The Takana district is comprised of claims encompassing 50,300 hectares and has numerous high-grade copper-nickel occurrences. The claims are located approximately 90 kilometres (km) northwest of the city of Cusco and approximately 235 km northeast of the Sombrero District, where the Company controls 130,000 hectares on the western extension of the Andahuaylas Yauri belt.
Numerous high-grade copper-nickel occurrences have been identified in the Takana district, primarily through first pass reconnaissance channel and rock sampling by the previous operator. There are two multi-kilometre trends of mineralization in the central region of the property with channel sample highlights including: 10 metres (m) of 2.08% copper (Cu), 0.85% nickel (Ni), 0.61 g/t platinum (Pt), and 0.96 g/t palladium (Pd); 4m of 6.11% Cu, 0.08% Ni, 5.54 g/t Pt and 9.51 g/t Pd; 18m of 0.51% Cu, 0.43% Ni, 0.17 g/t Au, 0.16 g/t Pt, and 0.15 g/t Pd; and 20.1m of 0.21% Cu and 0.33% Ni (see cautionary notes about historical sampling). The southern region of the property is characterized by strong copper-nickel stream sediment anomalies that are coincident with numerous conductors identified in an airborne electro-magnetic geophysical survey.
Geologically, the Takana district is situated in an underexplored segment of the Pisco-Abancay Deflection zone, which has seen multiple mineralizing events, and therefore has the potential to host different styles of base and precious metal mineralization. The copper-nickel mineralization is associated with Permo-Triassic rifting, where deep seated ultra-mafic rocks intrude into Ordovician to Devonian sedimentary rocks. The district was initially assembled based on the results of a high-quality regional stream sediment survey, which was undertaken in 2007-2009, where copper, nickel, platinum, palladium and gold anomalies are coincident within several drainage basins.
The northern 4 km Negrohuarcuña mineralized trend is characterized by four separate clusters of high-grade copper-nickel mineralization, hosted primarily by ultramafic rocks that exhibit a sub-horizontal sill-like geometry. Highlights from rock grab samples along the trend are listed below in Table 1 with values up to 15.95% Cu, 2.84% Ni, 15.35 g/t Pt and 28.6 g/t Pd. A first pass reconnaissance drill program consisting of 13 shallow holes, totalling 2,350 m, tested 250 m by 250 m of a sub-horizontal ultra-mafic sill at the Negrohuarcuña occurrence. Highlights from the drilling include: 25.2 m of 0.21% Cu and 0.33% Ni, and 46.5 m of 0.31% copper and 0.04% nickel. Complete drill results are listed below (Table 2). Importantly, Sombrero’s technical team believes that these shallow drill holes did not adequately test the 4 km trend or the sub-vertical feeder zones that the Company believes represents the primary target within the trend.
Table 1: Rock grab sampling highlights from high-grade prospects at the Negrohuarcuña mineralized trend (collected by a previous operator and database made available to Sombrero):
Table 2: Drill results from the Negrohuarcuña prospect (collected by a previous operator and database made available to Sombrero):
The southern 7 km Jantun Puma-Coquimbo mineralized trend is characterized by three separate clusters of high-grade copper-nickel mineralization. Highlights from the rock grab samples along the trend are presented below (Table 3) with values up to 4.37% Cu and 2.43% Ni. Rock samples were taken from outcrop at the Jantun Puma occurrence and as float samples beneath a strong conductor at the Coquimbo occurrence. No drilling has occurred along this trend and additional work is required to understand the geometry of the mineralized bodies.
Table 3: Rock grab sampling highlights from high-grade prospects at the Jantun Puma-Coquimbo mineralized trend (collected by a previous operator and database made available to Sombrero):
The southern third of the property, known as the Ocobamba area, is characterized by the district’s strongest coincident copper, nickel, platinum, palladium and gold stream sediment anomalies. These anomalies collectively outline a 10 km by 5 km area that has numerous geophysical conductors, which are interpreted to be associated with base metal sulphide mineralization. This area is the least explored within the Takana district and will be a major focus for the Company's exploration program.
Under the terms of the Agreement dated July 22, 2021, Coppernico Metals has the option to acquire 90% or 100% of the shares of Chukuyo, the private Peruvian company that owns the rights to the Takana district. The timing of option payments is based on the Access Date, which is when the access agreement and permits are secured and is expected by Coppernico Metals to occur over the next 12 months.
Coppernico Metals can buy the remaining 10% of Chukuyo shares for a price between US$10 million and US$25 million which is dependent on the measured and indicated resource mineralization discovered on the property, within the earlier of five years from the Access Date and 60 days after a decision of the Board of Directors of Chukuyo to commence a mine development program. Exploration expenditure requirements cease once the option is exercised, which can be done at any time at Coppernico Metals' election. Coppernico Metals also has the right to make option payments in cash or Coppernico Metals shares, subject to any required stock exchange approvals.
The historical grab and BLEG samples from the Takana district were collected by Compania de Exploraciones Orion SAC (2007-2010), a Pembrook Copper affiliate, and were included in a database obtained in connection with the transaction. Sombrero has not conducted any due diligence on whether appropriate QA/QC protocols were followed in the collection of these samples, nor can it confirm their accuracy or repeatability. Accordingly, readers are cautioned about reliance on the accuracy or repeatability of this sampling. Sampling is of very limited geological significance and serves only to assist the development of a methodical exploration program involving geochemical, geophysical and ultimately diamond bit drill core drilling. The drilling referenced in this news release was conducted in 2010 and is described in a separate report from Compania de Exploraciones Orion SAC, which was also provided to the Company by Pembrook as part of the Takana project documentation. The Company has not performed any data verification on the drilling but based on its review of the report has no reason to doubt the work was properly done and reported. The Company is now in the process of reviewing and compiling all available technical information into a new NI 43-101 compliant report on the Takana project, which it hopes to make public in late 2021/early 2022. There is no known mineral resource of commercial interest established at the Takana district.
Historical drill samples were taken by sawing HQ diameter core into equal halves on site with one half being sent to ALS lab in Cusco, Peru for preparation and then to Lima, Peru for analysis. All samples were assayed using 30g nominal weight fire assay with ICP-MS finish for gold, platinum and palladium (PGM-MS23). Silver and base metals were analyzed as part of the multi element aqua regia digest ICP-AES/ICP-MS method (ME-MS41). Where MS41 results were greater than 10,000ppm Cu, 10,000ppm Zn, 10,000ppm Pb or 100ppm Ag the assay was repeated with ore grade aqua regia digestion with AA finish (Cu-AA46; Zn-AA46; Pb-AA46; Ag-AA46 respectively).
Approximately 3-5kg of material was collected for analysis and sent to ALS Lab in Lima, Peru for preparation and analysis. All samples were assayed using 30g nominal weight fire assay. Platinum and palladium were analyzed by ICP and MS (PGM-MS23); Gold was analyzed by ICP and AES finish (Au-ICP21), for samples assaying above 10 ppm from ICP21 the assay was repeated with 30g nominal weight fire assay with gravimetric finish (Au-GRA21). Silver and base metals were analyzed as part of the multi element package (ME-MS41), or to trace levels in 36 multi element package (ME-ICP41), In 2009, Silver analysis was completed by 30g fire assay with gravimetric finish (Ag-GRA21). Where MS41, ICP41 results were greater than 10,000ppm Cu, 10,000ppm Zn, 10,000ppm Pb or 100ppm Ag the assay was repeated with ore grade aqua regia digestion with AA finish (Cu-AA46; Zn-AA46; Pb-AA46; Ag-AA46 respectively).
Stream Sediment Samples
Approximately 0.25kg of -80 mesh material was collected for analysis by sieving in the field and sent to the ALS Lab in Lima, Peru for preparation and analysis. Samples from regional BLEG survey are analyzed using fire assay with ICP finish (Au-ICP21) and ultra-trace multi-element Aqua Regia digest ICP-AES/ICP-MS method (ME-MS41L).