Atacama Copper drills 10.65 g/t AuEq over 7.8 metres at Cristina, Mexico

Atacama Copper Corp. [TSXV-ACOP] reported results from the first five holes of a 10,000-metre diamond drilling program at its wholly owned Cristina precious metal project in southwestern Chihuahua state, Mexico.

The first five holes represent 1,347 metres of drilling of a 40-50-hole drill program. The Cristina project consists of multiple outcropping quartz veins that are frequently greater than 10 metres in width and extend for at least a 5-km strike length. Four parallel mineralized vein zones have been mapped and sampled to date, with most of the existing mineral resource estimate at Cristina contained within the Guadalupe vein.

Highlights of the five holes reported here, all from the central portion of the main Guadalupe vein system, include 10.65 g/t AuEq (gold equivalent) over 7.8 metres estimated true width (1.55 g/t Au, 528 g/t Ag, 2.38% Zn, 0.54% Pb and 0.19% Cu) in hole ACD24-221, including 19.88 g/t AuEq over 4.8 metres estimated true width (2.45 g/t Au, 1,041 g/t Ag, 3.95% Zn, 0.93% Pb, and 0.34% Cu); 9.40 g/t AuEq over 2.2 metres estimated true width (1.86 g/t Au, 523 g/t Ag, 0.15% Zn, 0.32 % Pb, 0.05% Cu) in hole ACD24-222.

The 2.2-metre wide intercept occurs within a broader mineralized zone measuring 2.02 g/t AuEq over 29.0 metres estimated true width (0.57 g/t Au, 90 g/t Ag, 0.22% Zn, 0.12% Pb, 0.02% Cu); 10.48 g/t AuEq over 1.6 metres estimated true width (6.18 g/t Au, 54 g/t Ag, 1.26% Zn, 0.09% Pb and 0.07% Cu) in hole ACD24-224.

The 1.6-metre wide intercept occurs within a broader mineralized zone measuring 1.87 g/t AuEq over 21.5 metres estimated true width (1.12 g/t Au, 22.1 g/t Ag, 0.65% Zn, 0.09% Pb and 0.04% Cu).

Tim Warman, CEO, commented: “These first five holes provide excellent support for our goal of delineating and expanding the known higher-grade zones within the Guadalupe vein system to define a robust underground resource at Cristina. Previous drilling has encountered thick higher-grade zones in every vein system tested to date, and this current round of drilling is aimed at better defining and expanding those zones, beginning with the Guadalupe and Los Ingleses vein systems.”

All five holes reported here were drilled in the central portion of the Guadalupe vein system: ACD24-221 fills in a gap in the previous drilling and demonstrates vertical continuity of similar high-grade mineralization over a vertical distance of over 250 metres starting at surface. This intercept is also expected to convert a zone of Inferred resource to Indicated as well as increasing the resource grade and ounces around the drill hole.

ACD24-222 is a shallow hole with positive results which should increase the surrounding resource block grades and contained ounces, while potentially upgrading the resource classification in this area from Inferred to Indicated. ACD24-223 demonstrates that mineralization in the Guadalupe vein continues for nearly 200 metres below previous drilling and the base of the resource block model, with a total vertical extent in this area of over 450 metres from surface.

ACD24-224 confirms and fills in an area of high-grade mineralization and is expected to convert the surrounding resource blocks to Indicated while increasing the resource grade and ounces around the drill hole. ACD24-225 was another shallow hole on the margins of a high-grade shoot which better defines the location of a fault that drops down the higher-grade portion of the vein to the west of the fault.

An interesting aspect of the Cristina deposit is the apparent vertical extent of the mineralization within the system. Mineralization in outcrop occurs at surface at elevations up to 2,000 metres above sea level (masl), while the deepest zone of mineralization intercepted by drilling is at an elevation of 900 masl, a vertical range of approximately 1,100 metres.

Cristina is similar to other active mines in the region including Fresnillo’s San Julian and La Cienega mines, as well as First Majestic’s Tayoltita/San Dimas mine.

The drill program is expected to continue over the next several months, with results released periodically as they are received and analyzed.

The goal of targeting the higher-grade zones within the main Guadalupe Vein, as well as other high-grade veins in the area, is to both increase the size and the grade of the resource and demonstrate the underground resource potential at Cristina. The current, primarily open-pit mineral resource estimate comprises: Indicated resources of 17.5 Mt at 0.51 g/t gold, 33.8 g/t silver, 0.47% zinc, 0.19% lead and 0.04% copper (1.33 g/t AuEq grade), for a contained 752,000 gold-equivalent ounces.

Inferred resources of 19.0 Mt at 0.51 g/t gold, 27.5 g/t silver, 0.50% zinc, 0.19% lead and 0.05% copper (1.27 g/t AuEq grade), for a contained 777,000 gold-equivalent ounces.

Atacama has entered into a consulting agreement with Scandinavian Alliance (SA), a marketing consulting firm based in Sweden, whereby SA will provide assistance with the company’s communications and brand awareness strategy, focusing on Scandinavia and Northern Europe. Subject to TSXV approval, terms of the SA Consulting Agreement provide that the company will pay SA a fee of C$115,000.

The company also entered into a consulting agreement with IR PUB, a US-based digital marketing firm, whereby IR PUB will assist the company with its investor outreach and market awareness programs. Subject to TSXV approval, the terms of the IR PUB Consulting Agreement provide that the company will pay IR PUB a fee of US$150,000 (plus taxes).