The Cangrejos project is located in El Oro province, SW Ecuador, 30 km SE of the provincial capital of Machala and the Pan American Highway and 40 km from the deep water commercial port of Puerto Bolivar. Access to the property is via paved and 8 km of gravel roads. The company has a field camp and core facility located on the property.
Lumina's Cangrejos project is located in the Andean foothills of El Oro province, in southwestern Ecuador. El Oro province has a long established history of mining, which is a way of life in many areas.
In 1994 Lumina (formerly Odin Mining) identified the Cangrejos area as the source of the Biron alluvial gold deposit which yielded 69,000 ounces of gold. A joint venture was formed with Newmont and during the period 1994 to 2001 geophysical and geochemical surveys were completed and anomalies were tested by diamond drilling. The Cangrejos zone was discovered by hole CC-99-14 which intersected 1.57 g/t Au over 192m.
Gold +/- copper mineralization in southern Ecuador is associated with:
- granitic intrusions of various ages
- Deposits are low grade, bulk tonnage Cu-Au porphyries or higher grade epithermal Au veins
At Cangrejos, porphyry style Au-Cu mineralization is associated with a sequence of intercalated porphyritic dioritic intrusions and hydrothermal breccias. Better Au grades correlate with potassic alteration and chalcopyrite-bornite occurring as fine disseminations and in quartz veins. This northeast trending zone was discovered by Newmont in 1999 and tested by 3 Odin drill holes in 2011.
(1) The mineral resource estimate has an effective date of January 25, 2017.
(2) Mineral resources do not have demonstrated economic viability. The estimate of mineral resources may be materially affected by environmental, permitting, legal, title, taxation, sociopolitical, marketing, or other relevant issues.
(3) The quantity and grade of reported Inferred mineral resources in this estimation are conceptual in nature and there has been insufficient exploration to define these Inferred mineral resources as an Indicated or Measured mineral resource.
(4) The mineral resources in this estimate were calculated with the Canadian Institute of Mining, Metallurgy and Petroleum (CIM), CIM Standards on Mineral Resources and Reserves, Definitions and Guidelines prepared by the CIM Standing Committee on Reserve Definitions.
(5) Gold equivalent values were calculated using the following prices: for gold a price of US$ 1,250 per ounce, for copper a price of US$ 2.50 per pound, for molybdenum a price of US$ 7.00 per pound and for silver a price of US$ 17 per ounce. Gold equivalent values can be calculated using the following formula: AuEq (g/t) = Au (g/t) + Ag (g/t) x 0.0137 + Cu (%) x 1.371 + Mo (ppm)/10,000 x 3.840.
(6) The Inferred mineral resources are contained within a limiting pit shell and comprise a coherent body.