FARELLON PROPERTY CHILE
Power Americas signed a Letter of Intent with Red Metal Resources Ltd. to acquire 100% of Red Metal’s Farellon, Perth, and Mateo Properties in exchange for aggregate consideration of twenty-five million (25,000,000) common shares of Power Americas Minerals Corp. and a one-time payment of US$250,000.
The properties are located 150 km southwest of Copiapo, Chile, in the Carrizal Alto mining district, more precisely 3 km southwest of the historic Carrizal Alto mine, easily accessible year-round by dirt roads and is located in close proximity to power, water and a major urban centre, Copiapo, with a readily available mining workforce. The properties have been primarily explored for copper and gold, but there is unexplored potential for cobalt and silver on the properties.
FARELLON PROJECT HIGHLIGHTS
- 1,234ha of mining claims
- 3km southwest of the historic Carrizal Alto mine
- 45 minutes from Vallenar, population 40,000
- Readily accessible by road
- At low, 500m asl, elevation
- 6,992m of drilling completed in four programs along a 1.3km strike length
- Further 5km of veining of strike extent to expand
FARELLON PROJECT MINING ACTIVITY
- Mining agreement made with local artisinal miner in December 2013 to start artisinal mining on the property in exchange for a 10% gross sales royalty
- Mineralized vein averages 5 meters wide for 100 meters strike length
- Evidence of a supergene enrichment zone with native copper, chalcocite and malachite.
- Permits for up to 500 tonnes per month received in January 2014
- Permits to increase to 5,000 tonnes per month received in April 2015
- 1,813 Tonnes of oxide ore sold to ENAMI grading 1.56% Cu Since December 2014
- 7,089 Tonnes of Sulphide ore sold to ENAMI grading 1.78% Cu, 6.8g/t Ag, 0.31g/t Au January 2015 to February 2016
- Expansion of the small-scale mining operations with minimal capital expenditures could significantly increase revenues and provide important geological and metallurgical information.
UNTAPPED COBALT POTENTIAL
Minimal Cobalt Exploration & Analysis on Project to date.
Cobalt was not primary focus in previous exploration programs and minimal drill holes were analyzed for cobalt.
High grade mineralized zones returned Co grades including 5m of .13% Co in hole FAR-11-001, 3m of .55% Co in hole FAR-96-010, 1.5m of 0.22% Co in hole FAR-11-009, 3m of 0.2% in FAR-96-011.
Significant unexplored potential for high grade Cobalt as evidenced by historical Co grades and minimal Co exploration to date on the Projects.
Analytic methods used in previous exploration was not specific for Co in sulphides. Assaying methodology specific to Co could potentially increase grades and widths.
Power Americas will focus future exploration drilling and analysis on the Co potential of the property,
The Perth Property consists of 12 mining claims totaling 2,245 hectares in the Carrizal Alto mining district. It is contiguous to the Farellon Property, but geologically different. The property has a 2.5% NSR on it with an option to buy back up to 1.5% of the NSR for aggregate payments of US$1,000,000.
The property has been known to host gold and copper mineralization since the early 1900’s when it was part of the Carrizal Alto mining complex. Modern exploration on the property started in 2008 and multiple surface mapping, trenching and drilling programs have been completed. More than 12 mineralized veins have been identified on the property. Significant results obtained from surface channel sampling are listed in the table below.
PERTH PROPERTY HIGHLIGHTS
- Adjacent to Carrizal Alto
- Fault related copper gold bearing quartz veins crosscut the property
- 12 veins identified on surface
- Veins average two meters wide but have been measured up to six meters wide
- Located approximately three kilometers north of Farellon Property with similar geology and structural setting
- 2011 Prospecting and mapping program identified multiple veins on the north side of the property.
- 29.93g/t Au with 1.10% Cu and 8.66g/t Au with 2.29% Cu from samples interpreted to be in the same vein
- Multiple veins along the same structural system over the Property with high-grade gold and copper results
- 48 of the 129 samples returned Au results greater than 1.00 g/t, and 46 samples returned over 1.00% Cu
- Optioned to Geoactiva in Spring of 2013
- Geoactiva completed a property wide sampling program and followed up with a small drill program including 763 surface/chip samples and four drillholes (results in NR dated Dec. 16, 2014)
- Geoactiva dropped option in 2014
The Mateo Property is a copper-gold-silver project consisting of mining 7 claims totalling 500 hectares located approximately 10 km east of Vallenar.
The property has undergone limited modern exploration including surface and underground RC drilling and artisanal mining on three separate mine sites, the Irene, Margarita and Santa Theresa mines.
In 2011, Red Metal carried out an in-depth geological mapping and sampling program on the property. A total of 138 reconnaissance samples were collected. The highest assay values returned from reconnaissance samples were 21 g/t Au and 10.3% Cu, with more common values ranging between 1-3 g/t Au and 1-3% Cu. Detailed mapping identified nine significant mineralized zones where further work is recommended.
MATEO PROPERTY HIGHLIGHTS
- 125km along strike from Candelaria
- Same rock formations, fold/thrust and intrusive heat source as Candelaria
- Similar alteration and mineralization and structural setting to Candelaria
- Underground workings on two artisanal mine sites, surface and underground drilling showing four mineralized veins/mantos dipping 35-50m and mapped for up to 150m along strike
- Irene artisanal mining between 1994-1997 show 16,000 tonnes grading an average of 3.15% Cu, 45.2g/t Ag and 0.74g/t Au
- Non NI 43-101 compliant inferred resource on Irene of 68,000 tonnes grading 3.60% Cu, 78g/t Ag, and 0.70g/t Au demonstrates continuity of mineralization in a localized area
- Nine zones of significant mineralization identified during 2011 mapping program
The property consists of a total of 1,234 hectares.
12 mining claims totaling 2,245 hectare.
Project consists of mining 7 claims totaling 500 hectares.
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