Yanamina Gold Project

Project Overview

Gold/Silver

Peru

Brownfields

On 2 February 2020, Jadar announced that the Company had completed the acquisition of Minera Wealth Peru S.A.C., the holder of five concessions known as the Yanamina Gold Project. Following the acquisition of Yanamina, a Maiden JORC Resource Estimate was announced of 6,742,260 tonnes @ 1.23g/t gold and 4.31 g/t silver for 265,987 ounces of contained gold, and 934,528 ounces of contained silver, confirming the Yanamina Gold Project as a significant bulk mining development opportunity with strong economic potential.

Project Highlights

  • Maiden JORC 2012 Resource of 265,987ozs Gold and 934,528ozs Silver.

Cut-off Grade

Indicated

Inferred 

Total

g/t

Tonnes

Au g/t

Tonnes

Au g/t

Tonnes

Au g/t

0.5

2790,620

1.35

3951,640

1.14

6742,260

1.23

  • Located in the Ancash Province in Central Peru.
  • Yanamina is an outcropping epithermal gold resource with existing resource of +265,000 ozs gold.
  • Provides significant exploration upside through potential depth and lateral extensions and a significant faulted extension target at depth.
  • Clear short term path to production with defined short term plan.
  • Purchase cost minimal, relative to potential upside of project.

Location of Yanamina Gold Project In Peru

Maiden JORC Resource

6,742,260 Tonnes @ 1.23g/t gold and 4.31g/t silver

  • The JORC study has identified lateral and at depth exploration potential to expand the existing resource outline.
  • The study also highlighted a significant exploration target in the down faulted hanging wall that bounds the upper part of the resource.
  • The large majority of the resource outcrops or sub outcrops indicating the potential for a low strip (waste: ore) ratio of around one times.
  • The insitu contained gold resource of 265,987 ounces equates to Jadar’s market capitalisation at only $24 per oz

Cut-off Grade

Indicated

Inferred

(Au)

Tonnes

Grade Au g/t

Grade Au g/t

Tonnes

Grade Au g/t

Grade (Ag g/t)

0.5

2790,620

1.35

4.34

3951,640

1.14

4.29

1.00

1,433,460

1.95

5.03

1,791,580

1.66

4.71

1.50

806,960

2.50

4.90

854,000

2.14

3.66

2.00

449,540

3.12

5.39

400,120

2.64

3.84

2.50

256,760

3.80

6.00

195,580

3.09

4.63

3.00

156,940

4.48

6.97

75,740

3.72

4.80

Resources

Tonnes

Grade (Au g/t)

Grade (Au g/t)

Total ozs(Au)

Total ozs (Ag)

Indicated

2,790,620

1.35

4.34

121,136

389,431

Inferred

3,951,640

1.14

4.29

144,851

545,097

Total/average

6,742,260

1.23

4.31

265,987

934,528

Resources

Tonnes

Grade (Au g/t)

Grade (Au g/t)

Total ozs(Au)

Total ozs (Ag)

Indicated

1,433,460

1.95

5.03

89,879

231,842

Inferred

1,791,580

1.66

4.71

95,628

271,329

Total/average

3,225,040

1.79

4.85

185,507

503,171

Summary Table (1.0g/t cut-off)

Project History

Yanamina is a Historic artisanal mining area, with over 100 small artisanal pits and short tunnels (adits) up to 15 metres in length, distributed across the Project. Local knowledge suggests that artisanal work began with Portuguese miners in the 1600’s, continuing through to late 1890’s. Gold or silver production records are not available, however it is assumed that production was small and concentrated

1994 – Exploration Commenced

  • Arequipa Resources and subsidiary, Acuarios Mineral y Exploradora (“AME”), completed regional and prospect sampling, reopened select historic adits, drove three new adits totalling 48.6 metres, collected samples for metallurgical testing and completed 7 diamond drill holes in 1994 (543.15 metres), and 55 diamond holes in 1995 (1,636.05 metres).

2000 – Project Acquisition

  • In 2000, Barrick Gold acquired Arequipa Resources, the parent company of AME, and apart from apparent desk top studies, no additional exploration on Yanamina was carried out.

2006 – Acquisition

  • In 2006, Latin Gold Limited (ASX:LAT), purchased Yanamina and undertook an extensive exploration programme, which included the digitizing of the historic data base, detailed geological mapping, channel sampling comprising 280 samples, limited adit sampling and the completion of 25 diamond drill holes totalling 1,468 metres.
  • From 2007-2011, Latin undertook additional field studies, preliminary metallurgical test work and completed a pre-feasibility, updated PFS.

2011 – Acquisition

  • Coronet Minerals acquired Yanamina and retained Southampton Resources to conduct a NI 43-101 compliant deposit model, resource estimate and preliminary assessment.

2019 (December) – Acquisition

  • Jadar Resources acquired Yanamina, maiden 2012 JORC Resource estimate and preliminary assessment.

Geology

Sediments

  • Located within northwest trending belt of complexly folded and faulted, Late Mesozoic marine sediments intruded by Tertiary batholithic rocks of granodiorite composition. Oldest rocks in region are Cretaceous quartzites, shales, and minor coal seams.

Fault Zone

  •  Yungay Graben, which trends northerly across the region and has been traced along strike for almost 100 kms.
  • Straddles the Ancash Fault Zone, the mineralisation within the Project is hosted by a batholith of monzo-granitic composition and the emplacement of this batholith has been structurally controlled with intense mylonitic textures adjacent to the faulted contacts.
  • 38-42 degree dipping hillside which reflects a low angle normal fault.

Associated Deposits

  • Barrick’s Pierina Mine and Lagunas Norte Gold Mine.

Deposit Type

  • Low-sulphidation epithermal gold, structural deformation and alteration of a shear-hosted gold deposit. Quartz-sericite alteration, with gold of 0.10 – 30 gpt recorded over widths of up to 1.5 metres wide.

Yanamina Outcrop Geology (post Latin Gold circa 2007)

Location and Infrastructure

  • The Yanamina Gold project consists of five mining concessions for 2.24 Km2, located in the Department of Ancash, Northern Peru, District of Caraz.
  • The Project is located 40 km to the north and 120 km south respectively of Barrick Gold’s Pierina (210 MT @ at 1.1 g/t for 7.5 million ounces), and Alto Chicama/Lagunas Norte (227 MT @ 1.1 g/t for 8 million ounces) gold mines.
  • Located 16 km east of the village of Caraz – a skilled trade population totalling 7,000 people.
  • Vehicle access to Yanamina is via 448kms of paved highway from Lima, the capital of Peru, to Caraz and then from Caraz to Yanamina. The road to Yanamina is unsealed but suitable for 2 wheel drive vehicles.
  • Commercial airline access to Huaraz, 93km south of the property.

Location of Yanamina

Exploration Target

Significant Exploration Upside

  • Work carried out for the maiden JORC Resource highlighted a number of areas which show potential for additional mineralisation, both as an extension but also proximal to the existing resource.
  • An extensive drilling program planned for Yanamina with drilling to commence H2 2020.
  • A number of these target areas can be initially explored geologically to determine their potential.
  • An additional exploration target remains open is the potential faulted extension to the existing Yanamina resource.
  • The Yanamina resource is located on a fault scarp and there is sound geological evidence that the top of the resource has been removed by faulting.
  • How substantial the “missing” top of the resource is unknown but presents a simple exploration target with possible significant exploration upside.

Exploration Targets

Cross Section View of Additional Exploration Targets