Volcan announces results from its drilling program at the Islay

CORPORATE OFFICE
TICKER SYMBOLS
Av. Manuel Olguín 375, Piso 7
Urb. Los Granados
Santiago de Surco, Lima, Perú
BVL:
VOLCAAC1, VOLCABC1
BCS:
VCMAC1, VCMBC1
LATIBEX: XVOLB
Tel : +51 1 416 7000
Fax: +51 1 416 7494
[email protected]
WWW.VOLCAN.COM.PE
Volcan Compañía Minera S.A.A
Volcan announces results from its drilling
program at the Islay Mine, Chungar Unit
Lima, September 08th, 2015 - Volcan Compañía Minera S.A.A. (BVL: VOLCAACI /
VOLCABC1; BCS: VCMAC1 / VCMBC1; LATIBEX: XVOLB) is pleased to announce
results from its diamond drilling program at the Islay Mine, Chungar Unit, located in the
Department of Pasco, 214 Km from the city of Lima. To date, 16,043 meters of diamond
drilling were completed with the purpose of exploring and defining the size of the economic
mineralization of Veta Sur and associated splits. The results are satisfactory, allowing for a
considerable increase of inferred resources at the Islay Mine in silver tonnage and grade.
Highlights of the Drilling Program:






DDH-U-CH-15-031: 1.61 m @ 0.22% Cu, 0.92% Pb, 3.14% Zn & 15.77 oz/t Ag
DDH-U-CH-15-038: 3.45 m @ 0.05% Cu, 1.08% Pb, 1.51% Zn & 13.94 oz/t Ag
DDH-U-CH-15-039: 4.04 m @ 0.08% Cu, 1.55% Pb, 3.03% Zn & 16.37 oz/t Ag
DDH-U-CH-15-056: 3.78 m @ 0.05% Cu, 0.50% Pb, 0.93% Zn & 15.46 oz/t Ag
DDH-U-CH-15-057: 2.57 m @ 0.16% Cu, 2.58% Pb, 6.08% Zn & 30.29 oz/t Ag
DDH-U-CH-15-085: 1.05 m @ 0.13% Cu, 0.58% Pb, 1.08% Zn & 28.15 oz/t Ag
The assay results from the fifty nine diamond-drill holes are summarized in Exhibit No.1.
A longitudinal section of Veta Sur, detailing the location and grades of the perforations
executed is displayed below as Exhibit No.2.
“The diamond drilling program developed at Veta Sur discovered a new mineralized
structure at the Islay Mine with excellent grades and silver mineralization associated with
polymetallic mineralization, recognizing to date one ore shoot 700 meters in length and 300
meters deep. Moreover, it should be noted that the mineralized system continues open in a
northwest-southeast direction, principally at depth. This important discovery allowed for a
49% increase of silver grade content of inferred resources as of June 2015 compared to
those of December 2014", said Jorge Chavez, Corporate Manager of Geology &
Brownfields.
Quality Assurance & Quality Control (QA-QC)
Following detailed geological and geotechnical logging, drill-core samples are split at the
site. Half of the core is submitted to the mine´s laboratory for the corresponding chemical
analysis. The remaining half of the core is retained at site for verification and reference
purposes. Following physical preparation, samples are assayed for base metals and silver
by atomic absorption methods utilizing aqua regia digestion. The QA-QC program includes
the blind insertion of certified reference standards, assay blanks, field duplicates (twin
samples), duplicate rejections and duplicate pulps; at a frequency of approximately 1 per 20
normal samples.
1
CORPORATE OFFICE
TICKER SYMBOLS
Av. Manuel Olguín 375, Piso 7
Urb. Los Granados
Santiago de Surco, Lima, Perú
BVL:
VOLCAAC1, VOLCABC1
BCS:
VCMAC1, VCMBC1
LATIBEX: XVOLB
Tel : +51 1 416 7000
Fax: +51 1 416 7494
[email protected]
WWW.VOLCAN.COM.PE
Volcan Compañía Minera S.A.A
Qualified Person
Jorge Chavez, Corporate Manager of Geology & Brownfields at Volcan Compañia Minera,
is a Qualified Person, Registered with the Australian Institute of Mining & Metallurgy
(AusIMM), Registered Member Number 318752, and responsible for ensuring that the
information contained in this press release is a factual and accurate summary of the original
reports provided or developed by Volcan Compañia Minera S.A.A.
Volcan Compañía Minera S.A.A.
Volcan Compañia Minera is a polymetallic mining Company and one of the largest
producers of zinc, lead and silver in the world. The Company is considered one of the
lowest cost producers in the industry due to the quality of its ore deposits.
Volcan began operations in 1943 at the heights of the Ticlio Pass. All operations are
located in the central mountains of the Peruvian Andes and include the operating units,
Yauli, Chungar, Alpamarca and Cerro de Pasco. These four operating units include a total
of 12 mines, seven concentrator plants and one oxide leaching plant.
The Company is growing organically through expansion of its plants and from exploration
and development of its own portfolio of brownfield and greenfield projects. At the same
time, the Company continuously searches for accretive opportunities in the region.
For more information, visit our website at www.volcan.com.pe or contact:
Ignacio Rosado
Chief Executive Officer
Tel. +51 1 416 7131
[email protected]
David Gleit
Investor Relations Officer
Tel: +51 1 416 7430
[email protected]
Reference symbols
BVL: VOLCAAC1, VOLCABC1; BCS: VCMAC1, VCMBC1; LATIBEX: XVOLB
This press release may contain forward-looking information that involves risks and
uncertainties, including but not limited to those concerning costs and expenses; exploration
results; the continued improvement and efficiency of operations; prevailing market prices of
zinc, lead, copper, silver, gold and other metals mined; estimates of future explorations;
development and production; plans for capital expenditures; estimates of reserves and
resources; and Peruvian political, economic, social and legal developments. Such forwardlooking statements reflect the Company’s view with respect to the Company’s future
operating and financial performance. Actual results may differ materially from those
projected in such forward-looking statements resulting from a variety of factors that may or
may not be discussed herein.
2
CORPORATE OFFICE
TICKER SYMBOLS
Av. Manuel Olguín 375, Piso 7
Urb. Los Granados
Santiago de Surco, Lima, Perú
BVL:
VOLCAAC1, VOLCABC1
BCS:
VCMAC1, VCMBC1
LATIBEX: XVOLB
Tel : +51 1 416 7000
Fax: +51 1 416 7494
[email protected]
WWW.VOLCAN.COM.PE
Volcan Compañía Minera S.A.A
Exhibit N°1: Assay Results, Veta Sur
Drill Hole
From
(m)
To
(m)
Int.
(m)
True
Width
(m)
Cu (%)
Pb
(%)
Zn
(%)
Ag
(oz/t)
Vein
DDH-U-CH-13-146
155.52
162.65
7.13
6.69
0.02
0.22
0.38
6.33
Vein sur
DDH-U-CH-13-162
147.55
155.45
7.90
6.99
0.02
0.29
0.37
5.44
Vein sur
DDH-U-CH-14-026
185.60
188.80
3.20
3.08
0.01
0.23
0.40
4.65
Vein sur
DDH-U-CH-14-048
160.20
162.50
2.30
1.35
0.00
0.01
0.02
0.19
Vein sur
DDH-U-CH-14-052
224.15
233.80
9.65
9.16
0.02
0.17
0.25
4.15
Vein sur
DDH-U-CH-14-056
178.50
181.30
2.80
2.41
0.02
0.61
0.71
12.81
Vein sur
DDH-U-CH-14-107
365.83
373.00
7.17
5.87
0.05
0.45
1.16
8.81
Vein sur
DDH-U-CH-14-113
274.41
276.82
2.41
2.29
0.02
0.50
0.49
1.19
Vein sur
DDH-U-CH-14-116
253.50
259.45
5.95
5.21
0.01
0.16
0.26
1.11
Vein sur
DDH-U-CH-14-161
328.31
334.82
6.51
4.38
0.09
1.53
1.84
8.08
Vein sur
DDH-U-CH-14-167
139.11
139.34
0.23
0.21
0.04
0.51
2.97
1.27
Vein sur
DDH-U-CH-14-170
126.75
128.05
1.30
1.27
0.05
1.09
2.50
21.72
Vein sur
DDH-U-CH-14-171
301.37
302.84
1.47
1.42
0.01
0.16
0.29
4.15
Vein sur
DDH-U-CH-14-175
317.52
320.13
2.61
1.32
0.03
0.45
1.17
2.02
Vein sur
DDH-U-CH-14-182
147.45
150.05
2.60
2.12
0.03
0.43
0.55
7.02
Vein sur
DDH-U-CH-14-184
210.75
214.05
3.30
2.35
0.05
1.03
1.94
31.88
Vein sur
DDH-U-CH-14-187
119.80
124.00
4.20
4.12
0.00
0.01
0.03
0.25
Vein sur
DDH-U-CH-14-188
253.90
258.70
4.80
4.80
0.03
0.81
1.47
2.29
Vein sur
DDH-U-CH-14-192
181.30
182.70
1.40
0.90
0.04
0.61
1.13
21.67
Vein sur
DDH-U-CH-14-194
306.30
311.50
5.20
4.34
0.06
0.86
1.75
25.20
Vein sur
DDH-U-CH-14-195
158.20
159.60
1.40
1.19
0.02
0.35
0.56
6.71
Vein sur
DDH-U-CH-14-196
230.70
235.00
4.30
2.68
0.05
1.15
1.70
5.20
Vein sur
DDH-U-CH-14-198
145.60
146.50
0.90
0.61
0.11
1.56
2.61
0.88
Vein sur
DDH-U-CH-14-201
158.15
161.80
3.65
2.10
0.05
0.78
1.37
18.65
Vein sur
DDH-U-CH-14-202
202.30
215.50
13.20
11.28
0.07
1.27
2.01
3.62
Vein sur
DDH-U-CH-14-203
278.30
281.00
2.70
1.58
0.01
0.20
0.40
2.66
Vein sur
DDH-U-CH-14-204
165.60
166.40
0.80
0.45
0.00
0.03
0.09
0.77
Vein sur
DDH-U-CH-15-003
274.00
276.75
2.75
1.76
0.03
0.13
0.23
4.79
Vein sur
DDH-U-CH-15-004
179.20
180.30
1.10
0.77
0.01
0.08
0.15
1.07
Vein sur
DDH-U-CH-15-012
249.60
253.60
4.00
2.63
0.04
0.50
0.88
10.88
Vein sur
3
CORPORATE OFFICE
TICKER SYMBOLS
Av. Manuel Olguín 375, Piso 7
Urb. Los Granados
Santiago de Surco, Lima, Perú
BVL:
VOLCAAC1, VOLCABC1
BCS:
VCMAC1, VCMBC1
LATIBEX: XVOLB
Tel : +51 1 416 7000
Fax: +51 1 416 7494
[email protected]
WWW.VOLCAN.COM.PE
Volcan Compañía Minera S.A.A
Drill Hole
From
(m)
To
(m)
Int.
(m)
True
Width
(m)
Cu (%)
Pb
(%)
Zn
(%)
Ag
(oz/t)
Vein
DDH-U-CH-15-013
104.50
108.15
3.65
3.64
0.02
0.30
0.56
7.19
Vein sur
DDH-U-CH-15-017
111.65
117.95
6.30
6.11
0.03
0.66
1.01
6.19
Vein sur
DDH-U-CH-15-019
111.85
115.50
3.65
3.06
0.02
0.09
0.14
3.08
Vein sur
DDH-U-CH-15-023
197.95
201.20
3.25
2.39
0.04
0.69
1.06
5.11
Vein sur
DDH-U-CH-15-025
125.70
131.10
5.40
5.03
0.01
0.19
0.39
4.23
Vein sur
DDH-U-CH-15-028
132.70
134.00
1.30
1.28
0.01
0.28
0.58
5.05
Vein sur
DDH-U-CH-15-031
234.60
238.60
4.00
1.61
0.22
0.92
3.14
15.77
Vein sur
DDH-U-CH-15-032
215.10
225.45
10.35
6.36
0.02
0.44
0.87
5.33
Vein sur
DDH-U-CH-15-038
277.50
282.65
5.15
3.45
0.05
1.08
1.51
13.94
Vein sur
DDH-U-CH-15-039
277.30
289.35
12.05
4.04
0.08
1.55
3.03
16.37
Vein sur
DDH-U-CH-15-045
290.30
293.50
3.05
1.66
0.05
2.38
4.84
14.68
Vein sur
DDH-U-CH-15-048
281.70
284.90
3.20
1.91
0.05
0.67
1.25
16.71
Vein sur
DDH-U-CH-15-056
199.45
205.35
5.90
3.78
0.05
0.50
0.93
15.46
Vein sur
DDH-U-CH-15-057
307.70
310.80
3.10
2.57
0.16
2.58
6.08
30.29
237.20
242.50
5.30
2.06
0.02
0.29
0.50
8.70
258.70
261.60
2.90
1.42
0.04
0.62
1.47
10.06
265.60
274.50
8.90
3.45
0.01
0.29
0.61
4.55
331.60
333.45
1.85
1.14
0.04
0.11
1.63
3.58
336.40
339.50
3.10
1.90
0.22
0.11
Vein sur
Vein sur
caja techo
Vein sur
venilleo
Vein sur
caja piso
Vein sur
caja techo
Vein sur
caja techo
343.05
351.50
8.45
5.21
0.17
0.16
360.50
363.50
3.00
1.84
0.05
0.04
6.06
0.63
DDH-U-CH-15-072
253.80
256.50
2.70
1.27
0.06
1.27
2.34
13.75
Vein sur
caja piso
Vein sur
DDH-U-CH-15-074
307.00
310.50
3.50
1.78
0.02
0.41
1.02
1.94
Vein sur
DDH-U-CH-15-079
266.10
267.00
0.90
0.82
0.04
0.40
0.75
8.02
Vein sur
DDH-U-CH-15-081
290.40
293.60
3.20
3.12
0.05
0.72
1.42
13.65
Vein sur
DDH-U-CH-15-083
326.60
328.30
1.70
0.54
0.02
1.38
2.37
8.61
Vein sur
DDH-U-CH-15-085
208.80
210.00
1.20
1.05
0.13
0.58
1.08
28.15
279.00
286.00
7.00
3.49
0.01
0.14
0.31
3.28
286.00
288.90
2.90
1.45
0.04
0.61
1.01
13.24
Vein sur
Vein sur
caja techo
Vein sur
288.90
291.00
2.10
1.05
0.01
0.10
0.15
2.59
Vein sur
DDH-U-CH-15-090
264.40
267.00
2.60
1.93
0.03
0.45
0.54
9.03
Vein sur
DDH-U-CH-15-095
229.50
233.70
2.47
1.44
0.02
0.65
1.02
0.37
Vein sur
DDH-U-CH-15-061
DDH-U-CH-15-065
DDH-U-CH-15-089
4
10.0
5
10.8
5
2.82
3.03
Vein sur
CORPORATE OFFICE
TICKER SYMBOLS
Av. Manuel Olguín 375, Piso 7
Urb. Los Granados
Santiago de Surco, Lima, Perú
BVL:
VOLCAAC1, VOLCABC1
BCS:
VCMAC1, VCMBC1
LATIBEX: XVOLB
Tel : +51 1 416 7000
Fax: +51 1 416 7494
[email protected]
WWW.VOLCAN.COM.PE
Volcan Compañía Minera S.A.A
Drill Hole
From
(m)
To
(m)
Int.
(m)
True
Width
(m)
Cu (%)
Pb
(%)
Zn
(%)
Ag
(oz/t)
Vein
DDH-U-CH-15-096
229.50
233.70
4.20
3.01
0.02
0.24
0.39
4.25
Vein sur
DDH-U-CH-15-097
216.50
217.50
1.00
0.80
0.00
0.01
0.01
0.23
Vein sur
DDH-U-CH-15-101
202.00
203.10
1.10
0.93
0.09
1.44
1.88
10.15
Vein sur
DDH-U-CH-15-102
295.70
296.60
0.90
0.89
0.04
0.68
1.36
14.30
Vein sur
5
CORPORATE OFFICE
TICKER SYMBOLS
Av. Manuel Olguín 375, Piso 7
Urb. Los Granados
Santiago de Surco, Lima, Perú
BVL:
VOLCAAC1, VOLCABC1
BCS:
VCMAC1, VCMBC1
LATIBEX: XVOLB
Tel : +51 1 416 7000
Fax: +51 1 416 7494
[email protected]
WWW.VOLCAN.COM.PE
Volcan Compañía Minera S.A.A
Exhibit N°.2: Longitudinal Section of Veta Sur, drilling years 2013-2015
Laguna Segué
NW
ZONA DE BRECHAS
4500
SE
FORMACION CASAPALCA
LEYENDA
Sondajes 2013-2014
Sondajes 2015
Ag > 5.0 Oz /t
Ag > 7.0 Oz /t
A.V. @ %Cu %Pb %Zn OzAg
DDH-14-116
5.21 @ 0.01 0.16 0.26 1.11
DDH-14-182
2.12 @ 0.02 0.43 0.55 7.02
DDH-14-170
1.27 @ 0.05 1.09 2.50 21.72
DDH-14-187
4.43 @ 0.02 0.34 0.66 7.18
DDH-14-048
1.35 @ 0.00 0.01 0.02 0.19
3.64
@
0.02
0.03
0.56
7.19
DDH-14-198
DDH-15-013
0.61 @ 0.11 1.56 2.61 0.88
5.03 @ 0.01 0.19 0.39 4.23
4400
DDH-15-017
DDH-15-025
6.11 @ 0.03 0.66 1.01 6.19
DDH-15-095
DDH-15-028
1.44 @ 0.02 0.65 1.02 0.37
1.28 @ 0.01 0.28 0.58 5.05
DDH-15-019
DDH-14-026
3.06 @ 0.01 0.09 0.13 2.93
3.08 @ 0.01 0.23 0.40 4.65
DDH-14-195
1.19 @ 0.02 0.35 0.56 6.71
DDH-15-101
DDH-13-162
DDH-14-056
0.93 @ 0.09 1.44 1.88 10.15
DDH-13-146
2.29 0.02 0.50 0.49 1.19
2.41 @ 0.02 0.61 0.71 12.81
6.99 @ 0.02 0.29 0.37 5.44 6.69 @ 0.02 0.22 0.38 6.33
DDH-14-167
DDH-14-113
0.21 @ 0.04 0.51 2.97 1.27
1.05 @ 0.13 0.58 1.08 28.15
DDH-14-202
1.42 @ 0.01 0.16 0.29 4.15
DDH-15-085
3.52 @ 0.02 0.19 0.37 5.21
0.77 @ 0.01 0.08 0.15 1.07
DDH-14-171
0.60 @ 0.03 0.55 1.07 13.16
DDH-14-192
DDH-14-184
DDH-15-004
3.01 @ 0.02 0.24 0.39 4.25
2.35
@
0.05
1.03
1.94
31.88
DDH-15-096
DDH-15-023
0.45
@
0.00
0.03
0.09 0.7
3.39
@
0.04
0.69
1.06
5.11
DDH-14-175
4300
1.32 @ 0.03 0.45 1.17 2.02
DDH- 14-201
DDH-15-012
2.10 @ 0.05 0.78 1.37 18.65
DDH-14-052
2.63 @ 0.04 0.50 0.88 10.88
4.37 @ 0.02 0.57 1.04 2.42
DDH-14-161
9.16 @ 0.02 0.17 0.25 4.15
DDH-14-188
DDH-15-003
4.38 @ 0.09 1.53 1.84 8.08
1.76 @ 0.03 0.13 0.23 4.79
3.78 @ 0.05 0.50 0.93 15.46
DDH-14-196
DDH-15-031
DDH-15-056
DDH-15-090
2.68 @ 0.04 0.17 0.37 5.86
1.61 @ 0.22 0.92 3.14 15.77
DDH-15-097
1.93 @ 0.03 0.45 0.54 9.03
DDH-14-194
0.8 @ 0.00 0.01 0.01 0.23
2.38 @ 0.11 1.47 2.95 43.92
DDH-14-107
DDH-14-203
5.87 @ 0.05 0.45 1.16 8.81
1.58 @ 0.01 0.20 0.40 2.66
DDH-15-032
DDH-15-089
6.36 @ 0.02 0.44 0.87 5.33
1.91 @ 0.05 0.67 1.25 16.71
1.45 @ 0.04 0.61 1.01 13.24
DDH-15-048
0.89 @ 0.04 0.68 1.36 14.30
DDH-15-102
1.27
@
0.06
1.27
2.34
13.75
4200
DDH-15-057
DDH-15-072
DDH-15-081
DDH-15-061
DDH-15-079
2.57 @ 0.16 2.58 6.08 30.29
3.12 @ 0.05 0.72 1.42 13.65
1.42 @ 0.04 0.62 1.47 10.06
0.82 @ 0.04 0.40 0.75 8.02
DDH-15-038
DDH-15-065
DDH-15-074
3.45 @ 0.05 1.08 1.51 13.94
5.21 @ 0.17 0.16 10.85 3.03
1.78 @ 0.02 0.41 1.02 1.94
DDH-15-045
1.66 @ 0.05 2.38 4.84 14.68
0.0m 50.0m
100.0m
DDH-15-039
DDH15-083
4.04 @ 0.08 1.55 3.03 16.37
0.54 @ 0.02 1.38 2.37 8.61
Open Potential
6