The Niñobamba Silver/Gold Project is an advanced-stage exploration project located in south-central Peru
- Magellan’s Niñobamba Project, 330 kilometers southeast of Lima in the Department of Ayacucho, holds promising potential for discovery of a large, bulk-tonnage disseminated silver/gold deposit. Mineralization reflects a “high sulfidation” epithermal style that in Peru and elsewhere has produced world class precious metals deposits. Potential also exists for high grade epithermal vein deposits.
- Magellan is earning a 50% interest in the project from Rio Silver Inc. (TSX.V: RYO) by expending $2 million in exploration over three years. The agreement was completed in October 2016.
- The large land package consists of five contiguous concessions that total 36.5 square kilometers (9,027 acres). In addition to Rio Silver’s original Niñobamba concession (Dorita Primera), three concessions (Nos, 908, 909, 910) were acquired from Newmont Gold / Southern Peru Copper Corp in September 2016, and one (No. 600) was acquired by application in January 2017.
- Silver/gold mineralized zones extend over 6.5 kilometers in an east-west direction across the concessions. Alteration and mineralization appear to be controlled by northeast-trending, steeply-dipping structures, which also controlled emplacement of contemporaneous dacitic dikes. The host rock sequences include volcanoclastic sedimentary units, and andesitic and dacitic lavas
- Significant historical exploration work has been carried out by Rio Silver and by several major mining companies. An extensive database is available comprising geological, geochemical, geophysical and drilling data. All data are being compiled and will be reviewed to prioritize future exploration targets.
- Trenching and limited drilling on the original Niñobamba concession have intersected potential ore-grade silver/gold mineralization in two sub-parallel zones (North and South Zones) that demonstrate the potential for an outcropping, bulk-tonnage and disseminated precious metals deposit.
- In 2017 Magellan plans to carry out an initial 700-meter drilling program focused on the North and South Zones. The goal will be to progressively outline a silver/gold resource on the original Niñobamba concession.
- Southwest strike extensions of the North and South Zones extend on to recently acquired concessions. Additionally, numerous untested or only partially tested new targets are available. Exploration work on these new targets will be planned following compilation of the extensive database.