Amended 11 April 2012 Announcement
Striking Geophysics results at Chanape Porphyry Project in Peru
Highlights:
Date: 11 May 2012
ASX Code: CNK www.condormetals.com Share Capital
188 million ordinary shares
Market Capitalisation: A$7.1 million
Share Price $0.038
Board
Laurence Freedman AM, Chairman Ross Brown, Managing Director Ross Gillon, Non Exec Director
Robert Schuitema, Company Secretary and Non Exec Director
Laurie Ziatas, Non Exec Director
Senior Management
Ross Brown, Managing Director Mobile: 0407 242 810 ross.brown@condormetals.com Mailing Address
GPO Box 2567
Perth WA 6001
Media & Investor Relations
Ron Cameron
Radar Group
+61 2 8256 3308
ron.cameron@mercuryconsulting.com.au
• Coincident geophysical anomalies confirm potential of a large porphyry being present at Chanape
• NEW DATA: Distinctive ring-like magnetic anomaly now identified
• New magnetic anomaly is indicative of peripheral alteration associated with porphyry deposits
• Large Spontaneous Potential ("SP")
anomaly also confirms porphyry potential
New geophysical interpretations of data acquired at Condor Metal's (ASX: CNK) Chanape Au/Ag/Cu Porphyry Project in Peru, reveals coincident geophysical anomalism diagnostic of a porphyry deposit.
Magnetic and SP anomalies coincide with large breccia zone comprising over fifty individual breccia bodies. Only one of these breccia bodies has been adequately drilled, returning continuous gold mineralisation averaging >1g/t over 100m from surface, with ±1oz/t silver and 0.2% copper over the same interval.
The geophysical data, including 115.8 line kilometres of
Ground Magnetics and 103.8 line kilometres of Induced
Polarisation, was recently acquired by Condor (ASX
announcement 21 March 2012) and re- modelled by Arce
Geofisicos, a Lima-based geophysical consultancy with over
fifty years' experience in project development in South
America.
Geophysics anomalies confirm porphyry potential at
Chanape
The SP anomaly that occurs in the centre of the Chanape
Project area (Figure 3) is indicative of pervasive phyllic
alteration, which normally develops above a porphyry centre.
The magnetic high anomaly that surrounds the SP anomaly at
Chanape (Figure 1), which occurs mostly outside the project
area, is indicative of propylitic alteration, which normally
develops round the outer edges of a porphyry centre.
"These results are above expectations," says Condor's
Managing Director, Ross Brown. "The geophysical signature at
Chanape is highly reminiscent of that typically associated
with porphyry deposits".
Modelling of the geophysics data was completed by Arce
Geofisicos ("AG"). AG has provided geophysical services for
over fifty years and has undertaken geophysical surveys and
interpreted data over 405 mineral deposits throughout South
America.
Approx location of
Breccia # 8
Figure 1: Magnetic anomalism at Chanape (at a depth of 375m). In its complete representation, the magnetic high anomaly has a distincive ring shape, not apparent on this figure. This magnetic high mostly occurs outside the project area and possibly reflects the presence of magnetite - a common mineral associated with propylitc alteration. The magnetic low, contained within the ring anomaly, which mostly occurs within the project area, is a characteristic geophysical feature of porphyry systems in Peru.
Figure 2: Schematic porphyry model cross-section showing distribution of alterations zones associated with a porphyry deposit (after USGS, 2010). The magnetite, possibly causing the magnetic high pictured in Figure 1 is seen in the figure below in the light blue zone. It is a characteristic feature of porphyries that the disseminated economic zone occurs in the central part of the alteration system.
ADVANCED ARGILIC
Geophysics anomalies coincide with +100m of + 1g/t gold in
drilling
The geophysical anomalies are coincident with a broad zone of
brecciation comprising over fifty breccia pipes and breccia
fracture-fill veins. Whilst sections of breccia veins were
mined by underground methods in the past (in the 1930's and
1980's), only one breccia pipe within the IP anomaly has been
adequately drill tested.
Breccia #8 returned intersections of +1g/t Au, 1oz/t Ag and
0.2% Cu (ASX
announcement 21 March 2012) over 100m's from surface.
"This breccia zone is approximately 2km x 3km in area and
matches very closely the area defined by the SP anomaly
(Figure 3) and magnetic low (Figure 1). Remarkably, the
magnetic high anomaly, which is now known to exist, forms a
ring around the breccia/SP zone (Figure 1), as would be
anticipated in the porphyry model" says Mr. Brown.
Field Work to commence at Chanape
Following the success of the geophysics, field work is set to
commence at Chanape ahead of a drilling program planned for
mid-year. The purpose of the field work is to locate priority
drill platforms for holes designed to intersect
porphyry-style mineralisation at depth.
"I liken the breccia pipes at Chanape to chimneys above a
furnace. The furnace being the metalliferous porphyry
intrusion." says Mr Brown. "Key in understanding the furnace
is to understand the chimneys, so drilling will focus
attention on the mineralised breccia bodies."
The work will include, among other activities, core
re-logging and sampling, detailed mapping of the breccia
bodies, underground mapping of the extensive mine shafts that
exist at Chanape and rock chip contour sampling.
Ross Brown
Managing Director
Breccia #8
Drill location
Concession outline
Figure 3: SP Anomalism (blue) centred over the breccia zone
The information in this report that relates to Exploration Results is based on information compiled by Mr. Ross Brown, Managing Director, Condor Metals Ltd., who is a Member of the Australian Institute of Mining and Metallurgy. Mr. Brown is a full time employee of Condor Metals Ltd.. He has sufficient experience, which is relevant to the style of mineralisation and types of deposits under consideration, and to the activity which has been undertaken, to qualify as a Competent Person as defined by the 2004 edition of the "Australia Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves". Mr. Brown consents to the report being issued in the form and context in which it appears.
Figure 4: Drill collars at Breccia #8. These holes and another out of the frame drilled into gold, silver and copper mineralisation from surface. The mineralisation is open at depth. Breccia 8 occurs within the SP anomaly (Figure 3), which is contained within the magnetic anomaly (Figure 1).
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