Peru

CURRENT EXPLORATION

Drilling commenced in February 2021 in the southern Montaña de Cobre Zone with 15 holes now completed on two section lines for a total of 3,647m.  Results from seven holes on the first drill section intersected broad zones of high-grade copper-gold mineralization within a larger low-moderate grade envelope.  The drill program will now proceed to its planned 10,000m looking to expand the near surface copper-gold footprint.

Drill Program Highlights:

• Assays confirm broad intervals of high-grade copper-gold mineralization, including:

 

JAS2650-01

• 129.0m @ 0.49% Cu and 0.37 g/t Au from 41m (0.78% CuEq) including
  • 52.0m @ 0.78% Cu and 0.67 g/t Au from 109.0m (1.29% CuEq)

JAS2650-03

• 54.05m @ 1.17% Cu and 0.45 g/t Au from 70.4m (1.51% CuEq) and
• 26.10m @ 2.19% Cu and 0.69 g/t Au from 154.9m (2.72% CuEq)

JAS2650-05

• 53.24m @ 3.11% Cu and 0.46 g/t Au from 92.6m (3.46% CuEq) including
  • 29.84m @ 4.96% Cu and 0.56 g/t Au from 116.0m (5.39% CuEq) includes
  • 17.10m @ 6.69% Cu, 0.59g/t Au from 128m (7.15% CuEq)
• 17.00m @ 2.10% Cu and 0.61 g/t Au from 178.0m (2.58% CuEq)

JAS2650-06

• 117.30m @ 1.31% Cu and 0.15 g/t Au from 1.70m (1.45% CuEq) including:
  • 60.0m @ 2.38% Cu and 0.14 g/t Au from 59.0m (2.51% CuEq) includes
  • 38.50m @ 3.50% Cu and 0.12 g/t Au from 77.0m (3.63% CuEq) includes
  • 16.0m @ 6.39% Cu and 0.06 g/t Au from 99.2m (6.45% CuEq)

JAS2650-07

• • 43.00m @ 1.67% Cu and 0.14 g/t Au from 79.00m (1.79% CuEq) including:
    • 18.10m @ 3.72% Cu and 0.02 g/t Au from 103.9m (3.76% CuEq) includes
    • 10.00m @ 4.23% Cu and 0.02 g/t Au from 112.0m (4.26% CuEq)

• Drilling indicates a well-developed copper enrichment profile and supergene blanket
• Secondary copper species are dominated by malachite, azurite, chrysocolla and chalcocite

 

 

The Jasperoide skarn was discovered in 1994 but over the past 27 years has seen just four years of exploration by previous operators.  Historic exploration activities were mainly focussed on the Montaña de Cobre Zone and involved surface mapping, sampling, ground magnetic and IP surveys and diamond drilling.  A total of 10,175.7m in 52 holes was completed in three drilling campaigns conducted in 1994 (2,689.89m in 14 holes), 1996 (1,854.2m in 13 holes) and 2011-12 (5,632.32m in 25 holes) by a previous owner[1].  C3 Metal’s drill program is the first exploration program undertaken at Jasperoide since 2012.

The Company’s Phase 1 exploration drill program at the Montaña de Cobre Zone was designed to confirm and increase confidence in the lateral extent of the copper-gold mineralization through both infill and step-out drilling on a 50-metre grid.  Unlike porphyry deposits, skarn deposits are well known to demonstrate higher variability in alteration and mineralization, hence the Company has elected to use a tighter grid spacing as a judicious approach to not only gain a better understanding of the system but as the basis for future resource calculation.  As a result, the Company has high confidence in the copper-gold mineralization having a 450m lateral extent on section JAS2650.

Copper-gold mineralization at Jasperoide is associated with skarn altered carbonate rocks of the Ferrobamba Formation (“Exoskarn”) and granodiorite and tonalite intrusive rocks (“Endoskarn”).  Exoskarn comprises a partially to completely replaced dolomite with an alteration assemblage of coarse garnet, diopside and lesser epidote.  Endoskarn is characterized by pervasive to fracture controlled garnet, epidote and diopside alteration in granodiorite and tonalite.  Late-stage retrograde alteration overprints both the Endoskarn and Exoskarn and is characterized by intense magnetite flooding with lesser quartz, calcite and specular hematite.

The drilling program has been planned to define the dimensions of the skarn system and, more importantly, to identify the pathway for mineralizing hydrothermal fluids which may have vented off from a porphyry copper system at depth.  Drill progression will continue northwards to the Cresta Verde Zone, after completing the expanded program at the Montaña de Cobre Zone and then to the south into the Callejón de Oro zone.

[1]     Data retrieved from Hochschild Mining’s database and internal reports.  Hochschild explored the Jasperoide project from 2011 to 2012 and completed two drill programs.  C3 Metals has access to the entire drill database and believes that the reporting of the information was to industry standard practice.

Montaña de Cobre Zone Drill Results

A total of 15 holes for 3,647m of diamond core drilling have been completed to date. The drill rig is currently drilling the first hole on section line JAS2750, 100m to the north of line JAS2650 reported in this release (see Figure 1).

Two drill fans completed on section line JAS2650 (1,741.1m) confirm that skarn alteration and mineralization are well developed for over 450m laterally with the system open to the west, north, south and at depth (see Figure 2). Drilling indicates the skarn horizon dips 15 to 25 degrees westward and is vertically zoned with respect to alteration and mineralization. Holes JAS2650-01, 02, 04 and 07 were drilled as step-out holes, JAS2650-03 and 06 as infill holes and JAS2650-05 is a scissor hole to JAS2650-03. Infill holes were required to ensure the reliability of high-grade results reported by previous operators which could carry significant influence in future resource calculations.

Drilling confirms a moderate to strongly leached exoskarn (Low Grade Domain) is followed at depth by a strongly oxidized magnetite skarn that is massive or brecciated (Low to Medium Grade Domain) and transitions into an enrichment zone at depth (High Grade Domain). Secondary copper species observed to date include malachite, azurite, chalcocite and chrysocolla (see Figure 3). Copper sulphide mineralization is rare but has been observed at deeper levels in the system (+175 m depth) and comprises chalcopyrite in veins and as coarse disseminations.

Drill holes JAS2650-05, 06 and 07 intersected a high-grade zone of copper mineralization at the eastern skarn zone area. Each hole intersected a breccia with significant secondary

copper species and all located proximal to the marble contact. JAS2650-06 intersected 16m (99.2 – 115.2m) @ 6.39% Cu, JAS2650-05 intersected 17.1m (128 – 145.10m) @ 6.69% Cu and JAS2650-07 intersected 10m (112-122m) @ 4.23% Cu (see Figure 4). This enriched zone might be further infill drilled to better understand its dimensions, as this is an important mineralized body.

Significant assays from the first seven holes are included in the table below.

Notes:

1. No adjustments made for recovery, the project is early-stage exploration and there is insufficient metallurgical data to allow for estimation of recoveries. Copper equivalent calculation for reporting purposes only and calculated as CuEq (%) = Cu (%) + ((0.7179 × Au g/t) + (0.0090 × Ag g/t)) under metal price assumptions of Copper – US$3.25/lb, Gold – US$1,600/oz and Silver US$ 20/oz.
2. Significant assay intercepts are reported as length-weighted averages exceeding 0.20% CuEq, with less than 5m of consecutive internal dilution.
3. Arbitrary top cut of 5g/t on gold assays has been used, copper is uncut.
4. True width of down-hole intersections reported are estimated to be approximately 60-90% of the down-hole lengths.

 

Figure 1: Ground magnetic analytical signal image and current drill hole locations

 

Figure 2: Jasperoide Drill Hole JAS2650 Cross Section, 50m window

 

Figure 3: Drill core from JAS2650-03 (178m) showing oxidized magnetite skarn with malachite, interval 178 – 179.2m assayed 1.2m @ 2.2% Cu and 0.61 g/t Au

 

Figure 4: JAS2650-06 core box interval 109.0 – 112.4m showing strong secondary copper mineralization.  The interval 109.0 – 113.0m assayed a weighted average 4m @ 12.80% copper.