BARRANCOS – EXPLORATION CONTRACT

DETAILs

Company
Mineda

Permit
Marrancos

Area (sq.km)
14

Type
Application to mining

BARRANCOS – EXPLORATION CONTRACT

The Barrancos Project is 100% owned by Indice Crucial Lda. and is Located in the Border with Spain, in the south of Portugal (Alentejo).

The area is highly prospective with previously producing underground copper mines (until 1975) and several gold occurrences. Production depth at the copper mines reached 150 meters and a concentrate grade of 23% and 35% copper was produced. The vein system is believed to be 3,000 metres long, buildings and small flotation mill remain on site.

In addition there is a gold system on the concession which has indications of being extensive due to the drilling, extensive surface sampling and the general geology of the area. Limited drilling (2008) has been completed to identify what is believed to be a flat lying volcanic breccia. 7.7g/t Au was assayed from panel sampling and 125g/t Au from chip sampling. During the 2008 drilling 6.56g/t and 0.63% Cu was intersected by diamond drilling across 5.52 metres from near-surface.

Approximately 3km from the above target is a second historic copper mine (narrow high grade veins). Copper values taken from float and dump samples are in the order of 13% Cu. The target is represented by a substantial geochemical anomaly.

GEOLOGY

Within the Project 1 permit area lodes/veins were developed under reducing conditions; dilatant structures affecting flysh metasediments; distinct sedimentary discontinuities and metadolomitic limestones; evidence for acid volcanic activity and  intrusive and collapse breccias; carbonatisation features.

The Project is located in a Copper Belt, where mineralisation is hosted by metasedimentary and/or volcanic formations of Ordovician to Devonian age.

The Copper (± Zn, Pb) sulphides occur within quartz veins at various mines and prospects or mineralisation forms disseminations in subvolcanic rock domains subjected to prominent fracturing and brecciation as seen in one of the mines within the concession area.

EXPLORATION

Historical Mining and Exploration

Aparis Mine

A former producing underground copper mine, which operated intermittently from 1889 to 1975. Production was  from veins mined to a maximum depth of 150 meters. The vein system is recorded as being in excess  of 3,000 meters in length. Infrastructure related to the milling operations remains on the property  including buildings that contained a small flotation mill.  Government records show that between 1961 and 1975 the mine produced 8,100 tonnes of copper concentrate with a grade of between 23% and 35% copper.

Minancos Mine

The Mine was mined for copper at the turn of the 19th century, production was limited and  is reported to have been from narrow high grade veins. Both Rio Narcea and others have undertaken sampling of float and dump material at Mine. Copper values from float and dump samples ranged between 13 ppm copper and 12.8% copper. Further mapping and sampling is planned for the area as the prospect is further defined by a substantial geochemical anomaly.

Prospect – Lírio

In addition to the above copper deposits there is a good possibility of the discovery of a well-developed gold system at the prospect her a TSX junior and  others drilled a seeming flat lying volcanic breccia that assayed up to 7.7 g/t Au from panel sampling and up to 125.0 g/t Au from chip sampling. Diamond drilling at the prospect  intersected a mineralized interval containing 6.56 g/t gold and 0.63% copper across 5.52 meters (8.18 meters to 13.70 meters). The average was calculated using the average of the repeat and original assay values.