DIABLILLOS (Principal Property)
Our principal project is Diablillos which contains a Ag-Au epithermal deposit called the Oculto Deposit for which a mineral resource has been estimated based on approximately 85,000 metres of drilling in 448 holes. The current Indicated resource for the Oculto Deposit, as estimated by RPA of Toronto in August 2017, is 26.85 million tonnes at 93.0 g/t silver and 0.85 g/t gold containing 80.3 million ounces Ag and 732,000 ounces gold (approximately 1.8 million gold-equivalent ounces or 135 million silver-equivalent ounces, based on a gold:silver ratio of 75:1).
The Oculto Deposit is one of nine mineral occurrences located on the Diablillos Property which covers an area of 79km2. Mineralization at Oculto is open at depth and along strike. The other mineral occurrences also have the potential for adding gold, silver, and copper resources with additional testing.
Diablillos lies in the Argentine “Puna” (Altiplano) at 4000m asl, and is located in a rapidly developing mineral district in northwestern Argentina that includes, TacaTaca (First Quantum), Lindero and Arizaro (Fortuna). The Project lies in an established mining camp that includes FMC’s Hombre Muerto lithium operations, Borax’s (now Orocobre) Sijes, Ratones, and Tincalayu borate mines and concentrating plants, and Ulex’s Sal de Mañana plant, as well as Galaxy’s Sal de Vida and the Sal de los Angeles advanced lithium project.
The area is accessible by good, all-weather, gravel roads, and FMC maintains a serviceable airstrip at their Hombre Muerto operations. Sufficient subterranean water is available on and near the project, and a natural gas pipeline is located 34 km from project in anticipation of development at Diablillos. There is a railway station at the town of Pocitos on the currently abandoned line between Salta and the Chilean port of Antofagasta. The few local communities that reside in this part of the Puna have a long tradition of working in mining and provide a ready source of labour. The Salta authorities are supportive of mining and have provided a framework in which permitting applications are expeditiously vetted. Salta has a long tradition of mining particularly with respect to lithium and borax, and has many advanced metalliferous projects (eg, TacaTaca, Lindero, Rio Grande, and our own Diablillos). For these reasons, Salta province typically ranks at or near the top of mining jurisdictions in the annual Fraser Institute Mining Survey.