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Mandalay Letter of Intent to Sell Challacollo
On August 1, 2018, Mandalay announced that it entered into a non-binding letter of intent with Aftermath Silver (TSX-V:AAG.H), pursuant to which Aftermath will acquire Minera Mandalay Challacollo Limitada (“MMC”), which currently owns the Challacollo silver-gold project located in Region I (Tarapaca) of Chile (the “Challacollo Project”), in exchange for total consideration of CAD$11,625,000 (the “Consideration”). Please read full details here.
Geology and Mineralization:
Challacollo is an epithermal silver deposit hosted in the Cretaceous Challacollo Volcanic Complex of intermediate to silicic volcanic and associated sedimentary rocks that have been rotated about 20 degrees to the southeast. Mineralization is contained in a system of northeast- to north-trending epithermal quartz-carbonate-barite veins that have been oxidized to a depth of at least 250 meters (m). The largest of these veins is the Lolón Vein, which is more than 3.5 km in length and contains the entire estimated Mineral Resource. This vein is controlled by a normal fault that has been rotated to an apparent reverse orientation by the same structural event that tilted the hosted stratigraphic units. Veins hosted in propylitically altered rock that crop out to the northwest of the Lolón Vein are interpreted to represent deeper exposures of the tilted terrane. Veins cropping out in the original hanging wall southeast of the now-overturned Lolon vein are hosted by variably silicified, bleached, and oxidized rocks and are interpreted to represent originally shallower exposures, prospective for further mineralization.
Work in the historical record of the Challacollo mining district dates back to 1770 when Enrique Espinoza recognized the largest silver deposit found in Chile (then Peru). In 1896, the Gildemeister firm acquired all the known claims and commenced industrial-scale mining that lasted until 1931, albeit sporadically at times. Subsequently, the main zone of mineralization was mined by artisanal miners (pirquineros) with no legal title between 1932 and 1980 when silver prices were relatively low. In 1980, Gildemeister, as Minera Challacollo, reasserted its legal claim and conducted work until the early 1990’s. In 1998, Minera Challacollo sold its rights to Minera Septentrion (Septentrion), which split off and sold to Silver Standard the “silver” concessions, which have now been acquired by Mandalay. Prior to selling the property to Mandalay in 2013, Silver Standard completed geological mapping, a Controlled Source Audio-frequency Magnetotelluric (CSAMT) geophysical survey, surveying, underground and surface sampling, and diamond and reverse circulation (RC) drilling.
NI 43-101 Compliant Resource Estimate; Challacollo Project (Effective Dec 2014)
Click here to see a summary of the Mineral Resource at Challacollo.