Surupana

SURUPANA PROPERTY OVERVIEW

SURUPANA PROPERTY

3,000+ acres of concessions.
Located in the Azangaro province, Puno department of southern Peru in the silver-rich altiplano region.
To date twelve historical mine workings were identified that focused on high-grade silver, copper and lead mineralization reported.
Q-Gold is in advanced conversations with the Sollocota community that owns the majority of the lands hosting the Surupana concessions – a land use agreement is expected to be signed during Q2 2021.

GEOLOGY

Described by intermediate sulphidation epithermal model, with meaningful potential as bulk tonnage silver and base metal target.

Highlights

Rock sampling returned 96 samples within the Supay Huasi Reconnaissance Area where three short underground adits exploited a metre-scale vertical structure.

Area measures 950m by 800m with coincident surface rock geochemical anomalies, including silver, copper, zinc, arsenic, mercury, antimony and bismuth.

Silver highlights include:

Sample SUR-33 returned 1880 g/t Ag
Sample SUR-04 returned 1460 g/t Ag
Sample SUR-94 returned 1455 g/t Ag
Sample SUR-57 returned 1430 g/t Ag
Sample SUR-81 returned 1050 g/t Ag

A chip sample with a value of 3400 g/t Ag over a width of 0.4 m was reported at the adits of the historical Supay Huasi Silver mine.

Exploration Program

The scope of the exploration activities is to improve Q-Gold´s understanding of mineralization controls within the Surupana Property, identify anomalies and delineate mineralization targets, and complete drilling to confirm the mineralization and to define an initial mineral resource estimate around the Surupana Bowl Zone.

Previous rock sampling indicated a uniform soil geochemistry with moderate Silver and Copper values (below) dispersed across the entire 950m x 850m area, suggesting the potential for a silver and base metal bulk-tonnage exploration target.

2021 Exploration Campaign

Integrate historical data and previous sampling exercises with a focus on historical anomalies;
Conduct initial soil sampling campaign concentrated on the central area (caldera area) that contains the historical workings;
Conduct IP geophysics over the resulting geochemistry anomalies and the caldera area to refine target zones. Goal to cover 4 km².
Conduct diamond drilling to better define the 3D continuity of the geological model with respect to the subtleties of epithermal veins, which are commonly thickening and thinning along strike and dip.

Estimated cost of the Year 1 Campaign is CA$2 million.

Property Location

Favourable logistics: Paved/dirt road access; National airport 100 km south at Juliaca (population: 270,000); 830 km SE of Lima. Elevation: 4,400m to 5,150m.
Open Altiplano pampa grass terrain. Accessible and workable year-round with the Village of San Jose as the closest community.
Proximal to several operating mines, advanced development projects (construction and BFS stage) and advanced exploration that are located along a prominent north-westerly trending regional structure.
Selected regional operations include:
- Corani Mine – Bear Creek*: 277Mt @ 40 g/t Ag, 0..67% Pb & 0.44% Zn (in construction; 90 km northwest of Surupana)
- San Rafael Mine – Minsur*: 19.9Mt @ 1.96% Sn (operating mine; 50 km northwest of Surupana)
- Falchani Mine – Plateau Energy**: 321Mt @ 2753ppm Li (PEA; 90 km northwest of Surupana)

* 2018 resource figures
** 2019 resource figures

Geology in Peruvian Altiplano

The region of the Altiplano host several mines and exploration projects targeting porphyries and epithermal vein deposits as well as skarn and carbon-replacement deposits

ALTIPLANO MINERALISATION

Described by epithermal veins. Surupana Property more specifically; intermediate sulphidation veins.
Appear genetically and spatially linked to deep seated porphyry copper-gold deposits.
High-sulphide deposits are formed similar to low-sulphide deposits, however, at a greater depth and they display slight but significant difference in mineralogy.

Historically, epithermal veins have been mined by underground techniques as miners followed the veins from the surface outcrops to underground. However, modern mining techniques allow most epithermal deposits to be mined using open-cut pit techniques.

Historical Workings

1960s-1980s

Peruvian Surupana Mining Co. carried out small-scale surface pitting and narrow vein-style underground mining; focused on narrow structures hosting high grade silver, copper and lead. Work terminated in 1980s due to the Shining Path guerrilla war.

2007-2010

Solid Mining (private co.) staked ground and completed minor surface rock sampling, geology surveys and data compilation.

2017-2018

Minera Rosetta (private co.) staked concessions and preliminary recon. rock and soil sampling.

Workplan

Exploration Program

Q-Gold’s goal is to extend its understanding of the Surupana Property, identify anomalies and confirm targets, and complete drilling to confirm the mineralization and aim at a first estimate of grade and potential tonnage around the Surupana Bowl Zone.

2020/2021 Exploration Campaign

Integrate historical data and previous sampling exercises with a focus on historical anomalies;
Conduct initial soil sampling campaign concentrated on the central area (caldera area) that contains the historical workings;
Conduct IP geophysics over the resulting geochemistry anomalies and the caldera area to refine target zones. Goal to cover 4 km2.
Conduct diamond drilling to better define the 3D continuity of the geological model with respect to the subtleties of epithermal veins, which are commonly thickening and thinning along strike and dip.

Estimated cost of the Year 1 Campaign is CA$3.5 million.