Who Needs Drill Rigs When Roadwork Reveals Mineralization

Source: Streetwise Reports 03/01/2018

Road repairs exposed significant new mineralization at surface at a copper-gold project in Argentina that one analyst has called out for having a ‘blockbuster discovery hole.’

After Centenera Mining Corp. (CT:TSX.V; CTMIF:OTCQX) received its mining permit for its Esperanza copper-gold project in San Juan province in Argentina last November, it upgraded 40 km of access roads. Heavy rains and flash flooding damaged the roads, and in reconstructing them, the company announced on Feb. 21 that the “required earthworks have exposed significant new mineralization at surface, expanding the previously known footprint of mineralization to the southeast.”

“The Esperanza copper-gold porphyry project [is] an outcropping Cu-Au porphyry system with a blockbuster discovery hole.” – Peter Epstein, Epstein Research

According to Centenera, “the exposed mineralization is hosted in intensely altered rock interpreted to be part of the highly-prospective Canyon Stock which now appears to extend significantly further to the southeast than previously known.” It noted that it will complete mapping and sampling over the next few weeks.

The company also announced that it has begun drilling the project. Seven holes drilled in 2006-2007 by Cardero Resource Corp. intersected what Centenera is calling “significant copper-gold mineralization,” and noted the following highlights in its Feb. 21 news release:

  • Best intersection is 353.1m from surface, grading 0.35% copper and 0.18 g/t gold (0.49% copper equivalent) including 243.1m grading 0.40% copper and 0.21 g/t gold (0.57% copper equivalent)
  • Mineralization is outcropping at surface with a pyrite halo extending over a 1,400m x 850m area
  • Drill holes generally intersected mineralization at surface
  • Mineralization is open all directions
  • Majority of drill holes terminated in mineralization (due to the depth limitations of the drill rig) and are open at depth
  • Several drill holes demonstrate increasing grade with depth

Peter Epstein of Epstein Research wrote on Dec. 1, 2017, that Centenera Mining is a “100% Argentina-focused junior mining company with attractive assets spanning copper (Cu), gold (Au) & lithium (Li), and a cheap valuation.”

He noted that the company’s “most important asset to watch, at least in the short-term, is the Esperanza copper-gold porphyry project (formerly known as the Huachi project), an outcropping Cu-Au porphyry system with a blockbuster discovery hole that had a giant intersection of 353m grading 0.49% Cu Eq, (including 243m at 0.57% Cu Eq and 88m at 0.69% Cu Eq).”

“Esperanza is within 35 km of power lines and has year-round road access. It is located at elevations between 2,800m and 3,250m, low relative to other projects in the Andes. Exploration can be conducted year-round,” Epstein noted.

Epstein also drew attention to the March 6, 2017, technical report, which stated, “Cardero was successful in identifying both widespread porphyry copper and low sulphidation epithermal gold style mineralization.” (Source: Page 51 of Huachi Technical Report).

“Historical exploration,” Epstein noted, “points to targets to be drilled in January that could provide evidence of a scale that attracts considerable attention.”

“I believe Esperanza’s valuation more than covers the entire market cap of the company. If true, that means investors today are getting all of Centenera Mining’s other properties/projects for free,” Epstein concluded.

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Disclosure:
1) Patrice Fusillo compiled this article for Streetwise Reports LLC and provides services to Streetwise Reports as an employee. She or members of her household own shares of the following companies mentioned in this article: None. She or members of her household are paid by the following companies mentioned in this article: None.
2) The following companies mentioned in this article are sponsors of Streetwise Reports: None. Click here for important disclosures about sponsor fees. As of the date of this article, an affiliate of Streetwise Reports has a consulting relationship with Centenera Mining Corp.
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5) From time to time, Streetwise Reports LLC and its directors, officers, employees or members of their families, as well as persons interviewed for articles and interviews on the site, may have a long or short position in securities mentioned. Directors, officers, employees or members of their immediate families are prohibited from making purchases and/or sales of those securities in the open market or otherwise from the time of the interview or the decision to write an article, until one week after the publication of the interview or article. As of the date of this article, officers and/or employees of Streetwise Reports LLC (including members of their household) own shares of Centenera Mining Corp., a company mentioned in this article.

Additional disclosure for Epstein Research as of Dec. 1, 2017

At the time this article was posted, Peter Epstein owned shares and stock options of Centenera Mining and the Company was a sponsor of Epstein Research. Additional disclosures are available here.

( Companies Mentioned: CT:TSX.V; CTMIF:OTCQX,
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