THE INSIDE STORY: Anybody suggesting a decline in mineral exploration activities by junior companies should be careful not to do so near the offices of Laconia Resources (ASX: LCR).
Recent data from the Australian Bureau of Statistics has shown a decline in the exploration efforts of the junior sector.
However the ABS also said, “The largest contributor to the fall in the trend estimate this quarter was Western Australia.”
Laconia’s major focus is its Kimsa Orcco project in Peru, which is the amalgamation of Laconia’s 100 per cent-owned Rasuhuilca project and the Huaco Cucho project, over which it has an option to earn an 80 per cent indirect interest.
The project consists of two large areas of alteration zones, which Laconia has identified as the Northern Kimsa Orcco prospects and the Southern Kimsa Orcco prospects.
All of Laconia’s Patacancha permits plus the 80 per cent Earn In Option Huaco Cucho permits No 1, No 2 encompass the Southern Kimsa Orcco prospects.
The balance of the 80 per cent Earn In Option Huaco Cucho permits surround the Northern Kimsa Orcco prospects.
The project currently has an Inferred Mineral Resource estimate of 360,000 tonne at 1.97 grams per tonne gold and 179g/t silver at a 2.5g/t gold-equivalent cut-off.
Laconia has recently announced a non-renounceable entitlement rights issue to raise approximately $1.7 million.
The company indicated it intends to do what the ABS claims its WA-focused peers are reluctant to do, which is to use the proceeds of the raising for exploration drilling and on-going exploration of the Kimsa Orcco copper-gold-silver project.
“We are not exploring in the Fraser Range of WA, which at present does make us reasonably unfashionable, however we are sitting on top of a highly-mineralised system,” Laconia Resources managing director Ian Stuart told The Resources Roadhouse.
“We know we are because of the consistently high-grade results we are generating from the review work we are conducting.
“To put that fashion into context, it is only unfashionable to those who aren’t interested in investing beyond local sentiment.
“The only exploration ground BHP Billiton currently has left is in the Central Andes, and Laconia is pleased to be as unfashionable as one of the world’s largest mining houses. That’s why we are in Peru.
“The country has a history for producing large copper-gold-silver systems, and we believe we could possibly looking at the next one.”
Laconia has been busy all over the Kimsa Orcco project this year producing a steady flow of news from all corners of the tenements.
The company collected surface channel samples at the Española 1 and Fortuna prospects, located within the southern portion of the project, in April this year, which confirmed historic high-grade copper-gold-silver mineralisation hosted by enargite-quartz-pyrite veins and breccias.
The channel sampling followed the compilation of a database of results from surface and adit sampling by previous companies, such as Cominco Peru SA and Buenaventura Ingenieros SAC.
The historic results highlighted the prospectivity throughout the Southern Kimsa Orcco prospects for copper-gold-silver mineralisation.
Channel sampling of surface outcrops by Laconia at the Española 1 and Fortuna prospects returned grades that validated those in the existing dataset.
Surface sample results at Española 1 prospect include:
0.87 metres at 8.12% copper, 4.96 grams per tonne gold, and 142g/t silver;
0.83m at 7.07% copper, 7.12g/t gold, and 80g/t silver;
0.85m at 2.38% copper, 2.43 g/t gold, and 63 g/t silver; and
0.52 m at 1.88% copper, 7.02g/t gold, and 94g/t silver.
Surface sample results at Fortuna prospect include:
1m at 8.19% copper, 4.43g/t gold, and 338g/t silver; and
1m at 3.63% copper, 0.98g/t gold, and 257g/t silver.
Further review of historic surface channel sampling of mineralised breccias and additional gold-silver vein systems east of Española 1 prospect concentrated on three different mineralised structures sampled during previous explorer, Buenaventura’s 1999 field campaign.
The Pebble Dyke, a breccia zone that can be traced for 500m from the Española adit with minimal sampling.
The Pebble Vein, a 700m system of gold-silver veining along the ridge line above the Española 1 prospect; and
Breccia 18, a poly-metallic, hydrothermal breccia at the intersection of the Pebble Vein and the Pebble Dyke.
The Breccia 18 samples are notable for the high content of base metal mineralisation (in particular lead hosted in the mineral galena) and outstanding gold and silver values.
There are additional breccias nearby that require priority sampling based on these results.
The Pebble Dyke, Breccia 18 and Pebble Vein prospects lie within Laconia’s 100%-owned tenement, Patacancha 3.
“The identification of this intensely mineralised gold-silver-copper-lead-tellurium breccia is very exciting,” Stuart said.
“Hydrothermal breccias are often associated with the intrusive process of porphyry copper bodies, and are typically situated on the margins of porphyry systems.
“The presence of these breccias further support Laconia’s view a large porphyry system exists at the Kimsa Orcco project.”
Laconia identified parallel vein sets at Barita, which it incorporated with new sampling results from Fortuna and Española 1 into a near-surface model of mineralisation at the Favi Vent Zone.
So far this has identified over 850m strike of high-grade copper-gold-silver veining, which Laconia considers to open many possibilities for future development of the project, including open cut potential.
“Being able to identify the presence of such high-grade copper and precious metals is particularly pleasing,” Stuart said.
“The scale and high-grade near surface mineralisation within the expanding Favi Zone bodes well for a stand-alone deposit in its own right.”
Laconia Resources Limited (ASX: LCR)
…The Short Story
Suite 2, Level 1, 47 Havelock Street
West Perth WA 6005
Ph: +61 8 9486 1599
Fax: +61 8 9486 7899
Matthew Howison – Chairman
Ian Stuart – Managing Director
Matthew Edmondson – Non-Executive Director
Josephine Patoir 4.3%
Slade Technologies Pty Ltd 4.3%
Ian Stuart 2.9%
SHARES ON ISSUE
$2.9 million (at 4/9/14)