Apoquindo Minerals
Projects




Chile


The Antakena Project

The Antakena Project is comprised of three leachable copper oxide deposits, Elenita, Madrugador, and Soquimich, which are located in the most prolific copper district in the world.

Teamed by a Joint Venture Agreement with Minera SA, the team known as Antakena Mining is completing a pre-feasibility study and further exploration drilling to increase the current NI 43-101 compliant resource. The company plans to pursue further consolidation of the Antakena Project area, as it continues to identify highly prospective copper prospects in Chile.

Key Highlights
Map of Chile
click to enlarge

The Antakena Project features the following:
  • 18,818 hectares in the Antofagasta Mining Belt of Northern Chile
  • Nearby mines include:
    • Anglo American's Mantos Blancos Mine, which produced 91,700 tons of fine copper in 20061
    • Antofagasta Minerals Michilla Mine
  • NI 43-101 Compliant Resource. Combined mineral inventory at Elenita & Madrugador (with 0.2% CuT cutoff):
    • Measured and Indicated: 31.93 Mt of 0.8% CuT
    • Inferred: 6.21 Mt of 0.7% CuT
  • Deposits remains open in several directions and in depth, with high probabilities of increasing resources
  • As of October 29, 2009 22,804m of drilling completed
  • Excellent infrastructure in region: rail, paved roads, power, water pipelines, & ports
  • Management and directors have extensive experience working with and world's largest mining companies as well as several junior companies.
Work Program

The Antakena Mining Team approved a CDN $8 million work program and budget for 2009, with plans for the following:

Pre Feasibility Study in 2010

The contractors selected for the Pre-Feasibility Study are:
Project Managers: MTB Project Management
Metallurgy: CIMM (Feasibility Level Testing to be completed 4Q2009)
Structural Geology: Warren Pratt
Surface Mine Slope and Geotechnical Engineering: Golder Associates
Mine Design Engineer: Mine Development Associates
Environmental Studies: Mineria & MedioAmbiente
Geological Model: Geovectra
Process and Infrastructure Engineer: Samuel Engineering
Easements and Permitting: Lopez & Ashton
Condemnation, Infill and Geotechnical Drilling: Antakena Mining
Exploration Program
  • 40,000m of RC Drilling to test the mineral extensions of the Elenita and Madrugador deposits (20,000m each)
  • Surface mapping
  • MMI (Mobile Metal Ion) in the newly optioned Soquimich properties that surrounds Elenita and Madrugador
  • Mapping (1:10,000 in the whole areas and 1:2,000 in detailed areas) and sampling on Soquimich to define mineralized targets.
Half of Soquimich is covered by colluvium and some of the main mineralized features running between Madrugador and Elenita are under this overburden. Where the MMI and geologic mapping give positive results, drilling targets will be defined and a second phase of an exploration program including RC drilling, detailed mapping, trenching and geophysics will be evaluated.

Currently, the company is drilling at the Elenita Property with two core rigs and two RC rigs. As of October 29, 2009, 22,804m of drilling have been completed which includes drilling for metallurgical samples, condemnation, geotechnical, geology, infill and exploration.

The main focus of Minera's work program to date has been at the Elenita copper deposit, which is hosted by volcanic and sedimentary rocks of La Negra Formation. Copper occurs in mantos, veins, hydrothermal breccias, veinlets and disseminated bodies, hosted principally in volcanic and sedimentary rocks and in intrusive rocks in a smaller proportion. At Elenita and as reported by AQM in the March 17, 2009 press release, the current NI 43-101 report indicates there are 19.7M tons at 0.87 TCu of Measured and Indicated resources at 0.2 cutoff and 4.8M tons at 0.73 TCu of Inferred resources. The deposit remains open in several directions and at depth and the exploration drilling program is designed to test these areas.

Surface geology and rock sampling has been completed by Geovectra S.A., including a 1:10,000 scale geologic map, of a 154 sq km total area centered in the Elenita deposit; geologic mapping continues now in the Madrugador deposit area. Thus far, the work has indicated an increased understanding of the mineralization and identifies prospective exploration areas that are within the properties controlled by the Antakena Joint Venture. An MMI Geochemical sampling in a 200x200 grid on the same ground is underway and will be matched to the information of the surface geology to identify future exploration targets. Once defined, detailed geologic mapping, rock sampling, trenching and drilling will proceed as a second stage of exploration. Metallurgical testing has begun with results expected in the first quarter of 2010.

For a detailed description of Antakena's neighboring deposits, please follow the appropriate links:

Elenita Madrugador Soquimich
Location, Infrastructure, & History Location, Infrastructure, & History Location, Infrastructure, & History
Resource Estimate Resource Estimate Option Terms
Option Terms Option Terms  

Elenita

Location, Infrastructure, & History

Elenita is located 110 km NE of Antofagasta and can be accessed by vehicle within 1.5 hours. The area's infrastructure and logistics are excellent, as electricity is very close, roads are well kept, and water can be supplied from the nearby Calama-Antofagasta pipeline or other options that exist in the project area.

The Elenita Project is 1,000 hectares in size with the historic resource contained within one claim (Elenita II/20) totaling 96 hectares. The property has been owned by the Céspedes Family since 1959. Between 1960 and 1990, the property was mined with low-scale production of high grade zones. In 1993, the Céspedes Family signed a deal with Princeton Mining Corp, who carried out 19,125m of RC drilling at Elenita claim and an additional 3,308m in the surrounding areas. In 1997 Princeton dropped the Elenita option.

In 2003, Minera Michilla (Antofagasta Minerals) carried out 818m of shallow RC drilling in the Elenita Claim. From 1997-2004 the mine had no production. Since 2004 the Cespedes Family has carried out small scale mining of high grade mantos with an average production of 2000 tons per month at an average grade of 2 to 3% Cu.

Mineralization is in manto type throughout, with some andesitic favorable beds of the Jurassic La Negra Formation. Mantos are NE/45ºSE. Mineralization, besides the manto structure, is also controlled by some fractures and faults. The copper mantos are 1-15 m wide. Mineralization is present in Cu oxides such as Brochantite, Atacamite, Chrisocole and Malachite within the first 80 -100m of depth. Below 100 -- 200m there is a leachable secondary enrichment zone with chalcosite. Mineralization is observed down to 300m deep with the presence of Bornite and Covellite.

Elenita

Resource Estimate

Antakena's Resource Estimate incorporates the results of 43,837m drilled at Elenita, in 276 holes - half of which were drilled in the latter of 2008.

Apoquindo successfully validated the historical data by drilling 2,131m or 15 twin holes. Subsequent drilling at Elenita was used to selectively infill missing areas and to explore new ore zones at the periphery, especially to the South, East and Northeast. This drilling has been largely successful, but is not yet completed. Currently the drill holes are distributed along 50m NW-SE sections and spaced at 20-30m increments. Due to the low dip angle of the mantos, the vast majority of the holes are vertical.

The current unconstrained mineral inventory is represented by the following grade-tonnage tables:

ELENITA UNCONSTRAINED GRADE-TONNAGE CURVE
  Measured (24%) Indicated (56%) Measured + Indicated (80%) Inferred (20%)
Cut-Off Tonnage TCu Cont Cu Tonnage TCu Cont Cu Tonnage TCu Cont Cu Tonnage TCu Cont Cu
[CuT %] Ktons [%] ktonns Ktons [%] ktonns Ktons [%] ktonns Ktons [%] ktonns
1.00 2,167 1.73 37 4,176 1.42 59 6,343 1.52 97 975 1.24 12
0.50 4,145 1.24 52 9,462 1.03 97 13,607 1.09 149 3,436 0.88 30
0.30 5,418 1.04 57 12,601 0.87 110 18,019 0.92 167 4,623 0.75 35
0.20 5,952 0.97 58 13,785 0.82 113 19,737 0.87 171 4,820 0.73 35

Elenita

Option Terms

The terms for the option to buy Elenita from the Chilean private owners are as follows:

Date Amount (US$) Status
On Signing (October 16, 2007) $ 300,000 Paid
6 months (April 16, 2008) $ 500,000 Paid
12 months (October 16, 2008) $ 2,000,000 Paid *
March 31, 2009 $ 250,000 Paid
June 30, 2009 $ 250,000  
September 30, 2009 $ 250,000  
December 30, 2009 $ 250,000  
30 months (April 16, 2010) $ 2,225,000  
36 months (October 16, 2010) $ 4,600,000  
48 months (October 16, 2011) $ 4,600,000  
     

TOTAL

$ 15,225,000


*The Company paid an additional $24,376 to defer a portion of this option payment until November 2008.

The option agreement includes a royalty of 1% net smelter return.

Madrugador

Location, Infrastructure, & History

Madrugador is located in the Sierra Valenzuela Trend Zone, which is part of the Atacama Fault System. There are several large and medium mines in the area other than the Mantos Blancos Mine, including Sierra de Miranda (Mohammed Duk), Ivan and Zar (Milpo), and Rencoret (Antofagasta Holdings). The Madrugador concession totals 817 hectares and surrounds the Sierra Valenzuela copper deposit, which reports a historic resource of 31.4 million tonnes of 1.18% Copper at 0.5% Copper cut-off, including 10.5 million tonnes at 1.7% Copper, which was drilled prior to 2001. This historical estimate is not NI 43-101 compliant and should not be relied upon.

The infrastructure and logistics at Madrugador are excellent in the area as electricity is very close, roads are well kept, and water could be supplied by the near Calama-Antofagasta pipeline.

Copper oxide mineralization is principally represented by chrysocolla and atacamite within manto-type deposits hosted in gently dipping stratified volcanic and volcaniclastic rocks of the La Negra Formation of Jurassic age. There are also minor vein deposits and some irregularly shaped "bolsones" noted in the district. Minor amounts of disseminated chalcocite, chalcopyrite and bornite are also noted at Madrugador.

Madrugador

Resource Estimate

The current Resource Estimate incorporates the results of 45,885m of drilling in 363 holes at Madrugador - more than half of which was drilled by Apoquindo in 2008. After successfully validating the historical data of previous companies (3,149m or 21 twin holes), Apoquindo expanded and selectively in-filled missing areas at Madrugador Sur and developed new ore zones such as Madrugador Norte and Brac II. The current drill hole spacing at the explored areas is roughly 25x25m in plan view and to approximately 200m at depth.

The current unconstrained mineral inventory is represented by the following grade-tonnage tables:

MADRUGADOR UNCONSTRAINED GRADE-TONNAGE TABLES
  Measured (49%) Indicated (41%) Measured + Indicated (90%) Inferred (10%)
Cut-Off Tonnage TCu Cont Cu Tonnage TCu Cont Cu Tonnage TCu Cont Cu Tonnage TCu Cont Cu
[CuT %] Ktons [%] ktonns Ktons [%] ktonns Ktons [%] ktonns Ktons [%] ktonns
1.00 1,414 1.45 21 629 1.35 9 2,043 1.42 29 107 1.33 1
0.50 4,027 0.97 39 2,956 0.84 25 6,983 0.92 64 699 0.78 5
0.30 5,918 0.79 47 4,842 0.67 32 10,760 0.74 79 1,226 0.62 8
0.20 6,639 0.73 49 5,557 0.62 34 12,196 0.68 83 1,388 0.58 8

Madrugador

Option Terms

The terms for the option to buy Madrugador from the Chilean private owners are as follows:

Payments Amount($US) Status
On Signing $ 150,000 Paid
12 months $ 350,000 Paid
24 months $ 1,000,000  
30 months $ 1,000,000  
36 months $ 1,000,000  
42 months $ 1,000,000  
48 months $ 1,500,000  
TOTAL $ 6,000,000  

The offer includes a Royalty of 1.5% NSR (net after tax) on production.

Soquimich

Location, Infrastructure, & History

On May 20, 2009 Apoquindo announced the signing of an option to purchase Sociedad Química y Minera de Chile ("Soquimich") in which Soquimich has offered to sell to Apoquindo 7,760 ha for a total of US $3,542,000 over three years, plus a sliding scale royalty.

The optioned mining properties are adjacent to and surround an area in between the Elenita and Madrugador deposits which make up the Antakena Project.

Antakena will embark on an aggressive exploration program of the Soquimich properties (geological mapping, MMI and sampling) in order to define several mineralized targets. Half of the area is covered by colluvium and some of the main mineralized features running between Madrugador and Elenita are under this overburden.

This acquisition is in line with Apoquindo's strategic focus to consolidate properties in the area of the Antakena Mining Joint Venture. Based on Apoquindo's 2008 Exploration Program, the Soquimich properties will increase the exploration ground to areas that are suitable for finding more resources in the project. Soquimich is a key player in the area since it holds a large land package in Northern Chile, and most of the area optioned has not been explored by Soquimich or any other company. Several of the main structures and mineralized features between Elenita and Madrugador run through the ground of these properties.

Antakena plans to do a first phase exploration program with geological mapping (1:10,000 in the whole areas and 1:2,000 in detailed areas), sampling and MMI (Mobile Metal Ion). Exploration using MMI has been very successful in the Elenita and Madrugador areas. Where the MMI and geologic mapping give positive results, drilling targets will be defined and a second phase of an exploration program including RC drilling, detailed mapping, trenching and geophysics will be evaluated.

Soquimich

Option Terms

The terms for the option to buy Soquimich owners are as follows:

Payments Amount ($US)
On Signing $ 50,000
12 months $ 873,000
24 months $ 873,000
30 months $ 873,000
TOTAL $ 3,542,000

After the 12 month payment and before exercising the option, Apoquindo may, for one time only, return up to 50% of the hectares included in this deal and the final payment will be reduced according to the hectares returned. Also, the parties have agreed in a royalty (NSR) payment depending on copper price in a sliding scale royalty.  



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