Max back in the chips at Cesar with two new copper + silver discoveries

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Max Resource Corp (TSX-V:MXR) has found more mineralization at its Cesar copper+silver project in northeastern Colombia, about 420 km north of Bogota, where continuous rock chip samples are pointing to a giant sediment-hosted copper-silver mineralized system

The Vancouver-based company reports two significant stratabound discoveries at a new zone called “AM North”, 40 km north of its recent AM South discovery.

AM North contains two mineralized areas from which rock samples were taken - AMN-1 and AMN-2 (Figure 1). Assay results from a 1-m continuous rock chip sample at AM-1 returned 10.4% copper + 88 grams per tonne (g/t) silver (Fig 2).

Assays for 4m x 1m rock panel sample are pending for AM-2, located 1.8 km west of AM-1. Both zones dip 20 degrees northwest and appear to be part of the same mineralized horizon.  

Fig 1. Mineralized horizon and location of AMN-1 and AMN-2

Fig 2. Copper mineralization at AMN-1

Over the past few months Max's geological teams and prospectors have been identifying copper+silver targets in the 120 km x 20 km target area, using rock chip sampling to identify structures, continuity of thickness, and strike length, to determine potential size prior to drilling. 

An initial rock sampling program at Cesar reported grab sample assays up to 4.2% copper, and 1 to 116 g/t silver. Recent photos from the site show visible copper oxide mineralization in samples. 

Fig 3. Copper oxide mineralization at Cesar project.

In January Max discovered a stratabound copper-silver horizon (AM Horizon, now renamed AM South) that trends northeast-southwest over 1.4 kilometers. 

A few weeks later, Max followed up with another high-grade discovery, in the southern part of AM South (Outcrop Zone). The Outcrop Zone is defined by 13 outcrops, from which rock chip and panel samples were taken (Fig 4). 

Fig 4. AM South and regional stratabound Cu+Ag mineralization in South America

Highlights included (*):

  • 4.4% copper + 33 g/t over 0.6m
  • 2.4% copper + 11 g/t silver over a 3m x 3m panel
  • 1.8% copper + 5 g/t silver over a 3m x 2m panel
  • 1.4% copper + 4 g/t silver over a 3m x 2m panel
  • 4.3% copper + 26 g/t silver over a 3m x 3m panel
  • 2.1% copper + 9 g/t silver over 6m
  • 1.8% copper + 12 g/t silver over a 3m x 3m panel
  • 1.8% copper + 12 g/t silver over a 3m by 3m panel

(*) Feb 11, 2020, news release

Two days later Max announced the zone had been extended, from 2 km to 3.5 km.

Highlights included (*):

  • 2.0% copper + 49 g/t silver over a 3m x 2m panel
  • 2.4% copper + 11 g/t silver over a 3m x 3m panel
  • 1.9% copper + 20 g/t silver over a 3m x 3m panel
  • 1.8% copper + 5 g/t silver over a 3m x 2m panel
  • 4.3% copper + 26 g/t silver over a 3m x 3m panel
  • 1.7% copper + 20 g/t silver over a 3m x 2m panel
  • 1.8% copper + 12 g/t silver over a 3m x 3m pane
  • 1.5% copper + 9 g/t silver over a 3m x 2m panel

(*) Feb 13, 2020, news release

MAX considers continuous or panel rock chip sampling to be representative.

Note, I consider these very high copper and silver grades - up to 4.4% copper and 49 grams per tonne silver. Also - these grades are averages from panels, not pieces of high-grade ore chipped from the outcrop to fool investors into thinking the whole outcrop is high-grade when only a small chunk of it is. It’s important for investors to differentiate between a select rock chip sample, and average grade across a 3m x 3m = 9 square meter panel. 

This is an important distinction. 

However, the most significant, recently identified opportunity for expansion, occurs between the AM North and AM South discoveries, a 40-km-long target zone shown in Figure 5. 

Fig 5. AM North and AM South discoveries, a 40-km-long target zone

In the Feb. 27 news release, Max notes that AM North and AM South share the same mineralized trend, and that both are hosted in a well-bedded sandstone-siltstone similar to KGHM’s monster “Kupferschiefer” deposit in Poland.

In an earlier interview with AOTH, Max’s head geologist, Piotr Lutynski, said Colombia’s stratigraphy is similar to his homeland, Poland, and its Kupferschiefer sediment hosted copper-silver deposit. KGHM Polska Miedź (KGHM), the only copper producer in Poland, mined 30.252Mt of ore at 1.49% Cu and 48.6 g/t Ag, comprising 452,000t of Cu and 1,471t of Ag in 2018.

According to the US Geological Survey, the massive volume of metal in the Kupferschiefer is due to continuous mineralization that extends down dip and laterally for kilometers (Fig 6). Max cautions investors that the mineralization at Cesar is not necessarily indicative of similar mineralization at Kupferschiefer.

Fig 6. Continuous mineralization at Kupferschiefer

“The high-grade AM North discovery supports our model of a significant, large-scale stratabound copper + silver system, stretching over 35-kilometers from AM North to AM South,” says Max’s CEO Brett Matich. “We eagerly await initial assay results from AMN-2 and follow-up assays to the extensive AM South.”

The pictures below show Max’s field geologist standing on the outcrop where AMN-2, a 4mx1m rock panel sample, was collected and copper mineralization in hand specimens from the same showing


Fig 6. Copper mineralization at AMN-2

PGE Americas Metals Corp.

In other news, Max announced its Choco PGE Project (1.0 million oz of platinum and 1.5 million oz gold produced between 1906-1990) has been rolled into a Max subsidiary, PGE Americas Metals Corp.

Max says the new company is the first step towards building a portfolio of PGE assets with a focus on palladium, platinum and rhodium. Max plans to acquire a second Americas Metals Corp. PGE project and vend Americas Metals into a listed TSX.V company. The shares of the new Pubco will be distributed to Max shareholders.

2019 fieldwork at the Choco PGE Project highlighted concentrate values of 11.4 grams per tonne platinum. While 90% of platinum supply currently comes from South Africa and Russia, Colombia was the world’s main source until 1820 and the largest producer between 1917 and 1923. 

North Choco Gold and Copper Project

Max also owns mineral applications at its North Choco Gold and Copper Project, located about 80 km southwest of Medellin. Last October at the NW Gold-Copper Discovery outcrop, Max reported 1 meter of 49.8 g/t gold and 4.3% copper, continuing undercover in both directions. The company says future work will focus on mapping and sampling along strike to extend the zone, and on locating parallel zones. Max is also assessing joint venture opportunities for the project. 


The huge exploration upside at Cesar is reason enough to excite Max shareholders. 

We already believe that high-grade chip sampling over 3m by 3m panels at the Outcrop Zone and AM South are at mineable widths and grades.

We also know that up north, Max is into some valuable rock, judging from the rock chip panel assay numbers. Plugging in the assay grades at AM North, 10.4% Cu + 88 g/t Ag, we calculate a per-tonne rock value of US$632.73/t. That is about six times higher than Poland’s Kupferschiefer which, using 1.49% Cu + 48.6 g/t Ag, only adds up to $106.04/t. 

It’s also around twice the rock value of one of the largest copper deposits under development right now, the Kamoa-Kakula joint venture in the DRC. According to the 2019 PFS Mineral Reserve, the new mine has 14.475 billion pounds of copper graded at 5.48% Cu, giving a value of $308.07 per tonne. 

Of course, we understand there is a big difference between mineral reserves and grades from drill assays, and MXR’s much earlier-stage rock chip panel assays, but for a “first pass”, these are, in my opinion, exceptional results - especially considering Max has only been working the Cesar project for a few months. 

Consider also, Max is a Canadian company working in Colombia, paying out expenses in Colombian pesos (CAD1$ =COP2,615) which go a long way with higher-valued Canadian dollars.

Max’s story continues to evolve and we are pleased to see the news keeps getting better and better with each update. Keep checking Ahead of the Herd - subscribe to my weekly newsletter, read my website or both - to see what comes next.

Max Resource Corp.
Cdn$0.105, 2020.02.28
Shares Outstanding 27,906,155m
Market cap Cdn$2,372,023m
MXR website

Richard (Rick) Mills
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