January 11, 2022
Vancouver – January 11, 2022 – Pampa Metals Corp. (“Pampa Metals” or the “Company”) (CSE: PM / FSE: FIRA / OTCQX®: PMMCF) is pleased to announce that its partner, Austral Gold Limited (“Austral”) (ASX: AGD; TSX-V: AGLD), has commenced the first phase of a drilling program at Pampa Metals’ Morros Blancos project located in the Paleocene Mineral Belt in northern Chile, close to Austral’s operating Guanaco/Amancaya mining complex.
The drilling program is pursuant to the option agreement (the “Agreement”) between Pampa Metals and Austral as announced on July 28, 2021. The Agreement entitles Austral to acquire up to an 80% interest in the Company’s Morros Blancos and Cerro Blanco properties, which comprise ~7,300 and ~6,500 hectares, respectively. Since signing the Agreement in late July 2021, Austral has incurred ~US$0.5 million in exploration expenditure on both properties. To acquire the first 60% interest in both properties, exploration expenses of US$1M must be incurred in year 1 and US$2M in year 2 of the Agreement.
Morros Blancos Drilling Program
The first phase of drilling activities will involve approximately 2,000m of diamond drilling (DD) in 5 holes at the Rosario del Alto target in the north of the Morros Blancos property. The targeting process from a semi-regional exploration program was based on the definition of a structural framework and remote sensing processes. Three prospective areas were identified at the intersection of first order NE-striking and NW-striking thick skinned fault zones, together with a 15 km x 3 km NE-oriented favorable hydrothermal alteration corridor.
Target delineation has been completed at the first prospective area named Rosario del Alto, where key elements of a high-sulphidation system have been field validated, including four maar-diatreme structures, multiplicity of phreatomagmatic breccias extending over an area of ~2 km x 1 km, and a preserved structural block based on shallow volcanic features and high-level hydrothermal alteration.