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YURA GOLD PROJECT
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The Yura Gold Project is located approximately 30 kilometers west of Arequipa Peru in. the northern part of the Atacama Desert It comprises an 16 794 hectare group of. concessions which occupy most of a 9 by 12 kilometers circular feature of intense. faulting within quartz diorite and tonalite Numerous quartz veins have been mapped and. sampled many with impressive gold grades A large breccia body has recently been. identified which has yielded significant gold assays. Permitting is in hand for drilling and exploration mining on many of the major gold. targets An exploitation permit is also in hand for one group of the concessions A permit. is in hand for drilling four water wells A good neighbor agreement with local farmers and. communities is nearing completion, Geological mapping has been completed on 4 520 hectares of the project and 1 713. rock chip samples have been collected, Quartz veins can be up to six meters thick although most a less than one meter Some. have been mapped for several hundred meters along strike and one is exposed on a. canyon wall for a vertical distance of 270 meters The gold occurs both in the veins and. in the wallrock and is free milling It has a very high correlation with tin tellurium. thallium and bismuth which indicates that the mineralization is part of an intrusion. hosted mesozonal gold system similar to the Fort Knox Mine in Alaska The veins are. also similar to those at the San Juan Chorunga 62km to the northwest Those veins. have been mined for 60 years and are at a depth of 1400 meters. A large number of targets have been developed at the Yura Gold Project and several. are being grouped together into a proposed underground mining zone This zone will be. the focus of a first phase of drilling together with the large breccia zone. Positive aspects of the project also include,Heavy equipment on site. Large capacity explosives magazine constructed permitted and licensed. Licenses for explosives purchasing transporting and using. Project administration in place,Camp facilities,Road access. Turn key for immediate execution of drilling Savings in time and money. Project has industrial license from city of Yura,Low elevation and close proximity to city.
Good relations with nearby communities and a strong public relations program. Registered in two new water resource dam projects,TABLE OF CONTENTS. TABLE OF CONTENTS 3,LOCATION CLIMATE AND ACCESS 5,INFRASTRUCTURE 6. PERMITTING 8,LITHOLOGY 8,STRUCTURE 10,ALTERATION 12. MINERALIZATION 12,TARGETS 18,PROJECT POTENTIAL 26,RECOMMENDATIONS 27. REFERENCES CITED 28,STATEMENT OF QUALIFICATIONS 30.
LIST OF FIGURES,FIGURE 1 YURA GOLD PROJECT LOCATION MAP 5. FIGURE 2 MINERAL CONCESSIONS 7,FIGURE 3 GEOLOGIC MAPPING AND SAMPLING 9. FIGURE 4 VEIN TYPES 11,FIGURE 5 ROCK GEOCHEMISTRY GOLD 15. FIGURE 6 HISTOGRAM OF GOLD GRADES 16,FIGURE 7 CORRELLATIONS WITH GOLD 17. FIGURE 8 ORE DEPOSIT MODEL 18,FIGURE 9 LILA MARYLIN TARGET 19.
FIGURE 10 ELDA TARGET GEOLOGY 20,FIGURE 11 ELIANA TARGET GEOLOGY 21. FIGURE 12 ELIANA MAIN VEIN LONGITUDINAL SECTION 22. FIGURE 13 SUZIE TARGET GEOLOGY 23,FIGURE 14 PAMELA ALMA CHARLIE TARGET GEOLOGY 24. FIGURE 15 CHARLIE ESPANOLA SUZIE AREA GEOLOGY 25,FIGURE 16 AYLIN TARGET GEOLOGY 26. FIGURE 17 LARGE SCALE UNDERGROUND MINING CONCEPT 27. APPENDICIES, APPENDIX I YURA PROJECT SAMPLE RECORD separate spreadsheet. LOCATION CLIMATE AND ACCESS, The Yura Gold Project is located approximately 30 kilometers west of the city of.
Arequipa in southern Peru It lies at the foot of the Cordillera Occidental Mountains and. adjacent to the coastal plain Elevations range from 1380 meters in the Yura River. canyon to 2570 meters at the northern end of the claim block. The climate is sub tropical desert with most of the year being warm sunny and dry. Temperatures range from 5 5C at night in July to 22 6C in the daytime in October A. rainy season generally starts in late December and usually ends by mid March Annual. precipitation at Arequipa averages 95 millimeters, The property is reached by taking highway 34A northwest from Arequipa to the town of. Yura then following Cemento Yura s ore haulage road west and then to the south on the. property access road The total distance is approximately 44 kilometers and takes. between 1 5 and 2 hours to drive Figure 1, The project area has been the focus of a long history of informal mining There. are numerous hand dug adits shafts and stopes The mineralization was either. hauled from the site in sacks or leached with cyanide on site. Donald Stiles began acquiring mining claims in the project area in 2004. Zoro Mining Corporation began working on the Yura Gold Project in 2005 This. work included rock geochemical sampling limited road cut mapping trenching. IP resistivity surveys and aerial photography Zoro walked away from the project. during the economic downturn of 2008, In 2010 Minex reached an agreement with Donald Stiles and South American. Inmobiliaria SAI to conduct exploration mining In 2011 work commenced on. three exploration shafts on the most prospective veins and continued until April. of 2012 Mining was suspended due to the expiration of the permit and lack of. The current exploration work began in June of 2011 consisting of detailed. geologic mapping and geochemical rock sampling In September of 2011. Donald Stiles entered into a joint venture agreement with Zoro Minex and South. American Inmobiliaria One of the provisions of the JV agreement was that S A. Inmobiliaria would immediately transfer their Yebacha claims to Donald Stiles. where they could be added to the JV exploration permitting and drilling program. In return they would be provided with stock in Formacion Yura Exploracion a. Donald Stiles company which owns other Yebacha claims in the JV area The. transfer took place in March of 2013 Another provision of the JV agreement was. that Zoro would provide funding for the permitting exploration and administration. activities of the JV Zoro fell far behind in providing funding and for the past two. years Donald Stiles has been personally covering most of the project costs Zoro. was notified on April 22 2014 that the joint venture was terminated. INFRASTRUCTURE, In addition to the upgrade and maintenance of the 10 kilometer access road from. the north approximately 31 kilometers of roads have been constructed within the. project area to provide access to mineralized zones. A camp exists at the project located on Shiprock Peru ground which includes 8. housing cabins an office a kitchen dining hall and bathroom In 2011 a 288. square meter core shed was constructed at the camp A number of other cabins. are found at various locations on the property, At the Mercedes target located on Shiprock Peru ground underground mine.
workings were converted into an explosives magazine with a licensed capacity of. Exploration shafts and head frames have been developed on three of the veins. The shafts have each reached a depth of about 30 meters. The following table and Figure 2 show the ownership of the mineral concessions. that are part of the Yura Gold Project which total 16 794 hectares It should be. noted that the area listed for the concessions is the effective area Some claims. overlap and this area is not counted twice,OWNER CONCESSIONS. Formacion Yura Exploracion S A C Yebacha 2A 5 6 7 9 1 495. Yebacha 3 4 8 11 12 13 14 17,Donald Le Roy Stiles 18 19 21 23 24 13 889. Tonalia Tonalia 1 2 3 4 5 6 7,Shiprock Peru Yebacha 1 16 26 27 28 1 410. Total 16 794, Land to the north of the joint venture area is controlled by a variety of owners. especially Minera Laytaruma which is very active in mining their concessions. PERMITTING, Formacion Yura Exploracion This permit is under small mining and is for 19.
drilling platforms trenching and limited exploration mining The permit is in hand. and has been initiated, Donald Le Roy Stiles This exploration permit is under large mining and is for. 60 drilling platforms road construction trenching and limited exploration mining. The permit is in hand and has been initiated, Shiprock Peru This permit is under small mining and is for exploitation of 90. tons per day Under this permit an ulimited amount of drilling could also be done. This permit is in hand and has been initiated, Water Shiprock has a permit in hand to explore and develop underground. water from four wells, Usarios An agreement was reached with the water canal Usarios in order to get. them to support the project One important aspect of the agreement is the. establishment of a restricted zone that covers the farms rivers canal and the. steep slopes above the canal In this zone special permission would need to be. granted by the usarios prior to any road construction or surface mining. Approximately one quarter of the project area has been mapped and rock chip. sampled Since June 2011 a total of 4 520 hectares have been mapped in detail. and 1 713 samples have been collected Mapping is conducted on a Quickbird. satellite image and then entered into ArcGIS Figure 3 Rock geochemical. samples are collected from outcrops informal miner prospect dumps and float In. addition to the surface mapping underground mapping has been conducted at. the Aylin Charlie June and Mercedes Mines along with several of the informal. mine workings, Quartz Diorite is the most widespread and presumably oldest rock in the project.
area It is characterized by having abundant felsic dikes and commonly weathers. to leave patches of outcrop on the tops of hills and large parts of the slopes. covered with boulders and sub crop of mineral grains with abundant muscovite. The quartz diorite can also have abundant rectangular patches composed of. chlorite They look like hornblende megacrysts but have no thickness as. hornblende would, Feldspar Porphyry has been mapped in the eastern part of the project area It. contains approximately 30 50 feldspar crystals and has a somewhat smaller. average grain size than the quartz diorite It has been seen intruding the quartz. diorite but has about the same quantity of felsic dikes suggesting an age not. much younger than the quartz diorite, Mafic Dikes are common but are concentrated more in the southern part of the. project area While they are dark and appear to be mafic they were determined. to be dacite through petrography There are multiple phases of these dikes with. some being strongly chlorite altered, Felsic Dikes are very common in the project area Petrographic analysis was. done on one sample which was determined to be quartz monzonite porphyry. The dikes range from a few centimeters thick to several meters They commonly. have trends of northwest north northeast or east west There are multiple. phases of these dikes They have been observed cutting the mafic dikes and. being cut by the mafic dikes, Tonalite intrudes the quartz diorite in the southern part of the project area with. dimensions of approximately 2 5 by 3 5 kilometers Along the eastern contact. tonalite dikes are observed intruding the quartz diorite At the southern contact a. large amount of shearing is observed in the quartz diorite dipping away from the. tonalite The tonalite has been cut by very few felsic and mafic dikes Its. weathering appearance is usually quite fresh looking compared to the quartz. diorite Hill slopes are generally covered with boulders. Diorite is tentative name given to several bodies that intrude the quartz diorite. and tonalite as dikes or larger masses They have a fine to medium grained. texture and appear to be of intermediate composition. Several andesite dikes have been mapped in the project area in the eastern. and western parts In both areas they cut the quartz diorite They generally strike. northwest and have steep dips They look similar to the tonalite but no. petrographic work has been done on them, Gabbro Diorite forms an elliptical body in the southwestern part of the mapped.
area Its dimensions are approximately 0 8 by 1 3 kilometers It appears to. intrude the tonalite quartz diorite contact but this relationship is uncertain It is. not cut by any dikes and the only alteration seen was a very small amount of. chalcedonic quartz, Tertiary Sencca pyroclastic volcanic rocks occupy canyon bottoms and low lands. on the eastern part of the project area and form the plateau east of the project. Recent air fall ash deposits are common on the hillsides and form considerable. thicknesses in canyon bottoms Wind blown deposits of this ash are also. The region of the project is dominated by a large circular feature measuring. approximately 9 kilometers north south by 12 kilometers east west as seen on. aerial photography Figure 3 Within this feature there is an intense pattern of. northeast and northwest lineaments which undoubtedly represent fault zones. Some fault zones are characterized by extensive development of caliche Others. have chlorite or epidote along them, Over three thousand quartz veins have been mapped so far They fit nicely into. the transpressional model for stress in brittle rocks The main shear trend is. parallel to the Peruvian coast and the edge of the South American tectonic plate. Figure 4 modified after Tourigny G et al 2004 shows a figure adapted from. geologic literature on which the various vein trends from the Yura Gold Project. SUMMARY The Yura Gold Project is located approximately 30 kilometers west of Arequipa Peru in the northern part of the Atacama Desert It comprises an 16 794

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