GEOLOGY & RESOURCES
GEOLOGY & MINERALIZATION
Gold oxide mineralization at Fenix Gold is sub-vertical and is of a bulk, disseminated style. It is controlled by NW-SE faulting and the gold mineralization occurs mainly in phreatomagmatic breccias, and daciandesitic subvolcanic intrusions. The high-grade gold is commonly associated with low-temperature black banded quartz veins (BBV), which occur in sheeted veins, stockworks, subangular fragments in phreatomagmatic breccias and in hydrothermal injections of silica-magnetite.
Based on the geological features observed, the project is classified as intrusion-related, low sulphidation, deep epithermal mineralization. The mineralization is 2,500 m long, 750 wide and up to 600 m deep, and remains open at depth and to the east and southeast.
Metallurgical studies indicate that gold is usually fine and occurs in both native form and as submicroscopic gold in iron oxides. Gold composition is of a high purity: on average > 99% Au.
Fenix Gold mineralization is comparatively clean, with trace occurrences of copper, sulphur and mercury, even at depths of 600 m below the surface. This makes Fenix Gold unique in the Maricunga region as it is a pure oxide gold deposit with no transitional or sulphide mineralization.
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MINERAL RESOURCES & RESERVES
MEASURED & INDICATED
PROVEN & PROBABLE
*Resources include reserves
The mineral resource estimate was updated in 2023 based on data collected from 91 diamond drill holes (30,947 m of core), 282 reverse circulation holes (84,418 m of RC cuttings), and 2 combined RC/DDH drillholes (914.2 m). This represents all the drilling completed at Fenix Gold between 2010 and 2022. Surface sampling (860 two-meter trench samples) have also been used in the resource estimate.
A new geological model has been created for this deposit based on the drill hole relogging program completed in 2018/2019 and new drilling from the 2020/2022 period (13 holes). The gold estimation domains were defined using a 0.15 g/t Au cut-off and within the lithological/mineralized and structural domains using the Leapfrog Geo© software package. Resource model grades were estimated using ordinary kriging.
The table below summarizes the global mineral resource estimate for Fenix Gold, which is constrained within a $1,800/ounce optimized open pit shell. The Mineral Resources are inclusive of the Mineral Reserves.
Mineral Resource Estimate for Fenix Gold - April, 2023
Mineral Resources reported is inclusive of Mineral Reserves.
Metal price of USD1,800 per ounce gold was used to estimate Mineral Resources.
This table includes all Measured, Indicated, and Inferred Resources contained within the “Resource Pit”, which represents the test for eventual extraction applied.
Mineral Resources were prepared by Independent Consultant Andrés Beluzán Chartered Professional, Mining Engineering and a registered member in good standing of the Chilean Mining Commission, REG# 215.
Mineral Resources are not Mineral Reserves and do not have demonstrated economic viability. There is no certainty that all or any part of the Mineral Resources estimated will be converted into Mineral Reserves.
Mineral Resources are reported in accordance with Canadian Securities Administrators (CSA) National Instrument 43-101 (NI 43-101) and have been estimated in conformity with generally accepted Canadian Institute of Mining, Metallurgy and Petroleum (CIM) "Estimation of Mineral Resource and Mineral Reserves Best Practices" guidelines.
Mineral Resource tonnage and contained metal have been rounded to reflect the accuracy of the estimate, and numbers may not add due to rounding.
The quantity and grade of reported Inferred Resources in this estimation are uncertain in nature and there has been insufficient exploration to define these Inferred Resources as an Indicated or Measured Mineral Resource and it is uncertain if further exploration will result in upgrading them to an Indicated or Measured Mineral Resource category.
The Mineral Reserves presented in the following table are constrained within a USD 1,650/oz optimized open pit and are reported as in-situ dry million tonnes using a cut-off grade of 0.235 g/t Au.
Mineral Reserve Estimate for Fenix Gold - May, 2023
Totals may not add up correctly due to rounding.
Metal price of USD 1,650 per ounce gold was used to estimate Mineral Reserves.
Mineral reserves are estimated using a minimum cut-off grade of 0.235 g/t Au and assuming metallurgical recovery of 75% on average for the life of mine.
Mineral Reserves were prepared by Erick Ponce F Aus IMM, Area Manager, Mining Plus.
Mineral Reserves are reported in accordance with Canadian Securities Administrators (CSA) National Instrument 43-101 (NI 43-101) and have been estimated in conformity with generally accepted Canadian Institute of Mining, Metallurgy and Petroleum (CIM) "Estimation of Mineral Resource and Mineral Reserves Best Practices" guidelines.