Salazar Resources Ltd. [SRL-TSXV; SRLZF-OTC; CCG-FSE] has started an approximate 3,000-metre diamond drill program at its 100%-held Ruminahui project in northern Ecuador.
The Ruminahui concessions cover 2,910 hectares and exhibit several historic adits and workings at the company’s primary target, the San Francisco anomaly. Mapping and sampling have indicated the presence of gold-bearing sulphide mineralization, porphyry-style alteration, multiple shear and breccia zones, and veining. Trench results include 55 metres at 2.76 g/t gold at surface.
Fredy E. Salazar, president and CEO, said, “We are excited to have started our drill program at Ruminahui. The style of the gold and copper mineralization I have seen at surface here indicates that there could be a major porphyry copper system at depth. This drill program is a seminal event for the company and our team has worked closely with the local community and forged strong relationships to enable the work to advance.”
The main target area at Ruminahui is the San Francisco anomaly. The area is of interest because of the potential for additional gold-copper-(silver) mineralization that is found in an exploration area where very little historical mineral exploration had been done. Salazar Resources sampling in 2006 indicated 2.76 g/t of gold over 55 metres and the San Francisco prospect was previously mined by informal miners. The anomaly is a large (over 60 metres wide) multiple shear/breccia zone with quartz breccia veins, semi-massive pyrite and chalcopyrite. Salazar Resources is focused on creating value and positive change through discovery, exploration and development in Ecuador. The team has an unrivalled understanding of the geology in country and has played an integral role in the discovery of many of the major projects in Ecuador, including the two newest operating gold and copper mines.
Salazar Resources has a wholly owned pipeline of copper-gold exploration projects across Ecuador with a strategy to make another commercial discovery and farm-out non-core assets. The company actively engages with Ecuadorian communities and together with the Salazar family co-founded The Salazar Foundation, an independent non-profit organization dedicated to sustainable progress through economic development.
The company already has carried interests in three projects. At its maiden discovery, Curipamba, Salazar Resources has a 25% stake fully carried through to production. A feasibility study is under way and a 2019 PEA (preliminary economic assessment) generated a base case net present value (8%) of US$288-million. At two copper-gold porphyry projects, Pijili and Santiago, the company has a 20% stake fully carried through to a construction decision.