• Cerro Covadonga

    Primary Target
    Gold in Low Sulphidation Veins and Breccias

    Partner
    Available for Joint Venture

    Location
    The Cerro Covadonga Project is located approximately 40 Km North of the Cerro Vanguardia gold mine in the center of the Deseado Massif of Santa Cruz Province. It is accessed in around 45 minutes from the Tres Cerros Hotel on 30 Km of good unpaved road.

    Project Operator
    Magna Terra Minerals

    Property Information
    Magna Terra Minerals has 100% control, through a leasing agreement with a private individual, of the Cerro Covadonga M.D. which constitutes 2945 Hectares on which the project is based. Magna Terra Minerals also controls the adjoining Piedra Negra M.D.s and Puyutano Cateo which comprise a further 20,000 Hectares. The area of interest occurs in the western side of the Cerro Covadoga M.D. and is divided into multiple zones for convenience which, from North to South, are the “Lomo Vetado”, “Discovery Veins”, “Trincheras Zone”, “Cerro Rojo”, “Cerro Codo”, “Cerro Conchita” and “Cerro Redondo”. Together these zones form a 3 Km strike length which we interpret to be a major dilatational jog. In the event of success at Cerro Covadonga, the neighbouring Cerro Vanguardia Gold Mine represents a good candidate for JV or offtake partner.

    Geology: The Covadonga project is characterized by Au bearing, low sulphidation veins and breccias, hosted in andesitic flows and rhyolitic tuffs of the Bajo Pobre and Chon Aike Formations respectively. Most of the surface gold is concentrated in the Discovery Vein, Lomo Vetado and Trincheras Zones. Epithermal veins, stringers and breccias form an Au bearing footprint of 600m by 150m. The outcropping veins strike NNW and NE and have an Au +-Pb+-As+- Hg signature with an average grade, from the 70 rock chip samples in this area, of 0.5 ppm Au. The alteration, minieralization and geochemistry infer project outcrops are at or near the top of a low sulphidation gold-silver system.”

    9 trenches, with a total length of 1127 m, were cut from East to West across a NNW striking hydrothermal corridor to evaluate possible continuation of mineralization to the SSE. A total of 296 continuous 5 m chip channels samples were taken along trench walls, close to the floor of the trench and these were augmented by 76 select samples of silica veins and stringers. Significant, albeit highly variable, amounts of As, Sb and Hg were reported with trace Au. Correlation coefficients were calculated from this dataset with the select sampling. Some important correlations were observed between Au and Ag, As, Hg, Sb and most critically Pb where the correlation with Au is 0.82 and is considered sufficient that we can use Pb as proxy for Au in soil sampling.

    Between 1 and 2 Km to the S-E of the discovery outcrop the covered ground gives way to low hills with volcanic breccias cut by hydrothermal breccias and NW to NE striking veins of the “Cerro Redondo Zone”. Au mineralization is sporadic and weak in this area which is characterized instead by strong Hg anomalies. The strike of the system deviates from NNW in the “Lomo Vetado area” to ESE and E-W on the northern flank of the “Cerro Redondo”. Our structural and geochemical observations lead us to interpret the system as being controlled by a large dilatational jog which plunges to the ESE.

    Current work on the project includes a 700+ soil sample campaign which will cover the “Lomo Vetado Area”, the “Cerro Redondo Area and the recessive ground in between. Samples are being taken on a 50 m grid and are intended to map the geochemical footprint and support the orientation of the pending ground magnetic and IP programs.