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© 2019 Fidelity Minerals Corp.

Greater Las Huaquillas (GLH) Project - Overview

Overview
  • The Core Las Huaquillas project has undergone extensive historically defined exploration since the late 1980’s.

  • Five significant mineralized zones have been identified at the project as follows: (i) Los Socavones, (ii) El Huabo, (iii) Las Huaquillas, (iv) Cementerio and (v) San Antonio.

  • A historical gold resource* was reported in 1998.

  • Historical drilling has identified two copper porphyries with significant mineralization, and potential to define substantial resource.

  • Fidelity Minerals is consolidating the ownership of the Greater Las Huaquillas Project. 

The Greater Las Huaquillas (GLH) project consists of:  
  • 9 concessions for approximately 3,600 Ha that host the historical mineralisation (Core Las Huaquillas) of which Fidelity Minerals Corp. has acquired a 44.5% interest.

  • 9 concessions for approximately 3,800 Ha of contiguous mineral title, of which Fidelity Minerals has acquired a 100% interest.

Strategic Interest
  • The Greater Las Huaquillas project provides Fidelity Minerals with a strong foundation to establish substantial resource inventory in the northern Cajamarca district, of Northern Peru.​

Historical Geological Resource
  • In 1998, Sulliden estimated that a 500 m section of the 2,200 m long Los Socavones Zone hosts a geological resource* of 6.57 Mt grading 2.12 g/t Au and 25.2 g/t Ag; equivalent to 446,000 ounces of goldand 5.3 million ounces of silver at a 1 g/t Au cut-off. 

  • The resource was reported to remain open at depth and along strike. This historic resource, based on 10 drill holes and 20 mineralized intercepts, was estimated by Sulliden to a depth of only 200m.

  • * - There has not been sufficient drilling and/or sufficient previous exploration at Las Huaquillas upon which to base a mineral resource or mineral reserve estimate compliant to the standards of National Instrument 43-101. 

Greater Las Huaquillas (GLH) Project - Regional Setting

Recent Regional Transaction Activity
  • The discovery of the world-class Alpala deposit in northern Ecuador, has confirmed the metallogenic Andean mineral belts of Chile and southern Peru indeed extend further north than was previously believed. As these mineral belts host approximately half the world’s known copper resources, global mining companies have been frantically transacting in project interests to secure positions in this emerging and highly prospective mining province. 

  • A summary of recent transactions is outlined in a Map of the North Andean World-Class Mineral Provinces, developed by Fidelity Minerals.

SolGold’s Alpala Project - Ownership battle looming
  • SolGold (TSX/LSE: SOLG) has been leading the way with using state-of-the-art geophysics to see through cloud, jungle and soil, to uncover Ecuador’s mineral potential.

  • Alpala is the most significant copper-gold porphyry discovery during the last decade and has attracted the attention of the majors.

  • Mineral intersections amongst the top-10 porphyry copper-gold intersection in the world, including a 1,560m interval grading 0.59% Cu, 0.55 g/t Au (1.16% CuEq).

  • Indicated + Inferred Resource of 2,950Mt @ 0.52%CuEq (15.4Mt CuEq) containing 10.9Mt Cu and 23.2Moz Au. For more details refer to SolGold Mineral Resource statement, dated 16 November 2018.

  • SolGold owns 85% of the Alpala project with the market cap approaching US$1 billion.

  • Newcrest (ASX: NCM) invested ~US$72 million in three tranches during 2016-17 to acquire 13.58%.

  • In September 2018, BHP (ASX: BHP) invested US$92 million to acquire 11.18%.

Fruta del Norte - Approaching production 
  • Lundin Gold (TSX: LUG) purchased the Fruta del Norte asset from Kinross in 2014 for US$240 million. 

  • Indicated mineral resource of 7.35Moz Au with 2.13Moz Au in the inferred category. For more info refer to Lundin Gold FDN Technical Report dated 30 April 2016. 

  • High-grade gold deposit with probable reserves of 5.02 million ounces of gold grading at 8.74 grams per tonne. Forecast Life of Mine (LOM): 15 years, All in Sustaining Cost (AISC): US$583/oz. 

  • Construction began mid-2017 with first gold production expected in the fourth quarter of 2019. 

  • In February 2018, Newcrest agreed to invest US$250 million to acquire 27.1% of Lundin Gold. 

Greater Las Huaquillas - Resource Appraisal 
  • Fidelity Minerals has acquired a 44.5% interest in Core Las Huaquillas project in Northern Peru. 

  • Fidelity Minerals has also recently staked 9 strategic mineral concessions covering 3,800 ha surrounding the historical (Core) Las Huaquillas project. 

  • Fidelity Minerals expects that appropriate appraisal work, including twinning of existing holes, will verify historical mineral resource estimates and expand them along both strike and at depth. 


​ 

Core Las Huaquillas (CLH) Project - Background

Geological Setting

The Greater Las Huaquillas (GLH) Project:

  • Is located in the Miocene Metallogenic Belt (“MMB”).

  • Comprises a comprehensive segment of the continental Andean Copper Belt, and MMB extends over 900km through Peru & Ecuador.

  • GLH is ranged over a large caldera structure, displays extensive / pervasive evidence of large scale mineralizing fluid pathways.

  • The caldera superimposes late, radial structure on:

    • Andean district & regional, broadly coast paralleling megastructures.

    • Subduction-related, large crustal dislocations normal to Andean megastructures: the  “Huancabamba Deflection”.

 

The Core Las Huaquillas (CLH) Project:
  • Comprises the western flank of the caldera structure.

  • Includes high & low sulphidation epithermal, and mineralized porphyry systems.

  • Benefits from extensive historic surface, drilling and underground work.

  • Includes extensive alteration and mineral enriched systems proven in underground, drill and surface sampling campaigns over large area.

Core Las Huaquillas (CLH) Project - Historical Exploration

Overview

In 1997 and 1998, Sulliden carried out an integrated two phase exploration program including; line cutting, geophysics, soil, stream, rock geochemical and geological surveys, and 26 diamond drill holes were drilled by Sulliden, for a total of 5,671m. The gold-silver epithermal mineralization discovered along the Socavones trend was followed for at least 2.1 kilometres via geophysics, soil and rock sampling and drilling. 

Major Mineralized Zones of the CLH

Extensive mineralisation identified along Los Socavones Zone (LSZ).

Soil Geochemical Sampling

During the1997-1998 exploration campaigns, Sulliden performed a range of exploration activities including extensive soil geochemical sampling.

The Phase-1 (1997) mapping was based on 601 samples and identified areas anomalous in both gold and/or copper (see maps, right).

Following the success of Phase-1 mapping, 840 samples were taken during Phase-2 to further refine the distribution of copper and gold mineralization.

 

The soil sampling, together with geophysics, assisted Sulliden identify:
  • a 2.1 km long structurally-controlled Au-Ag anomalous corridor named Los Socavones. 

  • two porphyry Cu ± Mo ± Au targets named Cementerio and San Antonio.

  • two epithermal Au, Ag prospects named El Huabo, and Las Huaquillas.

Core Las Huaquillas (CLH) Project - Historic Drill Results

Core Las Huaquillas (CLH) Project - Selected Drill Sections

Historic Drill Results

The historic drill results provide evidence of extensive and pervasive large-scale mineralizing fluid pathways across the CLH project area.

Greater Las Huaquillas (GLH) Project - Expansion

Strategic Project Footprint

Fidelity Minerals expanded project footprint from 3,600 Ha to 7,400 Ha by staking contiguous concessions on a 100% basis. Developing appraisal plan.

Greater Las Huaquillas (GLH) Project - Next Steps

Current Focus
  • Since acquiring an initial interest in the Greater Las Huaquillas project in late 2018, Fidelity Minerals has acquired detailed project information, and together with specialised geoscience consultants, is in the process of assembling a comprehensive project GIS database. Preliminary analysis of proprietary data by Fidelity Minerals and consultants has identified several material opportunities for delineating potentially substantial resources both within the project area and in the general vicinity of the project.

  • Fidelity Minerals intends to be in a position to formally solicit expressions of interest in the Greater Las Huaquillas opportunity around late July 2019. Interested parties are encouraged to register their interest by contacting Fidelity Minerals through the Contact Us page.