Aguas Calientes, Argentina

Location

The Aguas Calientes property is located in northwestern Argentina in Jujuy Province, 25 kilometres northwest of the Village of San Antonio de Los Cobres and 130 kilometres west of the City of Salta. Access from the City of Salta is by all-weather road and paved highway.

The Aguas Calientes project comprises a single claim 100% owned by Regulus, covering near 4,835 hectares in Jujuy Province, northwestern Argentina. The project consist of two main zones displaying epithermal precious metal mineralization associated with silica-(clay)-sericite alteration emplaced in Miocene volcanic and volcanoclastic rocks and in adjacent sedimentary strata of Late Cretaceous and Tertiary age. These zones have potential to host economic gold deposits.

 

Geology & Mineralization

The main zones of hydrothermal alteration related to Au-Ag mineralization on the Aguas Calientes property are hosted by flow breccias of dacitic composition. In the Ambrosia Zone, silica-sericite-(clay) alteration occurs in three distinct areas adjacent to north-easterly trending faults. Gold and silver mineralization is primarily related to silicified breccias and vuggy silica centers exposed for over 1km, surrounded by a sericite-clay alteration halo. Gold values in grab samples generally range from 0.5 to 3.8 g/t and silver as high as 69 g/t. Anomalous gold in soils and rocks defined an area extending for 1000m by 500m. In the Boulder Zone, angular boulders, up to 1.5 meters in diameter, of limonitic and silicified volcanic breccia occur along a north-south trending belt, about 350 meters in length.  Silicification comprises grey opalescent quartz.  Gold values are commonly in the 2 to 5 g/t range, but are locally as high as 41 g/t. These mineralized boulders occur mostly along the creek, but extend as much as 20 meters up the eastern slopes of the valley. Given their distribution, size and angularity, it is most likely that they reflect the underlying bedrock. The southern end of the boulder zone is defined by an east-west gully that is probably structurally controlled.

Exploration History

1998-1999: Mansfield Minerals Inc. staked the Aguas Calientes property in April 1998 and received clear title in June 1999. Mansfield and other consultants conducted geological mapping, rock and soil sampling. On the basis of this work, in 1999 an IP geophysical survey was conducted over the Ambrosia and Boulder Zones.

2000: The project was joint-ventured out to Sunshine Argentina Gold Inc., who completed a 13 hole, 1,535 m diamond drill hole campaign.

2004: The project was joint-ventured out to IAMGOLD Corp., who completed a 7 hole, 1,283 m diamond drill hole campaign.

2008: The property was transferred to Pachamama Resources as part of a restructuring of Mansfield Minerals Inc.

2012: The property was transferred to Regulus Resources Inc. as part of the merger with Pachamama Resources Inc.

Drilling

In total 2,818 metres were drilled in 20 holes. Eight of these holes were successful in identifying a zone of gold-silver mineralization at the Ambrosia Zone, which is open for further expansion in three directions. This zone is delineated over a strike length of 200 metres and a dip length of 70 metres at present. The significant mineralized intervals previously reported from the Ambrosia Zone are as follows:

Drill Hole Interval (metres) Length (metres) Gold Grade (g/t)
DDH-AC-1 32.0 ““ 56.064 ““ 66.18 24.02.18 1.21.00
DDH-AC-2 3.6 – 20.0 16.4 1.02
DDH-AC – 3 2.6 ““ 18.0 15.4 1.27
DDH-AC-6 3.0 ““ 13.040.0 ““ 63.0 10.023.0 1.500.65
DDH-AC-12 0.0 ““ 27.095.0 ““ 105.0 27.010.0 0.800.70
AC-DD-15 28.5 ““ 42
132.5 ““ 157.7
15.5
25.2
1.31
0.61
AC-DD-17 53.23 ““ 57.5 4.27 0.62
AC-DD-18 6.0 ““ 14.0
41.45 ““ 45.8
8.0
4.35
0.87
1.80

Aguas Calientes drill hole locations - Ambrosia Zone

Aguas Calientes drill hole locations - Ambrosia Zone AAguas Calientes drill hole locations - Ambrosia Zone B

Aguas Calientes drill hole locations - Ambrosia Zone C