The Cerro Leon project is located within the mining friendly Santa Cruz province of Argentina, about 130km northwest of the port town San Julian. Importantly, the project is centered on the same geological trend that is host to the Cerro Vanguardia mine, where historical and current resources exceed 9 million ounces of gold and 140 million ounces of silver.

Figure 1: Cerro Leon project

Project highlights

  • Cerro Leon is made of two adjacent epithermal vein fields – the greenfields Conserrat project (80% USL) and advanced Pingüino project, located 15km apart
  • Consolidated under one company via the acquisition of Pinguino announced 25 November 2022 (see full announcement here)
  • Update Mineral Resource Estimate (MRE) announced May 2023 includes indicated and inferred resource of 16.5Mt at 172gpt silver equivalent (AgEq1).
  • 41 million ounces of silver, 344 thousand ounces of gold, 332 million pounds of zinc, 129 million pounds of lead.
  • 62% of resource in the top 80 vertical meters.
  • 42% of the mineral resource classified as oxide or transition. Historical metallurgical test work showing excellent recoveries for silver and gold via simple cyanide leach process flow sheet.
  • Strong foundation for future growth.
    • 35 prospects prioritised for high impact discovery drilling.
    • Significant potential for low-risk resource growth, with mineralisation at multiple vein structures open at depth and along strike.

See ASX announcement – Cerro Leon Mineral Resource Estimate

The Mineral Resource Estimates were prepared by Ian Taylor of Mining Associates Pty Ltd under JORC (2012) and are provided in Table 1.

Table 1: Cerro Leon summary of mineral resources reported at variable cut offs

The preceding statements of Mineral Resources conforms to the Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves (JORC Code) 2012 Edition.
Due to rounding to appropriate significant figures minor discrepancies may occur.
All tonnages reported are dry metric

Figure 2: Mineral Resource Estimate Block Models – Pingüino project

Resource Growth Potential

At numerous prospects, mineralised pierce points remain open at depth or along strike, and represent imminent opportunities to expand the current MRE. This includes:

Malvina: (CODD-295) 1.7m at 2065gpt Ag, 4.53gpt Au from 143.3m (open at depth)

Andrea Sur: (CODD-300) 4m at 31gpt Ag, 8.4gpt Au from 51m (open at depth, along strike)

Martha Centro: P269-08) 11.4m at 81gpt Ag, 0.3gpt Au, 1.8% Pb, 4% Zn from 363m (open at depth, along strike)

Martha Noroeste: (PR015-11) 5m at 444gpt Ag, 0.6gpt Au from 40m (open at depth)

Marth Sur: (PR186-12): (PR364-11) 3.8m at 56gpt Ag, 1.4% Pb, 4.4% Zn from 157m (open at depth, along strike)

Tranquillo: (P314-10) 7.2m at 233gpt Ag (open along strike)

In addition, within the Pingüino and Conserrat vein districts, the Company has identified 35 advanced targets and prospects that are prospective for new vein discoveries. Both vein districts are underexplored when compared to similar epithermal vein districts in the Santa Cruz province of Argentina.

At both projects, significant potential exists for blind vein discoveries, beneath shallow (<5m) gravel or Tertiary basal cover, or where epithermal veins barren at surface pass down into high-grade mineralised shoots.

Figure 3: Pingüino and Conserrat exploration targets

1 Ag Eq = Ag (g/t) + 79.18 x Au (g/t) + 25.56 x Pb (%) + 39.41 x Zn (%), where: silver price is $23.5/oz and recovery is 95%, gold price is $1964/oz and recovery is 90%, lead price is $0.95/lb and recovery is 87.6% and zinc price is $1.39/lb and recovery is 92.3%