The Don Adamo project

Ciclón Este

Our flagship target: a silver-rich epithermal vein system with positive exploration results and strong potential to define resources.

Geology

A vein and veinlet system across 2.5 × 5 km

Ciclón Este is a vein and veinlet system with a main northwest-trending structure 1,200 m long, with surface values up to 2,100 g/t Ag. Four north-northeast veins and veinlets branch from it over a further 1,400 m, with surface values up to 4,249 g/t Ag.

The veins are hosted in a porphyritic rhyolite dome with quartz-sericite alteration. Quartz veinlets are irregular and discontinuous, grading into silicification, and show massive chalcedonic quartz and carbonate replacement textures.

Immediately south of the main structure, the system is covered by a sequence of ignimbrites about 40 m thick.

Map of Ciclón Este showing silver values in surface samples, from under 10 ppm to over 240 ppm, aligned along the vein trends, with drill hole traces
Silver in surface samples (Ag ppm, equivalent to g/t) and drill hole traces at Ciclón Este. The high-grade samples line up along the northwest and north-northeast vein trends.
1,200Surface channel and chip samples
85Samples above 200 g/t Ag
4,249 g/tMaximum silver value at surface
2,091 mHQ diamond drilling in 13 holes, to 220 m depth
200+Drill intervals above 100 g/t Ag

Best drill resultDCE-22-02: 2.9 m @ 620 g/t Ag, including 1 m @ 1.6 g/t Au, from 63.5 m downhole, about 50 m below surface

Interpretation

The distal, partly exposed part of a larger system

We interpret Ciclón Este as the distal part of a low-sulphidation epithermal system that is only partly exposed. Our exploration is designed to test this hypothesis by drilling at depth and beneath the cover.

DCE-22-02 2.9 m @ 620 g/t Ag incl. 1 m @ 1.6 g/t Au Ignimbrite cover Aquitard Cover remnant Rhyolite dome Rhyolite dome Veins concealed below the cover Vein Alteration Mineralization DepthFreshIllite–smectiteIllite Veinlets Breccia Vein Ore shoot target
Schematic cross-section of Ciclón Este, not to scale. The veinlets and illite–smectite alteration exposed at surface are typical of the upper, distal levels of an epithermal system; ore shoots are expected at depth and beneath the ignimbrite cover.

A fertile silver system

Surface and drill geochemistry confirm a silver-rich system with associated gold.

We are at the edge of the system

Vein textures and alteration minerals in the host rock suggest a distal position within the hydrothermal system. Its limits are not yet known.

Much of it is hidden

Epithermal systems in the Deseado Massif typically have footprints of 10 to 20 km per side. A large part of the Ciclón system is likely covered by the ignimbrite to the south.

Potential for an economic deposit

High silver and anomalous gold values at surface and in drilling support the potential for an economic deposit.

Exploration program

Two phases to test the potential of Ciclón

Drill targets will be generated from the 3D geological model and drone magnetics. The first goal is to find the level of the system where mineralization is concentrated.

Phase 1: discovery

4,000 m

A drill program aimed at one or more discovery intercepts, defined as intervals grading 400 g/t Ag or more per metre, or 5 g/t gold equivalent.

Phase 2: definition

4,000 m

A second program to confirm the continuity of mineralized intervals, stepping out with holes spaced 50 to 100 m horizontally and 50 m vertically.

Field work ahead of drilling

Geological mapping

Map the rock units, structures and block boundaries, and identify the units that host the mineralized veins.

Vein mapping and core re-logging

Map vein textures, widths, geometry and alteration at a detailed scale, and re-log historical Ciclón Este core to the same standard.

Portable XRF and ASD sampling

Selective re-sampling of surface and core, with portable XRF for multi-element geochemistry and ASD TerraSpec for alteration clays.

3D geological model

Integrate lithology, alteration and geochemistry to find vectors toward the core of the system.

Drone magnetic survey

Define the magnetic signature of the Ciclón veins, where alteration destroys magnetite, and trace it south beneath the ignimbrite cover.

Finding the mineralized level

In the district, mineralization tends to concentrate within a specific elevation range. At Lejano it sits between 750 and 850 m above sea level, open at depth; at the Mariana vein in Cerro Negro, between 300 and 600 m.

Following up DCE-22-02

One hole will test the vein below the best historical intercept, which sits at 980 m above sea level, at about 930 m, with a possible second hole at 870 m.

Gallery

From the field