Geology and Geophysics of the Au-Cu-Ag

Canahuire epithermal deposit, Chucapaca

Overview
Project, Southern Peru
PDAC March, 2013, Toronto Canada
Chico Azevedo & Andrew Foley
Azevedo, F, Foley, A, Vidal, C, Santos A, Baumgartner R, Gaibor A,
Dusci M, Gradim R, Dunkley P, Den Boer D, Valer R.
Chucapaca Project – Outline
 Exploration history
 Regional and local geology
 Alteration and mineralisation
 Controls on the mineralisation
 Geophysics and discovery
 Final remarks

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Chucapaca Project – Exploration History
Timeline to Discovery

Beginning of Canahuire Inferred Mineral Update, Inferred

exploration at Drilling on discovery hole: Resource Mineral Resource:
Chucapaca Chucapaca HS CCP08_05: 59.8m @ Declaration: 132.7 Mt @ 1.4 g/t
target 3.13g/t Au, 0.45% 5.6 Moz AuEq Au, 10.8 g/t Ag,
Regional Cu ,15.1g/t Ag 0.09% Cu
target 7.6 Moz AuEq
generation
programme

Gold epithermal exploration Replacement Gold in replacement and

phase base metal breccia bodies exploration
exploration phase
phase

Canteras del Hallazgo

JV Gold Fields (51%) and Buenaventura (49%)

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 Chucapaca Project – Regional Geology
LEGEND
Quaternary
Cenozoic
Late Miocene - Recent
volcanic arc (andesite) Titicaca
Miocene rhyolite intrusion Lake
Chucapaca
Miocene-Eocene andesitic project
and volcaniclastic
sequences AREQUIPA
Paleocene - Eocene
conglomerates redbeds
Mesozoic
Cretaceous intermediate
volcanic arc
PUNO
Cretaceous - Paleogene
Coastal Batholith
Cretaceous continental
sedimentary rocks

Jurassic sedimentary
rocks
Paleozoic
Paleozoic sedimentary
rocks
MOQUEGUA
Precambrian
Precambrian metamorphic
basement
BOLIVIA
Pacific
Ocean
GRAPHIC SCALE
TACNA

CHILE

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 Chucapaca Project – District Geology
Complex
Breccia

Canahuire

Chucapaca
Yura Group

Dome Complex

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Deposito Canahuire – Stratigraphy
Mirando al NW
Complejo de
Brechas

Fm. Hualhuani
Fm. Gramadal
Fm. Gramadal
Mineralización
Complejo de Fm. Labra
domos Chucapaca

Columna Estratigrafica y Vista Panoramica del Deposito de Canahuire

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Canahuire Deposit – Chucapaca Dome Complex

Chucapaca Dome Complex

Labra sediments

Rhyolite dome

Canahuire breccia

Gramadal limestones

Panoramic view of the Canahuire Deposit and Chucapaca Dome Complex

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Canahuire Deposit – Geology and Structural Map

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Canahuire Deposit – Geological Section
Looking West Breccia Complex
Main South Fault North Fault
South Fault
Main North Fault

Hualhuani Fm.

Gramadal Fm.

Intrusion
Mineralisation
Labra Fm.

Polymictic breccia (diatreme) - BXP Sandstone and shale - HSC

complex

Sedimentary
Breccia

Monomictic breccia - BXM Quartz sandstone - SSQ

rocks
Polymictic sedimentary breccia - BXPS Limestone - CAL
Polymictic breccia with rhyolite clast - BXPR Sandstone and shale - CSC
Sandstone and shale - SMC
Rhyolite intrusion - IRH

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Canahuire Deposit – Breccia Complex Facies

PHREATIC (HYDRAULIC) PHREATOMAGMATIC

Polymictic breccia Monomictic breccia Polymictic breccia Polymictic breccia with
with sedimentary with quartz with rhyolite and andesite, rhyolite (juvenile)
clasts sandstone clasts sedimentary clasts and sedimentary clasts
(BXPS) (BXM) (BXPR) (BXP)

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Canahuire Deposit – Alteration Map
LEGEND

SIL - Silicification

DEC - Decalcification

ARG_S - Strong Argillic

ARG_W - Weak Argillic

SID_S - Strong Sideritisation

SID_M - Moderate Sideritisation

SID_W - Weak Sideritisation

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Canahuire Deposit – Alteration Mineralogy

Sideritisation (SID) Argillisation (ARG) Silicification (SIL)

siderite – ankerite – silica Smectite – illite/smectite – silica – chalcedony –
+/- calcite kaolinite +/- chlorite jasper

Sideritisation is the predominant alteration facies

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Canahuire Deposit – Alteration and Mineralisation
Long Section

Alteration

Sideritisation

Long Section
Mineralisation

1 g/t Au isoshell

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Canahuire Deposit – Mineralisation Styles
Replacement breccias and veins (Au
dominant) Breccias (Au-Cu dominant)

Au = 8.18 g/t Au = 19.31 g/t Au = 784.4 g/t Cu = 0.44 % Cu = 3.32 %

Cu = 0.05 % Cu = 0.07 % Cu = 0.03 % Au = 2.2 g/t Au = 1 g/t
CCP09-27, 246.7 m CCP09-28, 201.7 m CCP10-153, 278.6 m CCP08-20, 134.3 m CCP08-19, 158.3 m

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Canahuire Deposit – Mineralisation Events
 Early Mineralisation Stage apy Gold
 Pyrite – pyrrhotite – pyr
chalcopyrite - arsenopyrite –
sphalerite
 Siderite – ankerite – quartz –
chalcedony gg Pyr after
po

cpy
 Main Mineralisation Stage
 Gold – electrum – maldonite
(Au2Bi) pyrite – marcasite –
arsenopyrite – chalcopyrite –
sphalerite – stibnite –
bismuthinite – tennantite/
tetrahedrite – galena
 Siderite – ankerite – clays –
adularia – quartz –
chalcedony

Main stage replaces early stage

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Canahuire Deposit – Controls on Mineralisation
Plan view

1 g/t Au isoshell Structure

Fluid path and
brecciation causing
permeability

Long Section
Stratigraphy
Reactive
Gramadal
limestone
2.5 g/t Au isoshell

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Canahuire Deposit - Geophysics
The Discovery…

 Several presentations and papers have been written with respect to the Canahuire
deposit: its geology, mineralogy, development, etc however, very little has been published
to date with respect to the Geophysics even though it was a key aspect in the discovery
as well as in the development of our understanding of the deposit and is a key driver in
our exploration protocol going forward.

 A complete history of the discovery, geology and development can be found in:
 Dusci, M., Brewer, N., Azevedo, F., Vidal, C.E., Foley, A., denBoer, D., 2011, The Discovery and
Resource Development of the Canahuire Gold-Copper-Silver Deposit, Chucapaca Project,
Southern Peru. NewGenGold Conference Proceedings – Case histories of discovery 2011, p71-87.
 However, very little has been pulished or presented about the Geophysics of the Deposit

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Canahuire Deposit - Geophysics
The Discovery….

 In 2007, Buenaventura entered into a JV with Gold Fields, focused on the polymetallic /Ag
potential of a series of gossanous mantos, surrounding the Chucapaca Volcanic Dome
Complex, with the Carbonate-replacement mantos of Colquijirca as the deposit model
analogy.
 Buenaventura commenced exploration in 2008, using:
 Detailed 1:5000 mapping
 Rock Chipping and Trenching
 And Ground Geophysics (broad spaced IP and Magnetics).
 In 2008 two targets were identified for drill testing; Katrina (4 holes) and Canahuire (2
holes).
 Results at Katrina were disappointing with no significant mineralisation intersected.
 Initial targeting at Canahuire focused on testing below gossanous outcrop
 The second hole tested a very obvious Geophysical anomaly….and the rest is as they say “history”

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Canahuire Deposit - Geophysics
Discovery IP : 3D IP Model @4600mRL

CCP08-06: testing
gossanous
outcrop

CCP08-05

59.85m

@3.13g/t Au

0.45%Cu

15g/t Ag

187gm Au

Katrina Holes

2008 Phase I BVN: IP/Resistivity Program: Modified 100, 200 and 300m Pole-Dipole 400m

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 Canahuire Deposit - Geophysics
CCP09-027
Discovery IP : 100m Step Out Drilling (10/2008-02/2009)
170.4m
CCP09-028 @3.28g/t Au
44.0m From 79.95m
@8.94g/t Au
559gm Au
From 182.4m
CCP08-05
393gm Au
59.85m

@3.13g/t Au

0.45%Cu

15g/t Ag

187gm Au

High sulphide ~~=High Grade (80% rule) 400m

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 Canahuire Deposit - Geophysics
CCP09-027
BVN Ground Magnetics (Reduced to the Pole)
170.4m
CCP09-028 @3.28g/t Au
44.0m From 79.95m
@8.94g/t Au
559gm Au
From 182.4m
CCP08-05
393gm Au
59.85m

@3.13g/t Au

0.45%Cu

15g/t Ag

187gm Au

2008 Phase I & II BVN Broad Spaced Ground Magnetics 400m

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Canahuire Deposit - Geophysics
Detailed Magnetic Susceptibility Logging – Understanding Magnetics

Magnetic Susceptibility Magnetic Observations

W E  Mg & Po responsible for high magnetic susc.’s.
 Mg to Po phase east to west & @ depth
 Appears to be a good correlation between grade
and magnetic susceptibility, in long section

Gold 0.5g/t & 1.0g/t shells GF 50m NS Gmag: RTP

W E

Detailed Hand Magnetic Susceptibility Measurements Undertake on all core: 1m Intervals: 95,000m of logging.

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Canahuire Deposit - Geophysics
Detailed Magnetic Susceptibility Logging – Understanding Magnetics

Magnetic Susceptibility Magnetic Observations

 Mg & Po responsible for high magnetic susc.’s.
 Mg to Po phase east to west & @ depth
 Depletion of magnetic material in the core of the
deposit, consistent with alteration studies.

Gold 0.5g/t & 1.0g/t shells GF Gmag 50m NS: RTP

Detailed Hand Magnetic Susceptibility Measurements Undertake on all core: 1m Intervals: 95,000m of logging.

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Canahuire Deposit - Geophysics
Gold Fields DETAILED Gradient Array: IP

2010 Gold Fields Gradient Array IP/Resistivity: 50m Lines, 12.5m Dipoles 400m

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Canahuire Deposit - Geophysics
Gold Fields DETAILED Gradient Array: Resistivity

2010 Gold Fields Gradient Array IP/Resistivity: 50m Lines, 12.5m Dipoles 400m

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26
Steel
200m
Casing
CCP08-05
3 Comp.DHEM (A): ET: In-hole LT:Off-hole Orientation Moving Loop CDI – Section 0E
Channel 18  High amount of sulphides led to the trial of Time
Domain Electromagnetic Methods (TDEM)
 Initial orientation survey – MLEM – Successful.
 3 Component Fixed Loop – Successful
 3 Component DHEM – Successful
Section 0e
Section 0E CCP11-308  Future – direct targeting & ↑ search radius
EM Summary Plan & 3Comp.Fixed Lp Resultant
Time Domain Electromagnetics: MLEM, Fixed Loop and DHEM
Canahuire Deposit - Geophysics
Canahuire Deposit - Geophysics
Time Domain Electromagnetics: MLEM, Fixed Loop and DHEM

EM Summary Plan & 3Comp.Fixed Lp Resultant

 High amount of sulphides led to the trial of Time CCP11-308 Section 0E
Section 0e
Domain Electromagnetic Methods (TDEM)

 Initial orientation survey – MLEM – Successful.

 3 Component Fixed Loop – Successful
 3 Component DHEM – Successful
 Future – direct targeting & ↑ search radius Channel 18

Orientation Moving Loop CDI – Section 0E 3 Comp.DHEM (A): ET: In-hole LT:Off-hole
CCP08-05

200m Steel

Casing

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Canahuire Deposit - Geophysics
Summary

 The large amount of Sulphides; magnetic and electrical make Canahuire an ideal
geophysical target. In fact in many ways, Canahuire is more typical of a polymetallic VMS
deposit than a breccia gold system.
 Geophysics has played a significant role in both the discovery and in the development of
our understanding of the deposit.
 A large variety of techniques have been applied, with applications ranging from:
– Orientation Surveys (future exploration tools)
– Detailed Mapping
– Direct Ore Detection/Targeting
 Numerous methods, not all discussed here today, have been applied / trialed at Canahuire and these
are summarised below:
– Magnetics (Detailed Ground and Helimagnetics)
– DC Electrical Methods: Very Detailed Gradient array and Pole-Dipole IP/Resistivity
– Time Domain Electromagnetics: Moving Loop, Fixed Loop and Downhole
– Gravity: Regional and Detailed
– Petrophysical Logging: Detailed Magnetic susceptibility measurements.
– Distributed Acquisition Systems

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Canahuire Deposit – Summary

 Canahuire is a discovery made in an area where the first phase of Au focused

exploration was not successful. Subsequent base metal Exploration thru JV led to the
Canahuire Au Discovery!
 The Canahuire deposit is a function of three key ingredients:
 Magmatic hydrothermal system
 Structure
 Stratigraphy
 Geophysics and Geochemistry played a key role in the discovery!
 The project is currently undergoing re-evaluation as initial Feasibility work did not
deliver a positive return. (Current Res.132Mt @1.79 g/t Aueq, for 7.6Moz Aueq.).
 Key to this phase, is following-up other Geological-Chemical-Physical targets within the
immediate surrounds of Canahuire, of which there are several, clear analogues!
 During this exploration re-visitation time CDH, will continue to work with
 Communities.
 Local authorities.
 National government
…to ensure project development adheres to the best technical, environmental & social standards!

Canahuire - a major discovery in Southern Peru 29

Thank you for your attention

Native gold (fish)

Canahuriensis

Courtesy of Regina Baumgartner

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