Vallecillo
Background
The Vallecillo Project is located approximately 50 km northeast of Ovalle, south-east of La Serena, and some 25 kilometres north of the Mollacas Project. Tenements cover 54 km2.
The project area covers undulating topography at elevations of approximately 1800-2500 metres. Like Mollacas the project is relatively accessible and near existing infrastructure.
Vallecillo is a porphyry-related mineralised breccia system, comprising four discrete hydrothermal alteration zones. As with Mollacas, Hampton holds a 50% interest in the project, with the balance beneficially held by MN Ingenerios.
Location
Location of Vallecillo project, near La Serena (approx. 475km north of Santiago)
Drilling and Mineral Resources
Hampton drilled 12 reverse circulation holes on the La Colorada deposit during 2006, totalling 2,170 metres. This generated an initial JORC compliant Inferred Mineral Resource of 8.5 million tonnes @ 1.42% zinc, 0.76 g/t gold, 8.1 g/t silver and 0.25% lead at a 0.5% Zn cut-off grade.
Following a second round of drilling in 2008 of 17 diamond holes totalling 5,782 metres, a revised resource estimation for the La Colorada Au-Zn-Ag-Pb deposit at La Colorada was completed by SRK Consulting, Chile. Contained metal increased by approximately 40% on the previous estimate. At a cut-off grade of 0.3g/t Au, total resources are estimated as 10.1 million tonnes, broken down into:
• Indicated Mineral Resources: 7.9 million tonnes @ 1.14g/tAu; 11.4g/tAg; 1.32% Zn; 0.29% Pb
• Inferred Mineral Resources: 2.2 million tonnes @ 0.78g/t Au; 8.2g/t Ag; 0.58% Zn; 0.26% Pb
Metallurgy
Metallurgical testwork carried out in Lima using Vallecillo core has demonstrated that excellent recoveries can be obtained for gold, zinc and lead, while silver recoveries are dependent on production of a lead concentrate.
Gold recoveries above 90% can be achieved through the cyanidation of a gravity concentrate and the zinc concentrate, with bullion produced on site. Some gold reports into the lead concentrate which will be payable by smelters.
The second issue crucial to potential economic exploitation of the La Colorada resource is the ability to produce saleable concentrate grades for both zinc and lead. The testwork has confirmed that excellent recoveries of both metals will be achievable into commercial grade concentrates.
Surface exploration and future work
Hampton has undertaken detailed mapping and surface sampling across most of the 54 km2 of tenement licences held at Vallecillo, suggesting:
· the presence of a number of high priority exploration targets including three well defined lead (Pb) surface geochemical targets similar to the La Colorada target and immediately north of the resource outlined at La Colorada, and
· a Cu and Au surface geochemical porphyry target at Vallecillo.
The Company will develop a detailed exploration and development program outline the following;
1. Information requirements for undertaking a scoping study for the La Colorada project
2. Infill and immediate extension drilling requirements at La Colorada to bring the resource to Measured and Indicated JORC status.
3. Exploration of the anomalies to the north of La Colorada including geophysics and RC drilling.
4. Exploration of the anomalous areas within the defined copper-gold porphyry system identified at Vallecillo.
Photos
Vallecillo, View east from pass at west of tenements
Vallecillo, View south east to drilling at La Cororada
Vallecillo, La Colorada, view north-west across old workings
Vallecillo, La Colorada, Mineralisation in breccia
Vallecillo, La Colorada, Mineralisation in core
Vallecillo, La Colorada, Mineralisation in core
