Exploration Projects

Volcan's operations are conducted within one of the most important polymethalic regions in the world. The Company is currently developing a significant project and exploration portfolio.

Volcan owns several polymethalic projects at different stages of exploration, which make up a robust portfolio for the sustainability of its operations and exploration in the short, medium and long term.

Location of Major Mineral Properties of the Company

Principal Mining Projects & Prospects

Palma (Zn-Pb-Ag)

Palma is an advanced exploration project with polymethalic mineralization of Zn, Pb, Ag and Cu of VMS (Volcanogenic Massive Sulfide). The mineralization takes place in sedemintary-volcanic rocks of the Casma group (Lower Cretaceus), which is home of the Perubar, Cerro Lindo and Colquisiri deposits.

It is located 60 km southeast of Lima, in the Palma rural center, district of Antioquia, province of Huarochirí, department of Lima, at 1,700 m.a.s.l. Palma counts with 24,900 available hectares of mining concessions, which are 100% owned by Volcan.

During the project's first stage, 17,000 meters of diamond drilling were conducted. The drillings allowed for the estimation of inferred resources and the nature of the mineral, which presents itself in sills, with significant thickness and good rock quality. The mineralization remains open deeply and laterally.

In 2014, considering the results from the exploration and the possibility of further expanding the resource base, a conceptual study of the project was carried out. The results confirmed that the area presents favorable conditions for the developing of a mining project.

During 2015 the exploration was expanded towards the Santa Lidia sector (2.5 km southwest of Palma), which provided evidence for the pressence of massive sulfides on the surface and an exhalative level, which served as guidance for the initital district exploration. This guidance always presents itself consistent above the mineralized sills.

A 7,486 meter diamond drilling was performed with 10 drills, which succesfully confirmed the pressence and persistence of massive sulfides over the 2.5 km, as well as the continuity of the mineralized sills.

This results have generated great expectations to find significant contents of copper and reinforce the geological exploration model. According to said model, we are approaching a potential feeder canal, which could provide an important copper resource, similar to Cerro Lindo.

Zoraida, Yauli Unit (Ag-Pb-Zn)

Located 7 kilometers south of Andaychagua (Yauli UEA), Zoraida is mainly a silver project with lead and zinc content. Given its geological characteristics, it could become the third polymetallic system in the Yauli dome, along with San Cristóbal and Andaychagua. After the identification of a system of veins running parallel to the Andaychagua vein (with lengths ranging from 2 to 3 km), geological mapping of the 5,600 hectares comprised in the project was completed in 2015, and new promising exploration targets were identified.

In 2016, a request for permission (DIA) for the the execution of the drilling program was presented, which is currently awaiting approval by the authorities.

Chumpe, Yauli Unit (Cu)

Chumpe is a porphyry copper prospect located in the Yauli Dome, 20 km southeast of Toromocho. It shares several characteristics with the Toromocho mega-project. In the first half of 2015, specialized mineralogical mapping was completed, and the lithocap or "roof" of a probable porphyry deposit was identified. This lithocap extends over an area of around 1 km. Based on geometrical models of porphyry-lithocaps in various parts of the world, it is expected that porphyry copper mineralization will be found at a depth of less than 500 m. On the basis of the preliminary results, a four-borehole drilling program has been designed, with each borehole being advanced to a depth of 900-1000 meters. Permission for exploration to execute the aforementioned program during 2017 has been requested.

Carhuacayán, Alpamarca Unit (Zn-Pb-Ag)

Carhuacayán is a polymethalic project of zinc, lead and silver, whose mineralization presents itself in veins, gap bodies and replacement sills. The intrusion surfaces when it comes in contact with the limestones of the Jumasha formation, from the Upper Mesozoic age.

It is located in the Santa Bárbara de Carhuacayán district, province of Yauli, deparment of Junín, at an altitude between 4,100 and 4,600 m.a.s.l.

The currently ongoing diamond drilling program was executed in November 2016 after obtaining the environmental permits and social licenses. To date, three 2,452.40 m drillings directed towards the lower extensions of the Calendaria and La Tapda bodies have been executed with successful results.

Rica Cerreña, Cerro de Pasco Unit (Cu)

Located in Cerro de Pasco, inmediately to the northwest of the Raúl Rojas pit, is a porphyry prospect of Cu-(Au) and/or Cu-(Mo). Rica Cerreña is a blind mineralization prospect with a well developed occurence of porphyry lithocap.

Volcan plans tu conduct five 1,000 m diamond drillings and confirm the project's upsides. Permission for the beginning of the program will be requested during 2017.

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