The La Pepa Project is located in Atacama Region III, Chile, approximately 800 km north of Santiago, at 4,200 metres above sea level, in the Andes mountain range, approximately 110 km east of the city of Copiapó, capital of the Atacama Region. It is 100% owned by Minera Cavancha, a company currently 100% owned by Yamana, and which is intended to be the joint venture company in accordance with the La Pepa Option Agreement.
Pursuant to the terms of the La Pepa Option Agreement, the Company must spend $5 million on the La Pepa Project over a two year period to earn an initial 20% interest. To earn an additional 31% interest, the Company must (i) complete an additional $15 million of spending on the La Pepa Project over another two year period, with expenditures directed toward the completion of a NI 43-101 compliant Feasibility Study; and ii) pay $5 million in cash to Yamana. Once the Company has earned the 51% interest, by exercising a call option, the Company may acquire the remaining 49% interest at fair market value, which will be determined pursuant to an agreed-upon formula and to be calculated by independent valuators.
The La Pepa Project is located in the Maricunga Gold Belt of the Atacama Region, worwilde known for its geological anomalies that contain important gold, copper, lithium, and other mineral deposits. Gold projects from different companies stand out, such as: La Coipa, Lobo-Marte, El Volcán, Refugio, Caspiche, Cerro Casale, Quebrada Seca, Maricunga, Fenix, etc.
The Company is focused on the exploration of a telescoped porphyry-style gold system at the La Pepa Project, which is similar to several other gold systems in the Maricunga Gold Belt. There are two styles of auriferous mineralization on the La Pepa Property. The first corresponds to gold disseminated in stockwork of quartz-magnetite ± pyrite of the porphyry gold–copper type, hosted in the Cavancha deposit. This style of mineralization is the focus of present exploration efforts on the property. The second type consists of structures associated with high-sulphidation epithermal replacement veins, which are commonly called "ledges". The auriferous mineralization in the dacite subvolcanic rocks is associated with a system of quartz veins in the form of stockworks or subparallel sheeted veins.
In a 2008 NI 43-101 technical report prepared for Yamana, at a 0.3 g/t Au cut-off grade for potential open pit resources, the Measured and Indicated Mineral Resources of La Pepa deposit contain 2,760,000 ounces of gold in 149,432,000 tons at an average grade of approximately 0.57 g/t Au and 0.051% Cu. A further 620,000 ounces of gold are hosted in 37,900,000 tons of Inferred Mineral Resources grading 0.5 g/t Au and 0.06% Cu
This estimate is historical in nature, and is relevant as it demonstrates the presence of gold mineralization. The estimate was prepared in accordance with CIM definitions standards. Mineros does not consider the historical estimate as a current Mineral Resource estimate. Mineros is in the process of completing further work in order to declare a current Mineral Resource estimate.
During 2019, the Company performed detailed surface mapping on 7.6 km2 of, remapping drilling and geophysical surveys. This compilation exercise generated drilling targets.