The Lucero property is located in the Chila Range of southern Peru, approximately 130 km northeast of the city of Arequipa and 22 km southeast of Buenaventura’s Orcopampa mine. A private Peruvian company, Compañia Minera Casapalca S.A., leased the property from Condor Resources Inc. in late 2015 and are working towards the completion of a long term exploration and exploitation agreement with the local community.
The Lucero property covers the Shila Mining Camp which contains several historic high grade gold-silver mines that were operated by Buenaventura from the late 1980s to 2005. The extracted ore was processed at a small plant east of the concessions and during the last five years of operations, reported production averaged approximately 20,000 ounces of gold and 470,000 ounces of silver per year at grades of 15.0 g/t gold and 450.0 g/t silver. Recoveries averaged 94% for gold and 85% for silver. Historical mining exploited low sulphidation vein deposits and the property also contains large epithermal alteration zones and gossans.
Prospecting by Condor identified a highsulphidation epithermal alteration zone with structures that returned peak sample values of 33.4 g/t gold and 3,500 g/t silver. This alteration zone, measuring approximately 1,300 metres by 1,400 metres, exhibits no evidence of prior sampling or drilling and is believed to host potential for a bulk tonnage disseminated gold-silver deposit.
Condor reported results from a sampling program conducted in 2016. The sampling locations were dispersed over the concessions and tested six different target areas. From the sixty samples, reported gold values ranged up to 144 g/t gold with 21 of the samples reporting gold values greater than 1.0 g/t gold. Silver values ranged from 0.1 g/t to greater than 10,000 g/t with 23 of the samples reporting silver values greater than 50 g/t.