ECUADOR GOLD AND COPPER CORP V.EGX

From Technical Report

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Small amount of Highlights (from report)
 

HISTORY
6.1 Background and Chronology

The Chinapintza Gold Project is located within the Pachicutza Mining Camp. Modern exploration commenced on the Chinapintza concession area in 1988 continuing through to the present, however a moratorium freezing all new exploration activities was imposed by the Ecuadorian government on April 15, 2008 and lifted on January 12, 2009. This moratorium was enacted to allow a revision of the country’s mining laws to bring these laws more in line with other market economy countries. .

During the moratorium the then concession owner, Goldmarca/Ecometals, was restricted to historical data compilation and processing, re-logging existing core and generating new geological models to be used in future exploration programs. Only very limited surface mapping and geochemical sampling was possible during this period.

The following summary of the history of the camp up until 2000 is derived largely from the British Geological Survey report of that year as compiled by Ronning, 2003.

Pre- Columbian:

1984:
1988 – 1991:

Goldmarca (2004) indicates that the presence of gold in the general area was known since pre-Columbian time.

The Pachicutza Mining Camp including the Chinapintza vein system discovered by informal miners (which includes the deposit within the Chinapintza Concession).

The first systematic exploration, covering an area of some 25,000 hectares, was carried out by Pachicutza CEM, an association of companies formed in participation with the Industrial Division of the Ecuadorian Army (DINE). One of the major participants and sources of financing was Prominex U.K. Work completed included regional mapping, reconnaissance geochemical and stream sediment sampling over a larger area, including the area of the Chinapintza Concession.

Most of the now-known prospects and deposits in the district were first described during the work by Pachicutza CEM. These include several gold- bearing polymetallic vein and/or breccia systems associated with porphyry intrusions.

Prominex U.K. withdrew from the project and TVX Gold, through its subsidiary Condor Mining became involved. TVX undertook detailed surface and underground geological mapping over a larger area, including the area of the Chinapintza Concession.

The Nangaritza Mining Cooperative applied for and was granted the 225 hectare Jerusalem Concession.

The TVX subsidiary Ecuamining S.A. purchased the Jerusalem Concession from the Nangaritza Mining Cooperative.

TVX constructed local access roads and did 29,000 metres of drilling on vein and breccia systems over a larger area, including the area of the Chinapintza Concession.

TVX completed a further 10,000 metres of drilling and constructed a 725 metre long access tunnel into the 1535 level of the Chinapintza Mineral Deposit. The tunnel portal is on the Viche Conguime 1 Concession (from which the Chinapintza Concession is being excised from), while the final 340 metres (approximately) is on the Jerusalem Concession. A few hundred tonnes of mineralised material were stockpiled. TVX completed studies that they described in documents issued at the time as a reserve estimate and feasibility study on the Chinapintza mineral deposit.

TVX withdrew from the project. For some period of time after withdrawing from the exploration and development of precious metal vein and breccia systems, TVX explored for porphyry copper systems within the district.

Ecuasaxon S.A. acquired the Jerusalem Concession from Ecuamining S.A.

Ecuasaxon S.A. transferred the Jerusalem Concession to Elipe S.A., an associated company with shared management.

Guangshou Ecuador drills a single inclined 756 metre long diamond drill hole at the Chinapintza Concession.

Nearby to the Chinapintza Concession, small scale mining is being carried out on the Jerusalem Concession by a third party with the permission of Elipe. In exchange for allowing the mining, Elipe receives 25% of the mine production. The presence of active, authorized miners on the site inhibits incursions by illegal miners

6.2 Exploration Drilling

Except for the one exploration hole drilled by Guangshou in November 2012, no exploration drill holes have been drilled at the Chinapintza Gold Project since 1996. The holes drilled are summarised below.

Table 7: Drilling metres for Chinapintza by Goldmarca/Ecometals and Guangshou Ecuador.

All the drill holes were surveyed down-hole. All the holes were drilled with HQ-NQ diameter rods.

Figure 5 below, shows, in relation to the Chinapintza Gold Project concession, the location of adjacent and nearby mineral properties and the location of relevant mineralized structures discussed above.

Series	Date Drilled/sampled	No. Holes	No. Metres	Average Depth(m)
DCH	1994-1996	39	11,857.49	304
DP	1994-1996	40	9,965.79	249
DCH-176	2012	1	756.57	756.57
Sub-total		80	22,579.85	282
Underground Samples	1991-1993	329	350.84	1.07
Total			22,930.69

           Chinapintza is the best example of a high grade vein deposit.
Also present are several mineralised breccias and porphyries containing gold and silver mineralization along with very low grade base metals as by-products.

The Chinapintza mineral deposit is a base and precious metal vein system that is considered a low sulphidation epithermal type. The known part of the system probably formed deep enough below the surface that it did not vent to the surface (British Geological Survey report, 2000).

The vein swarm that hosts mineralization extends for at least 5 km along its north- west trend, but its major development is over an interval of about 1.5 km within the Chinapintza Porphyry extending into the Jerusalem Concession.        

Outlined Resource (Gold & Silver)  ( from pge 37 of report)
                                                                 
                                                                                     Thousand               Au g/t              Ag g/t

Total Inferred Remainder           719                      Tonnes                    6.0                    47.1

 

Areas & Amounts Drilled:

			No. DRILL HOLES		AVERAGE METRES PER HOLE
COMPANY	Property	PROSPECT		METRES
	Chinapintza	Chinapintza	79	21,823.85	276
	Chinapintza	Chinapintza	1	756.57	756.6

Table 2: Summary of drilling to date on the Chinapintza Gold Project.