Yanamina is an advanced-stage gold property located in the Department of Ancash in north-central Peru. The Ancash region is bordered by the La Libertad region on the north, the Huanuco and Pasco regions on the east, the Lima region on the south and the Pacific Ocean on the west. Yanamina is located approximately 16 kms east of the town of Caraz, which is located approximately 93 kms north of Huaraz, the largest city in the region with a population of 150,000 and the capital of Ancash. Huaraz is located approximately 400 kilometres north of Lima.
Located on same fault structure hosting Barrick’s Pierina (past-producer) and Lagunas Norte (current-producer) Gold Mines. Regionally, intense faulting associated with the Ancash Fault Zone has provided conduits for gold bearing hydrothermal solutions, giving rise to a number of gold occurrences and deposits in the region, from encouraging prospects to former producers and operating mines, including Barrick’s formerly producing Pierina Gold Mine and its currently producing Alto Chicama/Lagunas Norte Gold Mine.
The mineralization at Yanamina was originally explored by Arequipa Resources Ltd. (“Arequipa”) in the early 1990s.
Arequipa completed regional prospecting, rehabilitated several of the historical tunnels, drove three new adits and completed 62 diamond drill holes totaling 2,670 metres.
In 2000, Barrick acquired Arequipa and thereby Yanamina. In 2006, Latin Gold Limited acquired an option to purchase 100% of Yanamina from Barrick, subsequently completing a program of channel sampling and 25 diamond drillholes totalling 1,468 metres. Yanamina was acquired by Coronet Metals Inc. in 2011, which has not carried out any further exploration since that time.
The Company acquired the Peruvian subsidiary of Coronet, effective October 7, 2015^. As a result, Wealth now has 100% ownership of the Yanamina Gold Project in Peru.
Historical Exploration & Resource Estimate
4,138 metres (87 drill holes) of historical drilling was completed by Arequipa Resources Ltd. (1994-95) and Latin Gold Ltd., (2006-07). Arequipa also constructed 3 adits and there are numerous additional adits and tunnels on the property.
In February 2011, Southampton Associates Inc. prepared a resource estimate for the Yanamina property.
Mineral Resources** Yanamina Gold Deposit
0.50 gpt Au Cut-off grade
||Au Total Ounces
(Source: 2011 NI 43-101 Technical Report by Southampton Associates Inc. for Coronet Metals Inc. as filed on sedar.com)
The Company cautions that the historical resource estimate was prepared prior to the Company’s involvement with the Yanamina property and is therefore historical in nature, and the Company is not treating the historical estimate as a current resource under 43-101. Investors are further cautioned that a qualified person has not yet completed sufficient work to be able to verify the historical resources, and therefore they should not be relied upon.
*Au analysis – AA24 original assay, ALS Laboratories
** Ag analysis – AA61 original assay, ALS
+ Drill holes and assays from 2006 Latin Gold Drill Program
Yanamina is located partially within the buffer zone and limits of the Huascaran National Park. The Company has been advised that mining operations in the buffer zone can be permitted within the current Peruvian legislative framework, subject to strict compliance with all required environmental standards, including extensive reclamation requirements. The Nueva California Mine, located within the buffer zone 17 km to the south of Yanamina, sets a useful precedent for mining activity in the buffer zone. Previous operators at Yanamina, Arequipa and Latin Gold Limited, were able to secure the issuance of required permits, drilling a total of 87 holes under separate drill permits.
An environmental impact study is a requirement of the exploration work permit application, and a community baseline report is a component of the EIS. Valid work permits for exploration activities at Yanamina were issued as recently as 2007 (expired in 2010). However, due to issues arising from activities apparently carried out by a subsidiary of a major energy company involving water extraction from a local reservoir/lake, the local community of Cruz de Mayo successfully opposed the issuance of a permit for further exploration work applied for by Coronet Peru (then owned by Latin Gold Limited) in 2010. The Company believes that the issues arising from this event can be satisfactorily resolved, and that the local communities can be successfully involved in the process of moving the development of Yanamina forward.
Wealth has commenced the negotiation of a long-term community agreement with the Cruz de Mayo community and surrounding communities, aiming to secure the necessary social license to operate. Mr. Tang, the recently appointed Chief Operating Officer of Wealth, has recently relocated to Peru to open a regional office and has been working with the applicable communities to secure their support for the project.
Following the issuance of the required permits, Wealth’s initial focus would be to complete resource expansion and definition drilling at Yanamina. Much of the early drilling at Yanamina was focused on the upper zone and was too shallow to intersect the lower zone. Drillholes in the deposit average 61 metres in depth, although drillholes intersecting only the upper zone average only about 30 to 40 metres in depth. Future work will focus on infill drilling in the lower zone in the areas north and south of the known deposit before expansion drilling begins. However, at this time the Company is unable to predict with any certainty when it will be in a position to apply for the required permits and therefore when such permits may be issued, or the costs required to secure such permits.
John Drobe, P.Geo., a qualified person as defined by National Instrument 43-101, has reviewed the scientific and technical information that forms the basis for the technical disclosure with respect to the Yanamina property on this website, and has approved the disclosure with respect thereto herein. Mr. Drobe is not independent of the Company, as he is a shareholder and holds incentive stock options.