Equus Mining holds 100% of exploration concessions totaling 4,550 hectares which comprise the Cerro Diablo Intermediate Sulphidation style epithermal gold-silver-base metal project, located approximately 10km southwest of the township of Puerto Ibañez in Chile’s XI Region (Figure 1).
The Cerro Diablo Project is located approximately 25km to the north-northwest of Mandalay Resource´s Cerro Bayo mine and flotation processing plant (500ktpa), which has been under care and maintenance since a mine flooding event in June 2017. This mine has produced 1.7 Moz Au equivalent since initiation in 1996, in which mineral concentrate was trucked approximately 250km via ferry between the nearby township of Chile Chico to Puerto Ibanez and then by road to the Pacific coast port infrastructure of Puerto Aysen.
Figure 1. Cerro Diablo Project location map-XI Region Chile
The Cerro Diablo Project is located in the interpreted northwest limit of the world-class Deseado Massif mineral province, where it extends into southern Chile (Figure 2), in a corridor also broadly coincident with the slightly younger Andean-type arc and back-arc tectonic belt which host epithermal, skarn, porphyry and volcanic-hosted massive sulfide (VHMS) style mineral occurrences.
The Deseado Massif mineral province currently hosts 7 operating gold-silver mines of Low to Intermediate Sulphidation epithermal style including Cerro Negro (7.4 Moz Au equivalent), San Jose (2.9 Moz Au equivalent) and Cerro Moro (2.3 Moz Au equivalent).
Cerro Diablo hosts characteristics of Intermediate Sulphidation (IS) style mineralization which are interpreted to share similarities to major, recently discovered, hybrid style IS deposits elsewhere worldwide e.g. Hot Maden-Turkey.
Prior to Equus initiating exploration activities throughout the Cerro Diablo area in 2017, previous exploration was limited to reconnaissance mapping and surface geochemical sampling carried out by a Chilean subsidiary of Western Mining (WMC) in the late 1980s.
Figure 2. Cerro Diablo Project location in the northwestern portion of Deseado Massif mineral province