Atocha

The ATOCHA project consists of 2,585 ha of highly prospective ground, in northern Tolima, an area with excellent accessibility, favorable topography and working conditions.

Its extensive Colonial mining history provides ample validation why this area is regarded as the highest-grade primary silver district in Colombia, with historic silver grades reported as among the highest in Latin America.

There is an exceptional geologic setting which translates into very favourable regional structures throughout the property (the “Atocha Corridor”), resulting in a very high vein densities with a vast number of high-grade silver-(gold) showings exposed right at surface within the property area. There are +25 km cumulative strike length of silver-gold bearing veins identified from surface exposures.

Highest gold and silver grades were obtained from previous operator Condor Precious Metals. A series of rock chip samples were taken in three exposures of the Veta Grande vein system and individual samples returned gold values as high as 14.65 g/t Au and 14.20 g/t Au, and highest silver values of 3,480, 2,300, 1,955 and 1,570 g/t Ag. Baroyeca discovered a new outcrop along the vein proving results as high as 14.4 g/t Au and 420 g/t Ag in chip samples from the western extension of the Veta Grande showings and extended an extra 100m the length of the identified high-grade shoot.

Baroyeca identified two new vein zones named El Erizo vein and Perrika vein in Q4-2020. Rock chip samples at El Erizo vein returned silver values as high as 951, 839, and 691 g/t Ag. Chip samples from Perrika vein returned 5.70 g/t Au and 696 g/t Ag and 6.91 g/t Au and 510 g/t Ag  and a parallel El Cucharo vein returned higher gold values (17.59, 15.01 and 10.89 g/t Au) and 217.6, 187.2 and 168.t g/t Ag.

La Ye vein zone demonstrated the existence of a major structural deformation corridor with a wide associated vein system. The primary vein system at La Ye is comprised of at least 6 major veins and several smaller associated parallel veins covering a strike length in excess of 500m, open in both directions. Mapping has been possible due to the existence of a vast number of exposures and outcrop occurrences and the first batch of rock chips collected in Q2-2021 at outcrops and sub-outcrops average 182 g/t Ag (or 304.4 AgEq).

A series of sub outcrops were found prospecting along the Tavera-Rancho Grande-Las Guaduas vein system that returned high-grade silver assay results with anomalous gold values (up to 969.3, 726.5 and 658.4 g/t AgEq) in grab samples extending its trend for more than 1km along strike.

During early 2021, local crews were prospecting the central part of the property and several additional vein exposures were found.

The Atocha Project’s potential has only been marginally explored and exposed.  The area has never been mined and there are no environmentally or culturally protected areas within the property

The Atocha project area is located within the historic colonial Santa Ana-Frias-Mariquita Silver District, which is the highest-grade primary silver district in Colombia.

The project is located in the Municipality of Falan in northern Tolima (Colombia), some 190 km west of the capital, Bogota, and the property elevation ranges from 700 to 1,100 metres (2,300 – 3,600 feet).

Favorable access to the project area is afforded by a paved road from Mariquita to the east, westwards to the town of Falan, 990 m. a.s.l., and thence by a network of rural (unpaved) roads south to the property. Alternatively, the project is also easily accessible from Armero-Guayabal via several unpaved roads to the northwest, off Route 43, the Ibagué Highway.

The Atocha project covers a significant part of the Santa Ana-Frias-Mariquita District where mining records date to at least 1585.
Historically, the region is famous for precious metals extraction by the indigenous people, who extracted native gold from unconsolidated Recent-Quaternary sediments, alluvial sediments and underground mining. Following the Spanish Conquest, more formal mining commenced, with extraction of gold and more importantly, silver specifically around the town of Falan to the North of the project. During the time the Spanish operated the mines, silver grades were reported to be some of the highest in Latin America.

As part of a compilation of abstracts from the Spanish Archives during the Colonial Period between the XV and XVIII Centuries, history recognizes Fernando Silvero to be the first discoverer of the gold and silver mines in Mariquita and Fálan circa 1585, these comprising four veins in the San Juan Bautista hill. In the same year, Captain Diego de Ospina, Matias de Saucedo and Pedro Henriquez mined rich veins in the area. The average smelter return for silver ore during those days was "4 marcos per quintal" (equal to approximately >17kg/ton Ag), according to official reports of Hacienda Santa Fe (year 1585), and reported widths exceeding 1 1/2 varas (4 1/2 feet). Subsequent exploration discovered some more veins in the Santa Ana (today Falan) and Frias regions, adding 14 new mines to the district, all of them producing over one marco of silver per quintal (approximately 4.3kg Ag per ton). D. Antonio González, President of the New Kingdom, described in a summary of the gold and silver mines discovered in the Mariquita and Fálan areas as follows: "these mines exploit three main veins striking North-South and a fourth striking Northeast, with strike lengths over 8 km (1 1/2 castillian leguas)". In a document dated 1640 by Gonzalo de Murillo Velarde and Antonio Gonzalez describing the heyday of the Santa Ana and Lajas mines between the years 1585 and 1620. In 1795 the King of Spain suspended all mining operations in the area due to the financial and material losses from mineral processing, which in part related to conflicts with the Amerindian workforce, the increase of labour costs, and the lack of production from the Spanish themselves.

Spanish mining was superseded by the British, commonly in the form of Cornish migrants who worked their way through Central and subsequently, then Southern America. In 1824 a lease was granted to Herring Graham and Powles from London, UK, but they made little or no profit during the 50 years they were mining the area. The Santa Ana and La Manta leases expired in 1874, and the mine was bought back by the Colombian Government at a very low price, whist discrediting the British mining company’s lack of success in the process. A less than enthusiastic British work ethic in the hot and humid tropical environment and their overall behaviour compounded the company’s woes. The British engineer Robert Stevenson worked briefly in the Falan area, leaving well-preserved old mine workings and reports indicating the relatively extensive underground mine development within and around the town of Falan, and also several kilometres to the South, in a second mining area operated by the British called El Cristo mine, together with another extensive mining infrastructure located at the headwaters of the Jimenez creek, near the northern boundary of the Atocha project.

The last gold-silver rush started in the area in the 1930's, with focus on existing or past producing mines. As a result, 4 mining districts (re)-started: Ibagué, Anzoategui, Santa Isabel and Líbano.

atocha geology 1

The Cajamarca Complex, which consists of highly deformed gneisses and schists, meta-intrusions and basement gneisses underlies the Atocha project. The project also contains later Cenozoic supra-crustal rocks and deposits, and is intruded by plutons and stocks of various ages including the Cretaceous – Eocene age El Hatillo and Mariquita stocks. A narrow, north-south trending sequence of Grenvillian gneiss and schist (grey), the Chicamocha gneisses, forms the eastern boundary of the property.

Gold-silver mineralisation is located within the Palestina (NW), Otú-Pericos (East) and the North-South trending Mulatos fault. Mineralisation at the Atocha project appears to be modified more by the late, Mesozoic, Cretaceous to Miocene age, brittle faulting, with mineralised veins usually hosted by north-east trending, sub-vertically to steeply east-dipping normal and reverse faults. The main mineralisation may retain the postulated early phase of orogenic-related mineralisation, but it should be emphasised that the area has a locally significant epithermal overprint.

Overall, veins in the district are hosted by sub-parallel, oblique-slip normal faults and extension fractures striking between 030° and 060° and dip moderately to steeply north-west. These fault orientations host some of the richest veins of the district, including La Ye, Veta Grande, NW Veins, Tavera-Guadua and the recently discovered El Erizo vein.
Vein textures include crustiform banding, breccias, and cockade textures, suggesting that vein opening and filling was episodic, with several episodes of fault movement related to brecciation and mineralization. Veins in the district are hosted by folded, metamorphosed Palæozoic schists (basement) and are generally narrow, and locally anastomosing, with anomalous silver grades (<5 oz/t Ag) or small zones of high-grade ore (>15 oz/t Ag). It has been observed that for some veins (e.g., NW Vein, Veta Grande W, and elsewhere, e.g. around Santa Ana-Falan), significant mineralisation (taken as >50 oz/t Ag) was present near E-W trending aplite-diorite stocks.

The lineament pattern for the area covering the Atocha project, is based on satellite and photographic interpretation and limited prospecting and geological investigations. Postulated mineralised veins discovered during the prospecting are shown in red and coincide with a regional marked structure that seems to be controlling the Silver-Gold mineralization in the property, and we refer to it as the “Atocha Corridor”. Precise trends and strike extent are inferred due to the exploratory nature of past work, but much of Atocha property remains unexplored.
Elongate intrusions such as the 53 ± 1.8 Ma (Paleocene – Eocene) El Hatillo stock crop out along the NW side of the property and the spatial relationship between the Santa Isabel and El Hatillo stocks and vein (gold) mineralisation is well known, with some areas currently being developed and in production as small mining operations.

All exploration from 2012 to 2014 was carried out by Condor Precious Metals Inc. A series of Ag-(Au)-polymetallic veins were discovered by Condor geologists prospecting in the north-west corner of the property/ Vein exposures noted in creeks are predominantly ENE-WSW oriented, with sub-vertical dips, and hosted in dark grey weakly chloritic and/or chlorite-graphite schist within more quartz rich sediments.

Highest grades were obtained from sampling of the Veta Grande East, on the eastern side of Socorro creek. A series of chip samples were taken in three exposures of the vein and individual samples returned gold values as high as 14.65 g/t Au and 1,370 g/t Ag, 14.20 g/t Au, and highest silver values of 3,480, 2,300, 1,955 and 1,570 g/t Ag.

map1a july6

Veta NW is exposed in a tributary creek about 100m outside of the western side of the property boundary. Results from this outcrop are bonanza grade (up to 9 g/t Au and 1,030 g/t Ag, 19.9 g/t Au and 311 g/t Ag, 7.10 g/t Au and 525 g/t Ag and 7.49 g/t Au and 178 g/t Ag) and the vein shows fragments at least 0.6m thick. The vein within the property boundaries is covered by a thick gravel deposit that prevented additional sampling.

Several series of channel samples were taken from 'La Ye' vein and individual samples returned gold values as high as 2.09 g/t Au and 412 g/t Ag and 3.96 g/t Au and 141 g/t Ag. Work focused on La Ye vein zone by BGS included systematic mapping and structural interpretation from Lidar imagery and DEM that proved the existence of a major structural deformation corridor with an associated vein system. The primary vein system at La Ye is comprised of at least 6 major veins and several smaller associated veins covering a strike length in excess of 500m, open in both directions. Mapping has been possible due to the existence of a vast number of exposures and outcrop occurrences and the first batch of rock chips collected at outcrops and sub-outcrops average 182 g/t Ag (or 304.4 AgEq).

map2a july6

Two parallel channel samples were taken of the Tavera vein, over an averaged 1.85 m interval, returned 5.20 g/t Au and 66.78 g/t Ag. The best intersections were 0.4m at 14.8 g/t Au and 217 g/t Ag, 0.4m at 9.67 g/t Au and 80.6 g/t Ag, and 0.4m at 5.11 g/t Au and 151 g/t Ag. Individual samples taken at the Tavera zone returned gold values as high as 14.8, 9.67, 5.11 and 4.9 g/t Au, and 217, 151 and 97.1 g/t Ag. A series of sub outcrops were found west of the Rancho Grande vein occurrence returned high-grade silver assay results with anomalous gold values (up to 969.3, 726.5 and 658.4 g/t AgEq) in grab samples extending its trend for more than 1km along strike.

La Esperanza vein crops out in a tributary West of the Santa Agueda creek, about mid-slope. The vein is exposed for about 15m, has an average 0.5m to 1m thickness, is shallow dipping (45°), and quite weathered. One sample returned 12.75 g/t Au and 74.30 g/t Ag. Fragments found downstream have good fresh textures and elevated sulphide content. There is another poor exposure along strike towards the West in a creek parallel to Santa Agueda, where float material has well-formed textures and mineralisation.

map3a july6

Baroyeca identified two new vein zones named EL Erizo and Perrika in 2020, where rock ship samples returned silver values as high as 951, 839, and 691 g/t Ag for the first and 5.70 g/t Au and 696 g/t Ag and 6.91 g/t Au and 510 g/t Ag for the second. El Cucharo vein was also found in 2021 returning high gold values (17.59, 15.01 and 10.89 g/t Au) and 217.6, 187.2 and 168.t g/t Ag. Other veins found include several parallel sets to known veins, such as El Arroyo vein, the extension of the Tavera-Las Guaduas vein set at Santa Agueda creek, Veta Blanca and several vein sets at the Jimenez Creek in the NE part of the property that are currently being evaluated and samples being sent to the lab for gold and silver assay results. The veins show an inferred strike length of at least 500m to >1,000m as inferred from outcrop, vein float and rubble, and historic workings.

Baroyeca Gold and Silver believes the Atocha project is the most prospective high-grade silver-gold exploration project in the Santa Ana-Frias-Mariquita historic colonial silver district, and that the project potential is significantly enhanced by the recently recognized high-grade gold zones in veins. Historic colonial mining records, and limited historic drilling and high values in rock samples all indicate exceptional potential for the Atocha project.

Exploration activities proposed for 2021 will consist of surface detailed structural mapping, trenching and soil geochemical sampling directed to gather further information to confirm the extent and number of veins present, their widths, structural controls, ore shoot characteristics, geochemistry and alteration. The collected data will be used to better define drill targets for an approximate 10,000 meter drill program during Q3-Q4 2021 extending into 2022.

Alongside this work, Baroyeca will work with the local communities and authorities to promote awareness of the project and promote inclusion of all stakeholders, fostering collaborative work that will generate mutual benefits for the company and the local communities.

 

2012-2021 Gold and Silver rock chip sample results Atocha Project

tablechartjuly6

[AqEq converted using a silver to gold ratio of 75:1 at recoveries of 100%]

The scientific and technical information has been prepared in accordance with the Canadian regulatory requirements set out in National Instrument 43-101 (Standards of Disclosure for Mineral Projects) and reviewed and approved on behalf of the Company by Raul Sanabria, MSc. P.Geo. a Qualified Person as defined by NI 43-101 (the “Qualified Person”).