Pan Andean Minerals Ltd.’s Minto/Carmacks Copper-Gold properties were staked over areas with geological, geochemical and geophysical characteristics known to reflect near surface, high-grade, structurally controlled copper-gold mineralization in the region, such as that at Capstone Mining Corp.’s (“Capstone”) Minto deposits and Copper North Mining Corp.’s (“Copper North”) Carmacks Copper Project.
The Minto Mine is one of the highest-grade open pit copper-gold mines in the world, with a throughput of 3,600 tonnes per day. The Carmacks Copper Project has an NI 43-101 compliant proven and probable reserve estimate of 10.611 million tonnes at 1.044% total copper, 0.484 g/t gold and 4.62 g/t silver; it is planned as an open pit heap leach operation using solvent extraction/electrowinning technology (SX/EW).
Pan Andean Minerals Ltd.’s exploration strategy in the Carmacks Copper-Gold Belt is focused on the discovery of stand-alone and/or satellite copper-gold deposits, the latter of which could be used to supplement mill feed for the nearby Minto and future Carmacks mining operations.
Pan Andean Minerals Ltd. Exploration Programs
Pan Andean Minerals Ltd. has been methodically exploring and advancing its Minto/Carmacks Copper-Gold properties since November 2006. To date, the company has incurred exploration expenditures in excess of $2.7 million and has delineated the Carmacks Copper-Gold trend by geophysical and geochemical techniques over a 15 kilometre distance within the Carmacks Block of properties.
Pan Andean Minerals Ltd. is actively seeking a major partner to assist in advancing certain of its Minto/Carmacks Copper-Gold properties by way of exploration alliance or joint venture agreement.
2010 Exploration Program
In 2010, Pan Andean Minerals Ltd. optioned two properties, each with $350,000 2010 work commitments (Toe & Pepper), to Kestrel Gold Corp. and Goldbard Capital Corp., respectively.
In September 2010, the Company also conducted a four-hole, 1,000 metre diamond drill program on the Apex East property to test three parallel, coincidental copper (+/- gold) soil geochemical and geophysical anomalies, which measure up to 800 metres in length and width, for near surface, “Minto-type” high-grade copper and gold mineralization (see September 13, 2010 news release).
This drill program is approved for a $50,000 Yukon Mining Incentives Program (YMIP) grant from the Yukon government.
2009 Exploration Program
The Company commenced the 2009 Minto/Carmacks Copper-Gold properties field exploration program in mid May.
Phase I entailed geological mapping and prospecting over a number of copper +/- gold soil Mobile Metal Ion (MMITM) and induced polarization (IP) anomalies defined on six properties.
Trenching and diamond drill targets were confirmed on all six properties.
Phase II exploration entailed excavator trenching, road and drill pad construction, additional geochemical and geophysical survey work, mapping and sampling.
2008 Exploration Program
In 2008, Pan Andean Minerals Ltd. conducted a comprehensive $1.2 million, two-phase exploration program on nine properties.
Exploration work entailed geological mapping and prospecting, line cutting, 87 kilometres of IP geophysics and 91 kilometres of MMITM geochemical surveys.
A multitude of new coincidental geochemical and geophysical targets have been defined by this work on a number of the Company’s Minto/Carmacks Copper-Gold properties.
In October 2008, Pan Andean Minerals Ltd. completed a five-hole, 1,235 metre diamond drill program on the WS property, targeting geochemical and/or geophysical anomalies believed to represent strike extensions of Western Copper Corp.’s (now Copper North’s) Carmacks deposits. Results are presented in Table 1 below. Drill hole WS08-09B intersected two near-surface copper sulphide horizons over 63.1 metres that averaged 0.17% Cu (containing 23.6 m averaging 0.34% Cu). This hole targeted a weak copper MMITM anomaly coincident with a pronounced, two kilometre long linear IP geophysical anomaly. This IP anomaly is along strike and one kilometre from Copper North’s Zone 14. Western Copper Corp. intersected 79.7 metres averaging 0.23% copper in Zone 14 during its 2007 drill program (Western Copper Corp. News Release – November 22, 2007). Pan Andean Minerals Ltd.’s drill holes WS08-10, 11 and 12 did not intersect any significant copper mineralization.
Table 1. 2008 Diamond Drill Results
WS Property, Yukon
2007 Exploration Program
In 2007, Pan Andean Minerals Ltd. spent $1.5 million in exploration and outlined four “Carmacks-style” copper-oxide deformation zones on its ICE and WS properties.
The 2007 exploration work included a 3,295 kilometre airborne magnetic and radiometric survey, seven property-scale MMITM surveys (>4,500 samples), geological mapping, prospecting, trenching, reconnaissance induced polarization surveys and diamond drilling of seven holes in 1,360 metres.
The Company discovered four significant “Carmacks-style” copper-gold mineralized zones on the ICE and WS properties, and identified a number of additional geophysical and copper geochemical targets as a result of this work.
On Pan Andean Minerals Ltd.’s WS and ICE properties, situated within the Carmacks Block of properties, 2009 exploration included two separate programs of drill target definition by structural analysis and multi-element MMITMstudies by company consultants. Results of this work corroborated on a number of trenching target trends, some of which were subsequently trenched by an excavator.
Geological mapping and prospecting programs by a geologist and prospector team were carried out on the WS, ICE, Peanut and Copper properties. Fieldwork also included, linecutting and 23 kilometres of pole-dipole IP surveys on the ICE and WS East target areas.
A Caterpillar excavator was utilized to open up three kilometres of drill access roads and excavate 260 metres in seven trenches on the WS property. Trenching was greatly inhibited over target areas owing to permafrost conditions, however all trenches were mapped and sampled in detail.
In 2009 Pan Andean Minerals Ltd. completed detailed geological mapping, prospecting and sampling programs on five properties north of Minto mine, following up copper ± gold soil MMITM anomalies and coincidental “Minto-type” magnetic and IP anomalies defined previously by Pan Andean Minerals Ltd.
The Company received NI43-101 technical reports for the Toe and Pepper properties, prepared by Company consultant Jean Pautler, P.Geo., that recommend additional IP survey work and diamond drilling on both properties.
The Toe and Pepper properties meet the requirements of Qualifying Transactions, for the purposes of the Policies of the TSX Venture Exchange. Pan Andean Minerals Ltd. seeks suitable joint venture partners to advance them.
On September 9, 2009 the Company announced that exploration field work had been accelerated on the Company’s six Minto-area copper-gold properties (the “Minto Block”), in light of continued exploration success at Capstone’s Minto North deposit. At Pan Andean Minerals Ltd.’s Apex East property, situated immediately north of Capstone’s Minto property, the Company conducted a program entailing geological mapping, prospecting, linecutting, MMITMsampling, and a 15 kilometre pole-dipole IP survey.