Los Andes Project

Los Andes Project, Nicaragua

PROJECT SUMMARY VIDEO:

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Caza Gold has signed a letter agreement with Inversiones Ecologica S.A. for an option to purchase a 100% interest in the Los Andes Gold Property in Nicaragua. The property covers approximately 6,575 hectares and is strategically located within the Central Nicaragua Gold Belt between the El Limon and La Libertad Mines of B2 Gold.

The Los Andes high sulfidation gold system is exposed on surface as an extensive alteration zone of hydrothermal vuggy quartz, pervasive silification, and alunite associated with highly anomalous gold, silver, and trace elements.  The alteration zone covers a 45 square kilometer area and measures 12 kilometers long by up to 6 kilometers wide.  It is similar in size, nature, intensity, and trace element geochemistry to world class gold deposits such as Yanacocha and Pierina in Peru (see comparable maps below). 

High sulfidation gold systems are known as "the giant gold systems" and these types of deposits host the largest gold deposits in the world, such as the multi-million ounce Yanacocha, Pascua Lama, Pueblo Viejo, and Pierina Mines.  The alteration zones in these types of systems contain highly anomalous levels of gold, silver, arsenic, copper, antimony, bismuth, selenium, barium, and mercury, all of which are highly anomalous at the Los Andes project and are present throughout the 45 square kilometer alunite-silica alteration zone. 

Size comparison of silica-alunite alteration zones at Pierina, Yanacocha, and Los Andes.

Note the association of open pit outlines with quartz-alunite alteration zones.

Surface samples grading up to 2.5 grams per tonne gold within alunite-altered and silicified volcanic breccias, were collected by Caza during recent due diligence sampling.  The property was previously held years ago by First Point Minerals, who conducted extensive surface rock sampling. 

Detailed mapping and sampling of known highly anomalous gold mineralized zones will commence shortly and take about 6 months in order to identify high priority gold targets for drilling.  A more general reconnaissance mapping and sampling program in 2011 will attempt to outline the overall extent of the epithermal gold and silver mineralization.

The agreement grants Caza an option to acquire a 100% interest in the Los Andes Property by spending US$2.97 million on exploration, making US$1.2 million in cash payments (US$45,000 paid on signing) and issuing 1.5 million common shares, over a 4 year period, subject to a 2% NSR production royalty, and regulatory and exchange approvals.  A formal purchase opton agreement will be completed within 90 days.

Los Andes Geology

The geology of the Los Andes area consists of Miocene and Pliocene andesitic volcanics probably related to four calderas formed along a northeast trending belt.  Northeast and WNW trending structural zones, with wide zones of silicification and argillic alteration.  The Los Andes alteration zone measures about 12 kilometers long and 6 kilometers wide and is characterized by a field of felsic domes.  Strong silicification, argillic alteration, alunite, iron oxide-rich hydrothermal breccias, and vuggy silica spatially related to the domes.  The scale, geology and type of alteration are typical of a high sulfidation type gold system similar to several world class gold deposits such as Yanacocha, Peru.

The volcanic sequence consists of andesite to dacite flows and volcanoclastic units with possible rhyolitic flows, volcanoclastic units, and tuffs.  Volcanic domes form a NE trend at least 10 km long in the Los Andes claim.  Six strongly altered volcanic domes are located in the claim and are spatially related to the alteration and hydrothermal breccia zones.  Argillic alteration with moderate to pervasive silicification covers more than 45 square kilometers with approximately 12 km of alteration strike length along the main NE structural zone and the WNW cross-faults control alteration up to 6 km wide.  At least 1 large NE trending structure with strong alteration, parallel to the main structure hosts strong alteration.  The primary NE and secondary WNW trending structures contain zones of quartz, vuggy silica, alunite, natroalunite, jarosite/goethite/hematite and clay (kaolinite, illite, and dickite) alteration.  Many of the ridgetops on the southwest end of the alteration zone are capped by quartz-alunite alteration.  Pervasive alunite-quartz altered rocks and hydrothermal breccias are well developed.  The southwest end of the property has a variety of hydrothermal breccia pipes or brecciated structure zones contain altered volcanic fragments cemented by alunite-quartz, quartz-hematite, and hematite-alunite-quartz.  Specular hematite locally occurs as disseminations, veins, or stockworks cutting pervasively altered quartz-alunite.  Many breccia or fragmental volcanic clasts are argillized and/or silicified in a silicified matrix or groundmass.

Surface Geochemical values for Los Andes and comparison with
Pueblo Viejo, Dominican Republic drilling results.

High Sulfidation Gold Deposits

High sulfidation gold systems are important sources of precious metals throughout the world and are some of the largest gold producers.  The geologic setting, geochemical signature, and alteration patterns are well documented.  The extremely large alteration zones versus the much smaller footprint of the economic mineralization are a challenge during exploration presenting the classic "needle in a haystack".  A well thought out and systematic exploration plan is required.  Many of the world class deposits have been well studied and the understanding of alteration and geochemical patterns will add greatly to exploration efforts at Los Andes.

High Sulfidation Gold Systems:

View of Cerro Quisaltepec with series of silicified knobs along structure zone to NE (left). This view is approximately 7 km from left to right edge.

Closer view of Cerro Quisaltepec and silicifed knobs. I am standing on the silicified breccia zone with possible alunite and strong specular hematite in the clasts and matrix. The gold values at this outcrop the highest on the property to date.

Closer View of Cerro Quisaltepec. The silicified dome is at least 500 meters higher that the elevation where I am standing to take this picture.

Example of silicifed volcanic fragmental or breccia with hematite and specular hematite..

Breccia outcrop with larger silicifed and argillized volcanic clasts and specular hematite in the clasts and matrix.

Cerro Corral area. The view is about 1 km wide and the peak is about 250 meters above where I am standing. All the rocks in this area are strongly silicified and argillized.

Silicified and iron stained boulder in Cerro Corral area.

Silicifed and iron stained fragmental volcanic rock is Cerro Corral area. Matrix contains specular hematite.

El Pedregal area showing main silicifed knob and smaller silicified zones trending off to the NE (left). View is approximately 3 km long.

Closeup view of main silicified knob in El Pedregal area. Several strong ireon-stained zones were observed between light colored silicified knobs and ridges. Pyrite is reported in some of the silicified outcrops.

Brecciated volcanic rock with strong silicification and hematite.

Volcanic Breccia with specular hematite in matrix. Strong silicification and moderate argillic alteration.