Latin Metals Inc. (TSX-V: LMS) (OTCQB: LMSQF) announces that it has acquired the Auquis copper property located in the Peruvian Coastal Copper Belt (Figures 1 and 2). As a prospect generator, the Company already holds a portfolio of projects in Argentina and has been actively seeking to acquire copper and precious metal projects in Peru. The Company recently announced staking of the 4,000-hectare Lacsha copper project (previous news release August 4, 2020) and is now pleased to add the 2,900-hectare Auquis copper project to the portfolio in Peru.
Both Auquis and the previously announced Lacsha projects are located within the Coastal Copper Belt, where recent discoveries include copper porphyry, VMS, IOCG and intrusion-related gold deposits.
The Coastal Copper Belt in Peru has been a focus for discovery over the last 15 years, however much of the exploration effort has been focused in southern Peru, leaving much of the central and northern portions of the belt significantly under-explored.
Auquis Copper Project
The Project is located approximately 377 km south by road from Lima, 95 km from the coast, and is accessible year-round by paved road.
The Auquis project is a copper-molybdenum porphyry exploration project that has multiple untested geochemical stream sediment anomalies, including a single target area measuring 3.5 km by 2.0 km where all stream sediment samples grade >300pmm copper. A total of 42 historical stream sediment samples contain multi-element anomalies across multiple drainages, with copper assay results ranging from 48.7 ppm to 607 ppm.
A clearly defined metal zonation is evident in the stream sediment data across the survey area, with a central core of copper-molybdenum anomalies and distal silver and zinc-lead anomalies to the northeast.
The Company plans to complete geological mapping combined with surface geochemistry in Q3 2020. Budgeted work includes stream sediment sampling, lithological and structural geological mapping, and rock chip sampling.
Figure 1: Map of the Auquis copper project, showing historical copper geochemistry results for sediment sampling, which defines a target area approx. 3.5km by 2.0km in area.
Figure 2: Project Location Map (left) and locations of operating mines & exploration projects (right), highlighting the Cretaceous mineral belt, the newly acquired Auquis copper project, and the Company’s recently acquired Lacsha copper project.
The Company announces that it has engaged Daniel MacNeil as a technical advisor to the Company. Daniel is a precious and base metal specialist with more than 19 years of experience from continental-scale project generation to in-mine resource expansion in a wide variety of geological settings throughout the Americas and Europe. Daniel currently consults with mid-tier, private and junior mining/exploration companies on mine resource expansion and early through advanced exploration target delineation, drill testing and exploration property evaluations globally.
Stock Option Grant
The Company also announced that it has granted 70,000 common share stock options to various employees and consultants of the Company and its affiliates. The Options entitle the holder to purchase shares at a price of $0.14 per share for a period of 36 months from the issue date.
Figure 3: Latin Metals’ Exploration Property Portfolio
Mining and extractive industries in the country account for approximately 15% of GDP and Peru is a significant producer of base metals and precious metals. In world production, Peru is ranked #2 in copper production and #7 in gold production. Politics in Peru is currently dominated by democratic center-right policy and the government understands the importance of mining to the national economy. Mining law and regulatory framework in Peru is well-established and the country is competitive with respect to labour and power costs. Fraser Institute Annual Survey of Mining Companies 2019 results show Peru is the second most attractive jurisdiction in Latin America and the Caribbean.
About Latin Metals
Latin Metals is a mineral exploration company with a diversified portfolio of gold and copper exploration assets in South America (Figure 3). The Company operates with an investor-focused Prospect Generator model, which brings potential advantages to shareholders such as exposure to multiple exploration projects reducing discovery risk. Most of the exploration expense could be borne by JV partners, potentially reducing dilution associated with funding ongoing exploration activities. The Company’s project portfolio brings exposure to multiple commodities, reducing the impact associated with commodity price cycles. In all future deals, the Company intends to retain a minority interest across the portfolio, providing shareholders with exposure to potential discovery upside.
The Company has not assessed the QAQC of historical sampling and results thereof. Historical results are not consistent with the standards of disclosure defined by NI 43-101 and may not necessarily be consistent with CIM best practice. The Company’s planned future work will include verification samples to verify the location and magnitude of the various surface geochemical anomalies discussed in this news release.
Keith J. Henderson, P.Geo., is the Company’s qualified person as defined by NI 43-101 and has reviewed the scientific and technical information that forms the basis for portions of this news release. He has approved the disclosure herein. Mr. Henderson is not independent of the Company, as he is an employee of the Company and holds securities of the Company.
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We acknowledge the [financial] support of the Government of Canada.