Iron Creek Capital Corp provide an exploration update on recent work completed by Hochschild Mining Holdings Limited the operators of the Victoria Joint Venture project. As a result of a recent cash call by the operators to Iron Creek, Iron Creek has declined the opportunity to contribute, and consequently will be diluted from its previously held 40% interest in the project, to 33.88%.
The Victoria Property an outstanding 37km long land package along the Domeyko Fault Zone in northern Chile, located approximately midway between the world-class porphyry copper districts at La Escondida and El Salvador is prospective for porphyry copper deposits and epithermal precious metals systems, and contains multiple targets.
Further drilling at the Picaron porphyry copper target, which now totals 3,707m in seven diamond drill holes, has cut a fully formed, dioritic porphyry copper-gold-moly system, with multiple intrusive phases and veinlet types, but with low metal grades to date. However, the system remains open, particularly to the east under post-mineral cover. Further drilling under the cover will be considered in the future.
A third round of vertical reverse circulation drill holes was completed by the operator at the Picaron Exotic target during September and October of 2012. 1,294m were drilled in 15 RC holes, making an overall total of 4,552m in 50 holes on this target since late 2011. The latest round of drilling has extended the exotic copper oxide mineralization in the young gravels further to the north and northwest. Analytical results from the latest phase of drilling are still pending. One principal horizon of exotic copper mineralization occurs at approximately 30m depth below the surface, with a less well developed secondary horizon at approximately 50m depth below the surface. Picaron Exotic is important both as a target in its own right, but also to trace the supergene mineralization back to its hypogene source.
Drilling of possible porphyry copper mineralization has been carried out by the operator at the Victoria II target located to the east of the Cenizas target. Victoria II was previously tested as a precious metals vein target with 2,015m of reverse circulation drilling in 9 holes completed. In September and October of 2012, the operator drilled a further 1,686m in five reverse circulation holes to test coincident Cu, Mo, Au and Ag surface geochemical anomalies associated with a zone of sericitic alteration, abundant hydrothermal breccias, and an anomalously low magnetic feature. Analytical results are pending.
During the quarter, the operator initiated a three hole reverse circulation drill program at the Incahuasi porphyry copper target, planned to total 1,250m. To date, approximately 450m of this program had been completed, with results pending. The target comprises well developed hydrothermal alteration coincident with anomalous surface geochemistry, particularly molybdenum, and an outcropping quartz-iron-oxide (oxidised sulphides) veinlet stockwork.
An experienced consultant geologist contracted by the operator has completed a property-wide geological mapping and review process in order to help determine priorities for future exploration work from the multiple targets available.
Mr Tim Beale president of Iron Creek comments that "Although the Victoria property remains highly prospective for both porphyry copper mineralization and precious metals mineralization, with a number of targets subject to ongoing exploration, and several other targets requiring future exploration investment, current market conditions dictate that Iron Creek must reduce its interest in the project in order to bring future financing commitments to a more manageable level."