The Copaquire project is one of the most unique copper-moly projects in all of South America containing both high grade molybdenum and copper. A molybdenum rich core (Cerro Moly) containing 308 million pounds of in situ molybdenum and 1.2 billion pounds (2.4 billion lbs CuEq) of in situ copper surrounded by a large porphyry copper system (Sulfato) with grades of up to 2% copper.

 Copaquire Highlights

• Large Copper/Moly porphyry in the prolific copper belt of Chile.

• Chile copper porphyry belt contains highest concentration of copper in the world.
• Property completely surrounded by majors - Teck, Rio Tinto, Xstrata, Anglo American.
• Potential synergies with 2 nearby operating mines – Quebrada Blanca & Collahuasi (3rd largest copper mine in the world).

• Over 300 million pounds molybdenum in and 1.1 billion pounds copper in insitu metal and growing.
• Jintian Copper (largest consumer of copper in China) invests (13+%) in PBX.

• ZTEM airborne geophysical survey confirms presence of second large porphyry system (Marta).

• Titan deep penetration IP geophysical survey delineates 8 large geophysical targets.

The Copaquire Project

The 100% owned Copaquire Project is located in the Chilean copper porphyry belt. This arc-parallel belt includes 30 porphyry Cu-Mo deposits and prospects with the largest amount of copper concentration in the world, totalling about 220 million tonnes of copper. The Quebrada Blanca and Collahuasi producers are within 15 kilometres of the property

The geological setting and mineralization type is similar to that found in the Collahuasi (7.1 Bt @ 0.83% Cu, 0.02% Mo) and Quebrada Blanca Mines (1 Bt @ 0.62% Cu).

The Copaquire contains 2 large mineralized porphyry systems –Copaquire and Marta.

Copaquire Porphyry
The Copaquire porphyry includes three zones: Cerro Moly, Sulfato South, Sulfato North and covers an area of about 7 square kilometres and encompasses potassic, phyllic, argillic and propylitic phases of alteration and as such possesses all the alteration characteristics ascribed to typical calc-alkaline porphyry copper systems. The porphyry has a leached cap and secondary chalcocite blanket, more typical of Andean porphyry systems like the nearby Collahuasi deposit which is exposed in the Sulfato Zone north of the Cerro Moly ridge.

Copaquire Porphyry - Cerro Moly Zone

Most exploration drilling to date has concentrated within a molybdenum stockwork system at the Cerro Moly Zone over an area of approximately 48 hectares. This zone remains open at depth and along the SW-NE long axis of the mineralized trend.

Geological Events and Mineralization:  

The sequence of the main geological events and their relationship to the copper mineralization are as follows:

1. Host rock (Jurassic sediments and Cretaceous volcanics)

2. Tectonic Cretaceous deformation, generation of folding and subsequent uplift of the Sierra de Moreno Mountains with the generation of inverse north-south faults.

3. Emplacement of Tertiary intrusive rocks (36 – 39 m.y.) which generated areas of hornfels and skarnification near the contacts of the intrusions with Jurassic sedimentary rocks.

4. First mineralization event composed of mainly molybdenite veinlets (minor chalcopyrite) with phyllic alteration overprinting an earlier potassic phase.

5. Second mineralization event characterized by mainly chalcopyrite-pyrite (magnetite-tourmaline) mineralization with continued ascending flow of hydrothermal fluids along structurally weak zones (fractures-faults) generating intrusive and hydrothermal breccias in wall rocks (intrusives and meta-sediments) with chalcopyrite-pyrite mineralization in the matrix.

6. Third mineralization event characterized by the formation of mineralized stockwork type veinlets adjacent to breccia zones.

7. Later tectonic mineralized block displacement along faults allowed the Sulfato zone to be preserved with near surface leached areas (jarosite and goethite), followed by low concentrations of copper oxides (copper sulfates with less chrysocola, azurite and malachite) and below by copper secondary enriched zones of mainly chalcocite and covellite, and at deeper levels hypogene copper mineralization.

8. Finally the uplift of Moly Hill takes place followed by the erosion of the overlaying Jurassic and Cretaceous rock units, and thus exposing the quartz monzonite porphyry  that contains mainly pyrite-molybdenite with scarce chalcopyrite (See Figure below)

Copaquire Porphyry - Sulfato South Copper Zone
Results of the continuing infill drill program at Sulfato south continues to demonstrate potential for a major expansion of the copper resources at the Copaquire porphyry. The current 5,000 meter infill drill program in the Sulfato South zone which is adjacent and north of the 43-101 resource of the Cerro Moly zone is designed to define new copper resources.

2010-11 Assay result highlights for Sulfato South Zone to date include:

1Metal equivalent data  are  based on US$ 2.50/lb copper and US$10.00/lb Moly. In calculating copper equivalencies  100% metal recoveries have been assumed.

New Marta Porphyry Discovery
2010 exploration by bulldozer trenching has revealed a series of significant mineralized zones. These zones include a mineralized stockwork zone located near to historic underground workings which exhibit stockwork type molybdenum mineralization similar to that developed at Cerro Moly and areas of porphyry copper and copper skarn mineralization that are similar to the nearby Quebrada Blanca deposit owned by Teck Resources.

Mineralization in the Marta area is intermittently exposed over several hundred meters and is characterized by potassic altered intrusive with quartz stockwork veins and thin coatings of copper oxides along fracture surfaces. Within this zone an intrusive breccia pipe is exposed which exhibits angular intrusive with impregnations and flooding of chrysocolla (hydrated copper silicate). A chip panel sample (3.0m x 1.0m) taken from the copper intrusive breccia on the Marta assayed at 2.04 % copper. In addition a central core area with quartz-molybdenum veins and stockwork mineralization within a potassic altered intrusive returned grades of up to 0.10% moly across a 3m x 1m panel sample.

Panel samples (2m x 1m) returned copper grades that ranged in the leached zones from 0.1% to 0.3% copper and in the enriched zone in the range of 0.5% to over 1.0% copper.

Marta Porphyry - Drilling
The first drill holes ever completed at Marta have confirmed the presence of porphyry style copper mineralization associated with the target areas defined by Quantec’s 2010 Titan Geophysical Surveys.
 
Assay result highlights for Marta to date include:

Early exploration stage drill holes CQ-106 and CQ-108 were targeted in the Marta Zone, based mainly on geophysics. In both drill holes widely spaced veinlets of anomalous to weakly mineralized copper-moly granodiorite was intercepted.  In some sections along these holes, veinlets of quartz-pyrite-chalcopyrite-moly were observed. Typically these veinlets have 1-3 cm edges of sericite alteration, but are too widely spaced  to provide economic grades. 

Senior onsite geologists believe that these widely spaced veinlets containing copper and molybdenum in both holes are typical mineralization encountered peripheral to major porphyry copper centers in the Collahuasi mining district.

 With a better understanding of the relationship between mineralization and associated geophysics in the Marta area management has decided to complete a more detailed geophysical program in the Marta area before proceeding with further drilling . Two D-8 bulldozers have started cutting roads  to new areas of the porphyry to provide access for geophysical survey crews.  In the meantime both drills are now working on the Sulfato South zone to accelerate the Sulfato resource expansion program.

Geophysics

2010 ZTEM Airborne Geophysical Survey

In late 2010 a ZTEM airborne geophysical survey flown over the entire property delineated two large intrusive bodies, the know Sulfato porphyry system in the east and the larger "Marta" porphyry in the west.

ZTEM - Sulfato porphyry
The ZTEM survey produced two anomalies within the Sulfato area each of which are conicident with large mineralized areas.

Cerro Moly (Moly Hill) geophysical anomaly in the south is coincidental with the Cerro Moly copper/moly resource.

The second ZTEM anomaly as interpreted from the airborne geophysics is centered on the northern portion of the Sulfato porphyry. This geophysical anomaly is strong and again coincides with extensive mineralization identified in 2005-07 shallow RC drilling where results returned copper grades as high as 18m @1.64% copper (DDH CQ-10).

ZTEM - Marta Area
This large geophysical anomaly (5.4 x 2.2 km) further confirms that the Marta area contains a large porphyry intrusive system previously identified by geological field work (mapping and sampling) and satellite image interpretation.

Titan Deep Penetration IP Survey

A second geophysical IP Survey was carriend out on the Copaquire property in late 2010.

The Titan 24 Deep Penetration DCIP & MT IP Survey is a multi parameter distributed ground geophysical survey system designed to collect large volumes of highly accurate subsurface physical property information to depths of 750 metres with IP Chargeability and DC resistivity as well to depths of 1500 metres with MT (magnetotelluric resistivity).

The Titan 24 survey is designed to:
Detect and discriminate targets related to potential mineralization and alteration associated with copper deposits.

• Discriminate large targets with potentially greater tonnage from small non economic targets.

• Compliment near surface information for integrated drill targeting.

• Provide thorough property evaluation in less overall time than previously possible.

Based on its interpretation of the survey results, Quantec Geosciences Ltd. has identified 8 high priority geophysical targets within the ZTEM anomalies for follow-up drill testing.