ANTARES

ANTARES

ANTARES

OVERVIEW

Location: Colombia, Antioquia Department, within the San Vicente municipality
Commodity: Gold
Target Type: Intrusive-related, intrusive-hosted, sheeted vein-fracture system
Property Size: 10,500 ha
Ownership: 100% Outcrop Gold applications and a lease agreement
Land Status: Application
Status: Available for joint venture

LOCATION

The Antares Project is located in the state of Antioquia Colombia, 20 km northeast of Medellin, in the municipality of San Vincente and 30 km north of the fully permitted Gramalote project (Anglo Ashanti/B2Gold). The project can be accessed by car via paved roads from Medellin to San Vincente, and then on gravel roads to Vereda La Enea.

HISTORY

Outcrop Gold acquired the Antares Project in 2015 as a result of a grass roots exploration program using the Gramalote deposit as an exploration model. Antares displays numerous, large, historic hydraulically mined excavations of bulk mineralized weathered granite. These excavations align within a structural zone and can be hundreds of meters wide. The excavations provide a clear indicator of possible bulk mineralized granite similar to that seen on the Gramalote project 30 km to the north.
Outcrop Gold made four applications on its own and then subsequently signed a Lease Agreement with Activos Mineros de Colombia SAS to acquire 6 additional applications contiguous to Outcrop’s applications. The combined project area covers 10,500 hectares.
In 2017 and 2018, joint venture partner IAMGOLD conducted surface exploration work on the project. Their work produced a large and significant gold in soils anomaly that provides a drill-ready target.

EXPLORATION RESULTS

During 2015 and 2016, Outcrop Gold conducted various programs on the project, including: geochemistry (stream sediments, pan concentrates, rock chips), and mapping (surface, abandoned workings, historic pits). Notable results included:
• A strong gold in stream sediment anomaly across the central project area that covers 12sq km.

• A sample database with 30% of the samples above 100 ppb Au, to a high of 10,850 ppb Au.

• Mapping shows several large, hydraulically mined excavations of in situ weathered granite between the Santa Rita and Guaricu areas, extending over 5 km.
Most 2m-interval channel samples within Santa Rita pit show a composited grade of 0.4 g Au/t or higher over significant widths. Select vein samples within the Santa Rita pit assayed as high as 22.5 g Au/t. The systematic sampling in the Santa Rita pit shows a 310 m by 160 m mineralized footprint of near continuous mineralization, hosted by two or more structural zones. The best continuous channel sample intervals are 30m @ 1.24 g Au/t and 14m @ 2.3 g Au/t. This mineralization is open in three directions, extending to the limits of the excavation.

In 2017, IAMGOLD Corporation extended earlier sampling with an additional 526 soil samples, on 50 m stations along northwest lines 200 m apart. These results show a gold anomaly that extends over an area of approximately 5 km x 1.5 to 2 km and is open in five directions (see figure 1. below).

Subsequent to IAMGOLD’s soil sampling program, the project area was increased 35 percent by making additional contiguous applications, where soil anomalies extend beyond the limits of the original applications.

Gold soil sample results, IAMGOLD 2017:

Figure 1. The soil anomaly is open in several directions and should be followed up in a future sampling program.

 

Figure 2. Above you can see the hydraulically mined Santa Rita pit with its caving pit walls, now covered with vegetation. Systematic channel sampling can be seen in the areas without vegetation. These channel samples show values of 30m @ 1.24 g Au/t and 14m @ 2.3 g Au/t within high density veinlet and fracture zones related to faults.  An area of approximately 160 m x 320 m has consistent assays of +0.40 g Au/t. Mineralization is open in three directions. The Santa Rita pit lies within IAMGOLD’s gold-in-soil anomaly.


Figure 3. Mapping and sampling by Outcrop Gold show underground workings and large hydraulically mined excavations. The Guaricu and Santa Rita pits are approximately 5 km apart. The pits are on the southwest and northeast end of the IAMGOLD soil anomaly. The Santa Rita pit shows extensive mineralization; the Guaricu pit had too much caved material to justify a sampling program.

EXPLORATION MODEL

The Antares exploration model is an analogue to Anglo Ashanti´s Gramalote deposit, only 30 km to the north of Antares. Gramalote has a geologic resource of 6.8 million ounces gold, and proven and probable reserves of approximately 2 million ounces confirmed by a positive feasibility study. Outcrop Gold is of the opinion that the fully permitted Gramalote deposit has more environmental and cultural sensitivities than the Antares project.
Like Gramalote, Antares shows an intrusive-hosted, structurally controlled stockwork gold system as indicated by systematic surface sampling. At Gramalote as well as Antares, mineralization is controlled by northeast-southwest trending shear zones within tonalite and granodiorite of the Antioquia Batholith. Digital elevation models and satellite photos indicate that Gramalote and Antares are in the same regional fault domain, and both show northeast fault controls to mineralization. The robust soil anomaly at Antares correlates with a northeast fault zone. Outcrop Gold’s sampling in large hydraulically mined excavations shows that strands of this fault zone are significantly mineralized.
For comparison, the soil anomaly at Antares is more than twice the size of the soil anomaly identified over the central Gramalote zone.

Outcrop Gold is looking forward to test Antares for its potential to host a bulk mineable +2 million-ounce gold resource once a concession contract is granted.

Figure 4. Large scale hydraulic mining of in situ granite is rarely seen in the Antioquia batholith. It occurs at Antares (top) in the Santa Rita pit, and at Gramalote (bottom) within the designed pit limit.

GEOLOGY AND MINERALIZATION

Antares mineralization is hosted in faults and related fracture zones within the Antioquia Batholith, containing gold bearing, high-density quartz-iron oxide veinlets ranging from less than 1 mm up to 3 cm width that trend northeast-southwest and dip 75 to 90°. Gold values often but not always correlate with vein density, suggesting the existence of both fracture-controlled and local disseminated gold mineralization. Exposures are intensely weathered, but locally relict alteration selvages, probably potassium enrichment are present along vein margins.

The hydraulic excavations extend intermittently over 5.5 km within a +200 m wide northeast fault zone, with localized high-density, northwest-southeast veinlet and fracture zones within strands of the district-scale northeast fault zone.

Figure 5. Example of a large hydraulically mined excavation exploited for its bulk mineralized granite. These excavations occur within the large IAMGOLD generated soil anomaly that extends for 5 km.

Figure 6. An example of high-density fractures and veinlets that can carry gold typically from 0.30 g Au/t to 2 g Au/t and in some areas up to 6 g Au/t.

Figure 7. Close-spaced veins with relict K-spar vein selvages.

Community and other Stakeholder Relations

Outcrop Gold will continue to engage with the municipality of San Vicente in the hope that the required consultation process can be managed in a timely manner to the benefit of the communities of San Vicente as well as Outcrop Gold. After a positive “popular consultation”, the National Mining Agency (ANM) can issue a concession contract which would allow Outcrop or its JV-Partners to do advanced exploration work, including drilling.

Outcrop Gold will focus on measures to prevent environmental and cultural disruption on the project and the surrounding areas. Outcrop plans to engage with the different stakeholders through various communication channels to show current and future impacts for the community and also simultaneously present mitigation plans. The stakeholders should be made aware what negative impacts historic small-scale mining operations already have had on the environment and how modern mining and exploration methods by Outcrop Gold or its partners can help mitigate past environmental damage.

Outcrop Gold plans to partner with Universities in the Antioquia region to conduct studies which should demonstrate realistic impacts and implications of Outcrops activities in the area.

Figure 8. Historic informal mining has caused extensive negative impacts, some dangerous to the Antares project area. Areas like shown above could be reclaimed for productive land during the conduct of a modern exploration and mining program using best practices.

Figure 9.  Outcrop employs local labor for its exploration programs.

Acquisition Terms

Outcrop Gold paid $60,000 to Activos Mineros on signing the mining lease and an additional $60,000 on the first anniversary. A $70,000 payment will be due within 30 days of the registration of the mining concession contract in the National Register of the core application and subsequent annual payments will be required on the anniversary of that registration date until the commencement of payments relating to a 1.8% production royalty. Outcrop Gold’s work commitments total $2 million over the first six years but can be suspended for any two-year period that Outcrop does not have a joint venture partner funding work at Antares. No work is required until the applications are converted to titles.

Joint Venture Status

IAMGOLD chose not to remain in the JV-Agreement with Outcrop Gold, due to what they considered excessive time to convert the Antares applications to titles.
Outcrop Gold is of the opinion that Antares, with its multiple drill-ready targets, represents a highly attractive exploration target which should gather interest from other potential JV-Partners.

Outcrop is working with the municipality of San Vicente to gather their support so that a concession contract can be issued by the National Mining Agency (ANM).