Creating Wealth, Opportunities & Investments

Ilo IOCG/Porphyry Copper Projects – Copper and Gold

 

Introduction

 

The western flanks of Sothern Peru’s Andes Mountains host more than 125 billion pounds of contained copper in published reserves and resources, all within 100 km of Latin’s concession areas.

 

Project Highlights

 

  • Ilo Este is the more advanced of ten target areas generated in Latin’s 100,000 hectares of 100% owned concessions. Mapping, geochemistry and ground geophysics evidence Porphyry Copper-Gold-Molybdenum mineralisation associated with a Cretaceous age intrusive complex surrounded by Jurassic volcanics. The volcanics may also have the potential to host Skarn Replacement or IOCG style mineralisation proximal to the intrusives. A similar Porphyry deposit is located less than 90 km along strike to the NW at Tia Maria (640Mt@0.39% Cu, 0.19 g/t Au).
  • Latin’s Ilo Norte project (now under option to a Peruvian company and currently being drilled) is only 20 km to the NW and hosts Skarn Replacement and IOCG style mineralisation in a package of Jurassic Volcanics similar to those at Ilo Este.

  • Drill permitting has commenced for Ilo Este and is expected to be completed in April 2014. Latin’s team in Peru has an exemplary record in social responsibility, and their highly efficient permitting history promises a rapid pathway to trouble-free drill testing.

  • Additional targets within Latin’s 100,000 hectares of 100% owned concession areas also available.

 

 

Ilo Este - In the Heart of The Ilo Copper District

 

Latin Resources Limited (ASX:LRS) is seeking a Joint Venture partner to further explore its Ilo Este Copper Project, comprising 5,300 hectares of the Company’s more than 100,000 hectare, 100% owned concession holdings in the highly prospective coastal IOCG/Porphyry Copper belt of Southern Peru (Figure 1). Over 125 billion pounds of contained copper in published reserves and resources are found within 100 km of these concessions and are the source of around half of Peru’s copper production (the world’s third largest copper producing nation).

Latin has already been successful in identifying two previous targets within this part of the belt that have been partly drill tested to date: The Mariela Fe/Cu target currently being drilled under an agreement with major shareholder Junefield; and Ilo Norte where drilling by Latin in 2011 and subsequent geochemistry and geophysics generated a significant IOCG target now being drilled under an agreement with a Peruvian Company.

Ongoing exploration at both Mariela and Ilo Norte has provided Latin’s geologists with invaluable knowledge of the mineralization processes that have occurred in the region, which has been applied to identify new exploratory targets. A thorough revision of the geological, geochemical, geophysical and spectral data available to the Company over its Ilo concessions during the last years, with the added perspective gained from work on the Mariela and Ilo Norte projects, has allowed the company to identify ten, highly prospective IOCG and Porphyry Copper target areas, of which Ilo Este is the most advanced.

 

 

Why target IOCG's....?

 

Several significant IOCG deposits occur along the lower western slopes of the Andes in Peru and Chile in similar geological terrain as that found in Latin’s Ilo concessions. Of the Chilean deposits, the Candelaria deposit (700Mt @ 0.95% Cu, 0.23 g/t Au), the nearby Punta de Cobre deposit (140Mt @ 3.0% Cu, 0.25g/t Au), the Manto Verde deposit (770Mt @ 0.54% Cu and 0.26 g/t Au), and the Mantos Blancos deposit (500Mt @ 1% Cu) are all fine examples. In Peru, the Mina Justa deposit (413Mt @ 0.79% Cu including 220Mt @ 8g/t Ag, 0.062g/t Au) is located some 400 km north of Latin’s concessions in the same metallogenic belt (Figure 3).

Copper grades in IOCG deposits tend to be higher than those found in porphyries, with the potential for significant quantities of ore averaging over 1% Cu compared with porphyries that tend to average closer to 0.5% Cu. The possibility of significant co-incident gold, silver and iron provides additional benefits to deposit’s economics.

In some IOCG deposits, the iron oxide concentration is high enough to make iron ore the principle production focus. The Marcona Mine (1.9 Bt @ 55.4% Fe) is the largest iron ore producer in Peru, and the nearby Pampa de Pongo Deposit (863 Mt @ 40.0% Fe) is currently undergoing feasibility studies. In Chile, the Dominga deposit (1Bt @ 26% Fe, 0.12% Cu, 0.02g/t Au) is close to production. Each of these deposits lies on the same coastal trend where Latin´s targets are located. Exploration by Junefield at Latin’s Mariela project has shown that iron mineralization processes are also extensive in Southern Peru, and enhance the prospectivity of the belt for iron ore. At Mariela drilling intercepted significant intervals with iron content greater than 30% Fe (e.g. Drill hole MA-02 with continuous Fe mineralization over 227m @ 37.2% Fe, press releases of 16/10/2012 and 13/01/2013).

 

 

 

 

Latin's Ilo concessions are on the hot spot for IOCG's - The Peruvian Coastal Cordillera

 

The Chilean and Peruvian Coastal Cordillera host all of the Andean type IOCG deposits (Figure 3). The discovery of the iron and copper mineralization at Ilo Norte and Mariela provides further evidence of the prospectivity of the Ilo belt

The Peruvian Coastal Cordillera is in the most part covered by sands and quaternary deposits (Figure 2), which limit the direct observation of any evidence of mineralization. IOCG deposits generally contain abundant iron oxides (usually magnetite and/or hematite) which are readily detectable by geophysical surveys.

 

 

Porphyry Copper deposits are the big Prize….

 

Porphyry Copper Deposits are the world’s largest source of copper mined today and are generally the lowest unit cost mines due to their size and additional bi-product credits for Mo, Au, Ag and other metals.  Peru and Chile together produce around one third of the world’s copper and the Western flanks of the Andes Mountains in Southern Peru are host to Peru’s largest and most prolific copper producers. Nearly 600,000 tonnes of copper is produced each year within 100 km of Latin’s concessions and is set to increase substantially in coming years with expansions and new mines coming on line.  Latin’s concessions have good potential for Copper Porphyry deposits and such a discovery would be extremely valuable to the Company.

In recent years, the discovery of porphyry copper deposits near Inca de Oro (discovered in 2005 under 40m of alluvial cover) and development of Andacollo by Teck Resources Inc in Chile (Figure 2) has gone hand in hand with the recognition of porphyry copper style as well as IOCG alteration signatures throughout the Coastal Cordillera. These developments have thrown open the serious possibility that the latter is far more complex in terms of its metallogeny than hitherto appreciated and, furthermore, that scope for the discovery of many porphyry copper deposits exists in this belt.  In Peru, the Tía Maria Cu/Au porphyry (640Mt @ 0.39% Cu, 0.19g/t Au) is located only 30 km along strike to the north west of Latin’s concessions which are extensively covered, (Figure 3), and relatively under explored in the past – a combination of circumstances that increases the probabilities of new discoveries.

IOCG’s and Porphyry Copper deposits typically form within 'provinces' where several deposits of similar style, timing and similar genesis form within similar geologic settings. Porphyry Copper systems show a marked tendency to occur in linear belts, which range from a few tens to hundreds and even thousands of kilometers long (Figure 3). It is this more likely to find another porphyry deposit nearby an existing one.  The Tia Maria Cu-Au Deposit, (640Mt @ 0.39% Cu, 0.19g/t Au), is located only 30 km WNW of Latin’s concessions (Figure 1), but has been known for many decades and its signature alteration outcrops.  There is excellent scope for similar such deposits under covered terrain within Latin’s target areas.

At Ilo Este, past exploration by Rio Tinto in 2000 included 12 RC drill holes apparently of relatively shallow depth (<200 m) drilled only a portion of an area of strong Copper anomalism, and recent work by Latin geologists suggests that testing for Porphyry Copper mineralisation by these holes was at best partial. Rio Tinto abandoned the concessions some time later, but it is important to consider that the copper price in 2000 was less than US$1.00/lb, and that targets sought by Rio Tinto are so large, a number of excellent projects in Peru were similarly abandoned or sold on to other parties, e.g. Tia Maria (640Mt @ 0.39% Cu, 0.19g/t Au) was abandoned by Rio Tinto in the exploration phase, with the resource later realized by Southern Peru Copper Corporation who are currently permitting the project for mine construction.

 

 

 

Typical porphyry-style alteration has been identified within Latin’s target areas.

 

The alteration and mineralization in Porphyry Copper systems are zoned outward from the porphyry intrusions. Porphyry Cu ± Au ± Mo deposits are centered on the intrusions, whereas carbonate wall rocks can host proximal Cu-Au skarns. The porphyry Cu mineralization occurs in a distinctive sequence of quartz-bearing veinlets as well as in disseminated form in the altered rock between them. Typical porphyry-style alteration (Figure 4), identified in some of the Latin´s targets, provides further support to the occurrence of porphyry-style mineralization in the area.

 

Soil and Rock-Chip Geochemsitry defines larger Copper-Molybdenum-Gold Anomalies

 

As part of Latin’s initial reconnaissance of the area that was drilled by Rio Tinto in 2000, first pass Soil and Rock Chip sampling has been completed resulting in significant Copper, Molybdenum and Gold anomalies over at least 1 km2 (Figure 4 and 5).

Rock Chip samples were collected primarily along exposures of outcrop in access roads (visible in Figure 6) while soil samples were collected from residual soils along ridgelines.

Planned infill sampling will better define the anomalous areas aiding drill targeting

 

 

Geophysics (Ground Magnetics) defines untested magnetic features consistent with a porphyry system

 

A ground magnetic geophysical survey has also been competed with 200 m to 100 m line spacing defining a magnetic anomaly associated with an intrusive Diorite with moderate to high contrast bi-polar features that warrant drill testing for Porphyry mineralisation (Figure 7).

Copper assay results from Soil and Rock-Chip samples are plotted for reference and highlight higher grades around the periphery of the intrusive body.

These anomalies have only been partially tested spatially by the Rio Tinto drilling in 2000. The Rio Tinto drill holes are plotted with an extrapolated trace to 250 m whereas these are estimated to be no more than 200 m deep.

3D inversion modeling of the ground magnetics also suggests that the Rio Tinto drilling at 250 m would have been insufficiently deep to properly test the modeled system (Figure 9).

Also of importance is that the intrusive body suggested by the magnetic high cut by section A-A’ is confirmed by field mapping in the western part of the anomaly, but the eastern half appears to be overlain by the Volcanic host rocks suggesting potential for blind mineralisation requiring drill testing

 

 

 

 

Joint Venture Partner

 

Latin seeks a joint venture partner for this project. The partner would be expected to buy into the project and to invest in exploration development of Ilo Este.

 

Next Steps

LRS is seeking interested Joint venture partners to develop Ilo Este. LRS encourages potentially interested parties to review the information on the Latin Resources Website (www.latinresources. com.au) and to sign an NDA to obtain further information.

Once LRS has received an NDA we will provide access to technical information in an electronic data room and then an opportunity to speak with the LRS management team. Upon receipt of a written Expression of Interest LRS will discuss details on structure and valuation for the project with interested parties.

 

 

 

 

 

 

 

 

 

 

 

 

A ground magnetic geophysical survey has also been competed with 200 m to 100 m line spacing defining a magnetic anomaly associated with an intrusive Diorite with moderate to high contrast bi-polar features that warrant drill testing for Porphyry mineralisation (Figure 7).

Copper assay results from Soil and Rock-Chip samples are plotted for reference and highlight higher grades around the periphery of the intrusive body.

These anomalies have only been partially tested spatially by the Rio Tinto drilling in 2000. The Rio Tinto drill holes are plotted with an extrapolated trace to 250 m whereas these are estimated to be no more than 200 m deep.

3D inversion modeling of the ground magnetics also suggests that the Rio Tinto drilling at 250 m would have been insufficiently deep to properly test the modeled system (Figure 9).

Also of importance is that the intrusive body suggested by the magnetic high cut by section A-A’ is confirmed by field mapping in the western part of the anomaly, but the eastern half appears to be overlain by the Volcanic host rocks suggesting potential for blind mineralisation requiring drill testing.

 

Latin Resources drilled Ilo Norte in 2011. Drilling was downslope of the (then undiscovered) alteration package, but nonetheless returned some very good intersections. Best results were 36 metres at 0.29% copper and 0.09 g/t gold (including 14metres at 0.55% copper and 0.13 g/t gold); and 22 metres at 0.25% copper and 0.09 g/t gold.  These results prove that the system hosts copper and gold and it would not be unreasonable to expect better results within the heart of the alteration system.

A recently completed geophysical survey defined a large (2000 m by 800 m) Induced Polarization (IP) anomaly. The anomaly is indicative of chargeable material within the alteration system which may indicate the presence of sulphides, which in turn may be associated with copper and gold.  This information presents a fantastic set of drill targets and the upcoming drilling campaign will provide a clearer picture of the project’s potential.

Ilo Norte’s potential is further highlighted by the fact that it is located right in the heart of a major copper producing region, only 100km from the Cuajone, Toquepala and Cerro Verde copper mines.  Another major advantage is the project’s location to established infrastructure being less than 30km from the port of Ilo and 10km from the Southern Peru Copper Corporation smelter and very close to other important road and power infrastructure.

Soil Samples

Exploration work has identified anomalous copper in soil samples (-1 mm, C-horizon) with values ranging between 700 ppm Cu and 2430 ppm Cu over a background of <150 ppm Cu.

The centre of the anomalous copper zone coincides with the centre of the IP chargeability anomaly, and includes the surface (and leached) expression of rocks that are to be targeted by the planned drilling program down dip to the north east, increasing the potential that the planned drilling campaign will intersect mineralisation (Figure 5 and 6).

What has also enhanced the prospectively of the target is that anomalous concentrations of gold were located within the central zone of anomalous copper with values ranging from 20ppb Au to 139 ppb Au over a background <10 ppb Au.

Chip-Channel Sections

The soil anomaly repeated 1 km along strike to the south where the first of a number of planned Chip Channel sections across the leached outcrop of prospective stratigraphy returned 80 m @ 0.19% Cu and 0.05 g/t Au open to the SW. 

Given the leached nature of the outcrops (Figure 1), these are very encouraging results and suggest great promise for much higher grades in the unleached rocks to be targeted by drilling down-dip to the NE.

The area represented by the anomalous copper-gold geochemistry is consistent with the size of the modelled IP-chargeability anomaly which further enhances the prospectivity of the drill target down dip to the NE.

 

Six New Target Drills

 

A thorough revision of the geological, geochemical, geophysical and spectral data available to the Company over its Ilo concessions during the last years, with the added perspective gained from work on the Mariela and Ilo Norte projects, has allowed the company to identify six new highly prospective targets for IOCGs and porphyry copper deposits.

 

Repartición

 

Located in Arequipa Region, the Reparticion target area comprises eleven 100% owned Latin concessions for a total area of 9,200 hectares: Essendon 11, Essendon 12, Ryan, Essendon 2, Bombers 5, Bombers 6, Bridgette, Maddison, Essendon 13, Essendon 14 and Essendon 15.

The geology of target area is interpreted to be dominated by Cretaceous age granitoids invading Jurassic volcano-sedimentary units along the coastal fringe of the Ilo region, however, greater than 90 per cent of the underlying geology is obscured by Quaternary alluvial cover. The volcanic units are regularly overprinted by late arc-normal faults which appear to have a significant influence on the localisation of potentially ore-forming fluids and intrusives.

Petrographic study of rocks from limited outcrop from within the target area include thermally metamorphosed and metasomatised, melanocratic or gabbroic diorite porphyries as well as strongly silicic altered acid igneous lithic eruptive or intrusion breccia - possibly diatreme.

Numerous magnetic anomalies in places with coincident radiometric highs and adjacent to significant NE structures and NW trending magnetic lineaments suggest a number of possible intrusive (porphyry) and/or magnetite alteration targets obscured by alluvial cover.

 

El Alto

 

Located in the Moquegua region, close to the border with the Arequipa region, the El Alto target comprises eight 100% Latin owned concessions for a total area of 7,200 hectares: Essendon 3, Essendon 16, Essendon 17, Essendon 18, Essendon 19, Essendon 4, Essendon 7 and Essendon 20.

The geology of target area is interpreted to be dominated by Cretaceous age granitoids invading Jurassic volcano-sedimentary units along the coastal fringe of the Ilo region, however, greater than 90 per cent of the underlying geology is obscured by Quaternary alluvial cover and secondary gypsum deposits.

Two important regional NNE/NE trending structures cross the property and in places along these outcrops of highly silicified rocks with box-work textures and probable phyllic alteration can be seen protruding through the cover (Figure 9). Coincident magnetic and radiometric anomalies and ring structures associated with interpreted structural intersections suggest possible intrusive/porphyry systems.

 

Cerrillos

 

Located in the Moquegua Region to the north of the Ilo Norte Project, the Cerrillos target area comprises three 100% Latin owned concessions for a total area of 2,600 hectares: Essendon 5, Essendon 8 and Essendon 9.

The geology of target area dominated by Cretaceous age granitoids (diorites and granodiorites) with variable magnetic response and magnetite alteration invading Jurassic volcano-sedimentary units along the coastal fringe of the Ilo region, however, greater than 70 per cent of the underlying geology is obscured by Quaternary alluvial cover.

 A major NE structure cuts the target area and is accompanies by a series of magnetic anomalies that suggest possible magnetite alteration (reversely magnetised) including the intersection of a number of converging structures. Magnetite alteration in intrusives adjacent to covered volcano-sedimentary sequences in such a complex structural environment may present possibility for Skarn style replacement Cu +/-Au mineralisation.

 

Costeña

 

Located in the Moquegua region, adjacent to NE of the Ilo Norte Project, the Costeña target area comprises nine 100% Latin owned concessions for a total area of 7,600 hectares: Essendon 6, Essendon 10, Essendon 21, Essendon 22, Latin Ilo Norte 5, Latin Ilo Norte 6, Latin Ilo Norte 7, Ryan 1 and Essendon 23.

The geology of target area dominated by Cretaceous age granitoids invading Jurassic volcano-sedimentary units that dip roughly NE at around 40 degrees, however, greater than 95 per cent of the underlying geology is obscured by Quaternary alluvial cover and surficial secondary Gypsum deposits.

Two important regional NE trending structures cross the property and major NE trending structures are dominant features in the magnetic and radiometric data. A number of spot K-radiometric anomalies may suggest alteration signatures detected in possible areas of shallow cover. Limited outcrop of Andesitic Volcanics near one of the structures exhibits copper oxides, propylitic alteration and may be evidence of the stacked continuation of Skarn replacement style mineralisation seen at the Ilo North project (Figure 10).

 

Galle

 

Located in the Moquegua region, adjacent to the ESE of the Ilo Norte Project, the Galle target area comprises seven 100% Latin owned concessions for a total area of 7,000 hectares: Bridgette 1, , Essendon 24, Maddison 1, Essendon 25, Essendon 26, Essendon 27 and Latin Ilo Norte 8.

Essendon 26, Essendon 27 and Latin Ilo Norte 8.

The great majority of the Galle target area is covered by Quaternary sediments with the exception of the western edge along the scarp and gully incisions to the east of the scarp front. The scarp extends into the Galle target area from the North West where it forms part of the Ilo Norte project area. The scarp area displays continuation of Silica-Albite-K-Feldspar alteration characteristic of the Ilo Norte project, including development of gossanous textures resulting from oxidised disseminated sulphides (Pyrite/Chalcopyrite) indicative of Skarn-replacement style mineralisation.

In addition, possible silicified volcanic breccias and Porphyry copper style sheeted quartz veining overprinting the massive Silica-Albite-K-Feldspar alteration (Figure 11) have been observed moving east from the scarp in incised drainages.

Anomalous copper (300ppm) is reported in Government stream sediment data draining the western part of the Galle target.  Significant NE structures cut the scarp and continue under cover to the east as suggested by magnetic data. Magnetic features identified also suggest alteration/intrusive systems that could represent porphyry systems.

 

Ilo Este

 

Located in Moquegua Region 20 km to the NE of the Ilo Port, the Ilo East target area comprises seven 100% Latin owned concessions for a total area of 5,300 hectares: Latin Ilo Este I, Latin Ilo Este II, Latin Ilo Este III, Latin Ilo Este IV, Latin Ilo Este V, Latin Ilo Este VI and Latin Ilo Este VII.

The geology of the area is dominated in the north by Jurassic volcanics that are intruded to the south by cretaceous granodiorites. The contact of the volcanic and granodiorite intrusive has been mapped as a Devonian sediment.

A major regional fault cuts the sequence and various Copper workings are found along both margins of the structure to the south west of the target area at the Valparaiso (Figure 12), Santiago and Sicatilla mines. Early last decade, Rio Tinto drilled the “El Yaral” Copper prospect located within the target area which is also proximal to the major structure and is reflected by both Argillic and Phyllic alteration signatures identified by Aster image processing.

 

Joint Venture Partner

 

Latin seeks a joint venture partner for this project.  The partner would be expected to buy into the project and to invest in exploration development of Ilo Projects.

 

Next Steps

LRS is seeking interested Joint venture partners to develop Ilo Projects.  LRS encourages potentially interested parties to review the information on the Latin Resources Website (www.latinresources.com.au) and to sign an NDA to obtain further information.

Once LRS has received an NDA we will provide access to technical information in an electronic data room and then an opportunity to speak with the LRS management team. Upon receipt of a written Expression of Interest LRS will discuss details on structure and valuation for the project with interested parties