expected
approximately four weeks after the samples have been dispatched. Results will be reported once received,
interpreted and validated. Meanwhile, OSO-02 has been started, collared at an elevation approximately
300 m lower than OSOS -02 (see Fig. 4 ). The hole is oriented towards the east aiming to test for a
mineralized diorite intrusion that is visible in outcrop in creeks and is believed to be the source of the
broad copper anomaly in the southern part of the area. OSO-02 intersected a porphyry d iorite with
quartz-sulphide stockwork veining, and disseminated sulphides at a depth of 75 m. The hole is currently
at a depth of 400 m and still in mineralized porphyry diorite. The hole is planned to be 500 m but will
continue at depth if still in mineralization.