Ilo Este and Ilo Norte Copper Projects (TSX Westminster)

Image: View of the Northern intrusive belt at Ilo Este

Highlights:

Latin Resources has completed the sale of its Ilo Norte and Ilo Este copper projects in Peru to Toronto SX listed Westminster Resources Limited. (TSX-V:WMR)

 

Sale of 44 Concessions that include Ilo Norte and Ilo Este brownfield projects.

 

Total sale proceeds exceed $6.8m in cash and shares – USD$250,000 cash and 19 million shares over 18 months.

 

Latin Resources will own circa 40% of Westminster Resources.

 

Exploration to commence 2nd Quarter 2018

The divestment of its Copper projects will now allow Latin to focus on its Lithium and Cobalt projects in Argentina.

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Overview

On the 8th February 2018, Latin Resources finalised the sale of its Peruvian copper assets to Westminster Resources Limited (“TSX-V: WMR” or “Westminster”) a publicly listed company on the Toronto Venture Exchange.

The sale and transfer entitled  Westminster to 100% ownership of a total of 44 concessions, including the Ilo Norte and Ilo Este projects, spread over 36,000 hectares held by Latin’s 100% owned subsidiary, Peruvian Latin Resources SAC.

 

Ilo Norte and Ilo Este projects are located approximately 22km and 34km respectively from

the coastal town of Ilo in the Southern Peruvian District of Moquegua. Ilo is 220km south-west of Arequipa.

The area is arid and composed of rugged topography typical the coastal strip, between the

sea and the foothills of the Cordillera de la Costa.

 

History

There has been a relatively small amount of exploration work before Peruvian Latin Resources

Ltd obtained the concessions. Ilo Norte was included in a broader aeromagnetic survey flown

by Teck in 2003. Rio Tinto (RTZ) undertook mapping sampling and a small amount of reverse

circulation drilling at Ilo Este in 2000.

 

Geological Setting and Mineralization

Ilo Norte is considered to be an IOCG deposit, and the Ilo Este is a Copper Gold Porphyry.

Both are situated in volcanic rocks and volcaniclastic sedimentary rocks of the Lower Jurassic

Chocolate Formation, the Upper Jurassic Guaneros Formation and the Lower to Middle

Cretaceous Toquepala Group.

 

Property Location

The properties are both located in the Ilo Province which is part of the Department of

Moquegua in Southern Peru.

Figure 1: Ilo Norte and Ilo Este Locations

Concessions

The Ilo Norte project consists of four exploration concessions with an area totalling 3,300 Ha,

and the Ilo Este consists of eight exploration concessions with an area totalling 6,200 Ha. The

total area for both projects is 9,500 Ha. The centroids of Ilo Norte and Ilo Este are

approximately 22km apart, though at the closest point the projects are 11.4km apart.

Table 1: Ilo Norte and Ilo Este summary of concessions

Figure 2: Ilo Norte Concessions

Figure 3: Ilo Este Concessions

The Ilo Projects are in the Heart of the Prolific Copper District of Southern Peru

Latin’s Exploration and Drilling

Latin Resources has carried out extensive exploration drilling and has demonstrated substantial upside for development of the Ilo Este and Ilo Norte Copper Projects, comprising more than 36,000 hectares, in the highly prospective coastal IOCG/Porphyry Copper belt of Southern Peru. Over 125 billion pounds of contained copper in published reserves and resources are found within 100 km of these concessions and are the source of around half of Peru’s copper production. Peru is the world’s third largest copper producing nation.

 

Ilo Norte Project, is only 29km North of the port city of Ilo and hosts IOCG and Skarn Replacement style mineralisation in a package of Jurassic Volcano-sedimentary rocks. Over 10,000m of diamond drilling has been completed with drill results improving towards the North East of the project area; Best intersections from the drill campaign are as follows:

Ilo Este is a large Copper Porphyry System with coincident Gold, Silver and Molybdenum mineralisation which has been mapped at surface over more than 3km2, and believed to potentially continue over a similar area under cover to the east of the area where it outcrops both as an extension to two ESE striking intrusive belts under cover, and also potentially fault offset by a major, apparently low angle listric fault striking to the NE.  Rio Tinto (RTX) drilled shallow RC holes at Ilo Este in 2000 in the northern of the two ESE striking intrusive belts.

Porphyry  Copper  Deposits  are the world’s  largest  source  of copper  mined today  and are generally  the lowest  unit cost mines  due to their size and additional bi-product credits for Mo, Au, Ag and other metals.  Peru and Chile together produce around one third of the world’s copper and the Western flanks of the Andes Mountains in Southern Peru are host to Peru’s largest and most prolific copper producers. Nearly 600,000 tonnes of copper is produced each year within 100 km of Latin’s concessions and is set to increase substantially in coming years with expansions and new mines coming on line. Latin’s concessions have good potential for Copper Porphyry deposits and such a discovery would be extremely valuable to the Company.

Figure 4: Cuajone Mine, Peru: 2.4Bt @ 0.48% Cu, 0.017% Mo; 140ktpa Cu production. 70km NE of Ilo Este.

Ilo Este is a large Copper Porphyry System with coincident Gold, Silver and Molybdenum mineralisation which has been mapped at surface over more than 3km2, and believed to potentially continue over a similar area under cover to the east of the area where it outcrops both as an extension to two ESE striking intrusive belts under cover, and also potentially fault offset by a major, apparently low angle listric fault striking to the NE.  Rio Tinto (RTX) drilled shallow RC holes at Ilo Este in 2000 in the northern of the two ESE striking intrusive belts.

The likely extension of the northern intrusive belt under cover to the East South East increases the size potential of the already very large system, as does the possible fault offset upper portion of the porphyry which may host the typically higher grade phyllic zone.  The phyllic zone is only observed in restricted areas of the outcropping system as mapped, suggesting that it has either been eroded, or possibly cut by the low angle Chololo Fault adjacent to the South East (Figure 5).

Figure 5: View of southern coast of Peru around Ilo with the concessions outlined. Ilo Este is 6km From the Pan Pacific Highway, railway and electrical substation and a further 32km to the port city of Ilo

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LATIN RESOURCES AUSTRALIA
Unit 3, 32 Harrogate Street
West Leederville, Western Australia 6007

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PERUVIAN LATIN RESOURCES S.A.C.
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(P) +51 1 421 2009
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(W) www.latinresources.com.au

RECURSOS LATINOS S.A
Maipú 1210 Piso 8 (C1006ACT) CABA, 

Buenos Aires, Argentina

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