Focus Acquires Porphyry Copper-Molybdenum Project, Peru; Historical Drilling includes 190m @ 0.57% Cu and 71.7m @ 0.7% Cu
VANCOUVER, July 11, 2012 /PRNewswire/ - Focus Ventures Ltd. (TSXV: FCV) is pleased to announce the acquisition of the Aurora porphyry copper-molybdenum property located in the Department of Cusco, Peru. The property is located between 2,600 - 2,900m above sea level on the northeastern margin of the Yauri-Andahuaylas porphyry belt, host to several important copper and copper-gold deposits including Las Bambas, Huaquira, Constancia, Tintaya and Antapaccay mines.
Focus can acquire 100% of the 400 hectare claim by paying US$3,525,000 and granting a 1% NSR by January 2017. There are no expenditure commitments. In addition, Focus has staked an additional 2,300 hectares and optioned a further 800 hectares immediately to the west and south, bringing the total area controlled by Focus to 3,500 hectares.
The presence of porphyry Cu-Mo mineralization at Aurora was confirmed by two small drilling campaigns undertaken by different companies in 2001 and 2005. Twelve holes (3,900m) drilled over an area approximately 1,200m by 800m cut significant intervals of Cu and Mo mineralization in both porphyry intrusive and hornfelsed wall rocks (see table below). Several holes were stopped in good mineralization with copper grades strengthening towards the bottom of the hole. For example, the final 56.1m of hole ABC-5 graded 0.72% Cu (to 289.1m) and hole ABC-2 ended in 0.8% Cu and 0.08% Mo (EOH 406m). DDA-3A assayed 0.7% Cu for the last 71.7m to the end of hole at 297.7m.
Holes ABC-4, DDA-02 & DDA-03 were drilled too shallow to intercept intrusive rocks and remained in silicified and biotized hornfels but nevertheless showed appreciable copper mineralization associated with secondary chalcocite within a fracture/fault zones and hydrothermal breccias. For example, hole DDA-3 graded 141.8m @ 0.5% Cu and 0.039% Mo from 18m downhole to the end of the hole which finished at 159.8m in mineralization.
Aurora is a robust porphyry system with mineralization cut in all the historical drillholes and open in all directions, with potential to expand the mineralized system laterally and to depth. Grades of the historic drilled intercepts are comparable to some of the region's major deposits: e.g. Constancia with 372 MT Proven and Probable Reserves grading 0.39% Cu and 0.0105% Mo (Source: Hudbay Minerals website) which was purchased by Hudbay Minerals in 2011 in a deal worth $520 million.
Peru is the world's second major producer of copper and is particularly important to future copper supply growth with several large scale copper mines and projects in development. Demand for copper is largely driven by China which is the world's largest importer of copper.
Drill Intercepts - All Holes
|Hole||Year Drilled||Depth (m)||From (m)||To (m)||Interval (m)||Cu %||Mo %||Cu Eq. %*||Geology|
|ABC 1||2001||290.0||109.0||290.0||181.0||0.30||0.010||0.35||Hornfels, Porphyry|
|ABC 4||2001||180.0||30.0||54.0||24.0||0.45||0.010||0.49||Slate & Hornfels|
|ABC 6||2001||303.9||1.5||303.9||302.4||0.23||0.082||0.64||Porphyry > Mo|
|406.0||604.0||198.0||0.13||0.022||0.25||Porphyry > Mo|
|DDA-02||2005||218.8||20.0||62.0||42.0||0.50||0.028||0.64||Slate & Hornfels|
|DDA-3A||2005||297.7||82.0||297.7||215.7||0.36||0.005||0.39||Slate & Hornfels|
Porphyry & HT
|DDA-06||2005||268.4||232.0||268.4||36.4||0.40||0.001||0.41||Slate & Hornfels|
* Copper equivalent grades (Cu Eq.) were calculated using $2.80/lb Cu and $14/lb Molybdenum (1:5 conversion ratio) and assumes 100% metallurgical recoveries.
Geology, Mineralization & Alteration
The mineralization at Aurora is associated with a series of porphyritic intrusions including coarse grained quartz feldspar porphyry and monzonite that intrude Paleozoic-aged Sandia Formation slates and hornfels. The system has been partially unroofed along a narrow northwest-southeast trending ridge that forms a leached cap with slate cover rocks preserved to the west and south and east. Aurora is located to the northeast of the prolific Yauri-Andahuaylas metallogenic belt and could be of an older Paleozoic age to the deposits along the main trend.
The dominant copper mineral is chalcopyrite with secondary copper minerals mainly as covellite and lesser chalcocite which is indicative that a degree of supergene enrichment has occurred accounting for some of the higher grade intervals e.g. DDA-1 20m @ 1.01% Cu from 266m to 286m and ABC-5 56.1m @ 0.72% Cu from 233m to the end of the hole. All the mineralized intrusive phases drilled show strong phyllic (quartz-sericite) alteration with disseminated and veinlet chalcopyrite and molybdenite associated with strongly developed sheeted quartz vein stockworks.
Potentially higher grade hypogene potassic alteration typically forming the deeper core zones of porphyry systems were not intersected by the historical drilling however these could exist at depth and also to the southwest along trend underneath slate host rocks where the true centre of the porphyry system may occur.
Molybdenum shows variable concentrations, with notably higher grades in Hole ABC-6 where 302.4m @ 0.08% was drilled from surface, including 38.5M @ 0.124% Mo and hosted in a strongly sericitized and coarse grained quartz monzonite (quartz-feldspar porphyry).
No drill core assays for silver, gold or tungsten are available although several tungsten-quartz veins are known on the property. Surface sampling by Focus returned up to 0.69% tungsten. Silver in intrusive rocks sampled at surface averaged 2.64g/t Ag (32 samples) and constitute a potentially important by-product along with molybdenum.
Surface exploration will commence immediately, and permitting for drilling is expected to take 4 - 6 months. There is an existing access agreement and support for the project from the local community. No geophysical surveys are known to have been undertaken at the site. A two-stage exploration program is planned:
- Logging of available drill core to characterize the distribution of grade within the different intrusive phases and construction of a 3D deposit model of the interpreted hypogene and supergene profiles.
- A wide IP - Resistivity survey to generate drill targets characterize the known mineralization and map its extensions to the south and west underneath the slate cap rocks.
- Detailed surface mapping including surrounding claims to identify satellite mineralization.
- Grid-based diamond drilling program of targets to expand the deposit beyond the area of historic drilling and underneath the cap rocks and test for higher hypogene grades associated with deeper potassic alteration.
Focus has signed an option agreement with the titleholder and assumed the terms of an earlier option by signing an agreement with the former optionee allowing Focus to acquire 100% of the Aurora claim by paying a total of US$3,525,000 and granting a 1% NSR by January 2017.
|$110,000||On signing (paid)||$95,000||when drill permits are received|
|$12,500||6 months after drill permits are received|
|$25,000||due Jan 2015||$102,500||12 months after drill permits are received|
|$25,000||due July 2015||$102,500||18 months after drill permits are received|
|$25,000||due Oct 2015||$102,500||24 months after drill permits are received|
|$50,000||due Jan 2016||$300,000||30 months after drill permits are received|
|$50,000||due April 2016|
|$100,000||due July 2016|
|$200,000||due Oct 2016|
|$225,000||due Jan 2017|
|Total $810,000||Total $715,000|
After completing the above payments, Focus can acquire 100% title of the Aurora claim by paying an additional US$2,000,000 and grant a 1% NSR.
As mentioned previously, Focus has staked an additional 2,300 hectares and optioned a further 800 hectares immediately to the west and south of the main claim, bringing the total area controlled by Focus to 3,500 hectares. Focus can earn a 100% interest in the additional optioned ground, which is a claim application, by making cash payments to the property owner as follows:
|$40,000||6 months after signing (Dec 2012)|
|$60,000||when drill permits are received|
|$100,000||12 months after drill permits are received|
|$100,000||24 months after drill permits are received|
|$100,000||36 months after drill permits are received|
|$300,000||48 months after drill permits are received|
Plans, maps and photos are available on the company website: www.focusventuresltd.com.
Sampling Quality Analysis and Quality Control
The drill assays quoted are historic in nature and have not been independently verified by Focus. The sampling and assaying are however considered to have been undertaken using standard industry practice and QA/QC procedures.
Focus's samples were prepared and analyzed at ALS Chemex's laboratory in Lima, Peru. Silver was determined by multi-acid digestion and ICP-AES, with fire assay gravimetric finish. Gold was assayed by Atomic Adsorption Spectrometry with fire assay gravimetric finish. Lead and zinc were determined by ICP with Atomic Absorption with volumetric finish. ALS Chemex's quality control system complies with International Standards ISO 9001:2000 and ISO 17025:2005. Analytical accuracy and precision are monitored by the analysis of reagent blanks, reference material and replicate samples. Quality control is further assured by Focus's own QA/QC program which involves the insertion by Focus personnel of blind certified standards and blanks into the sample stream at regular intervals in order to independently assess analytical precision and accuracy of each batch of samples as they are received from the laboratory.
Mr. David Cass, Focus's President, is a member of the Association of Professional Engineers and Geoscientists of British Columbia, and a "Qualified Person" in accordance with NI 43-101. Mr. Cass has reviewed and approved the technical information in this release.
The Company also announces that it has cancelled 950,000 outstanding stock options.
About Focus Ventures
Focus Ventures is acquiring advanced, drill-ready projects in Peru and Mexico. Backed by an experienced technical team of geologists and consultants, Focus's strategy is to identify and acquire former producing mines or untested gold and silver and base metal properties that show potential to become new mines. For further information, please call 604-688-5288 or visit our web site www.focusventuresltd.com.
ON BEHALF OF THE BOARD
David Cass, President
Shares Issued: 36.4-million
Neither the TSX Venture Exchange nor the Investment Industry Regulatory Organization of Canada accepts responsibility for the adequacy or accuracy of this release.
Some of the statements in this news release contain forward-looking information that involves inherent risk and uncertainty affecting the business of Focus Ventures Ltd. Actual results may differ materially from those currently anticipated in such statement.
SOURCE Focus Ventures Ltd.