Cerro Hermoso Project
Overview & Highlights
Cerro Hermoso is located in the Puno Region of southern Peru. The property lies 60 km from the city of Juliaca and 5 km northwest from the supply town of Santa Lucia. The property lies in a north-west trending mineral belt known for numerous gold, silver and copper deposits.
Cerro Hermoso Project Highlights
- Host to a large, energetic mineral system with multiple targets and bulk tonnage potential.
- Located along trend of regional epithermal and carbonate replacement deposits.
- Extensive sampling and mapping completed to date.
- Exploration model and targets well-defined.
- Preparing for Q1 2019 drilling program
The Property is comprised of three mining concessions covering a total of 1318 Has. Miramont has an option to acquire 100% of the mining concessions by making property payments totaling US$3.726 million through September 2022. Surface rights are held in both private and community hands. The company has reached agreement to access the property and conduct exploration activity including drilling.
Cerro Hermoso is accessed year-round via a two-lane highway that runs from Juliaca to Arequipa. Elevations range from 4,070 to 4,400 m.a.s.l..
The property is near the town of Santa Lucia where Miramont has established camp facilities. Most services and supplies can be found here or in Juliaca about an hour’s drive away. Water for exploration work is readily available from the Verde River flowing through the Property, subject to required permitting. The nearest point to connect the Property to the national power grid three-phase system is 6 km away near Santa Lucia.
The Cerro Hermoso project is found in the Santa Lucia district along the eastern flank of the Cordillera Occidental on the edge of the altiplano that separates the Cordilleras Occidental and Oriental in southern Peru. Nearby deposits include Berenguela, San Gabriel, Limon Verde and Tacaza .
The project geology is dominated by the Cerro Hermoso diatreme (an explosive volcanic pipe) which cuts through older formations of volcanic flows and underlying lying limestone units. The Tacaza Group Volcanics of late Oligocene age outcrop throughout the property area, and consist of andesite flows. Underlying the Tacaza is the Cretaceous Ayavaca limestone which are known to be mineralized.
Intrusive rocks (hornblende diorite) are emplaced throughout the Santa Lucia District and are associated with precious and base metal mineralization (Berenguela, Limon Verde Mine). Hornblende diorite stocks and dikes are found along the northern margin of the Cerro Hermoso diatreme.
The Tacaza Group also includes the Cerro Hermoso Formation – felsic, lithic-rich tuffs and breccias produced by phreato-magmatic explosions during the formation of the diatreme. This volcanic vent cuts earlier Ayavaca Limestone and Tacaza volcanics. The Cerro Hermoso diatreme is the dominant geologic feature and is related to the multiple styles of gold, silver and copper mineralization found on the property.
Historic development of the property consisted of mining a series of high-grade veins and other structures formed in a concentric ring along rim of the diatreme. Approximately 750,000 tons at an average grade of 15 oz/t, Ag, 1% Cu, 2% Zn, 2% Pb and 1.0 g/t Au were mined.
The property is centered around the large, 1.4-kilometre-diameter Cerro Hermoso diatreme complex which hosts extensive mineralization.
Miramont has identified multiple priority targets for further exploration and drilling.
Central Breccia Zone - Primary Target
This zone is found within the heart of the diatreme complex. The formation of gold-bearing hydrothermal breccia, the potential host-rock for mineralization, is extensive. Three separate phases of breccia have been identified all of which host gold. Historic channel sampling in the central breccia resulted in 43 meters averaging 1.8 g/t. Selective sampling by Miramont has confirmed the channel sample results and expanded the Central Breccia zone. The high value for gold is 18.4 g/t while 87 of 178 samples collected were greater than 0.1 g/t.
Other outcrops of mineralized breccias have been found up to 800 meters away. This indicates the widespread presence of gold and the extensive tonnage potential of this receptive host rock
The combination of intrusive activity, structural setting and widespread mineralization makes this an excellent target.
The Stockwork Zone - Secondary Target
The stockwork zone lies just outside the northern rim of the diatreme. It is a 500 by 400 meter area of extensive stockwork veining developed within the Tacaza andesite unit. It is also adjacent to an outcropping hornblende diorite intrusion. Finally all of this appears to be contained within a separate fault-block concentric to the diatreme margin.
Stockwork veining here consists of a patchy to pervasive, crisscrossing network of quartz veinlets. Mineralization at surface is mostly oxidized metal sulfides although occasional fresher sulfide grains can be seen.
The Stockwork Zone has significant silver, copper, and gold mineralization throughout the area (see geochem maps). Values as high as 500 g/t Ag, 3.9% Cu and 10 g/t Au have been found here. Of a total 79 samples collected in this area 67 had more than 10 g/t Ag, 29 had more than 0.1% copper and 13 had greater than 0.5 g/t Au.
Carbonate Replacement Zone - Secondary Target
This zone is known from a review of investigations carried out by previous operators of the Santa Barbara mine. Development on lower levels (approx. 200 meters below surface) encountered carbonate replacement deposits (CRD’s) within the underlying Ayavaca limestone unit. Values up to 6.9% Zn, 6.6% Pb and 6.2 oz/t Ag have been found in multiple horizons.
Miramont geologists have identified other target areas within and around the diatreme complex. These targets will be tested in phase II drilling. Geochemical anomalies in all target areas for gold, silver and copper are shown in these maps.
In Q1 2019, Miramont conducted phase 1 drilling at Cerro Hermoso. The 3,679 m program was developed to test 3 principle drill targets outlined by previous geologic mapping, geochemical sampling and a geophysics survey. The target were located within (Central Breccia zone) and around (Stockwork zone and Carbonate Replacement zone) the Diatreme complex.
Phase 1 Highlights:
- Drilling tested three principal targets, the Central Breccia zone (holes CH-004, CH-005, CH-006 and CH-009), the Stockwork zone (holes CH-001, CH-002 and CH-003) and the carbonate replacement zone (holes CH-007 and CH-008). See Assay highlights in table provided.
- Significant mineralization was encountered in the Central breccia zone. Hole CH-009, drilled eastward, encountered 249 m of 0.68 g/t Au equivalent beginning at 103 m including 1.95 m of 28.4 g/t Au equivalent beginning at 153.55 m and a second interval of 59 m of 0.44 g/t Au equivalent beginning at 393.5 m and continuing to the end of the hole. Hole CH-005, situated approximately 100 m north of and parallel to CH-009, encountered 45 m of 0.58 g/t Au equivalent beginning at 378 m. Hole CH-006, situated approximately 250 m southeast of CH-009 and drilled westward, encountered 8.5 m of 2.97 g/t Au equivalent beginning at 308 m including 1.5 m of 15.69 g/t Au equivalent beginning at 315 m. Collectively, holes CH-009, CH-005 and CH-006 demonstrate the presence of a mineralized system within the diatreme that appears open to the northeast, east and southeast under an area of postmineral cover. The eastern margin of the diatreme lies approximately 600 m beyond the end of these two holes, leaving considerable room for further exploration. A large, subsurface magnetic feature situated approximately 400 m northeast of hole CH-009 may be an intrusion, potentially related to mineralization.
- Holes CH-001, CH-002 and CH-003 in the Stockwork zone encountered narrow intervals of anomalous mineralization. Miramont sees limited potential for broader zones of mineralization in this area. Similar short intervals of anomalous mineralization were encountered in holes CH-007 and CH-008 targeting the carbonate replacement zone, indicating limited potential in this area.
- Miramont is currently preparing phase II of drilling to follow-up on significant mineralization encountered within the diatreme complex.