Exploration History

PPX Mining Corp. acquired and started work at Igor in June 2005. Over the next three years, the company mapped and took approximately 3100 rock and 250 soil samples. Based on this data, three separate drill campaigns were undertaken, largely focused on the Domo and Tesoros areas, but with some exploratory drilling elsewhere.

A NI 43-101 compliant resource for the Domo and Tesoros was prepared in early 2008; however this Technical Report is out of date and is not relied upon or referenced by the company. The Indicated and Inferred resources are summarized below and the full report is available in the Technical Information section.

In 2008, exploratory drilling outside the Domo and Tesoros areas yielded intercepted significant gold and silver mineralization. In the west of the concession, at Callanquitas, drill hole CA-01b cut 218 metres (m) grading 0.6 g/t gold and 22.3 g/t Ag. This included 27.3 metres at 2.1 g/t gold and 35.4 g/t silver. The hole finished at 230.7 metres with an interval of 2 metres grading 1.7 g/t gold, 61.8 g/t Ag and 0.44 % copper. The presence of copper mineralization, along with porphyry-type hydrothermal alteration, indicated that Igor may be underlain by a porphyry copper deposit.

In 2010 Sienna resumed work with a drill campaign of 2,500 metres at Callanquitas. The goal of this program was to further delineate near-surface oxide gold and silver mineralization, first identified in 2008, and test the porphyry hypothesis. The original five drill hole campaign was completed in early March 2011, but encouraging results and reinterpretation of the geological model led to three more holes. The extended campaign finished in early May 2011 with a total of 4,235 metres of diamond drilling.

3D View

3D View

2010-2011 Drill Results

2010-2011 Drill Results

The Callanquitas drill campaign was highly successful. It defined a main structure approximately 5-20 metres wide, 900 metres long, extending from surface to a depth of 300-400 metres. The intersections include some high grade gold and silver, with multi-kilogram silver grades. The mineralization was open to the north, south and at depth. This structure is one of several north-south trending mineralized structures at Callanquitas.

The most important intercepts in the Callanquitas Structure from the 2010-2011 campaign are shown in the table and figure below (collar data and all significant mineralized intervals can be found in the Technical Information section).

Table 2 Best Intercepts from 2010/2011 Campaign

Drill Hole From (m) To (m) Length (m) Weighted Average Grade
Gold (g/t) Silver (g/t)
CA-10-02 12.00 47.00 35.00 0.575 16.4
Including 32.00 40.00 8.00 1.855 21.1
CA-10-05 100.50 236.00 135.5 0.254 47.8
Including 126.00 150.00 24.00 0.814 134.9
CA-11-06 142.00 183.30 41.30 1.231 16.9
Including 159.20 170.50 11.30 3.863 45.5
CA-11-07 129.60 155.00 25.4 1.992 17.1
Including 141.15 151.45 10.30 4.220 39.29
CA-11-08 206.75 241.80 35.05 1.609 243.1
Including 230.95 234.80 3.85 13.139 2112.7

Following the success of the 2010-2011 drilling campaign, PPX Mining Corp. initiated detailed mapping and sampling of the Callanquitas Structure. This work was carried out in conjunction with diamond drilling which culminated in a NI 43-101compliant resource estimate and Technical Report for the Callanquitas Structure in December, 2012 (Please see : “Technical Report on the Callanquitas Structure, Igor Mine Project, Northern Peru, South America, NI 43-101 Technical Report” dated 14 December, 2012.  The technical report has been filed on SEDAR and is available on the Company’s web site. Mineral resources are not mineral reserves and do not have demonstrated economic viability. There is no certainty that all or any part of the mineral resource will be converted into mineral reserves).

Drilling during 2012 was focused on higher grade zones, particularly in the central sector of the Callanquitas Structure, with the goal of extending the mineralization at depth. The December 2012 resource estimate was based on drilling along approximately 600 metres of the known 1.1 kilometre strike length of the Callanquitas Structure. In this 600 metre long segment, mineralization has been tested down to depths of 300-450 metres (see figures and sections in the Technical Information section).

Callanquitas Mapping & Sampling - Gold

Callanquitas Mapping
& Sampling – Gold

Best Intercepts to Date

Best Intercepts
to Date

Mineralization is open to the north, south and at depth.  A selection of the most significant intercepts on the Callanquitas structure is shown in the figure and table below.

Drill
Hole
From
(m)
To
(m)
Interval
(m)
Weighted Averages
Gold (g/t) Silver (g/t)
CA-11-13 118.3 128.45 10.15 1 434.9
Including 120.8 124.3 3.5 2.5 1221.2
CA-11-18 152 159.3 7.3 2.2 122.9
Including 153.9 157.4 3.5 4.2 241.4
CA-12-19 238.5 294 55.5 2.3 1024.6
Including 258 267.4 9.4 4.9 2933.5
CA-12-20 202.5 215.95 13.45 1.9 29.8
Including 210 215.95 5.95 3.4 51.4
CA-12-30 179.35 196.65 17.3 11.9 60.1
Including 184.7 190.1 5.4 29 117.3
CA-12-31 283.15 315.6 32.45 2.1 168.4
Including 297.35 312.5 15.15 4.2 261.2
CA-12-34 265.7 281 15.3 2.7 76.7
Including 273 278.45 5.45 6.7 187.3
CA-12-55 176 284 108 1.4 222
Including 194.6 207.3 12.7 5.1 1163

A full list of collar data and all significant mineralized intervals can be found in the Technical Information section.