Chilean Metals’ wholly-owned Tierra de Oro (TDO) property is located in Chile’s prolific IOCG (iron oxide-copper-gold) belt. The belt hosts numerous copper-gold deposits including Mantos Blancos, Manto Verde and the nearby Candelaria IOCG deposit, owned by Lundin Mining Corporation, with reported reserves and production of 470 Mt at 0.95 % Cu, 0.22 g/t Au, 3.1 g/t Ag.
This 5,600 hectare (14,000 acre) property is located 70 kms south of the mining town of Copiapo in Chile’s Third Region. It lies 20 km east of both the Pan American Highway and Chile’s main power grid and is accessed by well-maintained gravel roads. With a maximum elevation of only 1,500 meters the property enjoys good climactic conditions allowing year-round exploration. TDO hosts bulk-tonnage Au-Cu-Ag exploration targets.
Geologically, the property is underlain by two distinct domains: a Western Domain of intrusive rocks with Au-Cu mineralization, and an Eastern Domain of volcanic strata with Cu-Ag mineralization. The two domains are separated by a major north-easterly trending fault, a splay of the main Atacama Fault some 20 kilometres further west.
The Western Domain presents several inadequately-tested gold exploration targets. Previous exploration was focused principally on establishing a resource on gold veins developed and mined in past years by artisanal miners. These veins locally contain in excess of an ounce per ton of gold. Individual veins can be traced on surface for up to a kilometer but are generally narrow and discontinuous, pinching and swelling like beads on a string. Several bulk- mineable targets have been identified, the most promising of which is the Cerro Chanchero zone where strong Au-Cu soil geochemical anomalies coincide with a prominent IP (induced polarization) anomaly and intense argillic alteration. Previous drill holes which tested the periphery of this target encountered abundant disseminated pyrite. The 500m x 250m core of this promising porphyry Au-Cu target remains untested by drill holes.
The Eastern Domain hosts the Algarrobito copper zone on the western flank of Cerro Algarrobito. Copper is exposed in numerous surface showings over an area of 1,000 by 400 metres (and open to extension) in fracture stockworks and disseminations. The mineralized zone is open to the east. It is associated with a strong copper soil geochemical anomaly roughly 1,500m in diameter and with a prominent aeromagnetic anomaly outlined by a ZTEM survey in 2011. The Algarrobito zone has never been drilled.