The Potrerillos Concession, which covers an area of 12km2, contains a number of abandoned shafts and adits, testament to brief, interrupted periods of gold mining activity along a Palaeozoic schist belt known as the Guayape Suture Zone. The gold mines of the Potrerillos Concession were processed less than 1km south of the concession at the historic San Albino Mine. The San Albino Gold mine, which hosts a CIM Indicated mineral resource of 384kt at 8.47g/t for 95,000 oz gold equivalent and an Inferred Mineral resource of 3371kt at 7.43g/t for 805,000 oz gold equivalent (using a 1:60 Au:Ag ratio; TSX-listed Golden Reign resources, January 2013) recorded an average daily production of 10t at 31g/t gold (for 10oz gold per day) during a brief period of production between 1922 and 1923, before revolutionary activity halted mining. Production at San Albino briefly resumed between 1938 and 1940 as a local enterprise on a smaller scale for which records are not available. Estimates place the regions total production at up to 20,000oz gold. Panning the river and stream beds for free gold continues on an ad hoc basis to this day.
Four prospects have been identified to date along a 3,500m long segment of the Guayape mineralised corridor within the Potrerillos Concession. Gold mineralisation is contained within mesothermal quartz veins, hosted by a Greenschist facies metasedimentary package which is dominated by graphitic schist. The quartz veins strike parallel to the regional trend (northeast) and dip at 30° to 45° to the northwest.
In addition to regional rock chip sampling, Condor has channel sampled approximately 700m of trenches and road cuttings and 130m of old mine adits with gold intercepts returned along the length of the mineralised corridor
Condor Resources is encouraged by the wide distribution and continuity of gold mineralisation and considers the potential for the discovery of significant lode gold deposits on the Guayape Suture Zone very high. The Potrerillos concessions is well located in the centre of this highly prospective, under-explored metamorphic belt.