PPX Mining has received results from three additional infill and resource confirmation/expansion diamond drill holes on the Callanquitas structure at its Igor Project in northern Peru.

Drill hole CA-17-82 cut 3.0m grading 9.71 gpt Au and 45.1 gpt Ag (10.31 gpt Au Eq) within a thick interval of lower grade mineralization: 40.8m grading 1.72 gpt Au and 38.7 gpt Ag (2.24 gpt Au Eq) on a previously undrilled portion of the Callanquitas Structure. Drill holes CA-17-83 and -84 have identified a new Ag-rich portion of the Callanquitas Structure, intercepting 2.7m grading 1.73 gpt Au and 752 gpt Ag (11.76 gpt Au Eq) and 1.8m grading 0.12 gpt Au and 605 gpt Ag (8.19 gpt Au Eq) respectively. The drill results are described in more detail below and in the following table:

  • Diamond drill hole CA-17-82 was drilled between two previously drilled sections in order to confirm grade continuity and mineralization thickness on the Callanquitas Structure. The average gold grade, 9.71 gpt, is higher than seen in adjacent sections, but consistent with recent gold grades encountered in the Company’s test mining and bulk-sampling program. Within the interval reported above, much higher-grade gold and silver mineralization was encountered: 0.7m grading 15.66 gpt Au and 566 gpt Ag (23.21 gpt Au Eq). Previously reported underground channel sampling at Mina Callanquitas has shown similar grades, the underground samples consistent with the gold and silver grades seen in recent drilling. A cross-section through drill hole CA-17-82 is posted on the Company’s website.
  • High Silver Grades: Diamond drill holes CA-17-83 and -84, drilled on section NW4545, both intercepted significant widths of high-grade silver mineralization: 2.7m grading 1.73 gpt Au and 752 gpt Ag (11.76 gpt Au Eq) and 1.8m grading 0.12 gpt Au and 605 gpt Ag (8.19 gpt Au Eq) respectively. Individual samples have grades of nearly one kilo Ag per tonne: 0.8m grading 2.38 gpt Au and 933 gpt Ag (14.82 gpt Au Eq) in drill hole CA-17-83. These silver intercepts are defining a new zone of silver rich mineralization on the Callanquitas structure, starting at an elevation of approximately 3300 metres.  More drilling will be required to outline this new area. A cross-section through these drill holes is posted on the Company’s website.
  • Callanquitas West Structure: Drill holes CA-17-83 and CA-17-84 also cut the Callanquitas West structure at shallow levels about 15-20 metres below the surface. Drill hole -83 cut 1.8m grading 5.05 gpt Au and 87.7 gpt Ag (6.22 gpt Au Eq) while drill hole -84 intercepted 0.7m grading 3.36 gpt Au and 31.0 gpt Ag (3.77 gpt Au Eq). PPX views the Callanquitas West structure as an important exploration target, being located only 100m west of the main Callanquitas structure where the majority of the Company’s defined precious metal resources are found. Located adjacent to the underground mining infrastructure being developed on Callanquitas East, the Callanquitas West exploration targets will be more thoroughly explored and drilled in the coming months.

Brian J. Maher, President and CEO of PPX Mining Corp., commented: “The drill results reported today will be utilized to update the gold and silver resource estimate for the Igor Project as part of the Pre Feasibility Study (PFS) the Company expects to complete in Q1 2018. The continuity in grade and thickness demonstrated by the in-fill drilling program, coupled with underground channel samples and the results from bulk sampling are encouraging as we enter the PFS process. The high grade silver zone seen in drill holes -83 and -84 will need further evaluation, as the mineralization is open down-rake. PPX plans to continue the current drilling program into the New Year to follow-up on these encouraging results.”