The Padre Antonio Project , Ricardo A. Valls, Valls Geoconsultant, 1008-299 Glenlake Ave, Toronto, ON, M6P 4A6, Canada. E-mail: [email protected]

DOI: 10.17605/OSF.IO/NZCWQ Abstract The Padre Antonio Project is located in western Guatemala, specifically, east of the village of Santa Eulalia in the . This property is held by Creso Resources Inc., under the Exploration License No. LEXR-702. The property has an area of 24 km2 in rugged terrain, which range in elevation between 2,000 and 2,500 meters (AMSL). The main access to the property from Guatemala City is through 246 km of reasonably kept highway CA-1 to the city of Huehuetenango. From Huehuetenango one travels north for another 87 kms to the village of Santa Eulalia, passing through , La Capellanía, and Soloma. Temperatures are pleasant through most the year ranging from 25 to 30º C during the summer and 15 to 25º C during the winter months. There is little mining tradition in the Santa Eulalia area. The Padre Antonio Project was discovered by an Italian immigrant turned prospector after he organized a stream sediment sampling of the Tziquiná river that crosses the area. Near the highest copper value samples, located almost at the centre of the license, Mr. Bruno Montuori then organized the digging of a 7 meters pit that found massive chalcopyrite and abundant secondary copper minerals. Creso Resources Inc of Montreal, Canada, bought the mining rights from Mr. Mortuori early in 2005. In mid 2005 Creso completed a self potential (S.P.) survey over one square kilometer around the discovery pit and a soil sampling survey for the same area. The SP survey discovered four vertical conductors around 70 meters in diameters and at least 75 meters in depth. The geochemical soil survey confirmed the S.P. results. Based on these results Creso has initially extended the original area of license to an exploration license of 70 square kilometers and one reconnaissance licenses of 504 square kilometers. The regional geology of the Huehuetenango area belongs to that of the North American Plate in spite that it is bounded, to the south, by a sequence of active faults (Polochic, Río Negro, etc.) that represent the North American – Caribbean Plate boundary. The oldest rocks in the region are metamorphic Paleozoic schist of the Chuacús Series, Pelagic shales and mudstones are then deposited over the metamorphic basement during the Carboniferous and massive carbonates are subsequently deposited over the pelagic sediments during the Permian. At the end of the Permian, there is a hiatus of approximately 51 million years. Uplifting and possibly the first interplate tectonism resulted in the abduction of the oldest ophiolitic belt (Huehuetenango ophiolites) of the region. During the Upper Jurassic more carbonates of the Todos Santos Fm. are deposited. The Upper Cretaceous, and Lower Tertiary periods are tectonically very active with the deposition of clastic 1 and volcanoclastic deposits and the intrusion of granitic rocks. Also during these periods, occurs the emplacement of several of the ophilitic complexes of Central Guatemala. Locally, sandstones with interbedded of limestone are in fault contact with slates to the north of the Tziquiná River which occupies the trace of the fault. The discovery mineralization is contained entirely within the volcano-sedimentary unit. Our working model proposes the existence of a sedimentary type deposit in the area. The vertical pipe-like zones of conductivity discovered by the self-potential (SP) survey done by Creso, are interpreted as mineralized vertical breccias pipes controlled by the presence of a reduction environment and organic material. The soil survey done at 100x100 m spacing in the previously cut geophysical grid and a Spatiotemporal Geochemical Hydrocarbons (SGH) testing of the same area was carried out. The soil survey confirmed the presence of localized anomalous copper zones. These anomalous Cu zones are however displaced downslope which is normal in steep tropical weathering environments. The limited exploration work done at the Santa Eulalia region and the preliminary work done by Creso Resources does not entitle us to speak of quantities, resource, much less reserves, however the evidence thus far obtained, points out towards what may result in a very interesting discovery of a new mining camp. It is recommended that the soil sampling grid be extended along strike to search for further high copper soil anomalies. Also, an IP (dipole-dipole?) survey may help to further define the lower configuration of the vertical zones of conductivities and one “discovery” diamond drill holes should be drill in each of the zones at different elevation to test the ore shoots or breccias pipe interpretation. Key words: Copper, , Guatemala, Huehuetenango, massive sulphides, SEDEX.

Resumen

La geología regional del área de Huehuetenango pertenece a la de la placa norteamericana a pesar de que está limitada al sur por una secuencia de fallas activas (Polochic, Río Negro, etc.) que las rocas más antiguas de la región son los esquistos metamórficos, arcillas y pizarras del Paleozoico de la serie Chuacús, que se depositan sobre el sótano metamórfico durante El Carbonífero y los carbonatos masivos se depositan posteriormente sobre los sedimentos pelágicos durante el Péran. Al final del Péran, hay un hiato de aproximadamente 51 millones de años. Posiblemente el primer tectonismo interplaca resultó en el secuestro de las rocas más antiguas del cinturón ofiolítico (Ofiolitas de Huehuetenango) de la región. Durante el Jurásico superior se depositan más carbonatos de la formación Todos Santos. La parte superior del Cretácico, y los periodos terciarios inferiores son tectónicamente muy activos con la deposición de y depósitos vulcano-clásticos y la intrusión de rocas graníticas. También, durante estos periodos, ocurre el emplazamiento de varios de los complejos ofiolíticos del centro de Guatemala. 2 Localmente, las areniscas con intercalaciones de calizas están en contacto de falla con las pizarras al norte del río Tziquiná que ocupa el rastro de la falla. La mineralización del descubrimiento está contenida enteramente dentro de la unidad volcán-sedimentaria. Nuestro modelo de trabajo propone la existencia de un depósito de tipo sedimentario en la zona. Las zonas verticales de conductividad como tuberías descubierto por la encuesta de auto potencial (SP) realizada por Creso, se interpretan como brechas verticales mineralizadas controladas por la presencia de un entorno de reducción y de productos orgánicos. Se realizó un muestreo de suelo y de suelo-gas-hidrocarburos (SGH) con una grilla de 100x100 m sobre la grilla geofísica. Estos muestreos confirmaron la presencia de zonas locales de cobre anómalas. Estas zonas anómalas de Cu están desplazadas cuesta abajo lo cual es común en ambientes de intemperie tropicales escarpados. El trabajo de exploración limitado realizado en la región de Santa Eulalia y el trabajo preliminar realizado por Creso Resources no nos da derecho a hablar de cantidades, recursos, mucho menos reservas, sin embargo la evidencia hasta ahora obtenida apunta hacia lo que puede resultar en un descubrimiento muy interesante de un nuevo Se recomienda que la grilla de muestreo de suelo se extienda a lo largo de la dirección de mineralización para buscar otras anomalías del suelo de cobre. Además, un levantamiento de PI (dipolo-dipolo?) puede ayudar a definir mejor la configuración de las zonas verticales de conductividades. Se recomienda así mismo perforar cada una de las zonas identificadas a diferentes elevaciones verificar la distribución de la mineralización. Palabras claves: Cobre, oro, Guatemala, Huehuetenango, sulfuros masivos, SEDEX.

Introduction The author visited the license in several occasions and has personally mapped most of the area, as well as organized and/or participated in all stages of the field work in the area. All coordinates in this report correspond to the NAD 27 Central American datum. The author used data from previous exploration studies conducted by Transmetales Ltda. (Transmetales), Cominco Resources International Limited (CRIL), Nichromet Guatemala, S.A. (NG), and other companies. We have adhered to the metric system and all the costs are expressed in US dollars.

Property Description and Location The present report covers the exploration license Padre Antonio folder number LEXR-702 in Guatemala, in the of Santa Eulalia in Huehuetenango (Fig. 1).

3 Figure 1. Location of the Padre Antonio copper project in Huehuetenango, Guatemala. Each square in the map to the left represents one square kilometer. The municipality of Santa Eulalia limits to the north with San Mateo Ixtatán and Barillas of the Huehuetenango Department to the east with and Nebaj (Quiché Department) and to the south with Soloma y San Rafael la Independencia (Huehuetenango Department). It takes almost a day to travel by car from Guatemala City to the town of Huehuetenango. From there, one travels north for about 6 km to the village of Chiantla, and then another 15 km north to La Capellanía. Another 40 km north take us to San Juan Ixcoy, then another 13 km to Soloma, and then another 13 km to the village of Santa Eulalia. There are no mine workings, tailing ponds, or waste deposits in the vicinity of the licenses. Table 1 shows the limits of this property.

4 Table 1. Coordinates of the exploration license Padre Antonio in Huehuetenango, Zone 15. Corner UTM E UTM N 1 662,000 1745500 2 670,000 1745500 3 670,000 1742500 4 662,000 1742500 Accessibility, Climate, Local Resources, Infrastructure, and Physiography Accessibility and Physiography As shown in Fig. 2, the license is located within a rolling country covered with tropical vegetation and elevations varying from 1000 to 4000 meters a.s.l. within the Sierra de Cuchumatanes.

Figure 2. Regional relief of the Huehuetenango District. Accesses to the license is through paved roads in reasonably good shape combined with dirt roads that can be traveled by 4x4 all year around. A trip by car from Guatemala City to Huehuetenango may sometimes take a full day, and another half day to get from Huehuetenango to the area of the project. Although the distances are not large, the terrain is very rugged and the roads are full of very tight bends, which force a rather slow speed while traveling there. Climate The tropical climate of the region, with an average precipitation of 2500 mm per year, allows for all-year-round operations. The average annual precipitation is between 2,065 to 3,900 mm. The raining season goes from May to October, been dry during the remaining months.

5 Temperatures during the wet season are more moderate and it is a common practice to carry out the majority of the field work during the months of May to October. During the winter months, the temperatures range between 12.5º and 18.6º centigrade, whereas during the wet season it ranges between 20º to 30º centigrade. Local Resources and Infrastructure There is no abundance of electrical power in the area, and personnel for mining activities are difficult to find. Within the main license suitable places for potential tailing storage can be found, as well as a place for the location of a modular pilot plant to process the ore.

History The area was discovered by Mr. Bruno Montuori after organizing a stream sediment survey of the Tziquiná river that crosses the area from east to west along a major fault system. The stream sediment showed a strong copper anomaly almost at the centre of the property and a 7 meter pit on top of this geochemical anomaly unearthed a lens of massive chalcopyrite with abundant secondary copper minerals, and copper values of 25 to 31%. Limited mapping was conducted over the next three years at which time Creso Resources Inc. bought the mining rights from Mr. Montuori. In 2005 a second pit was started next to the initial one but could not reach the 7-meter target due to the presence of hard rock. Disseminated values of copper in the matrix of the volcano-sedimentary unit showed values of copper next to 10%. The company then completed a self-potential (SP) survey and soil geochemical sampling of one square kilometer around the main copper anomaly and discovered four vertical conductors (ore shoots?) of around 70 meter in diameter and at least 75 meter in depth. These geophysical anomalies were confirmed by the soil geochemistry.

Geological Setting Regional Geology A map of the regional geology of Guatemala is presented in Fig. 3.

6 Figure 3. Regional geological map of Guatemala.

7 The oldest rocks in the region are Paleozoic. They are mainly composed by schists and other metamorphic rocks of the Pre-Permian Chuacús Series (Fig. 4-A). Around 300 million years ago, during the Carboniferous, a deposition of marine sediments and conglomerates near the beach was followed by sandstones and shales at greater depths (Santa Rosa Group). Simultaneously, granitic and dioritic batholiths intruded the Paleozoic basement (Fig. 4-B). During the upper Jurassic to the Lower Cretaceous Period, deposition of limestones and other carbonate rocks occurred (Todos Santos Formation). A hiatus of nearly 51 million years during the Triassic Period is present, when the sea retreated, and no significant deposition occurred (Fig. 4-C). Exposure of these rocks to oxidizing conditions in a tropical environment may account for the formation of the Upper Jurassic red beds (Pindell, 1994). The Upper Cretaceous to Lower Tertiary Periods were very active, with the deposition of more clastic sediments, volcanoclastic deposits (Jalomáx Fm.), and the intrusion of granitic, dioritic, and ultramafic bodies corresponding to the Ixcoy, Cobán, Campur, and Verapaz Fms., and the Petén group. So far, five ophiolitic events that occurred along the major Polochic and Motagua Faults have been identified (Fig 4-D). These ultramafic bodies average 80 km in length and 0.2 to 20 km in width. They are generally formed by an heterogenic mix of websterites, lherzolites and dunites, with subordinate amounts of basalts and gabbros. Seawater and a heat source associated with the subduction event created a perfect environment to start the serpentinization of these rocks. The Paleocene and Eocene Periods witnessed the deposition of more marine sediments, mainly conglomerates, near the shores and sandstones and shales at greater depths (Subinal Fm.). During the Eocene Period more red beds were formed, which indicates another period of sea-regression. This hiatus is characteristic of the entire Caribbean Plate (Fig. 4-E). The Holocene formations are represented by Quaternary alluvial and deluvial material as well as by lavas and tuffs from active volcanoes (Guastatoya, Toledo, Desempeño, Lacantun, Caribe, Río Dulce, and other younger formations, Fig. 4-F).

8 Figure 4. Scheme of the Geological Evolution of Central Guatemala. Figure 5 shows a regional geology of the Huehuetenango area, based mostly on air photo interpretation.

9 Figure 5. Regional geology of the Huehuetenango area (see legend in Fig. 3). Finally, Fig. 6 shows a preliminary stratigraphic column for the area, compiled from Millan, S. M. (1985) and the mapping efforts of P. Geo. Ricardo Valls. Undoubtedly, the stratigraphic column will change as we gain a better understanding of the geology of the area.

10 Figure 6. Stratigraphic column of the studied area.

11 Local Geology Only limited local mapping has been conducted to date, mostly by P. Geo. Ricardo Valls. The most important point was the discovery of a large tonalitic intrusive that could be the source of mineralization in the area (Fig. 7).

Figure 7. Outcrop of a tonalitic intrusive near Padre Antonio license. The current working geological model for the Padre Antonio license is shown in Fig. 8.

Figure 8. Current working geological model of the Padre Antonio license.

12 Locally, sandstones with interbedded clays toped by limestones are in a fault contact with slates to the north of the Tziquiná River which occupies the trace of the fault. The discovery mineralization is contained entirely within the volcano-sedimentary unit associated to a highly tectonized zone in a reducing environment. The vertical pipe-like zones of conductivity discovered by the self-potential (SP) survey done by the Client are interpreted as mineralized breccias pipes.

Mineralization The geological environment of the Huehuetenango region is favorable for the location of sedimentary type of copper, lead, and deposits (SEDEX). The Author believes there is the possibility of finding also a copper porphyde type of mineralization within the limits of the license. So far, the most interesting discovery lies north of Santa Eulalia village, where they have intersected in a 7 meters handmade pit, massive chalcopyrite associated with quartz veining (Fig. 9) and abundant disseminated secondary copper mineralization (bornite, covelline, cubanite, etc.) in the matrix of the volcano sedimentary unit that hosts the chalcopyrite.

Figure 9. Massive chalcopyrite associated to a quartz vein unearthed by a 7 meter pit over a copper anomaly at Padre Antonio license. An assay done to this massive chalcopyrite at the SGS labs resulted in 20.7% Cu. A self-potential (SP) survey done by Consulting Geophysicist Juan Pablo Ligorria in May 2005 found several pipe-like vertical zones of conductivity. We believe that the chalcopyrite found in the pit corresponds to one of these vertical pipe-like zones of conductivity.

13 Disseminated secondary copper sulphides intersected by the pit above the massive chalcopyrite may correspond to supergene enrichment. Evidently this far the information that we have in the Padre Antonio Project, points towards a deposit model that is best typified by the sedimentary type rather than the porphyry type deposits.

Exploration The padre Antonio Project was discovered as a result of a limited stream sediment survey done by Mr. Bruno Montuori. Some thirteen (13) samples were taken and send for assaying to BSi, Inc., laboratory. Multielement ICP and AA finished Fire Assay was used to analyze these samples. The sample location is shown in Figure 10.

Figure 10. Discovery sampling location. The red square represents the location of the discovery pit. A seven (7) meter handmade pit found at the bottom massive chalcopyrite and secondary copper minerals (chalcocite, covellite, bornite, etc.) above the massive primary mineralization. Fig. 11 shows a photography of the pit. Notice the oxidized yellowish layer above and the volcanoclastic (sandstone) with disseminate secondary copper minerals. A quartz brecciated material follows just above the water.

14 Figure 11. Photograph of the discovery pit in Padre Antonio. Photogrametric and satellite image interpretation were commissioned to SatPhoto Inc. resulting in multiple alteration zones in the surroundings of the Padre Antonio Project (Fig. 12). Armed with a portable XRF pistol, geologists Ricardo Valls and Julio Pérez systematically tested the alteration zones near the Padre Antonio Project as shown in Fig. 13.

15 Figure 12. Satellite interpretation of alterations within the Huehuetenango District.

16 Figure 13. Geologist Julio Roberto Pérez (RIP) measures the geochemical signature of an alteration zone using a portable XRF pistol Many of the targets have been field checked by the client´s geologists and field determinations using the portable XRF equipment has confirmed the presence of copper, lead, zinc as well as traces of gold in surface samples. The Self-Potential survey of a 1 square kilometer around the pit that intersected the massive chalcopyrite identified several vertical conductors (ore shoots?) that correspond on surface with zone of incipient brecciation and a significant decrease in the grain size of the volcano sedimentary unit (Fig. 14).

17 Figure 14. Carrot model of the mineralization at Padre Antonio according to the SP survey The SP survey was done by geophysicist Juan Pablo Ligorría during May of 2005. This survey found four vertical zones of conductivity deeper than 100 meters. Zone of conductivity A coincides with the discovery pit so it is deduced that the conductivity seems to be caused by primary sulphides. We have adopted Steven E. Bushnell (1988) breccia pipe model described in his paper “Mineralization at Cananea, Sonora, and the paragenesis and zoning of Breccia Pipes in Quartzofeldspathic Rocks (sic)” to explain the zones of conductivity. Using the same grid, the Client conducted a soil survey and a Spatiotemporal Geochemical Hydrocarbons (SGH) test of the same area. The SGH results (Fig. 15) confirmed the presence of these vertical anomalies.

18 Figure 15. Results of the SGH survey over Padre Antonio. All samples for the soil survey were taken from a standard depth of 10 cm using a shovel. The instrument was cleaned between samples. Samples weighting up to 500 grams were placed in properly marked Zipplog plastic bags and delivered by truck to BSi Laboratories in Guatemala for standard preparation and analysis. Pulps were later on send to SGS Laboratories for the SGH study. Samples were prepared at BSi Laboratories in Guatemala, a lab with all the necessary certifications and the necessary equipment for this task. Analyses were completed at Reno by the same lab. The SGH study was conducted at SGS Laboratories in Canada. Both labs have the necessary certifications. Normal measures for the labeling, transportation, and handling of the samples was conducted by technical personnel with many years of experience on these activities. The soil survey was extremely useful for mapping and for confirming the geophysical targets. As you can see on Fig. 16, all the anomalies of the cluster analysis identifying copper targets are displaced downslope but correspond unequivocally to the geophysical targets. Mobile elements such as Copper and Zinc are often displaced by topographic effects and ground water in tropical environments.

19 Figure 16. Cluster analysis for copper over the central area of Padre Antonio license

Data Verification The author had the opportunity to test repeatedly the presence of mineralization in the area and in the main pit (which is now closed). Table 2 shows the results of three channel samples taken from a second pit, located 2 metre east of the first one, as well as one additional sample (Sample number GG-1) which was collected from the bottom of the first pit by geologist Julio Luna in 2006. Sample GG-1 was analysed at SGS Laboratories in Canada. Results of these samples are presented in Table 2. Table 2. Results of the independent sampling at Padre Antonio. Sample Cu, ppm Zn, ppm Au, g/t Ag, g/t As, ppm Mo, ppm S, % Meter 2 52.60 54.00 > 5.00 0.10 8.00 1.10 0.07 Meter 3 4.00 34.00 > 5.00 0.10 4.00 0.60 0.17 Meter 4 2440.80 97.00 > 5.00 1.00 34.00 27.80 2.58 GG-1 268000.00 > 500.00 0.15 5.20 > 20.00 N.D. 26.70 These four grab sample results clearly demonstrate that there is copper and gold mineralization present in interesting and potentially significant tenors at the Padre Antonio property. The results 20 do confirm the highly anomalous nature of the copper mineralization in the area, as reported by Julio Luna (2001) and Creso (2005). While the author received sample GG-1 from Julio Luna, it is clear that the mineralization in it is geologically congruent with the type of deposit we expect to find in the area and therefore the author has no reason to believe that the sample did not come from the main pit.

Adjacent Properties The area of Huehuetenango has been known before for the presence of some lead-zinc- mines and copper showings. The location of these mines is shown in Figure 17.

Figure 17. Location of mines in the vicinity of Huehuetenango.

Interpretation and Conclusions Let us summarize the evidence available from the Padre Antonio Project that will help on investing in such a project. First, we have anomalous high copper values in sediment samples 21 within the project area. Second, a seven (7) meter pit, hand dug at the location of the highest copper value, found chalcopyrite and disseminated secondary copper minerals. Third, a self potential survey done over one square kilometer with the pit at the center, showed four (4) pipe like zones of conductivity (The pit where the chalcopyrite was found is directly above the pipe like zone of conductivity “A”). Forth, an SGH survey confirmed the copper nature of the geophysical anomalies. Fifth, the interpretation of the satellite images clearly shows a large area of hydrothermal alteration that has been field tested by the author. All the above summarized evidence points out toward a sedimentary type of copper deposit that have pipe-like mineralized under the volcanoclastic unit in fault contact with the slates.

Recommendations The Author recommends a regional geochemical survey of the area, which may find other areas similar to Padre Antonio and likely controlled by a regional trend or structure. This is recommended since the geochemical signature seen at Padre Antonio may repeat in places nearby. Locally, it is recommended that the soil sampling grid be extended along strike to search for further high copper soil anomalies. An IP (dipole-dipole?) survey may help to further define the lower configuration of the vertical zones of conductivities and one “discovery” diamond drill holes should be drill in each of the zones to intersect the possible mineralization at different depths. Proposed Budget Since the author is not well aware of the current exploration facilities available and its cost in Guatemala and/or neighboring countries the amounts on Table 3 are tentative. Table 3. Proposed budget. Activity Rate Cost $, year Cummulative, $ Sr. Geologist 1000 $/d 60000 60000 Field Geologist (6) 3000 $/d 36000 96000 Auxiliary (6) 200 $/d 2400 98400 Transportation 2000 $/m 24000 122400 Ground Geophysics IP 40000 162400 Aerial Geophysics 50000 212400 Geochemistry 20000 232400 Drilling 100 $/m 60000 292400 Outsourcing 20000 312400 Contingency 15620 $ 328,020

References Lowell, J.D. and Guilbert, J.M. “Lateral and Vertical Alteration -- Mineralization Zoning in 22 Porphyry Ore Deposits.” Econ. Geology 65.4 (1970): 373-408. Republished in its entirety in Hutchison and Ross Benchmark Volumes edited by W.C. Lacy on Exploration Geology (1982). Luna, Julio R. et al (c. 2001), Geological and Mining Report on the “Padre Antonio” exploration license, Santa Eulalia, Huehuetenango, Guatemala. Ministry of Energy, Mines and Petroleum Resources of British Columbia, Canada, 2007, Deposit Types/Mineral Deposit Profiles, Sedimented-hosted Cu deposits, http://www.em.gov.bc.ca/Mining/Geolsurv/MetallicMinerals/MineralDepositProfiles/profiles/e0 4.htm Pindell, James L., 1994, Evolution of the and the Caribbean. Caribbean Geology: An introduction. Valls Alvarez, R. A., 2005. Reporte Anual. Tercer Año de Exploración en Padre Antonio, 20 pp, MEM of Guatemala. Valls Alvarez, R.A., 2007. Geology and Geochemical Evolution of the Ophiolitic Belts in Guatemala. A Field Guide to Nickel Bearing Laterite, Valls Geoconsultant, ISBN 1-896664-26- 1, 219 pp,

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