Solis Withdraws from Mostazal Option Agreement

·10 min read

Vancouver, British Columbia--(Newsfile Corp. - June 30, 2022) - Solis Minerals Limited (TSXV: SLMN) (ASX: SLM) (OTCQB: SLMFF) ("Solis" or the "Company") announces that it has elected to withdraw from its option agreement on the Mostazal Project in Chile. Accordingly, Solis will have no future claim on the Mostazal Project, or any contiguous exploration ground acquired through staking, and will be released from any further obligations to the vendor.

Pursuant to the Option Agreement dated June 23rd, 2021, Solis, through its wholly owned subsidiary Westminster Chile SpA, was granted the right to earn up to a 100% interest in the Mostazal Project in Chile's Atacama Desert by spending US$5m on exploration and making payments of US$5m to the vendor over four years.

Jason Cubitt, Solis' president and CEO, stated: "Mostazal presented an exciting prospect for us with a known copper mineralised system at surface and historical data supported an exploration thesis testing deeper targets. However, results from our first phase of drilling and geophysical surveys undertaken by the Company in 2022 ultimately did not meet our minimum expectations and management determined that it is in the best interest of shareholders to re-allocate the Company's resources."

With a current cash balance of approximately A$3m, the Company remains in a strong position to advance its portfolio of porphyry and IOCG copper projects in Peru, including Ilo Norte and Ilo Este, and will provide updates on these and other projects currently under review as developments occur.

In early 2022 the Company expanded its footprint in Peru through the application of seven concessions in the Tacna Region of Southern Peru0F[1] (Figure 1), 15kms along trend from Southern Copper Corporation's Toquepala Mine. The applications lie along the regional Incapuquio Fault system in southern Peru, which is associated with three large copper-molybdenum deposits currently in production: Cuajone, Quellaveco and Toquepala.

Peru Copper Projects

The Company owns a 100% interest in a number of copper-focused projects located in the Departments of Moquegua and Tacna, in southern Peru.

The Company's Ilo Este Copper Project (Figure1) is located approximately 20 kilometres northeast of the port city of Ilo, and is hypothesised to be a large, eroded porphyry containing copper, gold, silver and molybdenum, with an identified mineralised trend over 3 square kilometres.

The Ilo Norte Copper Project is located approximately 20 kilometres north-northeast of the city of Ilo and consists of a 10km long alteration system, hosting iron-oxide-copper-gold mineralisation (IOCG), (Figure 1).

Figure 1: Solis Minerals Ltd - Peruvian Projects' Location Plan

To view an enhanced version of this graphic, please visit:
https://orders.newsfilecorp.com/files/1134/129621_solis_figure1.jpg

The Ilo Este and Ilo Norte projects represent a portfolio of exploration concessions in the highly prospective coastal IOCG/porphyry copper belt of southern Peru. Solis believes that the mineralisation identified on Ilo Norte is part of an IOCG system, with a high-grade copper-skarn target; while the mineralisation at Ilo Este is part of a copper-gold-molybdenum porphyry system.

Proposed work

The Company intends to undertake remote sensing surveys on sections of the Ilo project areas using WorldView-31F[2] data acquisition to guide regional alteration mapping and target generation and complement the extensive ground mapping carried out to date. Combined with previous drilling, these exploration tools are aimed to provide a strong vector for identification of new drill targets in the short to medium term on the permits.

Additional Tenement Applications

The Company applied for new tenements 15km south, and on the trend of, the Toquepala Mine and is in the process of being granted 3,025 Ha of largely contiguous exploration ground in eight concessions2F[3] after some subdivisions for overlapping applications were effected.

The Company is currently compiling all of the available historic exploration and regional government data for the project area. This prospective area will also be subject to WorldView-3 data acquisition to assist in target generation and future exploration.

About Solis Minerals Ltd.

Solis Minerals is a Latin American-focused mining exploration company. The Company holds a 100% interest in a package of highly prospective IOCG (iron oxide copper/gold) and porphyry copper projects in southwestern Peru within the country's prolific coastal copper belt - a source of nearly half of Peru's copper production.

This Announcement has been authorised for release to ASX by the Board of Solis Minerals Ltd.

For further information please contact:

Jason Cubitt
President and CEO
Solis Minerals Ltd.
+01 (604) 209 1658

Stephen Moloney
Investor Relations
Corporate Storytime
+61 (0) 403 222 052

Neither the TSX Venture Exchange nor its Regulation Service Provider (as the term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy of accuracy of this news release.

Forward-Looking Statements

This news release contains certain forward-looking statements, which relate to future events or future performance and reflect management's current expectations and assumptions. Such forward-looking statements reflect management's current beliefs and are based on assumptions made by and information currently available to the Company. Readers are cautioned that these forward-looking statements are neither promises nor guarantees, and are subject to risks and uncertainties that may cause future results to differ materially from those expected including, but not limited to, market conditions, availability of financing, actual results of the Company's exploration and other activities, environmental risks, future metal prices, operating risks, accidents, labor issues, delays in obtaining governmental approvals and permits, and other risks in the mining industry. All the forward-looking statements made in this news release are qualified by these cautionary statements and those in our continuous disclosure filings available on SEDAR at www.sedar.com. These forward-looking statements are made as of the date hereof and the Company does not assume any obligation to update or revise them to reflect new events or circumstances save as required by applicable law.

Qualified Person Statement

Fred Tejada, P. Geo., is a qualified person as defined by National Instrument 43-101 (NI 43-101) and a consultant to the Company and has reviewed and approved the technical content of this news release.

Competent Person Statement

The information in this ASX release in relation to Geological Information and Exploration Results is based on and fairly represent information compiled by Mr Anthony Greenaway, a Competent Person who is a Member of the Australasian Institute of Mining and Metallurgy. Mr Greenaway is an employee of Solis Minerals Ltd. and has sufficient experience which is relevant to the style of mineralisation and types of deposit under consideration and to the exploration activities undertaken to qualify as a Competent Person as defined in the 2012 Edition of the "Australian Code for Reporting of Mineral Resources and Ore Reserves". Mr Greenaway consents to the inclusion in this report of the matters based on information in the form and context in which it appears. Mr Greenaway has provided his prior written consent as to the form and context in which the Geological Information and Exploration Results and supporting information are presented in this Announcement.

All information relating to exploration results that have been previously released to the market is appropriately referenced in this document.

APPENDIX 1

Table 1
Mostazal Copper Project Drill Collar Table

Hole
ID

Hole
Status

East
(m)

North
(m)

RL
(m)

Planned
(m)

EOH
(m)

DIP

AZI

MODD001

Complete

440,853

7,049,571

2748

500

362.0

-90

0

MODD002

Complete

440,374

7,049,835

2760

500

494.7

-65

90

MODD003

Complete

440,103

7,049,295

2521

500

528.0

-90

0

MODD004

Complete

441,881

7,049,630

2949

500

446.1

-90

0

 

Table 2
Mostazal Copper Project significant copper intersections

Hole

From

To

Interval

Cu

(m)

(m)

(m)

(%)

MODD001

10

40

30

0.12

Including:

30

40

10

0.17

136

138

2

0.76

258

260

2

0.11

304

306

2

0.26

MODD002

148

150

2

0.25

218

222

4

1.06

240

256

16

0.32

Including:

244

246

2

0.68

292

294

2

0.16

328

332

4

0.13

342

358

16

0.11

378

380

2

0.11

446

448

2

0.48

470

474

4

0.52

MODD003

66

68

2

0.17

434

451

17

0.1

Including

434

438

4

0.15

Including

447

451

4

0.1

464

466

2

0.22

501

512

11

0.29

Including

506

512

6

0.44

Including

510

512

2

0.99

MODD004

29

50

21

0.28

Including

29

37

8

0.42

Including

34

36

2

0.78

Including

35

36

1

1.1

Including

42

50

8

0.3

Including

42

46

4

0.42

57

58

1

0.14

67

68

1

0.13

156

158

2

0.13

193

196

3

0.16

220

221

1

0.22

245

246

1

0.12

 

Table 3
Recent Peruvian Project tenement application details

CODE

CONCESSION

TIT_CONCESSION

Ha_Reduced

CONCESSION STATUS

10013422

SOLIS02

WESTMINSTER PERU S.A.C.

200

D.M. en Trámite D.L. 708

010013422A

SOLIS02A

WESTMINSTER PERU S.A.C.

49

D.M. en Trámite D.L. 708

10013522

SOLIS03

WESTMINSTER PERU S.A.C.

500

D.M. en Trámite D.L. 708

10013622

SOLIS04

WESTMINSTER PERU S.A.C.

400

D.M. en Trámite D.L. 708

10013722

SOLIS05

WESTMINSTER PERU S.A.C.

407

D.M. en Trámite D.L. 708

10013822

SOLIS06

WESTMINSTER PERU S.A.C.

969

D.M. en Trámite D.L. 708

10013922

SOLIS07

WESTMINSTER PERU S.A.C.

300

D.M. en Trámite D.L. 708

010013822A

SOLIS07A

WESTMINSTER PERU S.A.C.

200

D.M. en Trámite D.L. 708

 

Figure 2: Mostazal Copper Project location

To view an enhanced version of this graphic, please visit:
https://orders.newsfilecorp.com/files/1134/129621_solis_figure2.jpg

Figure 3: Mostazal Copper Project drill hole location plan

To view an enhanced version of this graphic, please visit:
https://orders.newsfilecorp.com/files/1134/129621_solis_figure3.jpg

APPENDIX 2
Mostazal Project JORC Tables

JORC Code, 2012 Edition - Table 1
Section 1 Sampling Techniques and Data
(Criteria in this section apply to all succeeding sections)

Criteria

JORC Code explanation

Commentary

Sampling techniques

  • Nature and quality of sampling (e.g. cut channels, random chips, or specific specialised industry standard measurement tools appropriate to the minerals under investigation, such as down hole gamma sondes, or handheld XRF instruments, etc). These examples should not be taken as limiting the broad meaning of sampling.

  • Include reference to measures taken to ensure sample representivity and the appropriate calibration of any measurement tools or systems used.

  • Aspects of the determination of mineralisation that are Material to the Public Report.

  • In cases where 'industry standard' work has been done this would be relatively simple (e.g. 'reverse circulation drilling was used to obtain 1 m samples from which 3 kg was pulverised to produce a 30 g charge for fire assay'). In other cases more explanation may be required, such as where there is coarse gold that has inherent sampling problems. Unusual commodities or mineralisation types (e.g. submarine nodules) may warrant disclosure of detailed information.

  • Sampling across the project has included rock chip sampling of open pit exposure, trenches, rock outcrops, soil sampling and diamond drilling.

  • Soil, trenching and outcrop sampling was undertaken by Sociedad Legal Minera Mostazal between 2005 and 2008, Galileo Minerals Ltd in 2008, and IMT Exploraciones between 2011 and 2013.

  • Diamond drilling was undertaken by IMT Exploraciones between 2012 and 2013.

  • Soil sampling and rock chip sampling was used to identify zones of potential mineralisation.

  • These is no detailed record of how outcrop sampling was completed or the size of the samples.

  • Trenches were sampled on 1m intervals; however the size of the sample is not recorded.

  • Diamond drill holes were samples on either 1 m, 3 m or 4 m, intervals as half core samples.

  • Solis Minerals is completing a diamond drilling program at Mostazal, comprising up to 4,000m of diamond drill core.

Drilling techniques

  • Drill type (e.g. core, reverse circulation, open-hole hammer, rotary air blast, auger, Bangka, sonic, etc) and details (e.g. core diameter, triple or standard tube, depth of diamond tails, face-sampling bit or other type, whether core is oriented and if so, by what method, etc).

  • All historical drilling completed to date at the Mostazal Copper Project has been diamond drilling.

  • 60 diamond drill holes were completed by previous explorers for a total of 11,381m.

  • Historical diamond drilling was undertaken using a Boart Longyear LF-900 drilling rig. Drill holes were completed as HQ size (63.5mm core diameter). There is no record of the drill tube type used, i.e. triple tube or standard tube.

  • Solis Minerals is completing HQ2 (63.5mm core diameter) diamond drilling utilising wirelines drilling techniques.

Drill sample recovery

  • Method of recording and assessing core and chip sample recoveries and results assessed.

  • Measures taken to maximise sample recovery and ensure representative nature of the samples.

  • Whether a relationship exists between sample recovery and grade and whether sample bias may have occurred due to preferential loss/gain of fine/coarse material.

  • Diamond core recovery was recorded for each sample interval by measuring the recovered core against the drill depth.

  • Diamond core recovery varied between 0.25% and 100%, but typically averaged 95%.

  • There is no apparent relationship between core recovery and grades from historical data.

  • There is no apparent sample bias due to preferential loss/ gain of fine/ coarse material.

Logging

  • Whether core and chip samples have been geologically and geotechnically logged to a level of detail to support appropriate Mineral Resource estimation, mining studies and metallurgical studies.

  • Whether logging is qualitative or quantitative in nature. Core (or costean, channel, etc) photography.

  • The total length and percentage of the relevant intersections logged.

  • Rock chip and soil sampling was usually completed as part of a geological mapping campaign.

  • Historical diamond drill holes were geologically logged at varying intervals based on lithology. Logging included, lithology, colour, mineralogy, texture, alteration, structure, mineralisation and RQD. All diamond drill core has been logged.

  • Solis Minerals has logged all current drill holes in detail including lithology, colour, mineralogy, texture, alteration, structure, mineralisation and RQD.

Sub-sampling techniques and sample preparation

  • If core, whether cut or sawn and whether quarter, half or all core taken.

  • If non-core, whether riffled, tube sampled, rotary split, etc and whether sampled wet or dry.

  • For all sample types, the nature, quality and appropriateness of the sample preparation technique.

  • Quality control procedures adopted for all sub-sampling stages to maximise representivity of samples.

  • Measures taken to ensure that the sampling is representative of the in-situ material collected, including for instance results for field duplicate/second-half sampling.

  • Whether sample sizes are appropriate to the grain size of the material being sampled.

  • Diamond core was cut using a core saw and sampled as either half core or quarter core.

  • Soil and rock chip samples collected by Galileo Minerals Ltd were sent to Vigalab laboratory in Copiapo, whereas samples collected by IMP Exploraciones were sent to Andes Analytical Assay Ltda in Santiago for sample preparation and analysis. There are no records for rock chip samples and soil samples collected by Sociedad Legal Minera Mostazal.

  • There is no detailed description of the sample preparation methods for the historical soil and rock chip samples.

  • Diamond drill core was sent to Andes Analytical Assay Ltda in Santiago for sample preparation and analysis.

  • There is no detailed description of sample preparation methods used for historical diamond drill core.

  • Quality control samples were inserted into each of the soil, rock chip and diamond drilling sample batches and included field duplicates, blanks and certified reference material samples. There is no record of any internal laboratory quality control sampling.

  • Solis Minerals drill core is being cut using a core saw and sampled as half core.

  • Solis Minerals samples are being sent to ALS in La Serena Chile for sample preparation including crushing (70% <2mm), riffle splitting 1kg sub sample and fine pulverisation (85%<75um).

  • Sample sizes are appropriate for the material being sampled.

Quality of assay data and laboratory tests

  • The nature, quality and appropriateness of the assaying and laboratory procedures used and whether the technique is considered partial or total.

  • For geophysical tools, spectrometers, handheld XRF instruments, etc, the parameters used in determining the analysis including instrument make and model, reading times, calibrations factors applied and their derivation, etc.

  • Nature of quality control procedures adopted (e.g. standards, blanks, duplicates, external laboratory checks) and whether acceptable levels of accuracy (i.e. lack of bias) and precision have been established.

  • There are no assay records for rock chip and soil samples for samples collected by Sociedad Legal Minera Mostazal.

  • Rock chip and soil samples collected by Galileo Minerals Ltd were assayed for copper, soluble copper, solvent copper extraction from pregnant solution, gold silver, lead, zinc, molybdenum arsenic and iron. The analytical method is not recorded.

  • Rock and soil samples collected by IMT Exploraciones were assayed for 39-elements using Inductively coupled mass spectrometry (ICP-MS).

  • Diamond core samples were assayed for a 39-element suit using Inductively coupled mass spectrometry (ICP-MS).

  • Quality control samples were inserted into each of the soil, rock and diamond drilling sample batches and included field duplicates, blanks and certified reference materials. There is no record of any internal laboratory quality control sampling.

  • ICP-MS is considered to be a total assay method.

  • 6,830 diamond core samples ranging in length from 0.04m to 20m were submitted for SG analysis using Archimedes method.

  • Solis Minerals drill core samples are being assayed for a 33-element suite via 4 acid digestion with ICP-AES finish, as well as gold by 50gm fire assay/AAS.

  • Solis Minerals routinely inserts reference standards and blanks and duplicates into the sampling system at a 1:25 frequency.

Verification of sampling and assaying

  • The verification of significant intersections by either independent or alternative company personnel.

  • The use of twinned holes.

  • Documentation of primary data, data entry procedures, data verification, data storage (physical and electronic) protocols.

  • Discuss any adjustment to assay data.

  • Reported significant intersections have been calculated as length weighted averages by Soils Minerals.

  • There have been no twin drill holes completed.

  • There have been no adjustments made to the historical assay data.

Location of data points

  • Accuracy and quality of surveys used to locate drill holes (collar and down-hole surveys), trenches, mine workings and other locations used in Mineral Resource estimation.

  • Specification of the grid system used.

  • Quality and adequacy of topographic control.

  • Drill holes have been located using a handheld GPS (model unknown).

  • Down hole surveys were conducted for each diamond drill hole on 50m intervals. There is no description of the survey tool used.

  • All data has been collected in UTM zone 19S coordinates.

  • The topography was surveyed on 1-5m contours intervals in 2012 over the entire project area by contract surveyors (method unknown).

  • Artisanal open cut and underground mining occurred throughout the project area between 1950s and 2006. Sociedad Legal Minera Ltda then conducted a small scale open cut surface and room and pillar underground mining between 2006 and 2008. The surface mining has been surveyed during the topographic survey in 2012, however the underground workings have not been surveyed.

  • Solis Minerals has located initial drill site via a hand held GPS, and will have final hole locations survey by an independent contractor.

  • Solis Minerals reports all coordinates in PSAD56 - 19S.

Data spacing and distribution

  • Data spacing for reporting of Exploration Results.

  • Whether the data spacing and distribution is sufficient to establish the degree of geological and grade continuity appropriate for the Mineral Resource and Ore Reserve estimation procedure(s) and classifications applied.

  • Whether sample compositing has been applied.

  • Geological sampling (rock and soil) has been completed on a nominal 200m x 200m grid over the entire project area.

  • Diamond drilling was previously completed over the central parts of the project area on a nominal 150m x 100m grid.

  • The sampling data is sufficient to establish the general extents and orientation of the near surface manto copper-silver style mineralisation, however the mineralisation remains open along strike and at depth.

  • Sample compositing has not been applied.

  • Solis Minerals is undertaking selected drilling at this stage, with no set drill spacing.

Orientation of data in relation to geological structure

  • Whether the orientation of sampling achieves unbiased sampling of possible structures and the extent to which this is known, considering the deposit type.

  • If the relationship between the drilling orientation and the orientation of key mineralised structures is considered to have introduced a sampling bias, this should be assessed and reported if material.

  • The historical diamond drilling was completed in three phases. The initial phase of drill holes were angled to the southwest and were fanned off drilling platforms spaced approximately 100m apart on a northwest-southeast line. The subsequent drilling programs were drilled steeply towards the east or northeast to intersect the manto structures at a perpendicular angle.

  • Solis Minerals is drilling both vertical and angel holes designed to test specific targets. Drilling is designed to intersect the planned targets at a perpendicular angle.

Sample security

  • The measures taken to ensure sample security.

  • There is no detailed record of sample chain of custody between the project site and the assay laboratories for historical programs.

  • Remnant drill core is securely stored at Sociedad Legal Minera Mostazal's property in Copiapo.

  • Solis Minerals staff and contractors manage the movement on site, including the transport of cut samples from site to the laboratory in La Serena.

Audits or reviews

  • The results of any audits or reviews of sampling techniques and data.

  • There have been no detailed audits or reviews of the historical or recent sampling techniques.

  • Solis Minerals has conducted an internal technical review of the historical Mostazal Copper Project data.

 

Section 2 Reporting of Exploration Results
(Criteria listed in the preceding section also apply to this section)

Criteria

JORC Code explanation

Commentary

Mineral tenement and land tenure status

  • Type, reference name/number, location and ownership including agreements or material issues with third parties such as joint ventures, partnerships, overriding royalties, native title interests, historical sites, wilderness or national park and environmental settings.

  • The security of the tenure held at the time of reporting along with any known impediments to obtaining a licence to operate in the area.

  • The Mostazal Copper Project is located in the commune of Diego de Almagro, in the Chañaral Province of the Third Atacama Region, Chile approximately 80km northeast of the city of Copiapo.

  • The Mostazal Copper Project consists of eight Exploitation Mining Concessions covering an area of 1,317 ha that were constituted in accordance with the Chilean mining Code 1993.

  • The eight concessions are currently 100% owned by a series of legal Mining Companies (Sociedad Legal Minera), each of which are owned by two shareholders, who are also the owners of Sociedad Legal Minera Mostazal.

Exploration done by other parties

  • Acknowledgment and appraisal of exploration by other parties.

  • Sociedad Legal Minera Mostazal completed reconnaissance sampling and mining activities at the project between 2005 and 2008.

  • Galileo Minerals conducted trench and outcrop sampling in 2008 and produced an exploration target for the M-01 mineralised lens based upon previous geological mapping and surface sampling.

  • IMT Exploraciones completed soil, trench and outcrop sampling, diamond drilling, and ground magnetic and induced polarization geophysical surveys between 2011 and 2013.

  • APGC Corp Chile Spa produced a foreign estimate for the Mostazal Copper Project in 2015 using the diamond drilling data, surface sampling and mapping.

  • Santiago Metals Limitada completed geological mapping over the project area in 2016.

Geology

  • Deposit type, geological setting and style of mineralisation.

  • The Mostazal Copper Project area consists of fine grained to porphyritic andesite lava flows and breccias of the Jurassic - lower Cretaceous age Sierra Fraga Formation, that are locally interbedded with volcaniclastic sediments. The andesites are intruded by a series of dacite porphyry dykes of Paleocene to Eocene age that typically trend northeast - southwest. The western and southeastern portions of the project area covered by late-stage Tertiary Atacama gravels with thicknesses ranging from a few metres to a few tens of metres. More recent Quaternary age sediments including sand, gravel, colluvium, and silt cover occurs throughout the project area.

  • Mineralisation identified at the Mostazal Copper Project consists of several stacked stratified and discontinuous copper-silver (Cu-Ag) mineralised lenses or 'mantos' within the andesitic volcanic rocks that strike to the north-northwest and dip to the west, subparallel to the host andesite flow banding.

Drill hole Information

  • A summary of all information material to the understanding of the exploration results including a tabulation of the following information for all Material drill holes:

    • easting and northing of the drill hole collar

    • elevation or RL (Reduced Level - elevation above sea level in metres) of the drill hole collar

    • dip and azimuth of the hole

    • hole length

  • If the exclusion of this information is justified on the basis that the information is not Material and this exclusion does not detract from the understanding of the report, the Competent Person should clearly explain why this is the case.

  • A summary of the current Mostazal drilling data/ hole locations is included in Table 1 of this document.

Data aggregation methods

  • In reporting Exploration Results, weighting averaging techniques, maximum and/or minimum grade truncations (e.g. cutting of high grades) and cut-off grades are usually Material and should be stated.

  • Where aggregate intercepts incorporate short lengths of high-grade results and longer lengths of low-grade results, the procedure used for such aggregation should be stated and some typical examples of such aggregations should be shown in detail.

  • The assumptions used for any reporting of metal equivalent values should be clearly stated.

  • Intersection have been calculated as length weighted averages.

  • Selected intersections are reported above a nominal intersection grade cutoff of >0.5% Cu, with a maximum of 3m of internal dilution.

  • No metal equivalent values have been used.

Relationship between mineralisation widths and intercept lengths

  • These relationships are particularly important in the reporting of Exploration Results.

  • If the geometry of the mineralisation with respect to the drill hole angle is known, its nature should be reported.

  • If it is not known and only the down hole lengths are reported, there should be a clear statement to this effect (e.g. 'down hole length, true width not known').

  • Calculated intersections are reported as down-hole widths. There is insufficient data at this to enable to calculation of true width intersections.

Diagrams

  • Appropriate maps and sections (with scales) and tabulations of intercepts should be included for any significant discovery being reported These should include, but not be limited to a plan view of drill hole collar locations and appropriate sectional views.

  • The Company has included various maps and figures showing the sample results and geological context.

Balanced reporting

  • Where comprehensive reporting of all Exploration Results is not practicable, representative reporting of both low and high grades and/or widths should be practiced avoiding misleading reporting of Exploration Results.

  • Significant copper intersections have been reported for holes MODD001, MODD002, MODD003 and MODD004, with a minimum intersection selection criteria of >0.1% Cu over 1 meter, and a maximum internal dilution of 3 meters.

Other substantive exploration data

  • Other exploration data, if meaningful and material, should be reported including (but not limited to): geological observations; geophysical survey results; geochemical survey results; bulk samples - size and method of treatment; metallurgical test results; bulk density, groundwater, geotechnical and rock characteristics; potential deleterious or contaminating substances.

  • IMT Exploraciones completed ground magnetic and Induced polarization surveys over the project area.

Further work

  • The nature and scale of planned further work (e.g. tests for lateral extensions or depth extensions or large-scale step-out drilling).

  • Diagrams clearly highlighting the areas of possible extensions, including the main geological interpretations and future drilling areas, provided this information is not commercially sensitive.

  • No further work by the Company is proposed for the Mostazal Project.

 

APPENDIX 3
Peruvian Project JORC Tables

JORC Code, 2012 Edition - Table 1
Section 1 Sampling Techniques and Data
(Criteria in this section apply to all succeeding sections)

Criteria

JORC Code explanation

Commentary

Sampling techniques

  • Nature and quality of sampling (e.g. cut channels, random chips, or specific specialised industry standard measurement tools appropriate to the minerals under investigation, such as downhole gamma sondes, or handheld XRF instruments, etc.). These examples should not be taken as limiting the broad meaning of sampling.

  • Include reference to measures taken to ensure sample representivity and the appropriate calibration of any measurement tools or systems used.

  • Aspects of the determination of mineralisation that are Material to the Public Report.

  • In cases where 'industry standard' work has been done; this would be relatively simple (e.g. 'reverse circulation drilling was used to obtain 1 m samples from which 3 kg was pulverised to produce a 30 g charge for fire assay'). In other cases, more explanation may be required, such as where there is coarse gold that has inherent sampling problems. Unusual commodities or mineralisation types (e.g. submarine nodules) may warrant disclosure of detailed information.

  • Sampling across the project has included rock chip sampling from trenches, and rock outcrops, and reverse circulation (RC) and diamond drilling.

  • There is no detailed record of how outcrop or trench chip sampling was completed or the size of the samples.

  • Reverse circulation drilling was completed by Peruvian Latin Resources at Ilo Norte (8 holes for 2,690 m completed in 2011) and Rio Tinto at Ilo Este (12 holes for 2,128 m completed in 2000).

  • Apart from collar locations there are no other records available for the Rio Tinto drilling.

  • The RC holes completed by Peruvian Latin Resources had 1,345 samples collected over 2 m intervals.

  • Diamond drilling was completed by Peruvian Latin Resources at Ilo Este (3 holes for 2,073 m completed in 2014-15) and Compania Minera Zahena SAC at both Ilo Norte (16 holes for 12,658 m completed in 2014) and Ilo Este (9 holes for 5,322 m completed in 2015-16).

  • Diamond core was sampled nominally on 2 m (Peruvian Latin Resources) or 3 m (Compania Minera Zahena SAC) intervals.

Drilling techniques

  • Drill type (e.g. core, reverse circulation, open- hole hammer, rotary air blast, auger, Bangka, sonic, etc.) and details (e.g. core diameter, triple or standard tube, depth of diamond tails, face-sampling bit or other type, whether core is oriented and if so, by what method, etc.).

  • Reverse circulation samples were collected from a rig-mounted cyclone in large plastic bags before being split down to a 4-5 kg sample using a 2-tier riffle splitter and then placed into calico bags for despatch to the lab. There is no record of the bit type used for either of the RC drilling programs but the hole completed by Peruvian Latin Resources used 5½ inch bit.

  • Diamond drill holes completed by Peruvian Latin Resources at Ilo Este were initially drilled as PQ size (85 mm core diameter) to depths varying between 87-109 m and were then drilled at HQ size (63.5 mm core diameter) until the end of hole. All the holes were completed using a standard tube.

  • Diamond drill holes completed by Compania Minera Zahena SAC at Ilo Este were drilled as HQ size (63.5 mm core diameter) until the end of hole. All the holes were completed using a standard tube.

  • Diamond drill holes completed by Compania Minera Zahena SAC at Ilo Norte were drilled using a combination of HQ size (63.5 mm core diameter), NQ (core diameter 47.6 mm) and in one drill hole BQ (core diameter 36.5 mm) for the last 88 m. All the holes were completed using a standard tube.

Drill sample recovery

  • Method of recording and assessing core and chip sample recoveries and results assessed.

  • Measures taken to maximise sample recovery and ensure representative nature of the samples.

  • Whether a relationship exists between sample recovery and grade and whether sample bias may have occurred due to preferential loss/gain of fine/coarse material.

  • RC sample recovery was assessed visually and from sample weights recorded at the laboratory.

  • Core barrel length and core length measurements were made so that core recoveries could be estimated. Recoveries were good and no significant core loss was experienced.

Logging

  • Whether core and chip samples have been geologically and geotechnically logged to a level of detail to support appropriate Mineral Resource estimation, mining studies and metallurgical studies.

  • Whether logging is qualitative or quantitative in nature. Core (or costean, channel, etc.) photography.

  • The total length and percentage of the relevant intersections logged.

  • The RC drill holes completed by Peruvian Latin Resources were qualitatively logged for lithology, alteration, and mineralisation.

  • All of the diamond drill core was qualitatively logged for lithology, alteration and mineralisation which has been inspected qualitatively. No geotechnical logging was performed. Photographs were taken of all the core in sample boxes.

Sub-sampling techniques and sample preparation

  • If core, whether cut or sawn and whether quarter, half or all core taken.

  • If non-core, whether riffled, tube sampled, rotary split, etc. and whether sampled wet or dry.

  • For all sample types, the nature, quality and appropriateness of the sample preparation technique.

  • Quality control procedures adopted for all sub-sampling stages to maximise representivity of samples.

  • Measures taken to ensure that the sampling is representative of the in situ material collected, including for instance results for field duplicate/second-half sampling.

  • Whether sample sizes are appropriate to the grain size of the material being sampled.

  • Reverse circulation samples were collected from a rig-mounted cyclone in large plastic bags before being split down to a 4-5 kg sample using a 2-tier riffle splitter. The splitter was cleaned with compressed air between each sample. All the samples were recorded as dry.

  • Diamond core was sampled by company technicians under supervision of company geologists using a diamond saw to cut along the axis of the core taking care to representively split any visible mineralisation. Half core samples over two or three-metre intervals were bagged for dispatch to SGS laboratories in Peru. (SGS del Peru S.A.C laboratory in Arequipa for sample preparation and then to the SGS laboratory in Lima for analysis).

  • Laboratory sample preparation consisted of weighing the samples upon receipt, crushing the samples so 70% <2 mm, splitting off approximately 1,000 g of sample and then pulverising the coarse split to 85% passing 75μ.

  • Laboratory sample preparation for diamond drill samples consisted of jaw crushing the samples to a 1/4 inch and then riffle split to obtain 200-250 g for pulverising.

  • Blanks and field duplicates were inserted at a rate of approximately 1 in 40 to 1 in 50 samples each and certified reference standards were inserted approximately 1 in 20. Laboratory duplicates were also undertaken approximately 1 in 40 samples.

Drill sample recovery

  • Method of recording and assessing core and chip sample recoveries and results assessed.

  • Measures taken to maximise sample recovery and ensure representative nature of the samples.

  • Whether a relationship exists between sample recovery and grade and whether sample bias may have occurred due to preferential loss/gain of fine/coarse material.

  • RC sample recovery was assessed visually and from sample weights recorded at the laboratory.

  • Core barrel length and core length measurements were made so that core recoveries could be estimated. Recoveries were good and no significant core loss was experienced.

Logging

  • Whether core and chip samples have been geologically and geotechnically logged to a level of detail to support appropriate Mineral Resource estimation, mining studies and metallurgical studies.

  • Whether logging is qualitative or quantitative in nature. Core (or costean, channel, etc.) photography.

  • The total length and percentage of the relevant intersections logged.

  • The RC drill holes completed by Peruvian Latin Resources were qualitatively logged for lithology, alteration, and mineralisation.

  • All of the diamond drill core was qualitatively logged for lithology, alteration and mineralisation which has been inspected qualitatively. No geotechnical logging was performed. Photographs were taken of all the core in sample boxes.

Sub-sampling techniques and sample preparation

  • If core, whether cut or sawn and whether quarter, half or all core taken.

  • If non-core, whether riffled, tube sampled, rotary split, etc. and whether sampled wet or dry.

  • For all sample types, the nature, quality and appropriateness of the sample preparation technique.

  • Quality control procedures adopted for all sub-sampling stages to maximise representivity of samples.

  • Measures taken to ensure that the sampling is representative of the in situ material collected, including for instance results for field duplicate/second-half sampling.

  • Whether sample sizes are appropriate to the grain size of the material being sampled.

  • Reverse circulation samples were collected from a rig-mounted cyclone in large plastic bags before being split down to a 4-5 kg sample using a 2-tier riffle splitter. The splitter was cleaned with compressed air between each sample. All the samples were recorded as dry.

  • Diamond core was sampled by company technicians under supervision of company geologists using a diamond saw to cut along the axis of the core taking care to representively split any visible mineralisation. Half core samples over two or three-metre intervals were bagged for dispatch to SGS laboratories in Peru. (SGS del Peru S.A.C laboratory in Arequipa for sample preparation and then to the SGS laboratory in Lima for analysis).

  • Laboratory sample preparation consisted of weighing the samples upon receipt, crushing the samples so 70% <2 mm, splitting off approximately 1,000 g of sample and then pulverising the coarse split to 85% passing 75μ.

  • Laboratory sample preparation for diamond drill samples consisted of jaw crushing the samples to a 1/4 inch and then riffle split to obtain 200-250 g for pulverising.

  • Blanks and field duplicates were inserted at a rate of approximately 1 in 40 to 1 in 50 samples each and certified reference standards were inserted approximately 1 in 20. Laboratory duplicates were also undertaken approximately 1 in 40 samples.

 

Section 2 Reporting of Exploration Results
(Criteria listed in the preceding section also apply to this section)

Criteria

JORC Code explanation

Commentary


Mineral tenement and land tenure status

  • Type, reference name/number, location and ownership including agreements or material issues with third parties such as joint ventures, partnerships, overriding royalties, native title interests, historical sites, wilderness or national park and environmental settings.

  • The security of the tenure held at the time of reporting along with any known impediments to obtaining a licence to operate in the area.

  • The Ilo Norte and Ilo Este Copper Projects are located approximately 22 km north-northeast and 20 km northeast respectively from the Pacific coastal town of Ilo, in the Ilo Province, Department of Moquegua of Sothern Peru.

  • The Ilo Norte Project area consists of eight Mining Concessions covering a total area of 7,700 ha and the Ilo Este Project area consists of four Mining Concessions covering a total area of 3,200 ha. The twelve Mining Concessions are 100% owned by Westminster Peru S.A.C, a subsidiary pf Solis Minerals Ltd.

  • The Company has applied for eight new mining concessions located approximately 75km north-east from the Pacific coastal town of Ilo, in the Ilo Province, Department of Moquegua of Sothern Peru.

Exploration done by other parties

  • Acknowledgment and appraisal of exploration by other parties.

Ilo Norte

  • Southern Peru Copper Company carried out mapping and sampling of the broad Ilo area in 2000.

  • Teck Resources Ltd flew airborne magnetic and radiometric surveys and completed stream and rock chip sampling surveys (11,395 samples) over the broad Ilo area in 2003.

  • Peruvian Latin Resources completed a ground magnetic survey over llo Norte in 2009, a ground gravimetric survey over llo Norte in 2010, geological mapping and rock chip sampling in 2011 to 2012, RC drilling in 2011 and completed an Induced Polarisation survey in 2012/2013,

  • Compania Minera Zahena S.A.C. completed 16 diamond drill holes in 2014.

Ilo Este

  • Rio Tinto completed preliminary reconnaissance work including mapping and trench sampling over the project in 1999 followed by 12 RC holes in 2000.

  • Peruvian Latin Resources completed several phases of geological mapping and soil and rock chip sampling between 2009 and 2013, then a ground magnetic survey and three diamond drill holes in 2014/2015.

  • Compania Minera Zahena S.A.C. completed 9 diamond drill holes in 2015/2016.

Geology

  • Deposit type, geological setting and style of mineralisation.

  • The geology of the llo Norte project area consists of andesitic pyroclastics, andesitic volcanics belonging to the Chocolate Formation and younger Quaternary cover sediments. The mineralisation is interpreted to be an iron oxide copper gold (IOCG) type deposit that is contained within highly altered andesitic volcaniclastics. Contact metamorphism and metasomatism have produced at least five phases of widespread development of mostly lentiform economic mineral assemblages including copper, gold, silver, zinc and minor cobalt.

  • The geology of the llo Este project consists of porphyritic andesites, porphyritic micro-diorite sills, andesitic tuff and sandstones of the Chocolate Formation that outcrop on the northern and southern flanks of two major belts of felsic igneous intrusions of the Cretaceous age. The mineralisation at llo Este is interpreted to be a Cu-Au porphyry system.

Drill hole Information

  • A summary of all information material to the understanding of the exploration results including a tabulation of the following information for all Material drill holes:

  • easting and northing of the drill hole collar

    • elevation or RL (Reduced Level - elevation above sea level in metres) of the drill hole collar

    • dip and azimuth of the hole

    • downhole length and interception depth

    • hole length.

  • If the exclusion of this information is justified on the basis that the information is not Material and this exclusion does not detract from the understanding of the report, the Competent Person should clearly explain why this is the case.

  • Not applicable

Data aggregation methods

  • In reporting Exploration Results, weighting averaging techniques, maximum and/or minimum grade truncations (e.g. cutting of high grades) and cut-off grades are usually Material and should be stated.

  • Where aggregate intercepts incorporate short lengths of high grade results and longer lengths of low grade results, the procedure used for such aggregation should be stated and some typical examples of such aggregations should be shown in detail.

  • The assumptions used for any reporting of metal equivalent values should be clearly stated.

  • No cut-offs have been applied when reporting of mineralised intersections.

  • The average copper, gold and silver grades reported for each mineralised intersection include both mineralised and non-mineralised samples.

  • No metal equivalents have been used.

Relationship between mineralisation widths and intercept lengths

  • These relationships are particularly important in the reporting of Exploration Results.

  • If the geometry of the mineralisation with respect to the drill hole angle is known, its nature should be reported.

  • If it is not known and only the downhole lengths are reported, there should be a clear statement to this effect (e.g. 'down hole length, true width not known').

  • The mineralised intervals were intersected by inclined drill holes. The true orientation of the mineralised zones is not yet known therefore the mineralised intersections reported may possibly be longer that the true width of the mineralisation.

Diagrams

  • Appropriate maps and sections (with scales) and tabulations of intercepts should be included for any significant discovery being reported These should include, but not be.

  • limited to a plan view of drill hole collar locations and appropriate sectional views.

  • Appropriate maps and sections are included in the body of this report.

Balanced reporting

  • Where comprehensive reporting of all Exploration Results is not practicable, representative reporting of both low and high grades and/or widths should be practiced to

  • avoid misleading reporting of Exploration Results.

  • The reporting of the mineralised intersections is consistent between each of the drill holes and drilling programs and is considered balanced.

Other substantive exploration data

  • Other exploration data, if meaningful and material, should be reported including (but not limited to): geological observations; geophysical survey results; geochemical survey results; bulk samples - size and method of treatment; metallurgical test results; bulk density, groundwater, geotechnical and rock characteristics; potential deleterious or contaminating substances.

  • The mineralised intersections are reported in context with supporting geological, geochemical and geophysical data at each deposit.

Further work

  • The nature and scale of planned further work (e.g. tests for lateral extensions or depth extensions or large-scale step-out drilling).

  • Diagrams clearly highlighting the areas of possible extensions, including the main geological interpretations and future drilling.

  • areas, provided this information is not commercially sensitive.

  • Solis plans to undertake remote sensing surveys and field reconnaissance work, followed by drill target identification on its Peruvian Copper Projects including the Ilo Norte and Este Projects as well as the Company's new tenement application areas.

  • The Company will collate and compile any historic data available over the new application area.

 

[1] Refer to ASX Announcement dated 19 January 2022

[2] WorldView-3 is an imaging and environment monitoring commercial satellite

[3] Refer to ASX Announcement dated 19 January 2022

To view the source version of this press release, please visit https://www.newsfilecorp.com/release/129621