JOSEMARIA RESULTS AND MAPS
The 2009 drill program comprised 7 diamond drill holes totaling 2,253 metres. The holes were drilled as significant step-outs from the boundary of the current NI 43-101 inferred resource of 460 million tonnes at 0.39% copper and 0.30 grams/tonnes gold at a cut off grade of 0.3% copper and results confirm the extension of copper/gold mineralization.
It has long been recognized that porphyry copper deposits in the Andes are not regularly distributed but rather tend to occur in clusters with several major deposits occurring within areas of less than 200 square kilometres. The general explanation for this clustering tendency is that large scale tectonic and structural features focus the magmatism that is responsible for mineralization into these relatively restricted favourable areas. Well known examples of deposit clusters are the Quebrada Blanca-Collahuasi District, the Chuquicamata District, the Escondida District, and the Andina-Los Bronces District all in Chile.
Josemaria is one of a several large porphyry copper-gold systems including Filo del Sol and Los Helados discovered within a large block of contiguous ground that the Company controls in northern San Juan Province Argentina and adjacent parts of Region 3 Chile. The occurrence of several major copper-(gold) systems including Caserones (Regalito) and the Company's Josemaria, Los Helados, and Filo del Sol discoveries in relatively close proximity suggest that they are part of a significant new porphyry copper cluster.
Mineralization in the Josemaria deposit occurs as disseminated and stockwork controlled pyrite, chalcopyrite, and occasional bornite and the deposit is coincident with a moderate chargeability anomaly that extends to the north, northeast, and southwest of the known resource. This drill program targeted coincident moderate chargeability and strongly anomalous copper and gold in soils located on the periphery of the known resource. Intervals from the drill program that are above 0.2% copper are summarized in the table below. Intervals above 0.30% copper are highlighted. In all the holes except DDH 13 these intervals are associated with strong sericitic and potassic alteration and are within a larger envelope of strongly anomalous copper.
DDH 08 and DDH 10 successfully extended mineralization for approximately 300m to the north of the current resource.
DDH 09, 11, and 14 tested an area with a copper and gold in soils anomaly with coincident chargeability located to the northeast of a barren post-mineral intrusive cut by JMRC-04. All three drill holes intersected strong potassic alteration with secondary biotite and abundant disseminated pyrite, and lesser chalcopyrite and bornite. Although the intercepts above a 0.2% copper cut off are not as thick in these holes as those in the main deposit they contain strong porphyry style alteration throughout and clearly show that the mineralized system extends to the northeast and is still open.
DDH 12 tested a chargeability anomaly to the west of the resource. Although relatively low grade, the intercept shows that the system is not completely closed off to the west. The hole was intensely altered throughout.
DDH 13 tested a strong chargeability anomaly about 250m west of the current resource and intersected strong alteration and abundant disseminated pyrite but no significant copper or gold values.
The 2009 drill program intersected thick sections of alteration and mineralization outside the current resource envelope and confirms that the already large Josemaria Deposit lies within a much larger mineralized porphyry system. Future exploration will focus on finding higher grade zones within the newly identified extensions.
The 2009 drill program comprised 7 diamond drill holes totaling 2,253 metres. The holes were drilled as significant step-outs from the boundary of the current NI 43-101 inferred resource of 460 million tonnes at 0.39% copper and 0.30 grams/tonnes gold at a cut off grade of 0.3% copper and results confirm the extension of copper/gold mineralization.
It has long been recognized that porphyry copper deposits in the Andes are not regularly distributed but rather tend to occur in clusters with several major deposits occurring within areas of less than 200 square kilometres. The general explanation for this clustering tendency is that large scale tectonic and structural features focus the magmatism that is responsible for mineralization into these relatively restricted favourable areas. Well known examples of deposit clusters are the Quebrada Blanca-Collahuasi District, the Chuquicamata District, the Escondida District, and the Andina-Los Bronces District all in Chile.
Josemaria is one of a several large porphyry copper-gold systems including Filo del Sol and Los Helados discovered within a large block of contiguous ground that the Company controls in northern San Juan Province Argentina and adjacent parts of Region 3 Chile. The occurrence of several major copper-(gold) systems including Caserones (Regalito) and the Company's Josemaria, Los Helados, and Filo del Sol discoveries in relatively close proximity suggest that they are part of a significant new porphyry copper cluster.
Mineralization in the Josemaria deposit occurs as disseminated and stockwork controlled pyrite, chalcopyrite, and occasional bornite and the deposit is coincident with a moderate chargeability anomaly that extends to the north, northeast, and southwest of the known resource. This drill program targeted coincident moderate chargeability and strongly anomalous copper and gold in soils located on the periphery of the known resource. Intervals from the drill program that are above 0.2% copper are summarized in the table below. Intervals above 0.30% copper are highlighted. In all the holes except DDH 13 these intervals are associated with strong sericitic and potassic alteration and are within a larger envelope of strongly anomalous copper.
Josemaria 2009 Drill Results
| DrillHole | From | To | Interval | Cu % | Au ppm |
| DDH_08 | 118 | 407.65 | 289.65 | 0.30 | 0.188 |
| Including | |||||
| DDH_08 | 180 | 322 | 142 | 0.35 | 0.225 |
| DDH_08 | 344 | 366 | 22 | 0.38 | 0.226 |
| DDH_09 | 110 | 116 | 6 | 0.28 | 0.113 |
| DDH_09 | 148 | 152 | 4 | 0.28 | 0.101 |
| DDH_09 | 266 | 270 | 4 | 0.27 | 0.108 |
| DDH_09 | 352 | 386 | 34 | 0.32 | 0.099 |
| DDH_10 | 142 | 146 | 4 | 0.27 | 0.205 |
| DDH_10 | 220 | 308.15 | 88.15 | 0.27 | 0.161 |
| Including | |||||
| DDH_10 | 220 | 238 | 18 | 0.49 | 0.262 |
| DDH_11 | 72 | 86 | 14 | 0.25 | 0.043 |
| DDH_11 | 114 | 118 | 4 | 0.27 | 0.067 |
| DDH_11 | 130 | 134 | 4 | 0.36 | 0.088 |
| DDH_11 | 156 | 160 | 4 | 0.29 | 0.062 |
| DDH_11 | 228 | 230 | 2 | 0.49 | 0.089 |
| DDH_12 | 78 | 100 | 22 | 0.20 | 0.027 |
| DDH_12 | 222 | 228 | 6 | 0.21 | 0.086 |
| DDH_13 | No | Significant | Intercepts | ||
| DDH_14 | 172 | 314 | 142 | 0.212 | 0.092 |
| Including | |||||
| DDH_14 | 172 | 182 | 10 | 0.42 | 0.174 |
| DDH_14 | 198 | 240 | 42 | 0.25 | 0.112 |
DDH 08 and DDH 10 successfully extended mineralization for approximately 300m to the north of the current resource.
DDH 09, 11, and 14 tested an area with a copper and gold in soils anomaly with coincident chargeability located to the northeast of a barren post-mineral intrusive cut by JMRC-04. All three drill holes intersected strong potassic alteration with secondary biotite and abundant disseminated pyrite, and lesser chalcopyrite and bornite. Although the intercepts above a 0.2% copper cut off are not as thick in these holes as those in the main deposit they contain strong porphyry style alteration throughout and clearly show that the mineralized system extends to the northeast and is still open.
DDH 12 tested a chargeability anomaly to the west of the resource. Although relatively low grade, the intercept shows that the system is not completely closed off to the west. The hole was intensely altered throughout.
DDH 13 tested a strong chargeability anomaly about 250m west of the current resource and intersected strong alteration and abundant disseminated pyrite but no significant copper or gold values.
The 2009 drill program intersected thick sections of alteration and mineralization outside the current resource envelope and confirms that the already large Josemaria Deposit lies within a much larger mineralized porphyry system. Future exploration will focus on finding higher grade zones within the newly identified extensions.
