Peru Ag - San Jose
The San Jose Silver Property is a highly prospective silver property located within the prolific Miocene-Pilocene Epithermal belt. The Company anticipates that the San Jose Silver Property has an intermediate suphidation epithermal deposit. These deposits are characterized by vertical mineralization over 100’s of metres and are usually high-grade in nature, which makes them attractive exploration targets.
High Grade Silver-Dominant System
Silver is the main target commodity. Many veins highly anomalous in silver (between 1 to 6 oz/Ag) — despite being extensively leached.
There are over 12 kilometers of veins and inferred strike extensions of veins. The veins are divided into four target zones: San Jose vein, El Sarco vein, UTCAS 1 vein and UTCAS 2 vein.
The San Jose vein has approximately 200 meters of underground development on four levels. Veins are between 2-3 meters wide.
The El Sarco vein is located 1,200 meters from the San Jose mine. Mapping has indicated average widths of over 1.0 to 1.5 meters over a strike length of over 1 kilometer. Historic surface channel sampling reported 2.8 to 3.4 ounces per tonne Ag, which is significant given veins are leached at surface.
The UTCAS veins have returned results of up to 197 grams (6.3 oz) per tonne Ag over 1-2 meters, which is significant given weathered nature of veins in outcrop.
Community Access Agreement - Currently Renegotiating
Communities were under COVID lockdown until May 2021. Mantaro is currently re-negotiation the community access agreement.
Historic Small Scale Mining — Never Drill Tested
Small scale mining on the western margin of the San Jose vein extracted an estimated 43,000 tonnes at 15 to 20 oz/t Ag (Pan American Silver Internal Report (2018), titled Reporte De Reconocimiento Geologico, “Proyecto – Mina San Jose, Cajatambo”).
The Company has recently commenced field mapping and geochemical sampling of the UTCAS veins. Work will initially focus on mapping the vein extensions and collecting channel samples along the veins. The results of the channel sampling program will be released in due course.
Option to Acquire 100%
Payment of US$500,000 of which US$ 120,000 has been paid.
The remaining US$ 380,000 to be paid:
(i) US $90,000 in July 2021, (ii) US $140,000 in July 2022, (iii) US $150,000 in July 2023
- Issuance of 375,000 shares and 125,000 war- rants on listing with the Exchange, and 375,000 shares and 125,000 warrants six months after listing on the Exchange.
- In ground expenditures of US$150,000 by July 2023 — USD 25,000 incurred to date.
- Four of the five concessions are subject to a 2% Net Smelter Return Royalty, of which Mantaro may repurchase each 1% Net Smelter Return Royalty with a payment of US $750,000.
Planned Work Potential
Aggressive Reconnaissance Mapping and Sampling
Outcropping veins at San Jose are largely unsampled and have never been drill tested. Mantaro is planning an aggressive reconnaissance mapping and sampling program to target over 12 cumulative strike kilometres of known veins.