PPX Mining Corp.â€™s [PPX-TSXV, Lima; SNNGF-OTC] mining partner, Proyectos la Patagonia SAC, cut a high-grade gold and silver mineralized shoot within the previously defined reserves for Mina Callanquitas, during development work on the 3190 level of the underground Mina Callanquitas in 2021 on the 100%-owned flagship Igor gold and silver project, northern Peru.
Systematic underground channel sampling, part of PLPâ€™s normal grade control protocol, outlined a high-grade mineralized shoot over a strike length of 150 metres with a true width of 1.9 metres. Individual channel samples contained up to 228.16 g/t gold and 6,384 g/t silver as described in more detail below. Higher than anticipated grades and good continuity highlight the significance of this discovery.
The principal shoot is 150 metres long with an average width of 1.9 metres with average grades of 16.84 g/t gold and 257 g/t silver. Within this mineralized shoot there is a distinct zone of much higher gold grades: Over a strike length of 63 metres with an average width of 2.2 metres, 118 channel samples average 26.46 g/t gold and 234 g/t silver. Individual channel samples, which range in width from 0.2 to 1.2 metres range in grade from 0.43 to 228.16 g/t gold and 1.1 to 4,602 g/t silver.
High Grade Silver Zone: The southern extent of the 3190 level has cut through a zone with high silver grades: up to 6,384 g/pt silver. Based on 16 channel samples, this zone has an average width of 2.3 metres grading 1,272 g/t silver and 3.43 g/t silver. The silver zone is open to the south and at depth.
The 3190 level is 140 metres above the deepest drill hole at Callanquitas emphasizing the exploration opportunities at depth. Also, significant volumes of mineral resource are adjacent to the mine workings, along strike with 3190 level, providing an opportunity to extend mine life.
Brian J. Maher, President and CEO, commented: â€œThe high grades seen in underground sampling results from the 3190 level are an exciting development for the company, allowing PPX and PLP to leverage the higher grades and current metal prices to maximize cash flow. The 3190 gold and silver mineralized shoot also provides confirmation of high gold and silver grades at Mina Callanquitas and presents the company with excellent targets for future exploration as Mina Callanquitas continues to grow at depth.â€
Igor is located in the prolific northern Peru gold belt in eastern La Libertad Department. PPX is operating the Callanquitas Mine exploiting high-grade, underground-minable oxidized gold and silver ore as defined by a Pre-Feasibility Study. Based on the OPFS, PPX expects the Callanquitas Mine to produce up to 26,000 AuEq ounces per year over a seven-year mine life at cash cost of less than US$610/AuEq ounce. While PPX has not declared commercial production at Mina Callanquitas, increasing metal prices and mine productivity, coupled with superior toll milling contracts, have all contributed to the increasing revenue derived from operations at Mina Callanquitas. It should be noted that the decision to commence mining operations at Mina Callanquitas is based solely on the PFS referenced above, not a feasibility study.
Through Fiscal Q4 2021, Mina Callanquitas has produced 147,061 tonnes of ore grading 9.51 g/t gold and 81.7 g/t silver resulting in the production of 34,451 ounces of gold from the project’s Mineral Reserves as defined in the Igor PFS. The mine currently produces at a rate of approximately 140 tonnes/day with ore being processed at nearby toll milling facilities.