- New mining regulations issued by Government of Ecuador simplifies scout drilling/verification drilling process.
- Lucky Minerals Inc. (TSX-V: LKY) on Cu-Au porphyry system with overprinting gold system, linked to major suture fault.
”If results from this 2019’s exploration efforts yield what Lucky Minerals geologists theorize, shareholders are apt to realize sizeable upside revaluation in the share price of LKY.V.”
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New Mining Regulations in Ecuador are Favourably Received by Explorers:
This March-2019 the government of Ecuador, after a long process, has issued the necessary regulations to allow the companies to perform verification drilling (scout drilling) in the four initial years of exploration (initial exploration as defined in the Ecuador Mining Act).
These new changes have been well received by the Ecuadorian mining sector and allow for greater results by mining companies in the short-term. Prior to the reforms drilling was restricted in early days of a project; according to the glossary of terms existing in the Environmental Regulation of Mining Activities, ‘drilling’ was considered as an advanced exploration activity (mining concessions that have exceeded the first four years of initial exploration).
The reforms that have been taking place since June 2018 have been intended to indicate that the drilling referred to in the glossary of terms of the Environmental Regulation of Mining Activities is a systematic process with a determined perforation grid, while the scout drilling has been interpreted as part of the initial exploration activities (within the first four years of the mining concession).
Finally, on March 12, 2019, the reforms that allows mining exploration companies to be able to make verification drilling in the initial exploration phase through a simple process of environmental registration was concluded.
The drilling process has the following general characteristics:
- 40 drilling platforms in each mining concession without protective forest and with a dimension of 10 square meters (10x10).
- 20 drilling platforms in each concession with protective forest and with a dimension of 36 square meters (6x6).
The new mining regulations are already making an impact and accelerating matters for a number of exploration programs with various mining companies operating in Ecuador.
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Lucky Minerals Inc. on Cu-Au porphyry system with overprinting gold system in Ecuador:
Lucky Minerals Inc. (TSX-V:
LKY) (F:
8LM) (OTCQB:
LKMNF) is highly prospective for major gold and copper discovery as it advances its 100%-owned Fortuna Project in Ecuador, located in a prolific mineral belt ~40km from Lundin Gold's Fruta del Norte (9.48 M oz Au I+Inf) deposit and the Mirador (2.7 M oz Au and 5.9 B lbs Cu M+I) deposit.
Last July Lucky Minerals Inc. discovered its ‘El Buitre’ Cu-Au Porphyry System on its Fortuna 3 concession, and last November it confirmed a sizable overprinting gold system (additional assays are pending -- expected imminently). The Mining Ministry in Ecuador recently released a new map of the area interpreting geological surveys performed and no surprise, running directly through Lucky Minerals Fortuna concessions for ~45 km in strike, is a suture fault zone. In structural geology, a ‘suture’ is a joining together along a major fault zone, of separate terranes, and it provides an easy pipeline for mineralized fluids to pass upward (like the Cadillac Fault).
Lucky Minerals first concentrated on exploring its Fortuna 3 concession in 2018 as it had the best access (of the 12). The potential for additional discoveries on Fortuna 3 and Lucky’s other concessions is there. It is believed that the suture fault is linked to other major finds in the area.
Lucky Minerals will be building a 14 km gravel road into its Fortuna 3 concession this 2019 and plans on proving up just how mineralized El Buitre is. If results from this 2019’s exploration efforts yield what Lucky Minerals geologists theorize, shareholders are apt to realize sizeable upside revaluation in the share price of LKY.V. Lucky Minerals is very confident the Fortuna Project will deliver significant results. El Buitre alteration zone is already mapped on surface at 1 km x 1.3 km. This 2019 Lucky’s geologists will perform geophysics to get a 3D of the alteration and the geological team will estimate the core zone mineralization in order to plan the drilling properly. El Buitre forms a mountain and already Lucky’s geologists can tell they are on the money, proximal to the core, having analysed concentration of surface veins and enrichment at various elevations.
Synopsis of exploration results on Fortuna to date:
Lucky's geological team has narrowed down a very large land package into 4 square km of highly prospective ground, identifying 4 alteration zones of interest designated as Targets A, B, B, and D (measuring ~ 1 square km) in its Fortuna 3 concession lying along 3 volcanic centers.
- Decision to prospect 4 anomalies (Target A D) identified on Fortuna 3 concession in June 2018 was based on easy access.
- Prospection of Target A in July 2018 lead to the discovery of the El Buitre Porphyry System.
- El Buitre Prphyry Ststem fits almost perfectly with Target A location.
- Complete mapping of the El Buitre System occurred during Fall-2018 with a size of 1.3 km by 1 km.
- Numerous B & D veins on the Porphyry System have been identified.
- Anomalous Mo, As, Sn with spike of elevated Cu values above 300 ppm.
- Discovery of a 1.2 km by 100 m wide silicified structure (anomalous gold observed up to 1.21 g/t Au in limited sampling in Fall-2018 and with additional data pending from Feb-2019 mission) which is trending NW and crosscutting the Porphyry System.
Alteration Zones Mapping on Fortuna 3
Figure 1. (above) - Alteration zone mapping on Fortuna 3 concessions & inset map of all 12 concessions with Fortuna 3 in yellow.
Porphyry System Overview
Figure 2. (above) - Image of El Buitre on Fortuna 3.
Figure 3. (above) - Size of El Buitre porphyry system, looking down on it.
El Buitre Porphyry Model:
- El Buitre Porphyry System is not directly associated to subduction processes like the ones found in the Jurassic (East of El Buitre) and Tertiary (West of El Buitre) belts of Ecuador; exact genetic hypothesis is unknown.
- El Buitre is a structurally controlled Porphyry System found at the contact with a major Structure zone trending NNE like major Jurassic structures found East.
- The Structure zone delineates basement rocks of the Chaguinda Formation (Archean age) with the barren Tres Lagunas Granite (Triassic age).
- The shape of the Porphyry displays a typical plume of dispersion originating from the Suture zone.
- El Buitre Porphyry System consists in dacite porphyry rocks.
Figure 4. (above) - Model of the El Buitre Cu-Au Porphyry System, and Cross-Section of the Porphyry System.
El Buitre characteristics:
- El Buitre Porphyry is surrounded by an oxidation blanket covering close to 5 km in diameter.
- Alteration found at surface is mainly of Phyllic stage (Silica, Sericite and Pyrite) with K-Feldspar alteration (frequently retograded to the kaolinite stage).
- Numerous D and B veins observed throughout the Porphyry.
- Center of the system barely outcrops; soil samples have been taken.
- Presence of B veins, Phyllic stage alteration with minor Potassic alteration and anomalous Mo, as, and Sn witness the fact that El Buitre exposed surface is on top of a potential Cu mineralized deposit.
Figure 5. (above) - El Buitre Porphyry Copper Deposit and (right) Minor Elements Distribution.
Figure 6. (above) - B vein = Proximal to the Mineralized Core.
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Oxidation Blanket Overview of Fortuna
Figure 7. (above) – Outcroppings on Fortuna.
Gold Potential in Fortuna Property:
- Three major Gold anomalies have been identified on Fortuna Property.
- Two anomalies (Anomaly 1 and Anomaly 2) are lying directly on the mapped Banos Suture Zone.
- Anomaly 3 corresponds to the Gold structure recently identified on the El Buire Porphyry system and extending soth along the mapped Banos Suture Zone.
- Presence of numerous placer mineralization and artisanal activities south of Property.
- Historic Placer mining activities south west of El Buitre at the contact between the western edge of the Tres Lagunas Granite and the felsic volcanics tot he West.
- Mineralized Gold structure at El Buitre is a NW trending zone mapped as an inverse fault with 100m horizontal displacement; vertical movement is actually unknown.
Figure 8. (above) - Gold Anomalies on Fortuna Property.
Figure 9. (above) - Gold Trend on Fortuna 3.
Interpretation and Conclusion
- A major Porphyry System has been discovered on Fortuna 3 concession using technological tools.
- Observations at El Buitre support the hypothesis of a larger Mineralized Porphyry System of Jurassic age or younger that must be investigated deeper by Geophysics and Drilling.
- El Buitre Porphyry System lies at the contact between the basement rocks of the Chauinda Formation and the barren Tres Lagunas granite.
- Accretion of the Tres Lagunas Granite with the basement rocks created a low pressure zone favourable for the generation of this Porphyry system.
- Considerable potential to find additional Porpyry Systems do exist along this Structure zone.
- Western contact between the Tres Lagunas Granite and younger Volcanics also creates conditions for the formation of low pressure zones favourable for Gold deposition.
Next Steps for Lucky Minerals in 2019:
- Age determination using Re-Os technique for the El Buitre Porphyry System; age determination of host rocks and Gold structure.
- Petrographic studies on host rocks and mineralized samples for better assessment of geological processes (most notable the genetic model.
- Magnetics surveys on the El Buitre Porphyry System and surrounding (the Suture Zone contact) and inversion modeling for 3D characterization of the Porphyry System and the Suture Zone.
- Regional Prospection along the Suture Zone for the identification of other Porphyry System targets along with identified anomalies from the Top Down Approach.
- Regional Prospection for Gold mineralization along the western contact between the Tres Lagunas Granite and the younger Volcanics.
The following URLs have been identified for further DD on Lucky Minerals Inc.:
Company website:
https://www.luckyminerals.com
Recent Mining Journal Review:
https://miningmarketwatch.net/lky.htm
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James O’Rourke
James is a freelance information services professional for various media relation firms and financial publications. He monitors and invests in the resource, technology, consumer staples, healthcare, agriculture, financial, energy, utilities, and biotechnology/pharmaceutical sectors.
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