Cerro Bayo Mine Area
Centred approximately 10km west of the township of Chile Chico in Chile’s XI Region, the Cerro Bayo Mine District comprises 295km2 of 100%-owned mining concessions with an existing Gold-Silver Flotation Plant and Brownfields/Greenfields exploration targets.
Commodity – Gold-Silver
Location – 10km west of the township of Chile Chico (Chile)
Historical Production – ~1.3Moz Au equivalent
Mandalay Resources Option Deal
On the 8th October 2019, Equus executed a binding Option Agreement with Mandalay Resources Corporation (TSX:MND, OTCQB: MNDJF) for a 3-year option to acquire the Cerro Bayo Project.
The Option will entitle Equus to explore Mandalay’s ~295km2 Cerro Bayo mine district and to acquire all the mining properties, resources and mine infrastructure project which includes a 1,500tpd processing plant and tailings facility (currently on care and maintenance).
Consideration for completion of the acquisition, should Equus exercise its option, will be the issue to Mandalay of 19% of Equus’s share capital at the time of exercise. Additionally, Equus will pay a 2.25% NSR on production from the Cerro Bayo Mine District claims, payable once production reaches 50,000 gold equivalent ounces, which is subject to a re-purchase option in favour of Equus.
The Droughtmaster Prospect represents a newly generated 4.5km-long target which is centered approximately 2.5km broadly along strike to the southeast from the historic Marcela Mine (Remaining Measured and Indicated Resources of 21.8Koz gold at 2.53g/t gold and 2.74 Moz silver at 318 g/t silver) and 12km to the southeast of the Cerro Bayo processing plant infrastructure.
During February and March 2020, the Company completed 9 Diamond Holes (totaling 2,044m) of a maiden scout diamond drilling, testing beneath previously announced mapping and channel and rock-chip sampling results, targeting several target vein trends including the Percheron Vein.
Hole CBD020 intersected high-grade gold-silver mineralization at the Percheron Vein target, including a standout intersection of:
- 3.81m at 20.4 g/t gold and 55.5 g/t silver from 109m, including1.06m at 62.58 g/t gold and 129.3 g/t silver from 112m
Results from CBD020 build on previous highly encouraging results from the Percheron Vein with the most recent intersection located approximately 30m above in elevation and 50m along-strike from Hole CBD016 which reported results including:
- 0.64m @ 1.44 g/t gold, 240.0 g/t silver from 68.10m
- 0.62m @ 17.28 g/t gold, 271.0 g/t silver from 73.5m
- 1.01m @ 5.32 g/t gold, 43.1 g/t silver from 96.57m
Mineralisation was intersected at shallow depth (<100m) and remains open at depth and along strike with a potential large deeper mineralised zone to be tested with further drilling. It is interpreted that drill intercepts to date relate to the upper portions of a wide, large-scale epithermal system and good potential exists for discovery of high-grade mineralization in deeper favourable levels along this fault trend.