Summary:
(Translated from Spanish by Google Translate)
Chungar encompasses the Islay and Animon mines and the Esperanza deposit. Animon’s hydrothermal polymetallic mineralisation is hosted in structurally controlled veins, rich in zinc, lead and some silver. Islay’s mineralisation is silver-rich with subordinated lead and zinc and hosted in breccia-type fissure fill. Esperanza’s cordilleran polymetallic mineralisation is located approximately 600 m below mining operations and consists of Zn and Cu-rich replacement mantles, hosted in Cretaceous limestones.
The mineralization in Islay comprises a breccia-type fissure fill, mainly with silver mineralization, with subordinated lead and zinc, Animon is a hydrothermal polymetallic deposit consisting of mineralized structures probably related to Miocene aged monzonite dykes principally within, but not confined to the Huaron anticline.
Animon Mine is hydrothermal polymetallic deposit (hosting silver, lead, zinc, and copper) consisting of mineralized structures probably related to Miocene aged monzonite dykes principally within. Mineralization is encountered in veins parallel to the main fault systems, in replacement bodies associated with the calcareous sections of the conglomerates and other favourable stratigraphic horizons, and as dissemination in the monzonitic intrusions at vein intersections.
Mineralization occurs mainly in veins but also in “mantos” (stratiform deposits) and replacement deposits. Mineralized veins vary from a few centimetres to up to 10 metres wide, and may extend along strike for up to 1,800 metres. Most of the structures show open mineralization at depth and have excellent exploration potential.
The first pulse of mineralization was associated with the emplacement of intrusive bodies and the subsequent opening of structures, during which zinc, iron, tin, and tungsten minerals were deposited. This was followed by a copper, lead, and silver rich stage, and finally by an antimony/silver phase associated with quartz.
The average width of the Islay vein is around 4.00 metres, it outcrops at surface and was exploited in small open pits.
The mining exploration program conducted in 2024 focused on ensuring mining plans and increasing geological certainty in the pits of the production programs. This allowed for the extension and recategorization of mineral resources in structures with high economic value in both the lateral extensions and the depth continuity of the main veins, such as the Andalucía vein, Ofelia vein, María Rosa Oeste vein, and the Main vein. In the upper section of the operation, in the Janeth System, the continuity of the production programs and the extension of the mine life were secured.
Additionally, an increase in polymetallic mineralization was observed at depth in the main structures of Animón, in inferred resources and potential mineral, at the contact between the Red Layers of the Casapalca Formation and the favorable level in the limestones of the Jumasha Formation below elevation 3800. Among these structures are the 3 vein, South NN Body, Keren Body, South Body, and North Body, which contain significant amounts of zinc, lead, and silver.
Esperanza (Animón)
Esperanza is a massive polymetallic replacement body located 600 meters below the Animón operation. As of 2023, inferred resources at Esperanza were estimated to be 32 Mt with grades of 6.4% Zn, 0.7% Cu, 0.6 oz/t Ag, and a potential of more than 18 Mt with grades of 7.1% Zn, 0.3% Cu, and 0.5 oz/t Ag, with mineralization still open to the east and west of the body. This constitutes a large mineralized body of approximately 50 million tons.
Resurgidora (Animón)
Resurgidora, located immediately below Esperanza, was estimated to contain 44 Mt of potential mineral with significant copper and silver grades, showing geological characteristics similar to other high-potential mines. Additionally, the Resurgidora body shows significant molybdenum, tin, and tungsten values, likely related to a porphyry-style mineralization environment. Similarly, the target defined as Techo Esperanza was estimated to contain 3 Mt of potential mineral.
In 2024, with the update of the geological model for the Resurgidora Body, considering a mineralization footprint of 2.0 by 1.0 km, an initial potential was estimated through diamond drilling (200 x 200 m grid) of 28 Mt with grades of 0.94% Cu, 1.93% Zn, and 1.10 oz/t Ag (1.54% Cu eq at a 1% Cu cut-off).