ASX Announcement 2 May 2016‌ NEW GOLD TARGETS IDENTIFIED AT TOPACIOHIGHLIGHTS
  • Success on first stage of Topacio Farm-in Agreement exploration
  • Geological mapping identifies new targets at the Topacio Gold Project
    • Additional epithermal vein targets at West Topacio, El Sahino and Buena Vista
    • Porphyry and high sulphidation mineralisation potential at La Plazuela
  • Extensive soil sampling program nearing completion
  • Final permitting and approvals underway for airborne geophysical program

Oro Verde Limited (ASX: OVL) ("Oro Verde" or "the Company") is pleased to announce that geological mapping by a consulting geologist, specialising in epithermal and porphyry systems, has identified new large scale targets, including potential for buried porphyry style copper-gold mineralisation, at the Topacio Gold Project, located in southeastern Nicaragua (Figure 1). Additional detailed exploration is required to investigate and validate these new target models.

The geological mapping forms part of the Stage 1 exploration program of the Farm-In Agreement between Newcrest Limited (ASX: NCM)("Newcrest") and Oro Verde, executed at the end of November 20151, through which the parties aim to discover a multi-million ounce gold deposit at the Topacio Gold Project.

The key objective of the Stage 1 exploration program, which commenced in January 2016, is to identify highly prospective vein, alteration, geochemical, geophysical and structural targets for drilling in the second half of 2016. The Stage 1 program includes:

  • Detailed geological mapping and sampling
  • Concession-wide 400m x 400m grid soil sampling program
  • Airborne geophysics - magnetics and radiometrics

Oro Verde's Managing Director, Mr. Trevor Woolfe, commented "We are highly encouraged by the new targets identified by recent geological mapping. In addition to the low sulphidation epithermal targets that have potential to increase the existing historical gold resource, the La Plazuela zone shows indications of a buried intrusive system that has potential to host porphyry style copper-gold mineralisation."

Oro Verde Limited (ASX code: OVL)

Level 1, 34 Colin St, West Perth, WA 6005 Phone: +61 8 9481 2555 Fax: +61 8 9485 1290 Email: info@oroverde.com.au

1 Refer to ASX announcement dated 30 November 2015 "Newcrest Signs A$11M Farm-in Agreement with Oro Verde"

San Isidro

Topacio

Figure 1 Major Nicaraguan gold deposits and the Topacio Gold Project TARGET GENERATIONThe Topacio Gold Project consists of a 93km2 concession located in the southeast of Nicaragua (Figure 1), however the veins making up the existing gold resource are concentrated within an area of less than 4km2.

While approximately 35km (combined strike length) of low sulphidation epithermal veins have so far been identified on the concession, much of the concession remains either unexplored or under-explored, providing scope for additional vein discoveries. A geological mapping program, undertaken by Mr Simon Meldrum, a respected consultant specialising in epithermal and porphyry systems, was initiated in early 2016 and began by focussing on 5 main areas of the concession2.

Meldrum believes that the structural patterns and vein development observed over the area studied reflect a classic stress rotation and stress reversal regime, resulting in a graben style pull-apart basin with a classic 'trap door style' structural setting for the vein system. Some other key technical observations of the study include:

  • The veined structures exhibit classic low sulphidation vein types and textures, hosted in most instances by acid sulphate altered volcanics. Pre, syn and post mineralisation brecciation is evident along the structures, including phreatic breccias in localised areas, crackle, jigsaw and fault breccias and hydrothermal breccias. Quartz styles are dominated by sugary silica, which is viewed as an alteration product, white or grey banded quartz, crustiform and comb textured clear crystalline quartz, and lesser amethystine, saccharoidal, chalcedonic and opaline quartz.
  • Though the Topacio low sulphidation vein complex dominates the concession geology, 'brown fields' targets in close proximity to the vein system include the potential for:
  • Outcropping low sulphidation epithermal veining in the Buena Vista area,
  • Concealed (ponded) low sulphidation mineralisation in the El Sahino area and under the West Topacio Silica Cap, and
  • Scope for intrusion related (porphyry) Au-Cu-Mo mineralisation in the La Plazuela area.
  • In addition, there is no geological or geochemical information for approximately 30% of the claim block - which can be classed as a green fields target area.
  • The data depicts Topacio as a good exploration opportunity with potential for increasing vein hosted gold-silver resources and scope for new discoveries which could develop into large scale targets.

Some of the key target areas generated (Figure 2) include the following:

  1. Refer to ASX announcement dated 22 February 2016 "Newcrest and Oro Verde Commence Aggressive Program to Outline Large Scale Gold Resource"
  1. Topacio Vein System
  2. The Topacio Vein System covers an area of approximately 5km east-west by approximately 3km north- south (Figure 2). Multiple veins in two main orientations (northeast and northwest) are contained within this epithermal vein system. Approximately 4km (combined strike length) of the 35km of mapped veins within the system are included in the existing inferred resource, that is estimated to contain over 340,000 ounces of gold (NI 43-101 compliant), and have undergone significant trenching/sampling and lesser diamond drilling. As a result, much of the exposed vein system has not been systematically evaluated. Further detailed assessment of this additional 30km of under-explored vein system is required to adequately define the width and grade variability of the veins and also to test the potential for larger volume, lower grade stockwork mineralisation between and adjacent to the many veins.
  3. West Topacio Silica Cap
  4. At the western extremity of the Topacio Vein System (Figure 2), the veins exposed at surface come to an abrupt apparent termination. In this region, the topography is more elevated and resistive, suggesting a likely silica cap. The silica styles observed are more likely to be of high temperature, advanced argillic facies alteration and therefore highlighting a proximal intrusive driven fluid source. The implications are that the silica cap is potentially masking the continuation of the epithermal vein system below, and that, if the silica cap formed pre-gold mineralisation, then the rising mineralising fluids may have ponded/pooled beneath this resistive silica cap. A program of additional prospecting is required around this West Topacio Silica Cap region, which, combined with awaited soil geochemistry and airborne geophysics, is expected to highlight buried structures that may host concealed vein type gold mineralisation.
  5. El Sahino Silica Cap
  6. To the southeast of the Topacio resource area, an extensive (at least 4.5km2) silica cap zone is identified in the El Sahino area (Figure 2), defined by a flat, table-top topography. Here, flat lying fine grained laminated sediments have been selectively replaced by low temperature silica. To date, only vein structures on the north and northeast margin of this silica cap zone have been found to be gold mineralised, including the Rebeca vein. While gold and silver values from previous sampling within the silica cap area have generally been low grade, elevated Mo, Hg and As within this area is significant, suggesting fluid leakage through the silica cap and potential for fluid ponding and development of gold and silver mineralisation below the cap.
  7. Buena Vista
  8. The potential of the Buena Vista area - to the northeast of the Topacio resource area (Figure 2) - was highlighted by Oro Verde during reconnaissance exploration in 2015 with surface rock chip sampling grades up to 3.35g/t Au recorded3. The mineralisation relates to a NE trending silicified and veined structure that is spatially distinct from the Topacio vein zone. The local geology is characterised by several dacitic stocks emplaced into andesitic volcanics and stratified sediments. However, the characteristics of this area suggest a possible repeat of the geological factors that are favourable for epithermal vein type grade development within the core of the Topacio Vein System. Buena Vista requires further prospecting and detailed mapping to determine if the area could be developed into a separate gold camp.
  9. La Plazuela
  10. In the under-explored southwestern corner of the concession, an area of topographic elevation consists of two hills named Cerro Tortuga and Cerro de los Ahogados, separated by the La Plazuela saddle between those hills (Figure 2). The mapping has identified this region as a potential target for high sulphidation mineralisation in association with a possible deeper porphyry copper-gold system. Mapped hydrothermal breccias cutting through a silica cap at surface are suggestive of a zone of hydrothermal alteration. Elevated molybdenum results from initial surface sampling support the concept of a concealed intrusive source for the breccias. Further detailed investigation is required to test this model.
    1. Refer to ASX announcement dated 15 June 2015 "High Gold Grades from West Mico Vein at Topacio"
    2. Figure 2 Topacio Project - Geological Interpretation Map and Exploration Targets

    Oro Verde Limited issued this content on 02 May 2016 and is solely responsible for the information contained herein. Distributed by Public, unedited and unaltered, on 02 May 2016 08:38:06 UTC. Original document available at http://74.cdn.auroracms.com/resources/19/0000/8533/160502_new_large_scale_targets_at_topacio_final.pdf